SSI May 2012

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ISSUE

THE

MARKETLatest Data & Opportunities

TRENDSCO Detection Demand Rises

PRODUCTSSystems That

Meet Any Need

SALESLeverage Compliance

& Risk Reduction

TECHNOLOGYInnovations

Abound

ISC WEST 2012 WRAP-UP

NFPA EXPO SHOW

EDITION

« «

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2 / SECURITYSALES.COM / MAY 2012

CONTENTS

COLUMNS 8 BETWEEN US PROS WITH SCOTT GOLDFINE

Here are 10 insights on how to grow your video profi ts.

10 ADVISORY BOARD FORUM WITH SANDRA JONESHow security is being sold, accepted and budgeted as a management tool.

22 CONVERGENCE CHANNEL WITH PAUL BOUCHERLEWhen creating a strategic selling program for national ac-counts makes sense.

26 TECH TALK WITH BOB DOLPHWhy government regulations can sometimes help simplify security systems.

30 MONITORING MATTERS WITH KEVIN LEHANAdding A/V systems to your portfolio can help fend off new competitors.

70 THE BIG IDEA WITH RON DAVISYou may have your ears to the ground, but do you keep an open mind?

72 LEGAL BRIEFING WITH KEN KIRSCHENBAUMExplaining the importance of errors and omission insurance.

DEPARTMENTS 4 SECURITY EXCHANGE 13 INDUSTRY PULSE 64 BUILDING YOUR BUSINESS66 AD INDEX68 MARKETPLACE

SPECIAL FIRE SECTION32 ADVANCING LIFE-SAFETY IN THE HOME

A look at residential fi re sprinkler and false fi re alarm activity trends off er installing system contractors insights on the latest developments driving the marketplace. SSI’s annual report also provides legislative and code updates for carbon monoxide detection. by RODNEY BOSCH

40 ADVANCES SPARK NEW AGE OF FIRE SAFETY While the controlled use of fi re predates written history,

it has taken humans until modern times to nearly master its deadly capabilities. Th ankfully today, an array of detection technologies has drastically reduced the threat to lives and property as the result of fi re, smoke and gases. Get up to speed on the latest fi re safety innovations. by RON OUIMETTE

46 FIRE SALE End users typically view fi re/life-safety systems as

expenditures they would prefer to avoid rather than an investment paying dividends across the organization. Open C-level decision makers’ eyes to show them how today’s solutions not only protect people, assets and facilities, but also ensure compliance, mitigate risk and lend peace of mind. by MIKE DOWLING

52 PROTECTING CRITICAL INFRASTRUCTURE FROM FIRE PERIL

After years of struggling with its outdated fi re alarm system, a 450,000-square-foot facility containing critical infrastructure and telecom equipment required an upgrade. A local integrator helped deploy an advanced, fi ve-node fi re protection system with expandable, cost-eff ective networking capabilities. by THE EDITORS OF SECURITY SALES & INTEGRATION

58 FIRE SIDE CHAT: STOPPING A SILENT KILLER Carbon monoxide (CO) detection is increasingly being

mandated by more and more localities, meaning safer buildings and growing opportunities for installing security and fi re systems providers. Learn important defi nitions and monitoring practices. by SHANE CLARY

60 ESSENTIAL FIRE/LIFE-SAFETY PRODUCTS New solutions to meet your market needs.

ON THE COVERCover illustration by

AJAY PECKHAM

May 2012 Vol. 34, No. 5

32 46 13


IIISISSISSSISSSSSSSSSUSUSUSUSUSUSUSUSUSUSUUUSUSUSUUSUEEEEEEEEEEEEEEE

THETHEH

MARKETLatest Data & Opportunities

TRENDSCO Detection Demand Rises

PRODUCTSSystems That

Meet Any Need

SALESLeverage Compliance

& Risk Reduction

TECHNOLOGYInnovations

Abound

ISC WESTSC WESTSC WESTC WEST 2012 WR012 WWR112 AP-UPAP-UPAP-UPAPAAP-UPP

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EEEEEDDDDDIDIDIITITITITTTTITIOTIIOIOONIONONNNNNEEDDDDDIITIITTITIEEDEDDDD TEEED IOEDDDDDI OE ONE NTIEDDIT NEDITIONEDITIONEDITIONEDITIONEDITIONEDITIONEDITION

« «

SSI’s annual Fire Market Report offers the latest statistics and delves into false alarm activity, residential fire sprinklers, among other subject matter pinpointing key trends and prospects in the marketplace. — SEE PAGE 32

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Where can you hear the honest, off-the-cuff comments and keen insights from the electronic security industry’s most highly respected and successful executives? In the Podcasts section of SSI’s Web

site where you will find dozens of installments of the recently launched “Security Speaking” program. Hosted by Editor-in-Chief Scott Goldfine, each week features a frank discussion covering the trends, issues, opportunities, challenges, technologies and more affecting today’s electronic security industry professional. Re-cent editions include ADS Security President and COO John Cerasuolo discussing portfolio expansion into new technologies/services such as managed access, remote video,

PERs and identify theft; SafeMart CEO Chris Johnson explaining where his direct sales model fits into the industry picture; Tammee Thompson, vice president and general manager of Johnson Con-trols’ Global Security and Fire unit, details JCI’s holistic, total systems approach; and Vivint CEO Todd Pedersen shares his aggressive vision to attain residential market share. That’s just a glimpse into the wealth of enlightening and entertaining listening to be had via “Security Speaking.”

SECURITY SPEAKING PODCASTS / securitysales.com/podcasts.aspx

WEB-O-METER

SECURITY SCANNER® WEB POLL

BLOGS

5 most-viewed news stories during March

www.securitysales.com/blog

Log onto securitysales.com to view SSI’s Security Scanner archives as well as cast your vote for the May poll: What does ‘the cloud’ mean to me and/or my company?

Some of the things we’re talking about … Why Most Successful Managers Support Mentoring Addressing an Alarm Company’s Name Change in Contracts How Women Can Advance in the Security Industry Saving on Support Software — Redux Part 1 Should Companies Include Regular Alarm Testing in a Service Contract?

Engage in the conversation!

Get free info about companies and products featured in this issue of SECURITY SALES & INTEGRATION.

For the latest news as it happens, sign up for SSI’s eControl Panel at www.securitysales.com

SSI Spotlights Sales & Marketing Best Practices at 17th Annual SAMMY Awards

Devcon Security Names Hafen as CEO, Replaces Ginsburg

Indicted AlarmBrokers’ Contracts Up for Sale

Startup SystemsIntegration FirmAcquires SecureNet

Customer Complaints Force Pinnacle to Reform Business Practices

SSI’s research projects often indicate finding trained technicians is a leading industry challenge and the results of March’s Security Scanner Web poll bears that out. Technical was cited by a commanding margin as the most pressing training/educational need, and it also tied for the second-leading response. Sales skills and knowledge was next in line as it was identified as No. 2 in the top answer choice and first in the second response. It is worth considering that the fact that most respondents were likely managers themselves and therefore potentially less likely to see their own shortcomings.

Have You Checked Out …

2 43 5

FREE INFO

eCONTROL PANEL

www.securitysales.com/freeinfo

securitysales.com

Publisher Peggy Onstad: (949) 305-5541

Editor-in-Chief Scott Goldfine: (704) 663-7125114 Chatworth LaneMooresville, NC 28117Fax: (704) 663-7145

Managing Editor Rodney Bosch: (310) 533-2426

Associate Editor Ashley Willis: (310) 533-2419

Contributing Writers Paul Boucherle, Shane Clary, Ron Davis, Bob Dolph, Peter Giacalone, Jay Hauhn, Ken Kirschenbaum, Bob Wimmer, Jeffrey Zwirn

Art Director Ajay Peckham Sr. Production Manager Sarah Paredes: (310) 533-2497Administrative Assistant Abril Calderon: (310) 533-2413Audience Marketing Manager Katie Fillingame

Staff E-mail addresses are [email protected] (e.g. [email protected]) Contributors‘ E-mail addresses are [email protected].

HOW TO CONTACT ADVERTISING & MARKETING

Classified-MarketPlace AdsPeggy Onstad: (949) 305-5541

EDITORIAL ADVISORY BOARDEd Bonifas Alarm Detection Systems, Aurora, Ill.Bill Bozeman PSA Security Network, Westminster, Colo.Shandon Harbour SDA Security, San Diego Jim Henry Henry Bros. Electronics, Fair Lawn, N.J. Michael Jagger Provident Security, Vancouver, British Columbia, CanadaJohn Jennings Safeguard Security and Communications, Scottsdale, Ariz.Sandy Jones Sandra Jones and Co., Chardon, OhioJ. Matthew Ladd The Protection Bureau, Exton, Pa.Mike Miller Moon Security Service, Pasco, Wash.Joe Nuccio ASG Security, Beltsville, Md.Alan L. Pepper Mitchell, Silberberg & Knupp LLP, Los AngelesEric Yunag Dakota Security Systems, Sioux Falls, S.D.

HOW TO GET YOUR NEWS TO USE-mail: [email protected]: 3520 Challenger St., Torrance, CA 90503Fax: (310) 533-2502

FOR SUBSCRIPTION INQUIRIES(888) 239-2455

BOBIT BUSINESS MEDIAEdward J. Bobit, ChairmanTy F. Bobit, President & CEO

Printed in USA

ADVERTISING SALES TERRITORIES

WEST Dynise Plaisance

3520 Challenger St. Torrance, CA 90503(760) 519-5541Fax: (310) 533-2502

EAST Peggy Onstad

3520 Challenger St. Torrance, CA 90503(949) 305-5541Fax: (949) 305-5549

Winner • 2005Finalist • 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010

Wh h th h t

32%

1) Technical2) Sales3) Management

9%

1) Management2) Technical3) Sales

14%

1) Management2) Sales3) Technical

9%

1) Sales2) Technical3) Management

18%

1) Sales2) Management3) Technical

18%

1) Technical2) Management3) Sales

SecurityExchangeWeb Watch

Looking at management, sales and technical expertise, how would you rank your company’s most pressing training/education needs?

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http://www.securitysales.com/blog

http://www.securitysales.com/freeinfo

http://www.securitysales.com




W

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New Caveat: Seller Beware As the seller of a company (in 2007), I

wanted to respond to Ken Kirschenbaum’s

Laying Down the Law blog, “What Should

Sellers Look for in an Asset Purchase

Agreement?” (securitysales.com/

layingdownthelaw_07112011). I had

my attorney write up the contract. After

thousands of dollars and many meetings we

had an agreement both parties agreed to.

After three years, the buyer stopped paying.

My attorney said even though we had an

“iron-clad” agreement I might not get my

money. Th ey wanted a $20,000 retainer

to litigate. Long story short, even with an

agreement you will not have any recourse

to collect if the buyer does not pay. At best,

you could win in court and still not get paid.

Meanwhile, the attorneys get paid up front.

Jon Boyce

Getting Ahead in the ‘Cloud’Regarding Peter Giacalone’s January 2012

Central Station Corner blog (“Gaining an

Appreciation for Cloud-Based Monitoring”

at securitysales.com/blog), this isn’t a pipe-

dream. I have seen when smaller centers

cannot aff ord a world-class environment

so instead use a hosted and partitioned

platform. When a smaller center really looks

at it objectively, it’s hard to justify all it really

takes to run a top-notch facility, especially a

contract center where you have to support

every kind of technology out there. In the

hosted application this allows the smaller

center to have all the bells and whistles, and

also allows the larger entity to have a better

economy of scale. And it’s not limited to just

monitoring. Back-offi ce, technical support,

remote programming, service dispatching,

billing and collections all can be done as a

hosted or contracted model.

Morgan Hertel

Sharing Troubleshooting TipsTh e Fire Side Chat “Finding Faults

in Fire Systems” [securitysales.com/

fi reside09012010] provides good

troubleshooting. Direct shorts to ground

are usually easier to isolate than a ground

fault on the device side of an addressable

module. One of the hardest to locate is a

faulty device that only goes to ground when

power is applied.

If you have to locate a fault without help,

the use of a tone generator and pick-up can

be very eff ective for following the correct loop

on a multiloop addressable or conventional

fi re system. Also, when you attach a tone

generator to an unpowered ground faulted

wire (direct short to ground) and a known

ground the short circuit will shunt the tone.

I have located ground faults by discon-

necting the grounded circuit at the panel

and connecting the tone generator wires

to the grounded loop wire and a known

ground. When the devices are bumped or

removed and the fault clears, the ground

will open and you will hear the tone on

the pick-up at the device. You can do these

loop-tracing and fault-seeking operations

simultaneously by using a combination of

slow pulse and fast pulse tone generators

on the faulted and normal conductors.

Splitting the loop defi nitely helps pinpoint

the problem.

J. Dietzel



www.securitysales.com/freeinfo/14193www.securitysales.com/freeinfo/15193





6. Extend the platform — Standards such as those from

ONVIF, PSIA and SIA and open protocols are facilitating seam-

less and extensive integration of surveillance with access con-

trol, intrusion/fi re detection, HVAC/building controls, and

more; video management systems (VMS) and physical security

information management (PSIM) are tying it together for great-

er situational awareness.

7. Ensure profi tability — Sell solutions and recurring reve-

nue services rather than products (smarts, not parts) marked by

value-adds wherever you can create them with specialized ex-

pertise a leading diff erentiator, along with the tactic of blended

margins in which higher margin goods are coupled with low-

er margin items to off set commoditization; also deploy mainte-

nance contracts and look out for ancillary off erings.

8. Be a facilitator — Help clients easily migrate to net-

worked video incrementally with analog-to-digital encoders,

DVRs to NVRs, cameras with both analog and digital outputs,

standard IP cameras to megapixel, behind-the-scenes com-

mand center changes, etc.

9. Be the wiser — Knowledge is power and being educat-

ed on leading-edge video technologies is essential, but equal-

ly critical is being able to train end users to properly implement

these solutions.

10. Manage expectations — Despite the amazing results net-

worked video can achieve, end users are not always realistic

(thank, Hollywood!), so underpromise and overdeliver is the

maxim here; clear and frequent communication is key.

While the transition from analog to

IP video has put more pep in the

step of most systems integrators

it has not been without its stum-

bling blocks. I am speaking of opportunities like system sales,

upgrades and maintenance versus challenges like learning new

technologies, interfacing with IT departments and contend-

ing with an ever-widening range of competitors. Solving the lat-

ter to maximize the huge upside of the former took center stage

during the recent presentation I moderated, “Th e New Video

Surveillance Business: How to Generate Profi t on Servers, Stor-

age & Video Management.”

Th e session — held at both ISC West in Las Vegas and PSA-

TEC in Denver — featured Bob Banerjee, senior director of

training & development for NICE Systems; Tim Brooks, region-

al sales manager for PSA Security Network; and Chris Peckham,

senior vice president and CTO for Kratos | HBE. Following is a

top 10 summary, in random order, of takeaways I encourage

you to incorporate into your business to help you master the se-

curity industry’s most prominent sector (20% of revenues by

type of business, SSI’s 2011 Installation Business Report).

1. Be an advisor — Approach your client’s business as if it

were your own by serving as an unbiased consultant and as-

sessing all the needs, resources, limitations and nuances to rec-

ommend what is truly in that enterprise’s best interests; be-

come a trusted partner.

2. Speak IT — With security solutions now residing on net-

works, it is imperative to both understand the technology as

well as the language and needs of end-user IT managers who

are increasingly infl uencing decisions that had been the do-

main of security directors or facility personnel.

