SDM - May 2008 - (Page 58)

FIRE ALARM SYSTEMS: STATE OF THE MARKET Dealers Rate the Fire Alarm Market approved and worked on, depending on the size of a project, “The first three months of the year have been pretty strong,” Sturgess admits. Tom Potosnak, vice president of marketing for System Sensor’s U.S. business, System Sensor, St. Charles Ill., concedes, “Obviously, the economic conditions are starting to change overall from a macro Very Good Good 28% perspective. That is going to have an impact on the fire 37% protection market, as it will many others.” Shawn Laskoski, marketing leader for fire and Fair communications at GE Security, Bradenton, Fla., 14% Excellent concedes that even though new construction is Poor 14%* 7% slowing, “we see underlying opportunity for retrofits and upgrades to fill the gap. We still see a very *percentage of respondents to SDM’s 2008 Industry Forecast Study, conducted November 2 nts y 2007 strong market in 2008.” among SDM’s subscribers Potosnak points out that code-driven business, while steady, is not often spectacular. “That’s the Nearly eight in 10 security installation professionals have a positive outlook on the potential for fire alarm sales in 2008, rating market condidownside to the code-driven side of the business,” tions “good” or better. he points out. “Unless there are some dramatic changes in the codes, you’re not going to see masthe business is very good. “What’s a little differ- sive spikes where you get the staggering growth ent about the fire alarm business is it’s mandated,” rates and then similarly staggering drops. So it’s a he points out. “Whether the customer’s business nice steady business.” is growing, if they need to stay in business, they need a fire alarm, so it’s code-driven as opposed to HOT PRODUCTS Like many in the industry, Hendrickson sees desire-driven.” He also notes that testing and inspection business addressable systems as being where the growth is. is necessary. “When it comes to fire protection sys- “I would say conventional fire systems are fairly tems, you have to have service, maintenance and flat to slightly down,” he concedes. “So we see the monitoring,” Maccone adds. “It’s not ‘let’s opt to lion’s share of the growth in the addressable side.” do a fire system;’ it’s mandatory. There’s a different driver there.” DynaFire Inc. employees John Creamer (left), projAlthough Scott Sturgess, director of product ect engineer, and Jack Gondeau, project manager, marketing for intrusion and fire products at ADI, inspect a smoke control panel and a fire alarm Melville, N.Y., says 2007 was very strong, eco- panel in the fire command center of The Vue, a nomic reports are moderating his expectations for 37-story multi-residential high rise in Orlando, Fla. 2008 and 2009. “If you look at new building construction reports for 2007, it was really a lot of residential bad news,” Sturgess concedes. “In 2008, I think it found its way to the commercial side of the business. I’m looking at a report right now that says limited growth is projected over a two-year period in 2008 and 2009. “Our fire alarm sales are very tied into the success of the commercial building market,” he points IntelliKnight(r) 5820XL Fire out. “I think everybody is going to feel the pinch, Alarm Control Panel: and that it will translate into a little softer market 508 Points of Affordable Addressability! in 2008 and 2009 for the fire business. The retrofit market will always remain pretty steady.” Because of a three- to six-month lag between the time that commercial projects are specified, SDM asked dealers and integrators, “Considering the economic health of your business, how would you define the state of the market and the potential for sales in 2008 in the fire alarm market?” PHOTO COURTESY OF DYNAFIRE INC. 58 May 2008

Table of Contents Feed for the Digital Edition of SDM - May 2008

SDM - May 2008 Contents Editor’s Angle Exclusive ISC West Coverage Stanley Convergent’s Newest Acquisition Cisco Introduces New IP Cameras, Expands Physical Security Solution Portfolio Ionit Technologies Partners with Walgreens; Places DVR Systems in Stores Nationwide Pennsylvania-Based Security System Providers Merge Custom Home Electronics Distributor Inks Distribution Agreement Security and the Law Integration Intelligence 18th Annual SDM 100: Double Digits Fire Systems: State of the Market Addressable Fire Control Systems Storage: Where Can We Put All This? Central Station Managed Access Technology at Work 5-Minute Tech Quiz Technology Solutions & Skills Security NetWorkings SDM Marketplace Classifieds

SDM - May 2008

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