Many installers think that fire is too hot to handle … but they could be missing out on a potentially huge profit area because of fear. Our new three-part series, by Peter Holmes of Gardiner Security, looks at how installers can make the jump that could transform their business …

I think that most of our customers, like many installers, have ‘dabbled’ in the fire market, although in most cases by default, being asked by a friendly customer to either service, maintain or install a fire alarm system or repair an existing system at premises where they have installed an intruder or security alarm system.

Originally, Gardiner Security played no part in fire either, starting life as ‘just’ an intruder distribution company. As the business grew, however, fire was one of five other disciplines to be added. It has been a tremendous success in helping companies grow their business by offering customers and potential customers a route to the ever growing fire market via training courses, technical and sales support.

In a climate of change within the intruder market, there has never been a better time for security installation companies to grow their business by including fire alarm detection systems, emergency lighting and fire extinguishers in their portfolio. Installation of all or any of them incurs service and maintenance of the system, thereby increasing recurring revenue from maintenance contracts.

When I have spoken to existing fire customers and others who have yet to move into fire, there are questions which between them add up to common reservations … a ‘fear of fire’, in fact.

For example, one concern is that in most cases, at least with intruder alarms you are only protecting personal property. If there is a break-in and property is stolen, it is normally insured. But with fire alarm systems you are protecting lives.

But if you sit and analyse this, an intruder alarm system is designed to detect unauthorised entry to the premises where it is installed, affording protection by a sounder (bells only) and/or remote signals to an alarm receiving centre who in turn notify the police and hopefully scare away the unwanted intruder/s. This affords protection not just to the property and its contents but to the lives of its occupants as well.

A fire alarm detection system is designed to give an early warning on the discovery of fire/smoke to reduce the damage to the property from fire/smoke and effect early evacuation of people in the building, which in turn helps save lives.

It cannot put out fires. But it can be integrated with sprinklers and gas extinguishing systems and the like which can.

Its prime aim is early warning, allowing the fire to be dealt with before it develops and/or aiding evacuation.

Engineers already used to panels

The market is there for you ... all it takes is for you to want it and go out and get it.

With most companies that install cutting edge intruder alarm panels, their engineers are used to programming control panels to dictate what zone does what, when the sounder should sound, full or part guard and so on. In essence they are programming a cause and effect, which is little or no different to the programming of cause and effects of a fire alarm panel.

Here are some of the basic questions installers ask before they decide to get into fire:

Q: How do I get into the fire industry?

A: It is always advisable to put down a business plan based on the size of your company and its financial structure. Each company is different and therefore has different requirements. You need to assess the staffing levels in all your areas and the impact which entering the fire market will have on them and their workload. Think about the training you may require, and if you will have to recruit more staff to cope with the extra work and responsibilities. As with starting in any business, these are questions you must answer before moving forward.

Q: Where is my share going to come from?

A: I would suggest from your own existing database of customers with commercial/industrial premises that have intruder/security installations. These are easy targets as you already have a trading relationship with these companies. You probably have service and maintenance contracts for the intruder/security systems with the majority of these customers, and can target them to be a one-stop shop for all the fire/security services and maintenance requirements.

Electrical contractors are another good source to get fire alarm installation, commissioning, service and maintenance work/contracts from. I am sure you know of at least one or two electrical contractors picking up fire alarm installations. Electrical contractors install around 60 per cent of fire alarm systems, with a large proportion being subcontracted to fire installers.

Traditionally, electrical contractors are not geared up to commission systems or to offer service and maintenance contracts. This is a golden opportunity for intruder/security companies entering the fire industry.

It costs money to put a man in a van (with stock) on the road. It is no coincidence that the larger building service and maintenance companies are training their engineers to multi-task and optimise their return on investment.

Electrical contractors are not geared up to offer service and maintenance contracts. This is a golden opportunity for intruder companies.

Intruder, access control, CCTV, fire, fire extinguishers and emergency lighting all require maintaining, and multi maintenance contracts for single sites give optimum rewards.

The market is there for you …all it takes is for you to want it and go out and get it.

Q: What impact will training have on my business and can I afford it?

A: I cannot emphasise enough the importance of training and the positive impact it will have on your business. This can be demonstrated by the results and financial rewards achieved by companies/engineers attending the Gardiner Security BFPSA training courses and the Gardiner Security key supplier product training courses run by our Fire Division throughout last year.

The first are subsidised in part by us, whilst the Gardiner Security key supplier product training courses are free. The greatest investment from you is the time to attend training courses. But you cannot afford to not have training.

Having successfully run training courses throughout 2004, the data we collated demonstrates the positive impact such training will have on the majority of companies.