3. Mitigate risk — Find out what threats your client’s man-

agement is most concerned about and leverage the power of IP

video surveillance to eliminate or reduce those factors; estab-

lish a safer environment and deliver peace of mind.

4. Stress effi ciencies — Win over C-level decision makers

by appealing to bottom-line sensibilities and highlighting the

many ways networked video can be extended to other areas

and operations beyond security; this helps justify total cost of

ownership (TCO) and return on investment (ROI) metrics, and

builds a “sticky,” long-term relationship with the customer.

5. Tout technology — Networked video is a gateway that

opens the way to advanced capabilities via products and soft-

ware like megapixel cameras, analytics/forensics, mobile de-

vice/remote viewing, edge processing, off -site storage, cloud-

based services (VSaaS), and more.

10 GUIDEPOSTS TO GREATER VIDEO PROFITS by Scott Goldfine

Editor-in-Chief Scott Goldfine has spent more than 13 years with SECURITY SALES & INTEGRATION.

Between Us Pros

Win over C-level decision makers by appealing to bottom-line sensibilities with the many ways networked video can extend to operations beyond security; this helps justify TCO and ROI metrics, and builds “sticky,” long-term relationships.

[email protected]

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nesses. Security company owners have become better managers

focused on profi tability and value creation. While they still have

to perform magic by blending technologies, they now also de-

vote more of their time to refi ning business plans to reduce attri-

tion, create unique service off erings and make their businesses

more resilient to the peaks and valleys of an uncertain economy.

Nowhere is this more evident than in some of the transac-

tions, due diligence and research we have recently conducted.

Here are four key trends:

No 1 Security is no longer a grudge purchase but an

investment end users are willing to make for better business

profi ts and customer service.

No 2 Traditional systems integrators are learning and leveraging IT, enabling them to shift to adding several forms of

recurring revenue. An increasing percentage of their business-

es are no longer being measured in EBITA but in RMR. Th is im-

proves cash fl ow and operations, plus increases their valuation.

No 3 The channel is partnering to increase profi ts, create effi ciencies and deliver better results to the end user. Not

all activity in the industry is through transactions; customers

are getting better results through suppliers partnering with one

another to provide a truly integrated vs. disparate system.

No 4 Security is an IT business. In 2010, more than 60%

of the largest traditional systems integrators incorporated IP

technology. If you attended ISC West, you know that tradition-

al distributors and early entrants like ScanSource and Anixter

have been joined by CSC Supply and Ingram Micro.

While there is change at the technology, transaction and

channel level, nowhere is it as profound as at the customer lev-

el. I recently visited with Microsoft CSO Mike Howard and his

technology-savvy team. Th ey are the new breed of security

managers because in addition to security their responsibility is

focused on their organization’s bottom line. Mike and his team

have leveraged the cloud and partners to provide effi ciency

and safety for his organization and staff all over the globe. Th eir

Global Security Operation Centers (GSOCs) are as advanced

and effi cient as any ops center I’ve seen.

Th e transformation of the industry is far from over because

strategic buyers and private equity fi rms will be seeking more IT,

guard and communication companies for transactions of scale.

Not everyone is changing or has to, but for those of you who are

or aspire to be industry leaders, we have fi nally made security

an operations and information management business.

Access control has moved to identity management and is still

evolving toward payment solutions and management. Video

has shifted from just providing evidence to business and infor-

mation management. Guarding has shifted to visitor and em-

ployee management; distribution to material management; in-

tercom to emergency management; and, well you get the idea.

Th e wheels are fully in motion to make the transition.

Not only has the security market moved to adding value to

customers’ organizations but also to refi ning their own busi-

istorically, security was of-

ten undervalued by end us-

ers as it was an expenditure

that was rarely needed or

used. Th ere was no compel-

ling argument to invest in

security, but that is fi nally changing. I’m not sure

exactly when it will happen, but I think we are

rapidly approaching a tipping point in the security

industry. Security is fi nally being sold, accepted

and budgeted as a management tool. And like any

good business software or communications tech-

nology, it is an investment management values as

it allows them to focus on their core business and

bottom line.

4 TRENDS SET TO TRANSFORM SECURITY PROPOSITION by Sandra Jones

Sandra Jones is principal of Sandra Jones and Co. (sjandco.com), a security industry resource and consulting firm.

Advisory Board Forum

Not only has the security market moved to adding value to customers’ organizations but also to refining their own businesses. Security company owners have become better managers focused on profitability and value creation.

[email protected]

H

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People expect more from technology today — or

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MAY 2012 / SECURITYSALES.COM / 13

INDUSTRY’S MARCH TO THE CLOUD MANIFESTS AT ISC WEST

Industry Pulse

LAS VEGAS — For a good many

attendees to ISC West 2012 —

integrators, consultants, suppliers

and end users alike — you might

say they had their collective

head in the cloud.

As industry

stakeholders continue

to break away from a

legacy-centric mindset,

an increasing emphasis

is being placed on physical

security systems that deliver

cost savings and create newfound

value by leveraging the cloud. Th is

burgeoning trend was repeated

throughout the conference,

held here March 28-30, during

industry panels, educational

sessions and by numerous

marketers across the show fl oor.

As explained at the State of

the Industry panel, applications

leading the way in this new value-

add realm are video storage as a

service (VSaaS), as well as hosted

video management systems

(VMS), which enhance solutions

designed for end users with

large, multisite footprints. ID

credentials stored in the cloud to

better facilitate managed access

control services is yet another

example.

Panelist Gary Wong, a senior

analyst at IMS Research, told

a packed audience that VSaaS

revenues are projected to

surpass $1 billion by 2016. Much

of the growth is being fueled

by increased deployment of

networked cameras. Th e great

opportunity for the industry is

to use these IP-based systems,

coupled with analytics, as ROI-

generating business intelligence

tools, according to the panelists,

which included Mike Faddis,

group program manager at

Microsoft Global Security; Jason

Bohrer, senior vice president of

managed services at HID Global;

Francis D’Addario, emeritus

faculty leader of the Security

Executive Council; and Bill Taylor, vice chairman of the

Security Industry Association (SIA).

“You have to introduce new revenue streams, not

only security and threat types, but turn the camera into

data collection units for more than just security,”

said Taylor, who moderated the panel. No longer

are physical security applications solely about

helping the end customer “catch the bad guy,”

he said. Th e marketplace has evolved where

service organizations can maximize returns

by providing “good guy applications that help

business.”

Among other sessions geared toward marketplace

opportunities, attendees to the Siemens Security

Leadership Summit were presented with techniques

to improve their business leadership skills. Included

was a keynote address by Gen. Stanley McChrystal,

former commander of U.S. and international forces in

Afghanistan. To be an eff ective leader, McChrystal said

it is critical not to be averse to change. Among other

insights, McChrystal said top managers should always

make a point of appropriately acknowledging their

workers’ ideas and eff orts. Not doing so could potentially

stifl e their growth and willingness to share ideas that

ultimately could help the business prosper.

“How many times have you written a great E-mail

to your boss and you mentioned the problem,

presented a background solution and off ered your

recommendation?” he said. “You probably had someone

else read it and you felt great about it. You hit send, and

what do you get back? Just, ‘OK.’ ”

ISC West producer Reed Exhibitions announced

that attendance to this year’s conference increased

10% over the prior year. Also, more than 10% of the

turnout was international,

with security professionals

from Canada representing the

largest amount of participation,

followed by Mexico, Brazil,

Korea and Australia. Attendees

fi lled the show fl oor aisles

throughout the conference

to peruse more than 10,000

products from 900-plus

exhibiting companies.

Each year ISC West serves

as a platform for companies

to announce organizational

maneuverings, product

announcements, industry

prognoses, among other

goings on. SSI editors were in

the thick of it all. See page 14

for more ISC West news. Also,

check out securitysales.com/

ISCWest2012 for complete

coverage, including podcasts,

photos and more.

SSI also hosted its annual

SAMMY Awards and the

SSI Hall of Fame induction

ceremony on the eve of ISC.

Be sure to see which installing

security contractors took home

sales & marketing, business

and installation honors, with

detailed coverage to come in

the June and July issues.

ISC West 2012 attracted throngs of industry stakeholders, who perused thousands of products and services from more than 900 exhibiting companies.

Phot

o: C

ourt

esy

Exac

q Te

chno

logi

es

IN DEPTH

ss0512pulse_isc2.indd 13ss0512pulse_isc2.indd 13 4/26/12 2:53 PM4/26/12 2:53 PM


ISC WEST ROUNDUPIndustry Pulse

ADT COMMERCIAL UNIT TO REBRAND AS TYCO INTEGRATED SECURITY

Axis Introduces ‘Smallest Video Re-corder’ at ISC West LAS VEGAS — Axis Communica-

tions unveiled several new prod-

ucts at ISC West, including the

Axis Companion Camera system,

which the company billed as the

industry’s smallest video recorder.

Despite IP video’s signifi cant

market penetration, analog vid-

eo still represents roughly 70%

of the video surveillance market,

according to Axis General Man-

ager Fredrik Nilsson. With that

statistic in mind, Axis engineers

created the Companion system,

which allows security dealers to

install a four-camera system for

less than $1,000.

“More than half of the market,

such as retail stores like 7-Elev-

en, uses smaller systems,” Nilsson

said. “Th e reason for that is there

is a perceived cost advantage and

sometimes it is a real cost advan-

tage. Th ere is also the ease of the

install and the ease of use for those

systems.”

Th e new camera system is built

around edge storage; all recording

is done on a SD card in each cam-

era, thereby eliminating the need

for a centralized recording unit.

“Instead of creating a smaller,

cheaper encoder, our engineers

actually got rid of the recorder in

the system,” Nilsson said.

Biometrics Provider Honored for ‘Best New Product’MorphoTrak Inc. received top

honors at the New Product

Showcase (NPS) hosted by the

Security Industry Association

(SIA) at ISC West, earning the

Best New Product Award.

Th e fi rm won for its

MorphoAccess VP product,

which is a physical access

control reader that integrates

multimodal fi nger vein

and fi ngerprint biometric

technology into a single

sensor and device. Th e device

is said to reduce installation

costs, while increasing

security levels.

Th e Siqura BC620WDR

from TKH Security Solutions

received the Judges’ Choice

Award. Th e network box cam-

era is credited with provid-

ing superior performance and

wide dynamic range (WDR)

under all lighting conditions.

More than 70 products and

services were entered into

this year’s NPS. Th ere were 21

categories represented dur-

ing the ceremony. Th e judges

also presented fi ve honorable

mention awards. To view the

entire list of NPS winners, visit

securitysales.com/NPS2012.

A large group of dancers performed during ISC West to pro-mote Mission 500’s new theme song, “One Child At A Time.”

Mission 500 Song Raises Awareness for Children in CrisisMission 500, the nonprofi t security industry initiative to help children in crisis, premiered its newly created theme song, “One Child at a Time,” in front of thou-sands of industry professionals at ISC West.

To showcase the upbeat song, exhibitors and at-tendees volunteering for Mission 500 joined Las Vegas dancers to stage choreographed presentations “fl ash mob”-style on the show fl oor and elsewhere. The track was donated, written and produced by Boca Raton musician Rick Krive, and performed by Tomey Sellars.

“The song is a memorable way to remind people of the importance of giving to this lifesaving organiza-tion, and … to expand our reach to the industry and help us ultimately save lives one child at a time,” said George Fletcher, a co-founder of Mission 500.

Tyco Int’l will retire the ADT brand as

part of its North America commercial

security business and instead rename

it Tyco Integrated Security. Th e name

change will formally begin June 30.

Tyco announced the name change

on the fi rst day at ISC West as the global

conglomerate continues to reorganize

into three publicly traded companies.

Th e North American residential security

business will continue to operate as ADT.

Th e commercial and residential security

business will also retain the ADT brand in

overseas markets.

“Commercial enterprises have

diff erent, more complex needs from

homes and small businesses, and

this name change, from ADT North

America Commercial Security to Tyco

Integrated Security, is representative of

our continued focus and commitment

to the commercial market,” said Brian

McDonald, COO, Tyco Fire & Security.

Th e rebranded company will continue

to invest in solutions and services,

leveraging the global resources of

the new standalone Fire & Security

company that will result from the

separation, according to Tyco.

Th e reorganization is expected to be

completed by the end of September.

Following the split, the three

independent companies will include the

fl ow control business; ADT Residential;

and the commercial fi re and security

business.

FIND IT ON THE WEBYou can listen to the song at securitysales.com/Mission500song.

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Belbina: From a systems integrator

standpoint or the general contractor,

they’re really shifting the way they go

to market. You hear about these terms,

IPDs, integrated product deliveries, and

so forth. Schneider is at the forefront of

making sure we get these total integrat-

ed solutions that we’re off ering to the

marketplace to the integrators.

If you talk about building perfor-

mance, for example, people are now

looking at security beyond just access

control, beyond the card readers. ‘Can

I use the motion sensors for something

else? Can I use my card reader for

controlling the heat and ventilation?’

We’ve seen this especially from end

users who are really focused on energy

management; they want to link security

and energy together. Th at’s the role

Schneider is playing. We are going to

systems integrators and off ering them

what we call end-to-end solutions. Th ey

don’t necessarily come to us and buy

everything from us, but they also have

the fl exibility to do these integrations

with other third-party systems.

What is the status of analog? Is it still

growing incrementally or is it tapering

off quite a bit?

Belbina: We’re seeing it as a tapering,

but for us the long-term strategy is really

to become an IP company. Th at’s what

we’ve been doing for the last few years.

I’m pleased to say that this year we’re

probably going to see Pelco shifting

more toward IP than analog in terms of

percentage. Th e analog is tapering over-

all in the marketplace. For us it’s fl at. It’s

not declining, which is good news for us,

but it’s also not growing because that’s

part of our strategy. As far as the growth

for IP, it’s been pretty phenomenal for us.

How are Schneider Electric’s many

business units brought together to the

SCHNEIDER ELECTRIC STRATEGIES AND MARKET MANEUVERINGS HOT SEAT

[ left ]SAM BELBINAVice President, Security & VideoSchneider Electric

[ right ]KEVIN McCAUGHEYVice President, Security SolutionsSchneider Electric

advantage of security integrators?

McCaughey: In terms of our system in-

tegrator partners in the marketplace, all

of those other products that come from

the other business units of Schneider

Electric are available to those channels

today. A couple of years ago Schneider

Electric embarked on an aggressive pro-

gram to throw one roof over the whole

house, rather than have a lot of separate

business units, and try to establish an

identity in our channels as well as in the

end-user market. Along with that came

sales eff orts — sales teams and the dif-

ferent [business units] working together

to go out to the marketplace to increase

the accessibility to system integrators

and to end users to the full breadth of

Schneider products.

SSI caught up with a pair of Schneider Electric executives at ISC West to discuss the firm’s technology offerings, including the Pelco video brand, as well as its topmost objectives in the electronic security marketplace. Joining the conversation is Sam Belbina, who serves as vice president, Security & Video; and Kevin McCaughey, vice president, Security Solutions.

Industry Pulse

ss0512hotseat.indd 16ss0512hotseat.indd 16 4/26/12 4:24 PM4/26/12 4:24 PM

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industry gets help from the Pelco brand

and vice versa because we talk about

integration. You asked the question

about our other products and services

from the rest of Schneider that are avail-

able to system integrators or end users

in the security space, and the answer is,

yes, for sure they are. Th at’s why it’s im-

portant to establish the Schneider brand

in the security space as well, because

more and more we’re fi nding end users’

primary concern often is security, but

that’s no longer their only con-

cern. Th ey’re recognizing they’re

part of an enterprise, whether

it’s a manufacturing business, a

hospital, a university, a com-

mercial offi ce building. Th ey’re

part of that team. When they

report to that executive team in

that business or enterprise, there

are other responsibilities and

other opportunities to help that

business accomplish whatever is

there to accomplish. Th at’s really

what the Schneider brand is all

about; looking at security as well as the

rest of the business, bringing certain

products and services and expertise to

sure make those businesses are more

effi cient and more sustainable.

