Installers turning backs on regulation

Fewer and fewer installers are making the financial investment required to design and commission systems that comply with ACPO, DD243 and the latest European regulations. An ever increasing number of installers are simply turning their backs on these regulations, and are looking for alternatives to offer their customers.

The market appears to be dividing: On one hand, high-end security customers are moving away from mass-market alarm systems, towards lower volume bespoke security solutions that not only meet regulatory approval, but combine other systems to provide an integrated security solution. This leaves the mass market of security customers looking for simpler, more affordable, non-regulated alarm systems, that meet their rising expectations as consumers. Over-regulation is providing a golden opportunity for new entrants to come into the security industry, and compete with non-regulated installers and equipment manufacturers for a share of the mass market.

Installers' market eroded
Technology companies such as Microsoft and Cisco are already targeting this market. Their sheer size and scale will allow them to ignore the traditional industry regulations, and so further erode the security installers' market by delivering security applications as part of a larger Home Automation service.

These companies will use their vast resources and marketing experience to sell a security solution to consumers, not as a stand-alone grudge purchase alarm panel, but as an integral part of a larger and more desirable 'lifestyle' product.

For security manufacturers, the risk is that while they focus on compliance, these new technology companies are ignoring the industry regulations, focusing instead on developing products with features that their customers really want. Many security manufacturers have already identified this threat, and are making advanced progress in new technology, with Ethernet capabilities and IP addressable systems as notable recent developments.

While security manufacturers focus on compliance, new technology companies are ignoring regulations and developing products with features their customers really want

It is now time for the industry regulatory bodies to recognise the changing shape of the security market, and to work with installers and equipment manufacturers to develop standards and regulations which are appropriate to today's market.

Let's not create obstacles
The industry needs to work together to find a way in which manufacturers and installers can both compete with, and benefit from, the technology convergence and changing customer demand. Don't let us create ever bigger barriers and obstacles for the industry to have to surmount.

Market specialisations will continue to disappear, as technologies such as CCTV and access control begin to converge with lighting & heating control, audio/visual systems, and the Internet.

Even Intruder Alarm systems in the average domestic property now need to integrate into other building control systems and utilities, so that home owners can remotely monitor and control their security, heating, lighting and more, using the Internet or the mobile phone networks. Thankfully, for the professional installer to become involved in this type of system integration, it does not require a leap of technology advancement … more a leap of faith!

What about those other related industries, that have helped drive the need for security in the minds of consumers? Even such bastions of regulation as the insurance companies will not continue to support the security industry against external forces forever. Driven as much by sales volumes and financial benefits as by compliance to regulation, they will not insist on compliant security systems for their customers, if alternative, reliable, non-regulated systems become available and offer greater market penetration, greater sales volumes, reduced risk, and more profit.

The police should also consider how these new technologies and business practices, currently operating outside the traditional regulations, could bring improvements to key areas of interest, such as the control of false alarm calls.

I see the need for the regulatory bodies to show more innovation and recognition of the changes and benefits that new technology can bring

Private guards as first response
Embracing technology developments, rather than increasing the levels of regulation, could provide the future methods by which such issues are controlled, and so help reduce the demand on police resources.

Thinking in a new way can deliver valuable options for the consumer, giving them more interaction with, and control of, their homes.

This may involve private security response companies partnering directly with the police. By way of example, for the last three years in Salt Lake City, USA, private guarding firms have been the first responders to all burglar alarm calls.

This has had a positive effect; burglaries are down, the number of calls to the police is vastly reduced, and the arrest rate has not been affected. The volume of speech dialler sales in the UK only serves to underline the increase in consumer desire for 'peace of mind' systems that deliver a guaranteed response.

There are many opportunities for the industry to take the right path. Whilst I would not advocate decreasing regulation of the security industry, I see the need for more innovation on behalf of the regulatory bodies, and recognition of the changes and benefits that new technology can bring to the market.

  I would like to see more controlled trials of new technology systems and solutions, to assess what impact they could have on our society.