Daily Archives: 23/09/2014

BSIA CEO James Kelly promotes security sector’s agenda during political party conference season

With party political conference season now upon us, the British Security Industry Association has been busy championing the views of the private security industry, planning and attending meetings with MPs, Ministers, Peers, Police and Crime Commissioners and representatives of Think Tanks at the Labour Party Conference (currently underway in Manchester) and for the Conservative Party Conference beginning next week.

At the forefront of the British Security Industry Association’s (BSIA) agenda is the ongoing issue of business licensing and regulation, with discussions also set to focus on garnering support for grant funding that will allow businesses to export to growing markets around the world.

Also on the agenda is the BSIA’s latest research into the number and scope of CCTV cameras in the UK and how the Association’s findings relate to the Government’s CCTV Code of Practice.

With such a wide array of meetings planned, the BSIA’s CEO James Kelly will be championing the views of the Association’s members while simultaneously raising awareness among Parliamentarians of the industry and the challenges it currently faces.

In reference to regulation, Kelly commented: “The Government has failed to identify a legislative vehicle by which to enact these changes, in turn placing the original implementation target of 2015 in real jeopardy. As part of the Security Regulation Alliance, the BSIA has been at the heart of these negotiations and still hopes that the industry can achieve clarity on a future regulatory regime within the current Parliament.”

The BSIA will be driving the security industry's key messaging during the party political conference season

The BSIA will be driving the security industry’s key messaging during the party political conference season

Support for the BSIA’s cause has been pledged by members across all parties as well as a significant number of Police and Crime Commissioners, many of whom use private security companies to provide back office support to their police forces, in turn allowing officers to spend more time on front line duties and less time focused on paperwork.

Increased contact with Parliamentarians

This year’s conference season sees the BSIA almost double its contact with Parliamentarians when compared to previous years, with many MPs set to receive their first ever briefing on the work of the BSIA and the industry.

Among those set to meet with James Kelly are Baroness Smith of Basildon, Jack Dromey (Shadow Home Affairs Minister for Private Security), Owen Paterson (Shadow Minister for Policing and previously Secretary of State for Northern Ireland and Secretary of State for the Environment, Food and Rural Affairs) and David T.C. Davies, Chairman of the Welsh Affairs Select Committee.

In addition to meetings with politicians, many discussions have been arranged with Police and Crime Commissioners from across the country. Reflecting on this point, Kelly added: “The standards set and maintained by industry regulation and licensing are key to the ability of police forces across the UK to place their trust in private security suppliers. It’s essential that the future regulatory regime continues to provide this element of reassurance.”

James Kelly: CEO at the BSIA

James Kelly: CEO at the BSIA

This message will be enforced when meeting with PCCs to ensure that the partnerships between BSIA member companies and various police forces are actively promoted for the benefits they undoubtedly realise.

In conclusion, James Kelly explained: “With the 2015 General Election just around the corner, it’s important that the BSIA continues to engage with all parties to ensure that our industry is fully represented in the crucial policy development period running up to the vote. The BSIA is extremely proud of its role as the voice of the UK’s private security industry, and we’re looking forward to building upon our success at conference by actively representing our members’ needs.”

To find out more about the BSIA’s political work and lobbying visit: http://www.bsia.co.uk or follow the Public Affairs Team on twitter via: @bsiapolitics

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IHS Research Note: $120 billion physical security industry continues to grow

In the latest Research Note from IHS, David Green (senior analyst for video surveillance and security services) provides a detailed and timely appraisal of the overall physical security equipment and services market.

The IHS report entitled ‘Physical Security Equipment and Services: 2014’ combines annual product revenues for the following equipment types: video surveillance, access control, intruder alarms, perimeter security, entrance control (pedestrian and vehicle), consumer video surveillance, thermal cameras and wireless infrastructure as well as service revenues assigned to Video Surveillance as a Service (VSaaS), Access Control as a Service (ACaaS), remote monitoring services and security systems integration.

According to IHS, strong market demand in an increasingly competitive physical security equipment and services industry is still driving overall revenue growth in all global regions.

Key findings of the latest IHS report are as follows:
• The market reached $120 billion in revenue during 2013, representing a 10.8% increase in market size compared to 2012
• The USA remains the largest country for spend with over $6.5 billion allocated solely on equipment, although China is edging closer to the Number One ranking each year
• One in every $5 spent on physical security equipment in Asia is for a Government building, not including other state-led facilities and installations such as airports or infrastructure
• On a global basis, no single company holds a market share greater than 5% for the physical security equipment and services sector

As global economic conditions continue to improve and budgets slowly increase, the physical security industry continues to perform strongly across the world. Growth in the number of projects employing different types of physical security equipment as a single solution is also increasing, often managed through the same platform.

Strong market demand in an increasingly competitive physical security equipment and services industry is still driving overall revenue growth in all global regions

Strong market demand in an increasingly competitive physical security equipment and services industry is still driving overall revenue growth in all global regions

Regional variations to be observed

Service-based offerings are proving popular in the American market as manufacturers and service providers look to bridge the gap between consumer-style business models and professional standard services.

Markets such as VSaaS or ACaaS only account for a small proportion of total revenues right now, but are expected to see some of the highest growth rates over the next five years.

IHS already sees this convergence in the supply market as well, with telecommunications companies now taking a greater interest in the security sector.

The EMEA market is much more evenly spread across all equipment and service types although it shares more similarities with the American market than with Asia. Equipment spending is particularly spread across different technology types. For example, entrance control accounts for almost 25% of all physical security equipment revenue which is higher than for any other region.

Asia remains the fastest-growing market in the world and has very different end user patterns and requirements. The equipment market in particular exhibits a strong focus on video surveillance, wherein 17% of all revenue spent on physical security equipment and services in China during 2013 was on just that (and often originating through larger Government-funded schemes or projects).

Recognising a competitive environment

While global revenues for physical security equipment and services continue to increase, any expectations that the security industry supply market would start to consolidate appear premature.

The Top 15 manufacturers and service providers accounted for only 22% of the global market in 2013 (a decrease of 3% on just 12 months earlier). Furthermore, no single company can boast a market share above 5%, in turn proving the fragmented nature of this growing industry and the high levels of competition.

One developing trend in this competitive environment is the rise of Asian-based manufacturers gaining market share outside of their domestic markets. In 2013, four of the Top 10 equipment manufacturers globally were based in Asia.

Companies that have performed strongly in their domestic market and have improved product quality are now starting to expand into new markets. This is a trend that IHS expects to continue and one which will drive increased price pressure in the American and EMEA markets over the next few years.

However, any price pressures are not currently strong enough to outweigh the increases in general market demand. This means that the overall market for physical security equipment and services is expected to continue with strong growth for the foreseeable future.

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