Belbina: Th e Pelco brand is very strong

for us. It’s well recognized globally and

we want to maintain that. At the same

time, we want to better serve the end

user. If we want to really give end users

what they’re looking for from a total

solution, building performance, smart

cities or whatever, I think it’s important

for us to bring the other entities all

under the Schneider brand. Th at makes

not only the Schneider brand name

stronger, it’s also creating clarity for the

end user so there’s no confusion there.

Th ey know this is what Schneider off ers.

In my opinion, there are benefi ts in the

marketplace there to better serve the

end user and the marketplace by having

the Schneider brand on top.

clear — both to the channels and to the

market — where the opportunities fi t. I

think the opportunities that our direct

channel is looking at are going to be

larger opportunities that require the

kind of bonding capacity and fi nancial

capacity that a company like Schneider

Electric can bring to those opportuni-

ties. Th ose create good opportunities in

the marketplace for Schneider direct,

and out of those opportunities and that

kind of business activity in the market-

place really come name recognition and

market acceptance. Th at plays well for

our partner channels because they’re

promoting the Schneider line. Th ey’re

promoting the Schneider products, so it

really helps those guys too when we’re

pursuing those types of activities to

create awareness and acceptability of

solutions and products in the market-

place, so that their path to market is a bit

easier as well.

Th e Pelco legacy is one of the best in

the industry. How important is it to

brand Schneider as a name within the

security space? Is that a high priority?

McCaughey: I would say branding

Schneider in the security space is as im-

portant as branding Pelco in the security

space. You said that Pelco has a long

reputation. It’s a well-known brand in the

industry. Th at brand stays at the top of

the tree and we put the Schneider brand

right next to it, because what we’re saying

to the industry when we do that is we’ve

got best-of-breed products and services

from Pelco in a name and entity that is

well known and well respected.

Th e Schneider brand in the security

Is the company looking to expand its

portfolio even further through acquisi-

tion? Or is the strategy more organic?

McCaughey: At a high level company-

wide there are eff orts, both organic and

acquisition, underway. Th e acquisition

of Telvent [a provider of IT software

and services] in Q4 really brings into

the portfolio for Schneider Electric

new capabilities around the area of

energy management and information

management, as well as information

aggregation from lots of diff er-

ent systems, and brings that up

into a platform that helps users

run their environment more

effi ciently. We have a lot of solu-

tions in the area of public safety

as well. It helps Schneider Elec-

tric tack, if you will, to the smart

cities environment marketplace.

Telvent added onto a lot of the

solutions that already existed

in Schneider Electric. Th ose are

some of the types of things that

we’re doing.

Belbina: Schneider’s vision is really

clear. We want to be at the forefront of

the technology. We want to be the global

leaders in energy management and

security. So fi rst and foremost is, like

Kevin says, we’re looking at both but we

need to make sure we leverage what we

have today. So organic growth for us is

defi nitely the highest priority because

we have a lot of resources. We have a lot

of competencies and many off erings.

How do we leverage all these resources

that we have in place to meet our end

goals? If we see other technology that

can complement what we do today, then

our CEO is not afraid to go after that.

What is the philosophy in terms of

going to market, particularly in the se-

curity space? Along with distribution,

you have other interests that probably

lean a little more to the end user.

McCaughey: We’ve always had what

we call a direct channel and a partner

channel through the buildings busi-

ness to the market. We’ve always had

an excellent relationship managing

those two channels well so that it’s

FIND IT ON THE WEBFor much more from our conversation, visit securitysales.com/hotseat.

HOT SEAT

Schneider’s vision is really clear. We want to be at the forefront of the technology. We want to be the global leaders in energy management and security.

Industry Pulse


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NEWSIndustry Pulse

Each year the NFPA Conference & Expo features hundreds of leading suppliers displaying and demonstrating the latest fi re/life-safety products and technologies.

FDNY Fireman to Share 9/11 Survival Story at NFPA Conference & Expo LAS VEGAS — Th ousands of fi re/life-safety professionals from

across North America and abroad will convene here June 11-14

for one of the industry’s foremost events, the NFPA Conference

& Expo.

Held at the Mandalay Bay Convention Center, the National Fire

Protection Association’s 2012 conference will off er attendees the

opportunity to fi nd answers to code questions and interpreta-

tions, discover solutions to technical challenges, identify suppli-

ers actively supporting the NFPA mission, and develop specs for a

current project, among other educational activities.

Leading suppliers will display their latest products and tech-

nologies throughout the event. Via the “Exhibitor Presentation

Th eater,” attendees can pick and choose from a comprehen-

sive schedule of new product introductions, installation training,

product demonstrations and systems testing techniques.

Among other event highlights:

• More than 130 educational sessions will be divided into a doz-

en tracks geared toward specifi c professional needs

• Th e General Session (June 11) includes reports by Th omas

Jaeger, chair of NFPA Board of Directors; James Shannon, NFPA

President & CEO; and a performance by comedian Gordie Brown

• A June 12 presentation, “9/11: Leadership Before and After the

Crisis,” will feature FDNY Deputy Chief Jay Jonas sharing his sto-

ry of survival while highlighting improvements to the fi re service

and built environment since 9/11

For a complete list of education sessions or to register, visit

nfpa.org/conference or call (888) 397-6209. Also, for related fi re/

life-safety information, check out SSI’s “Fire Market Report” be-

ginning on page 32.

Growth Expected for Tri-Ed/Northern Video Following Its SaleWOODBURY, N.Y. — Audax Group, a private equity fi rm, completed a deal to acquire Tri-Ed/Northern Video Distribution and stated it would soon look to grow the fi rm by acquiring more distributors.

Audax manages more than $5 billion of capital. While the compa-ny holds investments across a range of industries, the Tri-Ed/Northern Video acquisition marks its fi rst foray into the security industry, Audax Group Managing Director Jay Mitchell tells SSI.

“We have a number of investments in value-added distribution businesses ... which have common traits, such as good organic market growth in fragmented industries,” he says. “We looked at the securi-ty product space where Tri-Northern is the No. 1 independent distrib-utor and we really like the opportunity to continue to build the foot-print, both in the U.S. and Canada.”

Mitchell says Audax’s expertise in executing “buy and build” growth strategies centers on buying into a leading player with a strong market position and then helping the business acquire competitors.

“The [Tri-Ed/Northern Video] team has demonstrated a track record of doing that already, and with our sourcing networks as well as our additional access to capital, we can accelerate that growth,” he says.

To read more, visit securitysales.com/Audax.

UTC SELLS FIRE, SECURITY OPS TO PRIVATE EQUITY FIRMFARMINGTON, Conn. — UTC Climate, Controls & Security has sold its U.S. fi re and security operations to private equity fund Comvest Investment Partners.

Th e new business is called Red Hawk Fire & Security. Two familiar industry veterans will lead the company: Mike Snyder, former president of ADT, is CEO; Dean Seavers, former president

of GE Security and SimplexGrinnell, is president.Th e acquired business, with about $250 million in sales, 1,350

employees and 40 locations, was formed as a result of a roll-up of Red Hawk and several other small fi rms. Snyder tells SSI that his and Seavers’ immediate challenge will be to understand all of the

strengths and capabilities in the organization, and determine the best ways to bring them to market.

“Th is is an amalgam of nine acquisitions. Each individual

company has really strong competencies that may be specifi c to its individual market but can be easily [replicated] or built on across the country,” he says. “Th eir total capabilities have not had that national [reach]. What we intend to do is fi nd those centers of excellence and build them out nationally.”

To read more, visit securitysales.com/RedHawk.

ss0512pulse_news.indd 20ss0512pulse_news.indd 20 4/26/12 4:24 PM4/26/12 4:24 PM

www.securitysales.com/freeinfo/xxxxx

WV-SW395

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panasonic.com/security

ideas for life

We’ve got it all covered.

see morewith yourZTHY[WOVUL

ss0512pulse_news.indd 21ss0512pulse_news.indd 21 4/26/12 4:25 PM4/26/12 4:25 PM



Paul Boucherle, Certified Protection Professional (CPP) and Certified Sherpa Coach (CSC), is principal of Canfield, Ohio-based Matterhorn Consulting (www.matterhornconsulting.com). He has more than 30 years of diverse security and safety industry experience and can be contacted at [email protected].

Convergence Channel

Regardless of company size, growing your business with a specific customer can be an exciting and scary experience. Discover the strategies, risks and rewards of engaging in a national accounts program.

[email protected]

THE RATIONALE FOR A NATIONAL PROGRAM by Paul Boucherle

The lure of growing your business with a specifi c customer can be an exciting and scary experience if you are a smaller integrator. It can be just as scary for a larger company with a more mature national accounts program. How is that possible? Two words: customer expectations.

Th e lure of growing your business with a specifi c customer

can be an exciting and scary experience if you are a smaller

integrator. It can be just as scary for a larger national

company with a more mature national accounts program.

How could that be possible? Two words: customer

expectations. Meeting customer expectations across

geographical boundaries is challenging no matter if you are a

large, regional or a small integrator for these very good reasons:

• Delivering consistency in solution installations,

operations and service after the sale.

• Local versus corporate politics cannot be ignored as a

signifi cant factor.

• Th e length of your logistical arm. If you need to pat

someone on the back or choke him/her, it’s a lot harder to

do so from 1,500 miles away.

• Time zones. Doesn’t sound like a big deal until you live it

with your customer.

• Processes and experience doing this type of work from

a remote “infl uencing” position. Larger companies

typically have an edge in this area.

FIND OUT HOW MANAGEMENT VIEWS IT While these challenges are certainly real from a business,

sales, service and installation standpoint, what about the

IT department? In my experience, the network connectivity

to geographically dispersed facilities and the role IT plays

is crucial to implementing business solutions that are

technology enabled. Th is means establishing a good working

relationship with corporate IT can make or break how well

Managing existing accounts and future

prospects can change as a company

grows or migrates into network-

centric solutions. Change means

choices. You can choose to be tactical and react to customer

and market needs, thus becoming a good dancing partner, or

you can choose to be strategic and lead the dance. Strategic

selling in a rapidly changing industry might be the right move

for your company. What is an example of a strategic selling

program? National accounts come to mind.

Having spent 17 years of my former corporate life in

this arena, I will share some insights that may help you

translate to planning and managing your growth as a

systems integrator. While the term national accounts

may immediately conjure up large corporations with vast

resources, smaller companies are fi nding that strategically

growing strong customer relationships is both practical and

achievable using a national account strategy. You just have to

be more innovative.

DELIVERING ACROSS GEOGRAPHIES Although there is no universal defi nition, I will defi ne a

“national account” as one that is strategic to your company’s

growth, has facilities located across the United States,

would buy business value, and requires you to realign or

add resources to eff ectively manage and grow the business

opportunity. You may have encountered a national account

opportunity if your customers have ever said, “We wish

you could provide security services at our other locations.”

ILLUSTRATION BY AJAY PECKHAM

ss0512converge.indd 22ss0512converge.indd 22 4/26/12 2:14 PM4/26/12 2:14 PM

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HELP IS OUT THERE, OR GO IT ALONEWhat do you do if you don’t have a “mature” national

accounts program? Quality-orientated, like-minded and

smart systems integrator owners have found innovative ways

to compete in the national accounts arena quite successfully

the past fi ve years. A couple of names that come to mind are

PSA Security Network and Security Network of America.

Th ese organizations have taken their core beliefs, best

practices and strategic growth plans to the next level by

developing their own “virtual” national accounts programs,

aff ording member companies and their customers a national

footprint while owning their account relationships. Th e key

to this working well is a formulized set of rules, expectations

and trust. Th ese networks are outstanding organizations;

however, you may have a wildly independent spirit and

business nature.

So what other options are available? You will need to look

in the mirror deeply and honestly. Your independence may

prevent you from playing in the national accounts sector or

you may need to add signifi cant internal resources to manage

your growth in this area. It can be done; it just takes time

and money. If you serve a customer base that values your

services, and is willing to “fund” your growth and reach with

reasonable profi t margins while working through growing

pains, then go for it! Th ere are several companies that have

succeeded in this manner, such as Bass-Security and Roth

Brothers, both Ohio-based companies.

In conclusion, I have three suggestions to anyone who

wishes to grow their business through national accounts:

1. Know thyself and what your company culture can gain

from a national accounts strategy.

2. Train thyself to ensure your teams’ skills match their

new responsibilities and challenges.

3. Take national accounts seriously; it can be defi ned as

both high risk and high reward.

you expand your national relationship. Th e right dialogue

can create an important ally in winning the customer market

share challenge in the national accounts arena.

Ask this question to the right level of IT management:

“Does your senior management consider your IT network to

be a strategic asset or a tactical expense overhead?” I ask this

question often in my consulting work. It is powerful. Carefully

watch your customer. Th eir body language, as well as their

words, will help you understand what the real opportunities

might be in the future. If the IT response is expansive, positive

and points to a strategic view, you may be looking at an

opportunity to expand technology-enabled system solutions.

You may be talking to a new business partner and advocate.

Expanding network capabilities requires legitimate

applications that deliver business value in new ways. Th is

aptly describes where we are today with video and many

other technologies. You can apply new cutting-edge (but not

bleeding) systems that have paid their dues and are ready to

deliver real solutions to old problems. Having designed and

sold network-centric IP systems for 13 years, I can attest that IP

video may be one that delivers measureable business results.

APPROACHING NETWORKS PROACTIVELYWhat do you do if you get a diff erent response from your IT

contact who shares the fact that the CEO doesn’t see IT as a

company asset? Well for one thing you will need a plan B to

implement your national accounts strategy that may include

taking on some new business and technical-like network

responsibilities, such as building a network!

Here is why that makes sense. Th e opportunity to design,

recommend or install simple network equipment is not

impossible, can be quite profi table when bundled with your

other services, ensures a system will work as advertised and

simplifi es your customer’s life. Corporate IT departments don’t

typically have extra time on their hands, which means if you

assume you have their support, that it’s “their job” not ours,

can leave serious gaps in your end game, which could be a

working technology-enabled business/security solution. Like

Tom Hanks’ “Th ere’s no crying in baseball” line in “A League

of Th eir Own,” I say, “Th ere’s no fi nger-pointing” in national

accounts. Your customer will simply fi nd another partner. It

may mean that while your technology prowess works well at

the corporate headquarters, it may not automatically translate

to the locations outside your area of operation.

So what are your options? If you already have a mature

national accounts program, don’t assume what got you

where you are will sustain your customer’s confi dence when

you wander into the “converged jungle” of new technology.

Many national account managers are excellent and strategic,

but may lack necessary skills to work with the IT department.

Th ere are some fundamental skills that must be acquired

to build business value and mutual respect with this new

infl uential buyer. Don’t assume past revenue performance

with an account is a future indicator of success. It is not. Find

the right training to augment your skill sets.

Convergence Channel

Establishing a good working relationship with corporate IT can make or break how well you expand your national relationship. The right dialogue can create an important ally in winning the customer market share challenge in the national accounts arena.

PHOTOGRAPHY ©ISTOCKPHOTO.COM/MICHAELJUNG


MAY 2012 | SECURITYSALES.COM | 25

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sophisticated security systems.

So, how can we make these systems accommodate their com-

fort level? Th is is your challenge and your government’s sugges-

tions can help.