In most cases the confidence from knowledge gained through training produces a large increase for these companies (in monetary terms) in the size of quotes and the contracts won (see table below). There is a vastly reduced technical dependency as engineers use their new-found skills.

Along with increased business/installations comes an increase in recurring revenue from maintenance contracts to companies that made the move into fire. What’s more, the training courses run in 2004 were not only attended by companies wanting to get into fire but were also used by existing installers large and small to increase the skills within their own companies.

Include professional indemnity

Along with increased business/installations comes an increase in recurring revenue from maintenance contracts to companies that made the move into fire.

Q: What are the risks and liabilities?

A: With the introduction of BS5839-1:2002 which replaced BS5839-1:1988 and came into force in May 2003, the legal ownership of the designed system is with the designer (the person designing the system), which could be your company or a third party.

It makes sense to include Professional Indemnity to your insurance policy. The consensus of opinion from installers who have moved into fire is that on a 200k turnover, the insurance is around £1500 pa, giving full indemnity and efficacy cover. Obviously each company will have different insurance requirements and I would urge you to contact your own insurance company for a quotation before going ahead.

Q: What restrictions are there for me entering the fire market?

A: At present there is nothing to stop you entering the fire market, however changes to legislation on design, install, commissioning and handover put a greater legal onus on companies working in the industry. The reduction and management of false alarms forms a big part of the CFOA policy on monitored systems. Only companies registered with a UKAS approved organisation such as NSI and SSAIB will be allowed unique register numbers from ARCs.

I fully expect and hope that the market is fully regulated within three to five years.

Next month: In Fear of Fire: Part 2 we look at your first steps in fire installation and how you can develop as a fire installer having made the important first jump.

About the author ...
Peter Holmes has been Product Manager of Gardiner Security’s Fire Division since 2003. He has over 30 years’ experience of working with leading manufacturers in both fire and security. Gardiner Security provides the UK market with a technical fire sales team of eight regional technical/sales managers along with a technical/sales support hotline, all offering support to customers and potential customers. The product range available caters for all types of installation, from simple, entry level systems to intelligent network systems and includes nursecall and emergency lighting.

* Gardiner Security, Transpennine Industrial Estate , Rochdale, OL11 2PX. Tel: 01706 343343.Fax: 01706 646 600. Website: www.gardinersecurity.co.uk Email: enquiries@gardinersecurity.co.uk

We made the jump

Case 1: ‘A natural progression’
The company had flirted with the idea of setting up a fire division for many years in which time a number of small installations followed. However it wasn’t until fire products were purchased from Gardiner Security that the need for specific training became apparent and could be carried out by the Gardiner Security Training Initiatives working in partnership with the BFPSA and their Key Suppliers.

The training courses offered cover training for surveyors, designers and installers ranging from product awareness to adherence to the new British Standard 5839 Pt 1: 2002. All of which were utilised by our company. All the training was carried out on existing staff. There was no need to employ extra personnel who were fire industry specific.

The adaptation to include fire alarms alongside our existing intruder and CCTV business has not been difficult and was a natural progression. Approximately 20 per cent of the company’s turnover is now attributed to fire alarm system installation, maintenance and monitoring, and this is expected to grow in coming years.
Peter Beck, Director of ABM Security

Case 2: ‘Twenty per cent increase’
Increased arson attacks, new regulations and standards have resulted in a noticeable increase in enquiries for fire alarm installations. Our growth of sales in this area has increased by over 20 per cent in the last five years.

Being a NSI gold electronic security system installer, we as a company are aware of the need for new and existing staff to be trained to meet the requirement of the BS5839 Pt 1 : 2002 on design, installation, commissioning and maintenance of fire systems and the importance of the new CFOA policy on false alarm reduction and monitoring of fire system via ARC’s.

This comes into force in April 2005 and is to be phased in over the next two years. Gardiner Security has supplied sales and technical support along with training courses that have been both beneficial and paramount to our growth in the fire market.
John Plumpton, MD of Adept Security Systems Ltd

Case 3: ‘Painless thanks to training’
We as a company took the decision to enhance our well-established intruder and CCTV business to include fire, and although we had limited experience in this market we were aware that if we were to be taken seriously we would have to increase the skills of our existing staff to include fire. With help from the regional fire manager who introduced us to the Gardiner Security training initiatives, we were able to put in place a personal development program for our sales and engineering staff. Staff attended both the BFPSA and the key supplier training courses held throughout 2004. The skills acquired and the confidence of putting these skills into practice have been paramount to the significant growth we have achieved within the fire industry. The step up into fire has been painless for our company thanks to the training and support given us.
Paul Connelly, MD of Connelly Security Systems

Source

Security Installer