Two government standards I have referenced for this article

are the well-known, wide-sweeping American Disabilities Act

(ADA; www.ada.gov) and the lesser-known Section 508 of the

Rehabilitation Act of 1973 (www.section508.gov). Experienced

dealers have often had to apply ADA standards to public areas

such as fi re annunciation, door and device access.

By using the concepts contained within these standards in

everyday installations we can make both public and private ar-

eas more accessible and user-friendly for all, not just those with

physical or mental disabilities.

5 IMPORTANT ELEMENTS OF USABILITYMoving forward we should fi rst clarify use of the terms “acces-

sibility” and “usability.” Th e dictionary defi nes accessibility as

the capability of being reached, while usability is the capability

of being used. Accessibility will often be emphasized in ADA re-

garding hardware as the disabled must be able to reach products

and services. Usability is more applicable to all using a prod-

uct or service. Th is will be emphasized in areas such as Section

508 in dealing with electronic and information technology (EIT)

such as software and Web sites.

Th e concepts of good usability are not complicated and may

even seem simple. However, are you doing your best to com-

ply? In order to make EIT usable as a product or service it should

Recently, I reviewed some government standards

designed and implemented with the intent to

make systems easier to access and use for dis-

abled people. Th is got me thinking about some-

thing we often take for granted: How user-friendly are the sys-

tems we are designing, selling and installing?

One of the problems we have always faced in technology in-

dustries, including electronic security, is the systems have been

designed and built by engineers and technicians only to be

turned over to laypeople to operate and understand. Th is is of-

ten apparent in the user’s manuals that are often fi lled with tech-

nical jargon, acronyms and logic that make them diffi cult to fully

understand for nontechnical owners.

How often have you, as a manufacturer or dealer, taken the

time to conduct focus groups to better help you understand your

customers’ needs and perceptions of the products and services

you provide? Th ese exercises can be real eye-openers.

Th is month, we will take a look and possibly do a self-exami-

nation of the eff orts we are taking to make customers comfort-

able with the systems they interface with on a daily basis.

GOVERNMENT STANDARDS SET STAGE While we often fi nd ourselves surrounded by more and more

government standards and regulations, as technology imple-

menters it can help us be more sensitive in general to the “user-

friendly” nature of our work. When you think about it, nontech-

nical system users are handicapped in a way as they often do not

have, or wish to have, the technical savvy to fully comprehend

Bob Dolph has served in various technical management and advisory positions in the security industry for 30+ years. To share tips and installation questions, E-mail Bob at [email protected]. Check out his Tech Shack blog at www.securitysales.com/blog.

[email protected]

MAKING SYSTEMS MORE USER-FRIENDLY by Bob Dolph

TECH TALK

The latest and greatest security solutions don’t mean squat if they are too complex for end users to operate. Technological innovation is wonderful, but we must incorporate operational simplicity to achieve security’s peace-of-mind objectives.

ADA Accessibility/Usability ExampleWhile government specifi cations and standards are many, understanding what is needed to provide access to all types of users is important. Good planning will make for a more user-friendly system for all, regardless whether it is a government or private installation. Diagram courtesy GSA

10 in. max.255mm

Vertical plane

Height of operable control relative to the vertical plane

Vertical plane

>10-24 in. max.>255-610mm

15-5

4 in

.38

0-1,

370m

m

15-5

4 in

.38

0-1,

370m

m

ss0512tech.indd 26ss0512tech.indd 26 4/26/12 2:59 PM4/26/12 2:59 PM


http://www.securitysales.com/blog


http://www.ada.gov

http://www.section508.gov


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have the following fi ve elements:

1. Easy to learn — If your customers

cannot learn to use something quickly they

will develop a negative attitude of your

product, services and company. Simple

instructions on mobile apps, Web sites or

workstations will make customers happier.

2. Quick to use — Avoid long learning

curves. Busy businesspeople do not want

their staff going through extra steps and

long waits to process a new alarm badge.

3. Simple to remember — Did you

know that 50% of all Web sales are lost due

to poor design? Similarly, customers op-

erating alarms may only have to disarm a

system once in a blue moon. How easy is

that process for them to remember?

4. Easy to navigate — Have you con-

fi gured the systems software, startup and

backup process with easy steps, and even

diagrams to reference? People will always

make errors when operating a system.

What have you done to minimize them?

5. Enjoyable ease of use — Often cus-

tomers do not regularly use their security

system because it is not enjoyable to use. If

the systems talked to them in a nice voice

or operational software had a friendly ap-

pearance then it would be more inviting

to use. Keep the engineering design in the

background. Do your mobile apps address

content, design and function?

3 DEALERS’ IDEAS FROM THE FIELDI asked the security community to share

some suggestions on how to make systems

more user-friendly, including those aimed

at disabled users. Below are some replies.

“I have used LED indicators on door

strikes and diff erent colored strobes on

alarm outputs for deaf customers. I also

implemented installation standards for

making alarm keypads wheelchair friend-

ly. I added an ‘Is the system suitable for

their user?’ line to our system takeover

checklists. I also added a big REX button

for arm/disarm for a customer with macu-

lar degeneration.”

— Jim Sutton, AAA Alarm Systems,

Winnipeg, Manitoba, Canada

“Our company uses voice keypads and

remote controls for arming/disarming. We

have a way to add voice control with voice

prompts.”

— Th omas Callarik, Hitek Security

Solutions, Martins Ferry, Ohio







and PC applications more user-friendly.

Let’s take a moment to review what we, as

alarm techs, dealers and integrators, can do

to make our systems more user-friendly. Do

you only specify keypads with a dimple on the

‘5’ key? Do you arrange printers at a worksta-

tion so people in wheelchairs can easily get to

them? Are your fi re alarm pull-stations and

alarm keypads not more than 54 inches up on

the wall? Do you have a usability and accessi-

bility checklist for new installations and take-

overs? I think you get the picture.

PUT YOURSELF IN USERS’ SHOESMore systems installed today require access

to supporting software applications. Th is

can be access or CCTV management soft-

ware, Web pages and remote mobile apps

on smartphones. Th e Section 508 tenets are

interesting in that they were originally de-

signed as performance standards for EIT

vendors supplying products to the General

Services Administration (GSA). However, if

we look at some of these requirements they

can give us insight into making software

“Several of our dealers have used

our long-range RFID readers and tags

for severely handicapped users, such

as for doctor offi ces, etc., tied into

automatic door openers. Some have

been programmed to work with their

Wiegand access control panels. Others

have simply used the onboard relay on

our reader.”

— Pete Martin, 1st Choice Security

Solutions, Atlanta

An interface relay may not at fi rst be thought of as a tool. It is, however, the perfect and very versatile tool to interface alarm inputs and outputs to a variety of

special user devices such as those with audible and visible functionality. That is why

I am featuring the old reliable ELK 912 module (elkproducts.com).

How about using a relay to trip a bed shaker device to get a deaf person up when smoke detector goes into alarm? The product is a high quality 12VDC relay with SPDT (Form ‘C’) dry contacts. It features low current draw, positive or nega-tive activation and is suitable for general purpose switching of devices or high current loads.

This general pur-pose compact relay enables control of high current draw devices such as door strikes, sprin-kler valves, electric dampers, motors and more from any device producing a low voltage output signal. Photo cour-tesy Elk Products

TECH TALK TOOLTIP

PowerMaster system delivers more

range, more reliability and more RMR

in commercial and residential

installations.

© 2012 Tyco International Ltd. and its Respective Companies. All Rights Reserved.

Technology for lifePowerG

Contact Visonic USA

for further information

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it in recent years.

PERS presents a great oppor-

tunity for alarm dealers to in-

crease their recurring monthly

revenue (RMR) stream with min-

imal service outlay because most

installations require only an elec-

trical outlet and a telephone line.

COMPETING WITH THE PUBLIC SECTORIn an age during which local gov-

ernment bodies are strapped for

cash, alarm dealers may fi nd themselves competing for custom-

ers with the public sector.

When this happens in a market, alarm dealers are usually

handicapped by the local authorities having jurisdiction (AHJ)

in multiple ways, including mandates for fi re systems to connect

to a municipal fi re-alarm board and AHJs “infl uencing” poten-

tial customers to use the government’s services.

Faced with these conditions, alarm dealers must demon-

strate the private sector’s superiority in technology, physical

plant requirements, service and price. Fortunately, most po-

tential customers would prefer to work with the private sector

— especially after they are informed of the higher central sta-

tion standards that must be met compared to the local public

safety answering point (PSAP), which is not audited by third

parties like UL or FM Mutual.

To make this point, alarm dealers should use their central

station company as a direct comparison to the local PSAP and

educate the market about its redundancies, performance stan-

dards and physical plant capabilities, which will far surpass

those of the PSAP.

Also, the end users must understand that private sector cen-

tral stations provide services the PSAPs cannot, including noti-

fi cation of party lists and implementing false alarm prevention

tactics like multicall verifi cation, cross-zoning and video moni-

toring. (You should also point out that PSAPs actually increase

their revenue via fi nes when there is a false dispatch.)

Lastly and most importantly, let your customers know that

central stations are constantly competing with each other for

business, which raises the performance bar yet keeps costs in

check. By simply asking the customer if they believe the govern-

ment has their best interests in mind, you will have made a very

valid point as to why they should choose the private sector over

the public sector.

The sky is NOT falling.

Th at’s your competitor making it rain by going

to market in a new manner. Instead of fretting

over it, alarm dealers must adapt to the market

conditions and work with their central station to position them-

selves to not only compete, but to thrive.

If that means creating a market niche, off ering a new service or

promoting the private industry’s technical superiorities, you bet-

ter do it. If you don’t, your business will suff er.

YES, WE CAN DO THAT!Increasingly, alarm components are being integrated with other

electronic elements in a building, namely audio/visual entertain-

ment systems. It’s natural then for A/V system installers to branch

out to off er security devices in their packages.

For example, many building owners now choose to have cam-

eras trained on points of entry so a motion sensor can trigger a

video system that displays real-time images on monitors or tele-

visions in a picture-in-picture manner. Th ey may even incorpo-

rate access control capabilities to allow entry into the premise.

Once this step is taken, it makes sense for A/V installers to off er

interior motion sensors, as well as PIRs, glass-breaks and so on.

Th e impact of this integration is that alarm dealers now have

a new class of competitors in their marketplace. However, that

does not mean you have to cede the territory. Instead, alarm

dealers should branch out to A/V systems, market their security

expertise and leverage knowledge of working with a central sta-

tion to incorporate other unique capabilities, such as fi re sys-

tems, environmental monitoring and two-way voice.

Th ink about it. If you, as a prospect, had to choose only one

company with similar off erings to install these two distinct sys-

tems, wouldn’t you hire the professional with specifi c skill set

who could help protect your family or employees?

Additionally, making the decision to off er A/V installation

services may present an opportunity to focus on vertical

markets, such as multifamily housing or assisted-living facilities

to name a couple.

LOOK FOR NEW REVENUE STREAMSIn addition to planting your fl ag in new ground, alarm dealers

should examine their core competency to fi nd ways to expand

their service off erings to existing customers — and their families.

Although personal emergency response service (PERS) is not

new, the demand for it is growing as the cost of assisted living

and nursing care continues to outpace almost all investment

portfolios. Th at’s why many central stations have begun to off er

ADAPT TO MARKET CONDITIONS OR SUFFER CONSEQUENCES by Kevin Lehan

Kevin Lehan is Manager of Public Relations for Des Plaines, Ill.-based Emergency24 Inc. He also serves as executive director of the Illinois Electronic Security Association (IESA).

Monitoring Matters

Making the decision to offer A/V installation services may present an opportunity to focus on vertical markets.

[email protected]

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FIRE ISSUE

2012 FIRE MARKET REPORT

MAKING HOMES SAFER HAVENS

PHOTOGRAPHY ©ISTOCKPHOTO.COM/PARKERDEEN

A probe into residential sprinklers and false alarm activity offers installing system contractors insights on the latest developments driving the fire/life-safety marketplace. SSI’s annual report also provides legislative and

code updates for carbon monoxide detection. by Rodney Bosch


The latest fi re loss data from

the National Fire Protection

Association underscore the

continuing need for install-

ing contractors and suppliers to steadfast-

ly advance the delivery of life-safety services

and equipment to protect lives and property.

Firefi ghters responded to 1,331,500 fi res

in the United States in 2010, according to

data received by NFPA from fi re departments

answering its annual National Fire

Experience Survey. Among all reported fi res,

482,000 occurred in structures, a slight uptick

of .3% compared to the previous year. About

384,000 fi res or 80% of all structure fi res

occurred in residential properties, an increase

of 1.9%. Of these blazes, 279,000 happened in

one- and two-family homes, accounting for

nearly 58% of all structure fi res. An additional

90,500 occurred in apartments.

Loss of life also crept higher in 2010.

Fires claimed the lives of 3,120 civilians, an

increase of 3.7%. Notably, home fi res caused

2,640 or 85% of all civilian fi re deaths. Th at

marked an increase of 2.9% compared to

2009. Th e statistics reinforce the stark irony

FIRE FAST FACTS

Average residential fi re-only

installations costs $954, down about $41 from 2010.

Security contractors

collect 13% of their total revenues from fi re-only installations.

Average number of smoke detectors

installed in a commercial fi re alarm system is 23; residential is 5.

Average percentage of

installations that include carbon monoxide (CO) detectors is 23%.

3% of security contractors are

in involved in sprinkler systems.

Source: SSI 2011

Installation Business Report

ss0512fireReport.indd 32ss0512fireReport.indd 32 4/26/12 4:13 PM4/26/12 4:13 PM

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You asked and we answered.

The CO1224TR CO Detector with RealTest®

is a round version of the award-winning

CO1224T. Both detectors include RealTest

— the fi rst and only fi eld functional CO test

fully compliant with NFPA 720: 2009. Only

RealTest enables you to quickly verify that

the CO detectors you install are actually

protecting your customers.

The CO1224T and CO1224TR also provide

multiple mounting options, enable 24/7

central station monitoring, and are quick

and easy to install, test, and maintain.

If you would like to upgrade competitive

detectors to the CO1224T or CO1224TR,

wire the System Sensor detector and mount

it directly to the wall or ceiling. In cases when

the footprint of the competitive detector must

be covered, the CO-PLATE CO Detector

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security installing contractors. According

to SSI’s 2011 Installation Business Report,

about 3% of installing security fi rms are

involved in sprinkler systems.

Th ere are recent indications in the

marketplace, however, that suggest

some traditional security contractors see

opportunity in sprinkler systems. Take,

for example, acquisitions of fi re service

companies made in the past couple of

years by such fi rms as Select Security of

Lancaster, Pa., and Safeguard Security of

Scottsdale, Ariz. Th e proprietors at each

fi rm say a large part of their focus is on

providing test and inspection services,

plus certifying that end-user systems

meet and comply with NFPA fi re code

standards — all of which generates

recurring revenue.

After he acquired Fire Systems Inc.

(FSI) in 2010, Select Security President

Pat Egan said he became one of the

fi rst installing security and monitoring

businesses to operate a fi re sprinkler

division. Pennsylvania would later

repeal its residential sprinkler law,

dampening Select’s prospects for the

time being in that market niche, but

Egan says the division continues to

evolve and grow. Cases in point: Select

just received a sprinkler contract for 14

townhouses, and it continues to reap

success in renovation projects, such as

restaurants and strip malls.

which said the price tag of installing

home fi re sprinklers averages $1.61 per

square foot for new construction. Th e

total cost, according to the foundation,

is similar to what people are willing to

pay for carpet upgrades , a paving-stone

driveway or a whirlpool bath.

So far in 2012, opponents have lobbied

lawmakers in several states to introduce

bills that would prohibit jurisdictions

from including one- and two-family

dwelling fi re sprinkler requirements in

the adopted codes. Among them are

Colorado, Hawaii, Illinois, Minnesota,

Oklahoma and Tennessee.

All but 17 states have at least one local

jurisdiction that has adopted home

fi re sprinkler requirements. However,

advocates have celebrated a few key

victories at the state level as well. In 2010,

California adopted the International

Residential Code (IRC), including its

requirements for automatic fi re sprinkler

systems in new one- and two-family

dwellings, eff ective Jan. 1, 2011. Th e same

2009 IRC is eff ective in Maryland, and

South Carolina voted to adopt it as well

but the requirement was delayed until

2014 by legislative action.

While prolonged advocacy and code

adoption are expected to spur overall

growth in commercial and home fi re

sprinklers, this particular line of work

remains mostly a rarity for traditional

that the vast majority of deaths occur in

homes, the places where people often

feel the safest, says Lorraine Carli, vice

president of communications for NFPA.

“We have made tremendous progress

in reducing the fi re problem in the

United States since we began looking

at these numbers in the late 1970s,” she

says. “But this report shows us that more

must be done to bring the numbers

down even further.”

It is in that larger context that SSI

publishes its annual Fire Market Report

to keep fi re/life-safety professional

abreast of key trends, technologies, codes

and other factors currently aff ecting

the marketplace. Th is year we’ll delve

into residential fi re sprinklers, carbon

monoxide (CO) detection regulations,

false fi re alarm activity and more.

HOME FIRE SPRINKLER ADVOCACYDuring the fi rst week in April, fi re service

professionals and safety advocates from

across the nation gathered in Chicago for

a one-day summit to promote a singular

mission: the installation of fi re sprinklers

in all new one- and two-family homes.

Fire sprinkler supporters are in for

a tough, extended battle to achieve

their mission; a bevy of deep-pocketed

opponents are fi ghting their eff orts

vigorously on local, regional and national

levels. Yet NFPA President Jim Shannon

told the gathering in Chicago its work

would be unwaveringly supported

through the NFPA’s Fire Sprinkler

Initiative, which was launched in 2009.

“We knew right from the start that

we were going to run into opposition,

especially from homebuilders, who have

a great deal of infl uence and seasoned

lobbyists working on their behalf,” he told

the gathering. “And we knew that they

would fi ercely oppose our eff orts to get

states to require sprinklers. But we are

not discouraged because the logic of our

eff orts will ultimately prevail.”

Among opponents’ litany of

contentions, they maintain the expense

for home fi re sprinklers will make

housing unaff ordable, especially for fi rst-

time buyers. Advocates cite a 2008 cost

assessment study by the NFPA-sponsored

Fire Protection Research Foundation,

FIRE/LIFE-SAFETY MARKET OVERVIEWFIRE ISSUE

An estimated 2,640 civilians died in residential fi res during 2010, an increase of 2.9%. Of these deaths, 440 took place in apartment fi res, a 5.4% decline from the previous year. Another 2,200 died in one- and two-family dwellings, an increase of 4.8%. “Homes” include dwellings, duplexes, manufactured homes (mobile homes), apartments, rowhouses, townhouses and condominiums. Other residential properties, such as hotels, motels, dormitories, barracks, and rooming and boarding homes are not included. Source: National Fire Protection Asssociation (NFPA)

Civilian Fire Deaths in U.S. Homes

2001

3,110

2005

3,005

2002

2,695

2006

2,580

2010

2,640

2007

3,430

2004

3,225

2003

3,165

2008

2,780

2009

2,590


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intended to meet the rising need to

educate a greater number of installing

contractors on proper application,

installation, location, performance,

inspection, testing and maintenance of

CO detection devices.

During a podcast hosted by NEMA

in March, Richard Roberts, industry

aff airs manager for Honeywell Life

Safety and Co-Chair of the NEMA 3SB

Smoke/CO Group, said the number of

jurisdictions requiring CO detection is

projected to increase during the next

three to fi ve years.

A signifi cant factor in the projected

increase is due, in part, to the 2012

edition of the IRC, among other codes,

which contain provisions for the

installation of CO detection in one- and

two-family dwellings and commercial

sleeping occupancies.

“Th e application guide explains the

operational diff erences between alarms

and detectors and covers their location

requirements,” Roberts says. “It also

covers some of the specifi c requirements

on legislating CO detection has been

pursued by industry stakeholders. Nearly

40 states have adopted requirements,

either by statute or code, mandating

the installation of CO detection devices

in single-family homes, multifamily

dwellings or other residential structures

and commercial buildings. Th ese

initiatives have resulted in the growth

in CO alarm and detector use since the

mid-1990s, and are credited for helping

reduce related injuries and deaths.

A principal supporter of CO alarm

and detection requirements is the

National Electrical Manufacturers

Association (NEMA), which advocates at

all levels of government. NEMA recently

released the fi rst edition of its “SB 7

NEMA Applications Guide for Carbon

Monoxide Alarms and Detectors,” geared

for systems designers and installers,

among other professionals who perform

test and inspection services.

Th e guide, developed by

NEMA’s Signaling Protection and

Communications Section (3-SB), is

Select Security has also started cross-

training its alarm technicians to perform

backfl ow certifi cations for sprinkler

check valves, along with what Egan refers

to as “emergency response” services,

such as valve shutdowns and leak

stoppages.

“We are very big on the business. It has

all the elements of recurring revenue.

We do the renovations, the emergency

repairs and we do the certifi cations and

inspections as required by code,” he says.

“Th at is really where the profi t is.”

THE RISE OF CO DETECTIONAccording to the Centers for Disease

Control and Prevention (CDC),

unintentional CO exposure accounts for

an estimated 15,000 emergency room

visits and 500 deaths in the United States

each year. Moreover, because symptoms

from exposure to CO are similar to the

fl u, injuries and deaths are thought to be

greatly underreported, and actual deaths

may exceed 2,000.

In recent years, an increasing emphasis

FIRE ISSUE

FIRE/LIFE-SAFETY MARKET OVERVIEW



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as children or seniors, would be given

priority. According to the Consumer

Product Safety Commission (CPSC),

which would administer the grant

program, only 35% to 50% of U.S.

households have CO alarms.

(For more detailed information related

to CO and life safety, see “Fire Side Chat”

column on page 58.)

session of Congress, which stalled in

the Senate. If adopted, the bill would

establish a grant program to encourage

states to enact a rule or law requiring all

dwelling units and apartment buildings

to have CO alarms.

States with greater than average

fatalities from CO poisoning and those

serving vulnerable populations, such

of CO detection systems such as which

types of control panels are permissible;

specifi es when building occupant

notifi cation is not required; and reviews

the secondary power requirements for

CO detection systems.”

Some of the material contained in

the guide was extracted from NFPA 720,

“Standard for the Installation of Carbon

Monoxide (CO) Detection and Warning

Equipment.” Along with and NFPA 720,

other leading standards for CO devices

are ANSI/UL 2034 and ANSI/UL 2075.

Despite previous eff orts by industry

stakeholders, passing a national

standard that incentivizes states to

promote CO detection remains an

elusive goal. However, the Security

Industry Association (SIA) says it remains

committed to the work. Joined by several

other groups, SIA is currently supporting

bipartisan legislation reintroduced in

Congress to increase the use of CO alarms.

Th e bill (H.R. 4326) is similar to

legislation that was approved by the

House of Representatives in the previous

Alarms, whether intrusion or fi re, are the leading residential systems markets for installing security contractors. In fact, both categories grew during the period, fi re/life safety by 3 percentage points and intrusion by 1 point. In all categories, small companies (less than $1 million in revenues) rely on residential customers more heavily than other providers with a total of 89%, followed by midsize (35%) and large operators (22%). Note: graph not intended to add up to 100%. Source: 2011 SSI Installation Business Report

Percentage of Residential Sales by Business Type 23%

18%

12%

6%

Fire/Life Safety

Intrusion Detection

Video Surveillance

Access Control



With the 2010 edition of NFPA 72, UL864-Listed cellular communicators can be used the sole path of communication for commercial fi re systems.

which current systems exist.” Building

owners and managers must be viewed as

critical stakeholders, since “success will

be much dependent on what [they] will

be willing to accept, able to implement

and held accountable for,” according to

the summary.

Complacency created by nuisance

alarms is a growing and signifi cant

threat, the groups warned. Likewise,

education, above all, must improve in

order for all stakeholders to galvanize in

a unifi ed front against false fi re alarms.

“We can only fi nd a common solution if

we can identify the common problems,”

the summary stated.

with them. Panel discussions centered on

design and manufacturing, installation

and maintenance practices, and

emergency response models.

Following the wide-ranging

discourse, the event sponsors drafted

several summary consensus points.

Among the imperatives is “the need

to enhance effi ciency of service by

lowering the number of calls that need

a system response, and determining the

appropriate response for those who do

require system-wide resources.”

Participants agreed that existing

commercial alarm systems do function

appropriately, but “most of the

challenges stem from the physical,

operational or response environment in

CURSE OF FALSE FIRE ALARMSTh e issue of false alarms always has a

prominent place in any discussion about

alarm and detection systems, and fi re/

life safety is no exception.

According to a study conducted by

NFPA, U.S. fi re departments responded

to roughly 2,187,000 false alarms in 2010,

which marked a slight decrease of .4%

compared to the previous year. Th at

indicates one out of 10 calls responded to

by fi re departments were false alarms.

Th e aggregate of all false fi re alarms

included dispatches for 708,500 system

malfunctions or 32.4%. “Unintentional”

calls accounted for the most false alarms

at 45.3%; followed by “other (bomb

scares, etc.)” at 14.8%, and “malicious,

mischievous” at 7.5%.

During a 10-year period

beginning in 1988, false alarm calls

for system malfunctions increased

annually from 550,500 to 901,500

in 1999. Th e number of calls

would eventually reverse course

and decrease more than 21% by the

end of 2010. Despite the reduction,

nuisance alarms continue to be a major

concern for industry stakeholders,

including the International Association

of Fire Chiefs (IAFC).

In its work to reduce the amount

of nuisance alarms in commercial

facilities, IAFC submitted 41

documents during the proposal and

comment cycle for the 2013 edition

of NFPA 72. On its Web site, IAFC states

the proposals “refl ect a comprehensive

approach to leverage existing and new

technologies, current IAFC policies and

NFPA code, and the need for local fi re

departments to gain effi ciencies that

are safe for the public and responders.”

While most of the proposals were

rejected by NFPA technical committees,

several were pushed through.

Despite various territorial boundaries,

industry stakeholders have at

times showed a willingness to work

cooperatively toward combatting the

myriad causes of nuisance alarms. For

instance in May 2011, IAFC, U.S. Fire

Administration and NFPA hosted a

summit to discuss the issues surrounding

nuisance alarms and the risks associated

Following new revisions adopted into the 2010 edition of NFPA 72, cellular has shifted

from simply being the backup communication path for commercial fi re systems.

This development is a result of the latest edition of the code allowing UL864-Listed

cellular communicators to be installed as the sole path of communication for commercial

fi re systems. Now installing system contractors can offer their customers newfound

savings while benefi tting from the latest technology.

On average, cellular monitoring costs the customer signifi cantly less than a dedicated

landline. The updated code allows all of the landlines currently dedicated to the master

control unit to be replaced with a single cellular communicator. This eliminates a bill from

the telephone company for the customer and affords the dealer to collect a more cost-

effective monthly monitoring fee.

Along with this good news come a few considerations to keep closely in mind when

choosing cellular. With the rapid changes in cellular technology, it is important to select

the right cellular alarm communicator. Dealers installing 2G or GSM cellular solutions

will are expected to have to replace those units in the next fi ve to eight years since 2G is

being phased out.

What can dealers do to avoid the fi nancial impact of having to purchase new

hardware, plus the cost of rolling a truck, to replace these units? They should start

installing cellular alarm communicators that work on 2G, 3G and

4G networks to future-proof their installations. An example of a

product that meets these requirements and is helping dealers

take advantage of the code change is Telguard’s TG-7FS unit.

Another consideration to be mindfulness of is that while

NFPA 72 is more than a year old, many authorities having

jurisdiction (AHJ) are not familiar with it and may oppose the

use of cellular as the sole path. To address this issue, ask the

manufacturers of cellular communicators to provide an explanation

of the code along with a checklist to help the AHJ quickly and easily

approve a sole-path installation. It’s this type of collaboration between

dealers and manufacturers that will help increase awareness.

Shawn Welsh ([email protected]) is Vice President of Marketing and Business Development for Chicago-based Telular Corp.

CELLULAR ADVANCES IN COMMERCIAL FIRE SYSTEMSby Shawn Welsh

FIRE ISSUE

Rodney Bosch is Managing Editor of SECURITY SALES & INTEGRATION. He can be contacted at (310) 533-2426 or [email protected].

FIRE/LIFE-SAFETY MARKET OVERVIEW




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ADVANCES SPARK NEW AGE OF FIRE

SAFETY

by Ron Ouimette

FIRE ISSUE

While the controlled use of fire predates written history, it has taken humans until modern times to nearly master its deadly capabilities. Thankfully today, an array of detection technologies has drastically reduced the threat to lives and property as the result of fire, smoke and gases. Get up to speed on the latest fire safety innovations.

Perhaps no other technology in the past 150 years

has contributed more to fi re safety than early

warning smoke detection systems. Data collected

during the past 40 years alone estimates 90,000

lives have been saved by smoke detection and fi re protection

technologies. In addition, countless other potential tragedies

may have been averted by early warning and intervention.

From rudimentary heat detectors invented in the late 1800s to

sophisticated and integrated electronic systems in place today,

smoke detection has been a signifi cant scientifi c achievement.

Like many aspects of modern life that we take for granted,

progress has been a convergence of need and opportunity.

Th e basic methodology of smoke detection is remarkably

simple. Scientists discovered a variety of ways to measure and

monitor specifi c signals such as light intensity or ion currents.

Detectors are then calibrated to trigger an alarm when these

signals change in a way that suggests a fi re might be present.

Technological improvements over time made the systems more

eff ective and cost-effi cient. A signifi cant advance came in the

1920s when the ion fl ow chamber (the fi rst true smoke detector)

TECHNOLOGY

40 / SECURITYSALES.COM / MAY 2012 PHOTOGRAPHY ©ISTOCKPHOTO.COM/RAMIHALIM

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steam, dust).

In special applications such as data

and telecommunication centers, ultra-

sensitive air sampling smoke detection

systems continuously monitor the air

and apply a staged alarm sequence

to determine if, when and how a

response is needed. For example, an

active monitoring system may combine

multiple air-intake ports to provide more

immediate notifi cation and increased

effi ciency within areas of high airfl ows.

One detector can cover up to 20,000

square feet as compared to passive

detectors that generally cover about 900

square feet. Additionally, spot detector

technology has evolved to include the

capability to provide high sensitivity

capabilities for Very Early Warning Fire

Detection (VEWFD) suitable for the

protection of a telecommunication

facility, data center and high value areas.

Multicriteria fi re detectors are

the emerging technology in the 21st

century. Technology today provides for

two or more diff erent fi re sensors (e.g.,

smoke, heat, CO, ion, etc.) in a single

detector that will process the signals

with algorithms to determine alarm or

monitoring status. Multicriteria detectors

can sense danger more quickly, avoid

nuisance alarms and provide valuable

information for emergency responders.

Combined with newer panels and

control systems, they can also improve

reliability and reduce maintenance costs.

As smoke detection advancements

continue it is useful to understand the

current state of detection technologies

to better understand the landscape and

make informed choices when specifying

system elements, and to mitigate risk

within the context of the facility and its

intended purpose.

INCORPORATING IONIZATION Detectors using ionization technology

are based on an “ionization chamber”

that includes a small radioactive source

and a positively and negatively charged

electrical circuit. Th e radiation “ionizes”

the air in the chamber by removing

an electron and thus maximizes

electrical fl ow across the circuit. Any

smoke particles entering the chamber

as heat (typically above 135° F) triggers

the sprinkler directly where the fi re

is burning. Smoke detection systems

integrated across commercial buildings

quickly warn occupants of a potential

danger before it spreads.

Clearly the best life-safety solution

is to provide a combination of early

warning smoke detection and fi re

sprinkler systems. Let’s take a look at

the impressive variety of fi re/life-safety

detection technologies and devices

currently available to help installing

contractors best protect their clients’

persons and properties.

ADVANCES ENABLE SMARTER DETECTIONToday the focus is on integration of

“smart” (multicriteria fi re detection)

technologies that increase value,

simplicity and reliability. For example,

one area of development involves

advanced signal analysis via software

that converts sensor signals into a

mathematical formula. In real-time, the

software dynamically compares signal

data to sophisticated algorithms that

diff erentiate between a fi re emergency

and harmless smoke (e.g., from a welder,

was invented in Switzerland. Soon after,

scientists began experimenting with

other technologies such as projected

beam and photoelectric detection

methods.

Another major breakthrough occurred

in the 1940s when scientists at Cerberus

(now part of Siemens) adopted more

effi cient cold cathode (vacuum) tubes in

ionization units. Th is technology was the

standard for smoke detection well into

the 1960s. In the latter part of the past

century, most advances involved making

smoke detection units smaller, more

sensitive and more effi cient. Transistors

replaced trigger tubes. Safer and more

stable radiation sources improved

ionization chambers. Low-power units

ushered in low-cost battery-operated

devices for home use. Ultraviolet

radiation detectors were used to develop

the fi rst fl ame detectors.

Recent studies reveal the odds of

dying in a house fi re are reduced 50% by

having a working smoke alarm/detector

installed. In commercial buildings, even

in the presence of sprinkler systems,

the benefi ts of smoke detection are

signifi cant. Sprinkler systems, by

design, provide a localized response

Gas detectors (above) operate on a similar principle to ionization detection. Electrochemical or catalytic circuits are programmed to measure changes in current brought on by the presence of gases with specifi c molecular structure. Upper-end optical systems, such as laser sensors, work well in sophisticated aspirating smoke detection systems (left) that actively monitor air samples and channel them to a centralized detection unit.

Electrochemical Gas Detection Technology

Aspirating Smoke Detection System




FIRE SAFETY INNOVATIONSFIRE ISSUE

to measure changes in current

brought on by the presence of

gases with specifi c molecular

structure. Gas detection is

becoming more common

and sophisticated to address

air quality and safety issues.

For example, 35 states have

legislation mandating installation

of carbon monoxide (CO)

detectors for life safety.

One important trend is the

integration of gas detection

into smoke detection systems.

Combining gas detection with

heat and/or smoke sensors can

help avoid false alarms and allow

multicriteria detection systems

to more eff ectively analyze a

given situation. For example, the

system may react diff erently if

heat alone is rising rather than if

it detects both rising heat and an

increase in CO or other gases from

combustion.

Gas detection sensors are

commonly used in multicriteria

units and in advanced systems

that combine smoke detection and

air quality monitoring. Th e combined

benefi ts can be signifi cant.

4 TYPES OF THERMAL DEVICESMany diff erent temperature-sensitive

technologies are used to detect fi re, often

based on an alloy or other material that

will change shape, form, or electrical

properties as temperature changes.

Th ermal detectors typically fall into

one of four categories:

Fixed temperature — Th ese sensors

trigger once heat passes a certain point.

Th ey have been used for decades,

especially in conjunction with auto-

extinguishing systems and in very

harsh environments that aff ect other

detection technologies.

Rate-of-rise thermal/thermistor-

based — Th ese units are far more

sophisticated and apply a type of

computer logic to the situation based on

the dynamics of the speed and degree

of temperature increase. Th ey are often

combined with other technologies in

systems operated by algorithms to most

commercial units because they are more

accurate at detecting smoldering fi res

than ionization. Th ese types of detectors

are relatively low cost and have proven

reliable across a long period of time.

Th e upper-end optical systems,

such as laser sensors, also work well in

sophisticated aspirating smoke detection

systems that actively monitor air samples

and channel them to a centralized

detection unit.

Multicriteria units are often

integrated into smart monitoring

systems. For example, one

manufacturer has developed a dual

optical multicriteria system that

combines both forward and backward

light scattering sensors with thermal

detection to provide very early warning

to both smoldering and fl aming fi res.

GAS UNITS WARN OF INVISIBLE DANGERS Gas detectors, which are in common

use today, operate on a similar principle

as ionization detection. Electrochemical

or catalytic circuits are programmed

neutralize the air, which reduces

the current fl owing across the

electrical circuit and triggers the

alarm.

Generally speaking, ionization

technology is low cost, and most

common in home detection units

and basic commercial systems.

Ionization smoke detectors

are particularly eff ective for

quick response to fast burning

fi res (which may produce less

smoke than smoldering fi res),

but these kinds of units are also

more prone to false alarms (e.g.,

from cooking, toaster, cleaning

aerosols etc.)

Several companies pioneered

the early commercialization

of ionization smoke detectors.

For the most part, ionization

sensors are used in residential

systems or in some multicriteria

detectors. In the latter,

combining ionization with

other technologies helps detect

diff erent smoke signatures more

quickly, while also avoiding false

alarms.

OPTICAL SHEDS LIGHT ON SENSING In the most common smoke detector

units photoelectric cells register

changes in light intensity as minute

smoke particles enter the detector.

Th ese units often have the receiver

sensor at a 90° angle to the photo beam

— smoke particles “scatter” the light

beam and cause rays to hit the receiver,

which triggers the alarm. Forward

scatter detectors typically are more

accurate sensing light smoke particles,

while backscatter technology better

distinguishes lighter and darker particles.

More advanced optical systems

operate on a similar principle, but may

involve laser beams or more precise and

accurate light sources. Light meters that

measure ultraviolet rays are also used

in “fl ame detectors” that help identify

when a fi re is present in manufacturing

environments or other situations that are

normally smoky or dusty.

Photoelectric sensors have long been

popular in home smoke detectors and

Multicriteria units (top) are often integrated into smart monitoring systems. Ionization technology (bottom) is based on an “ionization chamber” that includes a small radioactive source and a positively and negatively charged electrical circuit. The radiation “ionizes” the air in the chamber by removing an electron and thus maximizes electrical fl ow across the circuit.

Multicriteria Detection With Thermal Sensor

Ionization Smoke Detection Technology


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Video is also increasingly popular

in commercial settings that combine

security needs with fi re detection. In

such systems, video signals can be

transmitted simultaneously to the

building security center and fi re panel.

Automatic fl ame detection technology

can be combined with live video

for immediate verifi cation. And, by

automatically recording video images

for a prescribed period before and after

an event, the systems are very valuable

for investigation and future legal or

security actions.

Future smoke and fi re detection

systems may also be responsible for

ongoing monitoring of air quality to

direct heating, air conditioning and

ventilation (HVAC) systems for utmost

energy effi ciency. In a fi re, such systems

could use voice commands and other

means to automatically direct occupants

away from danger and toward the

best escape routes, rather than simply

sounding a general alarm.

integrated to make the systems highly

accurate and eff ective.

Video systems are particularly

eff ective in very large open buildings

where smoke or gases are more diffi cult

to detect. Th ey can be very useful for

industrial environments where radiant

heat and smoke make other detection

systems harder to implement. To date,

VID systems are listed and approved

by Nationally Recognized Testing

Laboratory (NRTL) as supplemental fi re

detection and not primary life-safety

systems. In most cases, the monitored

area must be illuminated for video

imaging technology to work eff ectively.

accurately determine the scope of the

threat and desired response.

Linear heat detection — Th is

typically consists of a cable with a

combination of polymer and/or digital

technologies that can detect heat

conditions anywhere along the length

of the cable. Th e cable is normally

comprised of tri-metallic conductors

individually insulated with a heat

sensitive outer layer that is designed

to break down at various selected

fi xed temperatures. Th is technology

has historically been used in freezer

warehouses and storage facilities

where other detection technologies

may not be ideal.

Multicriteria — Th ese units integrate

thermal sensors and can be quite

sophisticated. For example, one

manufacturer off ers a detector that

integrates advanced signal technology

software with two optical sensors, two

thermal sensors and one CO sensor. It

allows for the earliest and most reliable

detection, with highest immunity

against false alarms. It can also be

programmed for independent (life-

safety) CO monitoring or cooperative

functionality.

VIDEO PACES LEADING-EDGE METHODS Specialized surveillance software has

been developed that now enables

video cameras to be used for fi re

detection purposes. Using video image

detection (VID), the cameras monitor

the area and are programmed to detect

specifi c visual signals such as fl ickering

fl ames or rising plumes of smoke that

indicate the presence of fi re. In recent

years, complex algorithms have been

The exact science, technology and application of smoke detection systems vary. But the

one consistent factor is a quick and accurate assessment of the danger, and an effective

warning to all occupants in the building. Fires may develop very quickly or somewhat

more slowly, depending on the combustible material involved. In any case, there is a

relatively small window of opportunity early in the development of the fi re to extinguish

the fl ames and/or safely evacuate.

Most fi re professionals agree that the ultimate protection of lives and property comes

from a combination of the early warning of smoke detection and fi re suppression.

Following is the typical sequence of fi re development: 1. Early stage — The small fi re can easily be extinguished with water or other

means. Little visible smoke occurs, although it is often suffi cient to trigger a smoke alarm. 2. Smoldering phase — Visible, partly dense smoke occurs and large amounts of

carbon monoxide (CO) may be produced by the incomplete combustion. The fi re may

still be easily controlled by a fi re extinguisher. 3. Flaming phase — The open fi re leaves precious little time for evacuation,

and must effectively be fought by fi re professionals. As combustion becomes more

complete, less CO is produced, but relatively large amounts of carbon dioxide ensue. 4. Flashover — This is the transition between an open, fl aming fi re and a total fi re.

This explosive fi re spread is caused when gases and aerosols produced in earlier phases

ignite and spread the fi re into all rooms already penetrated by the smoke gases. 5. Total fi re — Once the fl ames reach larger building parts, there is little fi re

professionals can do and they typically concentrate their efforts on protecting

neighboring buildings and fi re sectors.

5 STAGES OF FIRE PROGRESSION

FIRE SAFETY INNOVATIONS

Ron Ouimette is a Business Development Manager for Siemens’ Building Technologies Division. He can be reached at [email protected].

FIRE ISSUE

Forward scatter detectors typically are more accurate sensing light smoke particles, while backscatter technology better distinguishes lighter and darker particles.

Optical Detection Technology (Forward Scatter)



www.securitysales.com/freeinfo/xxxxxwww.securitysales.com/freeinfo/15172


http://www.securitysales.www.securitysales.ccoomm//ffrreeeeiinnffoo//x1x5x17x2x

FIRE ISSUE


End users typically view fire/life-safety systems as expenditures they would prefer to avoid rather than an investment paying dividends across the organization. Open C-level decision

makers’ eyes to show them how today’s solutions not only protect people, assets and facilities, but also ensure compliance,

mitigate risk and lend peace of mind. by Mike Dowling

Fire and life safety remain important considerations for chief risk offi cers (CROs). Even so, strained budgets and other security issues on CROs’ minds present signifi cant challenges when it comes to selling fi re and life-safety solutions and services. With physical threats and digital attacks capturing headlines, fi re safety is often pushed to the back burner as executives focus on more top-of-mind security issues like access control and information security.

FIREFIRE $ALE$ALE

SALES TACTICS

ILLUSTRATION ©ISTOCKPHOTO.COM/QUISP65

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standards, and no

one should accept the

minimum when it comes to

fi re and life safety.

So what’s the best approach? It’s

simple. A fi re security sales staff must

sell the safety of an organization’s

people, assets and facilities. We’re in

the life-safety business, after all — not

in the business of selling standalone

equipment and technology that

doesn’t address comprehensive safety.

Security professionals should be looking

to provide assurance that in the event of

a fi re catastrophe, a customer’s facility is

ready to detect and enable rapid reaction

to the event.

MORE TO PROTECTION THAN PRODUCTSEstablishing a proper fi re security

program begins with the common

goal of creating the safest environment

possible, and eff ective selling strategies

follow suit. When sales professionals

focus on mitigating risk and providing

a safe place to do business, they

position their organizations as strategic

service partners instead of commodity

providers. Th at’s the diff erence between

providing peace of mind versus a

piece of equipment. Th is approach

also positions the security provider

to deliver expert counsel about a

range of topics, including technology,

integration, monitoring, employee

training and more.

Being a strategic service provider

means understanding the customer’s

mindset when it comes to fi re detection

security, and off ering solutions that

solve problems in a cost-eff ective

manner. Many customers are simply

looking to meet compliance codes

with the minimum spend possible. Th e

customer wants to know how to make

his or her existing equipment fi t with the

latest regulatory requirements without

blowing the budget on a completely new

system. Th ese customers can benefi t

from partnering

with a true

fi re security

expert that

can look at

security sales teams fall short is in their

approach. Th ey lead with a technology

and product sales pitch instead of

selling true fi re and life-safety solutions.

Unable to make the intangibles of

mitigated risk and peace of mind “real”

for their customers, these parties show

off the latest technologies and newest

product features. But focusing on the

tools isn’t always enough to justify

an investment that protects a CRO’s

business from a potentially devastating

fi re event.

Adding to the disconnect between

customers and their fi re security

providers, many organizations

are focused solely on maintaining

compliance with various fi re regulations

or standards. If a customer’s only goal

for implementing a fi re and life-safety

program is to adhere to regulations,

fi re security professionals face the

challenge of convincing the customer

that a simple investment in equipment

and maintenance may not truly secure

the organization’s assets. Remember,

compliance represents minimum

As with any security equipment or

service, selling proactive fi re and life-

safety protection means convincing a

CRO to invest in the mitigation of a threat

he or she may not be able to envision.

And if the CRO’s organization already

meets the minimum for fi re and life-

safety compliance, he or she may ask,

“Where’s the fi re?” when it comes to

implementing holistic solutions. In

response, your best retort may be to ask,

“But what if there is a fi re?”

Lack of preparation contributes to fi re

losses of more than $2.3 billion annually,

according to the Occupational Safety

and Health Administration (OSHA).

Organizations that proactively integrate

fi re and life-safety programs can mitigate

those losses, which is a reality that should

capture the attention of any bottom-

line-conscious CRO. And when the CRO

understands that integrated solutions

can protect the company’s investments

as well as ensure compliance, mitigate

risk and provide peace of mind, the

solutions should nearly sell themselves.

Unfortunately, where many fi re

Fire security systems salespeople must sell the value of safety for an organization’s people, assets and facilities. Security professionals should be looking to provide assurance that in the event of a fi re catastrophe, a customer’s facility is ready to detect and enable rapid reaction to the event.

COMMERCIAL FIRE SALESFIRE ISSUE



Setting a high standard with each

customer also builds confi dence in the

investment. A proactive organizational

standard is defendable and gives the

customer peace of mind — both key

goals of a fi re and life-safety sales

process. Th e creation of such forward-

thinking standards cannot be achieved

by a focus on technology alone.

Instead, the fi re provider and

organization must work to identify

business and security needs and assess

the customer’s unique environment.

Th rough careful planning, a

standardized platform can be created

that works throughout the customer’s

network of facilities and can be applied

systematically everywhere the customer

operates. Furthermore, for the security

provider, these standards can be

replicated within a given vertical and

applied to similar organizations.

Th ough setting standards may seem

more complex then selling products

on the front end, working with a

customer to set enterprise-wide fi re

standards is often a simpler solution.

Proactive organizational standards

give customers the autonomy to keep

their facilities safe and compliant

regardless of regulation changes.

Standards also act as roadmaps for a

fi re security service provider to execute

everything from equipment installation

to regular maintenance and monitoring.

Customers that impose their own high

standards take control of the critical

security decisions instead of allowing

a third party (like a local AHJ) to

determine fi re and life-safety standards

for them.

Once a provider analyzes a customer’s

building environments and has a

full picture of the risks and potential

hazards a customer faces, it can apply

detailed knowledge of technology to

determine what level of standards

meet or exceed compliance with NFPA

and International Building Code (IBC)

regulations. Because these overlapping

regulations are often what confuse

customers most in this highly regulated

business, a strategic provider can

add the most value by navigating the

hierarchical nuances and working with

customers to maintain compliance

without worrying about the fi ner points

of the system.

A provider with monitoring

capabilities can also look beyond the

installation and show the customer how

their investment will be supported every

minute of every day. Even nonexclusive

providers should make sure the security

products and services they off er fi t within

the customer’s overarching fi re and life-

safety program.

ESTABLISHING UNIFORM STANDARDS As customers consider the gauntlet

of compliance fi re standards they

must meet for detection, suppression,

lighting, monitoring and extinguishers,

details can quickly become confusing.

Introduce the variability of widespread

enterprises, including multiple

buildings and municipalities, and

keeping track of all the regulations

can be mindboggling. Even diff erent

types of facilities within the same city

— such as a warehouse and an offi ce

building — may have diff erent fi re

detection standards and suppression

requirements. Relying on National

Fire Protection Association (NFPA)

standards is a start, but customers

looking to make the most of their

investments should work with their fi re

security providers to strategically set

proactive organizational standards.

For a company with a few dozen

or even a few thousand locations,

determining how to fulfi ll the minimum

fi re standards for each facility can be

more costly than treating all facilities

the same. A strategic fi re security

provider should counsel these

customers to establish their own set of

standards that they can apply to every

building in their network.

Establishing an enterprise-wide

standard that exceeds current regulations

accomplishes two signifi cant goals: 1)

eliminating variability in the fi re security

system to provide better protection; 2)

reducing complexity in maintenance,

inspections and compliance across

multiple facilities and local authorities

having jurisdiction (AHJs).

their facilities holistically and integrate

old and new equipment from multiple

manufacturers. Security integrators are

uniquely positioned to function as that

strategic expert.

Tackling the challenge of fi re security

integration by purchasing equipment

a la carte is not the most effi cient use

of a security budget, especially if the

customer is working with one or more

providers who aren’t viewing the system

holistically. Customers who buy the

bare minimum piece by piece end

up with disparate systems installed in

diff erent ways. Components may be

compliant, but there’s no rhyme or

reason to the complete system

and it often falls short of off ering

true protection. Bargain hunting for

fi re security equipment with multiple

providers may present cost savings in

the near term, but is more costly long-

term because the installation and

integration are not being managed

strategically.

In addition to cost-related issues,

an ad-hoc compilation of equipment

installed over time by multiple providers

may actually increase risk. Fire security

professionals from diff erent companies

address solutions in diff erent ways. Such

variability in standards, technologies

and equipment placement represents

increased risk.

It also places the onus on the

customer for maintenance, inspection,

monitoring and upkeep — activities

that should all be the responsibility of

a true fi re security expert. If something

goes wrong before a fi re, the customer

doesn’t know who to call. In the event

of a failed inspection — or worse,

a failed response to a fi re event

— the customer is ultimately

responsible because they are in

charge of managing the system.

Strategic fi re security providers

should off er to handle all

equipment, installation

and maintenance

decisions in

a manner

that

allows


technology. In an industry fraught with

variability, many distributors provide

proprietary fi re alarm equipment that

only works within their own exclusive

platforms or closed systems.

Businesses can benefi t, on the

other hand, from open platforms

that accommodate technology from

multiple providers as well as legacy

equipment. Working with open

components makes a system more

sustainable, as it doesn’t limit an

organization to one brand or type of

technology. To establish a fl exible

and scalable fi re security program,

choosing interoperable components is

absolutely essential.

Strategic providers must also look

beyond the installation when pursuing

a fi re security sale. For example, alarms

deliver limited return if not tied to

monitoring. A security provider with

its own monitoring capabilities or

contracting with a proven and reliable

third-party central station ensures a

rapid, consistent response to a fi re

event. Additionally, an integrator

that can also provide monitoring

is familiar with the system and the

customer’s organizational standards,

ensuring seamless and strategic system

execution.

more strategic when examined from

a holistic viewpoint. Pairing detection

devices with monitoring systems

and life-safety notifi cation systems,

for example, becomes easier from

a big-picture view once all facilities

are considered through the lens of

proactive organizational standards.

Instead of selling security equipment

piece by piece, the need for specifi c

technology is dictated by a standard the

customer has already adopted.

Standards should also include

guidelines about utilizing legacy and

refurbished technology in a way that

comprises a consummate system.

Integrating new and legacy equipment

into the same fi re and life protection

system can present risk if not done

correctly — a challenge many

providers face. A strategic

provider can ensure integration

of legacy equipment fi ts within

a proactive organizational

standard and gives their

customer confi dence their

assets are safe.

Leveraging legacy

equipment when installing

or upgrading a fi re/life-safety

system highlights another

security industry issue:

open- versus closed-system

a customer to settle on one simplifi ed

set of standards that establishes a

roadmap for the security program

from integration to monitoring.

EMPHASIZE THE ROI OF TECHNOLOGYOnce a uniform standard is set, the

road is paved for security providers

to prove return on investment (ROI)

for technology and equipment

installations. Although leading a

sales pitch with the latest and greatest

products may be tempting, without a full

understanding of a customer’s needs,

the conversation is often irrelevant and,

at best, misguided.

Th ough technology and equipment

will play a part in these early

conversations, it’s best to keep the

discussions high level and avoid

referencing applications specifi c to

the customer. After a set of simplifi ed

standards has been established,

customers have a better understanding

of how technology meets their needs,

and these conversations can be applied

to a series of instances throughout a

customer’s entire building network.

Likewise, implementation can be

COMMERCIAL FIRE SALESFIRE ISSUE

Security providers should work with their customers to establish proactive organizational

standards that meet or exceed regulations for their facility. A basic checklist for the end

user to enact as uniform standards should include: Ensure all facilities have fi re detection systems Replace old and obsolete systems Ensure all fi re detection systems are inspected and tested annually, at a minimum Choose best-in-breed service maintenance and monitoring companies Invest in fi re/life-safety emergency preparedness training for employees Conduct periodic emergency preparedness drills

A BASIC CHECKLIST FOR YOUR CLIENTS


Mike Dowling is Director, Fire Detection Solutions and Services, for Diebold. He can be contacted at [email protected].

Lack of preparation contributes to fi re losses of more than $2.3 billion annually, according to the Occupational Safety and Health Administration (OSHA). To help mitigate those losses, the sales process should include establishing a set of simplifi ed standards that gives customers a better understanding of how technology can meet their needs. Those conversations can then be applied to a series of instances throughout a customer’s entire building network.






he building management team of a

450,000-square-foot Oakton, Va.-based

facility housing a critical infrastructure of telecom

equipment and data centers was confi dent that the

fi re alarm system they had installed in 1994 would

provide the needed alerts to protect 2,500 employees

in the event of an incident. And for nearly two decades, it

had. However, time marches on for everyone … and every

fi re/life-safety system.

As the system neared the end of its lifecycle, building

managers for the facility ran into a problem. Many companies

in the fi re industry had undergone mergers and acquisitions,

which resulted in one company owning the fi re protection

hardware and another company controlling the software of

the facility’s fi re protection solution. When the system needed

repair, neither company provided the necessary assistance to

address the solution’s shortcomings.

“Th ere were issues with parts availability and with

service,” says Laura Graham, who formerly handled facilities

management at the data center. “Th e manufacturers didn’t

have anyone left on staff that had the skills or knowledge

required to work on the system.”

Additionally, the system went off on a daily basis, and the

fi re marshal was strongly considering fi ning the building

managers for the constant false alarms. Frustrated, facility

owners realized it was time for a change. During that time, they

also decided to renovate three wings in the building, which

prompted building managers to seek a new fi re alarm system.

by the Editors of Security Sales & Integration

FIRE ISSUE INSTALLATION CASE STUDY

Protecting Critical Infrastructure From Fire Peril


ss0512caseStudy.indd 52ss0512caseStudy.indd 52 4/26/12 2:08 PM4/26/12 2:08 PM

To protect the critical infrastructure of telecom equipment and data centers inside a 450,000-square-foot Oakton, Va.-based facility, electrical company Haislip Corp. provided a Silent Knight fi re alarm system. The solution included gas detectors, fi ve fi re alarm control panels and 40 remote modules to support fast data communications along the network’s extensive serial communications line, or S-Bus.


the fi re alarm system, we never left the

building. All of a sudden, we were doing

service calls for them. Th en they had us

put in a building automation system and

it just kept on going,” he says.

Although Haislip Corp. had previously

performed installations at the facility,

there was no guarantee it would be the

provider of choice for the new system.

Facility management required the

new fi re alarm solution have extreme

reliability to address the mission-critical

aspect of the facility’s operations, as

well as ease of use and maintenance.

Additionally, building owners needed

the system to easily expand to adjust to

any changes to the facility’s operational

platforms with an option to add mass

notifi cation capabilities in the future.

In preparing its bid, Haislip

considered solutions from four vendors:

Notifi er by Honeywell, Siemens,

Silent Knight by Honeywell and

SimplexGrinnell. Realizing that one

James, a NICET Level III-certifi ed

technician, took over the company.

Haislip’s 30 employees design, test,

inspect, retrofi t and install fi re alarm

systems for some 200 clients, including

Dulles Int’l Airport, Fannie Mae, Hilton

Hotels, Holiday Inn and Sheraton Hotels

& Resorts.

Regarding the data center project,

Haislip Corp. was very familiar with

the facility as the company performed

the installation of its fi rst fi re alarm

system. “When we got the job in 1994,

it was through a cold call from the

facility managers asking us to give them

a bid,” says Haislip. “Th ey already had

the equipment, and they just needed

someone to install it. We met their

requirement to work in the facility, and

we actually won the project.”

After installing the fi re alarm system,

the building owners also asked Haislip

to provide intrusion alarm and public

address systems. “After we installed

“From a property management

standpoint, we just wanted a system that

was fully operational where if there was

a problem, it could be easily and cost-

eff ectively addressed,” Graham explains.

With that, building managers

of the global telecommunications

fi rm’s Oakton site sought the help of

Chantilly, Va.-based Haislip Corp., an

electrical contractor and fi re alarm

dealer, to provide an addressable fi re

alarm solution with integrated voice

evacuation with the ability to add mass

notifi cation functions.

TECHNOLOGY, COST SAVINGS WIN BIDStarted by Pliny Haislip Jr., Haislip Corp.

is a fully licensed, bonded and insured

commercial electrical company that

has provided high-end electrical and

fi re alarm services to customers in

Maryland, Virginia and Washington,

D.C. since 1969. In 1995, Pliny’s son,

After years of struggling with its outdated fire alarm system, a 450,000-square-foot facility

containing critical infrastructure and telecom equipment required an upgrade. A local

integrator helped deploy an advanced, five-node fire protection system with expandable,

cost-effective networking capabilities.



FIRE ISSUE

amplifi cation allowed us to send to

remote amplifi ers. A 1,500-foot run is

now only 300 feet, so it saved a boatload

in cabling. Th at’s where we saved the

money, and it was all done to their

modern V-Bus and S-Bus.”

Th ree preaction suppression systems

protect several data center laboratories

and one large vault of telephone and

data communications equipment

within the facility. To coordinate

the monitoring and response of all

systems, the installation team tied the

three individual systems to the Silent

Knight network. Additionally, the crew

connected two Honeywell infrared (IR)

fl ame detectors, which monitor the

building’s main generator and fuel tank,

to the fi re alarm network.

TACKLING SYNCHRONIZATION CONCERNSOf course, a job that took a year to

complete was not without its obstacles

and glitches. During the renovation, the

facility remained open for business. As a

result, the installers had to work around

employees’ schedules and during the

off hours. Additionally, the fi re marshal

required that the old fi re alarm system

remained operational until he gave his

approval for the new one to go live.

“Th ere came a point where we had to

pull off the original equipment, such as

the tampers, fl ows and duct detection.

Th at was all carefully coordinated with

the fi re marshal,” says Haislip. “About

Located throughout

the facility are more

atriums, making the

intelligence of emergency

communications a

challenge. As a result,

Haislip designed and

installed a fi ve-node

fi re alarm system with

859 initiating and 841

notifi cation devices.

Starting from the main

panel, the network was

able to reach out to four

other fi re alarm control

panels in major areas of

the complex. Forty remote

modules were deployed

to support fast data communications

along the network’s extensive serial

communications line, or S-Bus. Th e

S-Bus allowed Haislip’s 10-man crew

to remotely mount the panel, which

reduced voltage on the lines.

Haislip also incorporated Silent

Knight’s VIP-125 amplifi er, designed

to simplify fi re alarm voice evacuation

system layout, to further mitigate the

enormous scale of the project. Th e VIP-

125 contains its own power

supply with battery backup

and up to eight speaker

circuits. Additionally, the 125

watts of amplifi cation power

produced by the amplifi er can

push audible communications

through speakers to achieve

mid- to large-scale fi re alarm

voice evacuation.

Another benefi t is that the

amplifi er can be mounted up

to 6,000 feet away from the

main control panel, which

helped reduce speaker circuit

wire runs.

“Th e amplifi ers were the big

cost saving advantage over the

competition,” Haislip explains.

“We set remote amplifi ers

as needed throughout the

complex and they ran off its

independent V-Bus. Instead

of bringing all the speaker

leads back to a central

location, using distributed

of the end user’s main concerns was

controlling the software, Haislip Corp.

selected Silent Knight’s Farenhyt system

to help the company earn the bid to

retrofi t the facility.

“Th e beauty of Silent Knight is that

we would now control the software,”

Haislip says. “We brought it all in-

house. Additionally, the Farenhyt line’s

networking technology allowed us to

win the project because it helped reduce

our installation costs by $100,000.”

DESIGNING AN EFFECTIVE SYSTEMHaislip designed the facility’s new

system around the Farenhyt IFP-

2000VIP addressable fi re alarm control

panel with integrated voice evacuation

functionality with the goal of satisfying

anything the owner might want in the

future. Th e IFP-2000VIP is scalable and

capable of networking in a variety of

ways, according to Haislip.

“Th e system would give them enough

room to grow so it wouldn’t give them

any problems,” he says.

Th e Oakton facility is a large, fl at

structure comprised of four buildings

joined with an atrium in the center.

CRITICAL INFRASTRUCTURE FACILITY PROJECT

Haislip Corp. owner James Haislip designed the facility’s new system around Silent Knight by Honeywell’s Farenhyt IFP-2000VIP addressable fi re alarm control panel.

The facility uses beam detectors to conduct an annual fi re alarm test.


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SS0312easyvisitmgmt.indd 1 3/1/12 10:48 AM

FIRE ISSUE

two-thirds of the way through the

project, we were able to shut off the old

system and everything was transferred

to the new system.”

As with many large-scale projects,

specifi cations changed after the

installation got underway. A number of

test labs in the building required under-

fl oor protection, necessitating remote

annunciators. Th at specifi cation was

added well into the installation, but it

was easy to add the extra equipment

into the system. “It’s an aff ordable

expansion — you only buy what

you need,” says Haislip. “It was not

expensive.”

Additionally, standards set by the

Americans with Disabilities Act (ADA)

typically require all strobes to be seen

within an area to be synchronized.

However, the local fi re marshal

required all strobes on all levels of all

buildings to be synchronized.

With 1,500 strobes, that was quite

the hurdle to overcome. Originally,

the Haislip crew had the strobes

synchronized by fl oor; however, from

the outside of the building, it appeared

as if fi reworks were going off in the

facility.

“When you’re looking down the

throat of a four-story atrium with four

diff erent wings, you’re seeing strobes

from angles you would never imagine,”

Haislip explains. “Th e fi re marshal said,

‘It looks like the apocalypse in here.’

To synchronize the building, we had to

add some wires to guarantee that the

strobes pulsed at the same time.”

Th ere was also a problem with the

beam detectors causing false alarms.

Often, when sun hit the detectors, an

alarm would set off throughout the entire

facility. To counter this with the new

system, Haislip put tunnel visors on the

new beam detectors to block most of the

sun’s rays. However, each year, the sun

will hit the beam detectors on the same

day and time during the spring. Th e

facility now uses that time to conduct its

annual fi re alarm test to make sure the

system is operating properly.

WORKING THROUGH THE STORMSince the installation, the only

CRITICAL INFRASTRUCTURE FACILITY PROJECT

The facility is a large, fl at structure comprised of four buildings joined with an atrium in the center. More atriums are located throughout the facility, which made the intelligibility of emergency communications a challenge.

subsequent action Haislip Corp.

has had to take is replacing system

batteries. A thorny issue became

apparent due to the facility performing

electrical service upgrades on the

weekends that constantly shut down

the fi re alarm system.

“Th ey had the N+2 power grid in the

building, which has the emergency

generators backing up all this

equipment, especially the fi re alarm,”

Haislip says. “But they were required

to shut it all down, and the fi re alarm

system was literally running on its

backup battery for the entire weekend.

It was only required to be backed up

for 24 hours, so they deep cycled these

batteries and caused issues.”

It’s a good thing that the crew

replaced those batteries because a year

after the installation was completed the

Farenhyt system took center stage to

prove its reliability. A heavy snowstorm

that included thunder and lightning

hit the Oakton area, and as a result the

facility suff ered a 36-hour power outage

— only the second extensive power

failure the site experienced in 30 years.

Because the IFP-2000VIP has 24

hours of battery backup, the system was

able to monitor the power fl uctuations.

“Th ey had a brownout. Th e power

company thought they were doing

them a favor and turned some of the

power back on,” according to Haislip.

“When the power came back on, the

fi re alarm was operating on its battery,

and because the generator sensed that

battery power, it shut off .”

As a result, the power fl uctuations

burned three electrical motors in the

facility’s central plant causing them to

smoke. Fortunately, the alarm system

caught the smoke before the motors

broke out into real fl ames.

“It was the advanced acclimated

smoke detection that we installed that

potentially saved the facility from a lot

of property damage,” says Haislip. “Th e

detectors went off and set the building

into alarm for about 15 minutes before

the fi re department go there. Th e bonus

is that the alarm was going off all on

battery, so we know that the system was

thoroughly tested.”


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• 50 ppm — No adverse eff ects within eight hours of exposure

• 200 ppm — Mild headache after two to three hours of

exposure

• 400 ppm — Headache and nausea after one to two hours of

exposure

• 800 ppm — Headache, dizziness and nausea after 45 minutes

of exposure; unconsciousness after two hours

• 1,000 ppm — Unconsciousness after one hour

• 3,200 ppm — Unconscious after 30 minutes

• 6,400 ppm — Unconscious and/or death after 15 minutes

• 12,800 ppm — Unconscious and/or death after one to three

minutes

Every year there are a number of deaths and injuries from

CO exposure. Most occur within residential occupancies. CO

is the result of appliances or devices that produce products

from combustion, such as natural gas, petroleum and wood.

When there is direct injection of CO into a poorly ventilated

space or through a leak within a heater or other fuel-burning

appliance, the concentrations will begin to rise. When the

ppm reach the levels as stated above, individuals within the

space will become aff ected.

One concern that has been voiced regarding the monitoring

of CO detectors is that a person within premises where the

gas is present might be unable to act in response to a call, thus

requiring emergency responders to make a forced entry. How

then is the monitoring of CO addressed?

Shane Clary, Ph.D., has more than 37 years of security and fire alarm industry experience. He serves on a number of NFPA technical committees, and is Vice President of Codes and Standards Compliance for Pacheco, Calif.-headquartered Bay Alarm Co.

[email protected]

Fire Side Chat

CO: STOPPING A SILENT KILLER by Shane Clary

FIRE ISSUE

Carbon monoxide (CO) detection is increasingly being mandated by more and more localities, meaning safer buildings and growing opportunities for installing security and fire systems providers. Learn important definitions and monitoring practices.

As an adjunct to their usual intrusion de-

tection and fi re alarm systems, more and

more security and life-safety contrac-

tors are installing carbon monoxide (CO)

alarms. While there is no current national requirement that

these detectors be supervised by a central station, numerous

system providers are off ering this service.

CO is an odorless, colorless and tasteless gas. It is also a

very toxic substance that can render a person unconscious

or dead, depending on the concentration that may be within

a space. With the publication of the 2012 edition of the

International Residential Code (IRC) by the International

Code Council (ICC), and the requirement for CO alarms

within all single and multiple family dwellings, there will

be an increase in the number of locations that will request

monitored CO detectors be installed.

Knowing the requirements for monitoring these detectors,

and making certain end users are also familiar with the

requirements, will eliminate any confusion regarding the

handling of these signals prior to when a signal is received. Let’s

take a closer look.

DIFFERENT DEGREES OF CO POISONINGCO will produce the following symptoms within a person,

depending upon the parts per million (ppm) that have been

inhaled and absorbed by the body.

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the supervising station of a CO alarm signal, with or without

restoral signal, the supervising station shall fi rst call the

premises and then proceed as shown below.

4.1 If Someone Answers the Telephone:

• 4.1.1 — Th e occupants shall be instructed to leave the

premises and move to fresh air.

• 4.1.2 — Th e supervising station shall ask the following

questions to the individual answering the telephone:

a) Are all the occupants accounted for and are they out of

the premises?

b) Is anyone nauseous, ill, have a headache or dizzy?

• 4.1.3 — Th e supervising station shall instruct the occupants

not to re-enter the premises until cleared by the responding

fi re service.

• 4.1.4 — Th e supervising station shall then immediately

call the appropriate emergency response agency to

inform them of the alarm. Th e emergency response

agency shall be informed that the occupants answered

the telephone, were told to leave the premises and of any

reported symptoms.

4.2 If No One Answers the Telephone: Th e supervising

station shall then immediately call the appropriate

emergency agency and report that a CO alarm was received

from a particular premises and were unable to reach an

occupant.

4.3 In the case of 4.2, after dispatch the supervising station

shall contact the responsible party(s) in accordance with the

notifi cation plan.

Th e requirements for answering machines and voicemail are

similar to Sections 4.2 and 4.3.

AVERT FALSE ALARMS, BASHED DOORSWhile NFPA 720 has been adopted by most states, CSAA CS-

CO-01 has not. As both are endorsed by the American National

Standards Institute (ANSI), they may be viewed as standards of

care. Central station operators should check with each AHJ to

verify how they want CO signals handled within their respective

jurisdictions. Th e central station should be prepared to provide

a copy of the CSAA standard to the AHJ for review and adoption.

While most fi re departments respond to CO alarms at this time,

a number will refer the call to the local natural gas provider.

Where it comes to monitored CO detection systems,

particularly residential occupancies, I recommend installing

a Knox-Box (knoxbox.com) so responding authorities may

gain access to the premise without having to break down

a door. Th ese boxes can store keys or access cards for easy

emergency entry.

While the present generation of CO detectors are immune

to false or unwanted alarms they can still occur from time

to time. Proper placement of the detector(s) will help keep

them from being subject to nuisance activations. See the

sidebar box for examples of the types of locations suitable for

CO detection.

Next month, we’ll take a look at more specifi cs pertaining

to CO detector placement.

CO STANDARDS FOR MONITORINGTh ere are two standards that address the monitoring of CO

detectors:

• NFPA 720 — Standard for the Installation of Carbon

Monoxide (CO) Detection and Warning Equipment, 2012

Edition

• CSAA CS-CO-01 — Carbon Monoxide Supervising Station

Response Standard, 2008 Edition

Th e 2009 edition of NFPA (National Fire Protection

Association) 720 fi rst addressed the supervision and handling

of CO signals from a protected premise. Th e Central Station

Alarm Association (CSAA) wished to supplement the

requirements within 720 with additional information for

central station operators.

Chapter 7, Off -Premises Signal Transmission within NFPA

720 details requirements that are to be followed. Section 7.2.1.1

requires that a CO alarm signal shall take precedence over

supervisory or trouble signals. Section 7.2.1.2.1 requires that

the actuation of a CO detector shall be indicated as a CO alarm

signal. Th e handling of the signal by the supervising station is

addressed within the following section:

7.2.2 Supervising Station: Upon receipt of a carbon

monoxide alarm signal, supervising station personnel shall

perform the following actions in the order listed:

(1) Where required by the emergency response agency,

immediately retransmit indication of the carbon monoxide

alarm signal to the communications center.

(2) Contact the responsible party(s) in accordance with the

notifi cation plan.

Th e notifi cation plan is covered within the annex to this

section:

Th e supervising station should have a notifi cation plan

on fi le, the manufacturer’s published instructions, and

multiple points of contact with the subscriber to take action in

accordance with the manufacturer’s published instructions.

Within the manufacturer’s instructions are guidelines to be

followed if a detector should be activated. Th ese instructions

typically advise the end user to immediately move to a spot

where fresh air is available, preferably outdoors. Opening

windows may also be advised. Th ese steps generally eliminate

the immediate threat.

CSAA desired additional language as to how to query and

instruct occupants within a premise than NFPA 720 provided.

Section 4.0 covers Supervising Station Procedures. Subsection

4.1 addresses if someone answers the telephone and 4.2 if

there is no response.

Subsection 4.3 covers if

an answering machine or

voicemail picks up.

4.0 Supervising

Station Procedure:

Unless otherwise

required by the

emergency response

agency, upon receipt at

Single-family dwellings Hotels and motels Daycare centers Schools

Nursing homes and hospitals Parking garages Assembly occupancies

TOP PROSPECTS FOR CO DETECTION

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FIRE/LIFE-SAFETY PRODUCTSHE ESSENTIALS

System Sensor 5151Conventional Heat DetectorSystem Sensor of St. Charles, Ill., releases the 5151 heat

detector, a conventional, two-wire device.

Th e product is a combination fi xed and

rate-of-rise thermal detector designed

to provide open-area protection

with 50-foot spacing capability

as approved by UL 521. For local

alarm indication, it also includes

two LEDs on each detector for full

360° visibility.

Th e 5151 replaces the 5451 heat

detector and carries the same

electrical properties in a newer, more

modern package, according to the company.securitysales.com/FREEInfo/15402

Potter Electric PFC Series Fire Alarm PanelsPotter Electric Signal Co. of St. Louis has expanded its PFC Series

line of IP-based addressable fi re alarm panels to include advanced

technology, such as system-wide synchronization, Ethernet

connection and E-mail communication capability.

Th e PFC-6200 is a 127-point panel expandable up to 254 points.

Th e PFC-6800 is expandable up to 1,016 points. LAN and WAN

connectivity allow for large-scale network applications. E-mail

capability provides users with an immediate and detailed history and

detector status report sent directly to a computer or mobile phone.securitysales.com/FREEInfo/15400

Silent Knight Farenhyt ECS SystemSilent Knight by Honeywell of

Northford, Conn., introduces

the Farenhyt emergency

communications system

(ECS), which integrates mass

notifi cation capabilities with

fi re alarm technology.

Th e system delivers real-time, intelligible

communications over a completely supervised system

that meets the latest NFPA 72, UL 2572 and Department

of Defense (DoD) standards. Additionally, the control

panels include customizable switches for as many as 15

prerecorded messages and a microphone for live paging.securitysales.com/FREEInfo/15401

DMP 463G Digital CommunicatorDigital Monitoring Products (DMP) of Springfi eld, Mo., announces that its 463G digital cellular communicator is

now compatible with the company’s XR100 Series access, burglary and fi re panel.

Th e 436G, a plug-in expansion card, contains an onboard GSM/GPRS communications module that transmits

alarm messages to DMP central station receivers over the digital GSM/GPRS network.

Th e UL-Listed product can be used as the primary communication path and/or

as a standalone communicator without the need for a backup for commercial fi re

applications when combined with the XR100 Series panels.securitysales.com/FREEInfo/15403

For the latest products, sign up for SSI’s Security Equipment E-lert at securitysales.com.

Talk-A-Phone’s NewEco Emergency Phone TowerTalk-A-Phone of Niles, Ill., presents the ETP-MTE Eco emergency phone

tower, which stands nine feet and features an LED blue light that is always lit.

Designed with a lightweight aluminum construction for a reduced ecological

footprint, the tower also has multilayer powder coating to achieve near-

zero waste and volatile organic compound (VOC) emissions. Modular

construction allows for easy upgrades of the tower, while the optional

internal mounting plates and shelves provide clean mounting solutions for

accessories, according to the company.securitysales.com/FREEInfo/15404

FIRE ISSUE

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EdwardsSite MonitorGraphical User InterfaceEdwards of

Bradenton, Fla.,

a unit of UTC

Climate, Controls & Security,

introduces the Site Monitor

incident status software, which is compatible with VS

Series fi re alarm control panels.

Th e product captures, prioritizes and directs system

events for up to 1,000 VS Series panels, ensuring

correct and on-time response from the appropriate

authority, according to the company.

Site Monitor can be confi gured to generate E-mail

notifi cations to specifi c recipient groups. Th e solution is

available in two versions: A graphical version will display

location by map or photo, and a text-based version.securitysales.com/FREEInfo/15406

FIRE/LIFE-SAFETY PRODUCTS

GAI-Tronics Wi-Fi VoIPEmergency TelephoneTh e ADA-compliant Red Alert

Wi-Fi VoIP emergency hands-free

telephone by GAI-Tronics Corp., of

Mohnton, Pa., provides point-to-

point communications between

personnel over an existing wireless

local area network (WLAN).

Th e product features alarm reporting that enables system

supervisors to monitor the telephone’s activity and address caller

needs or maintenance issues immediately. It will monitor its own

health and report via E-mail, or via Syslog, failures such as stuck

buttons, speaker/microphone malfunction, confi guration error,

or power loss/reset, according to the company.securitysales.com/FREEInfo/15405

Telguard TG-7FS Commercial Fire Cellular CommunicatorTh e TG-7FS sole path cellular alarm communicator for commercial fi re by Telguard of Atlanta, a division

of Telular Corp., is available for 3G/4G networks.

Compliant with section 26.6.3.1 of NFPA 72, 2010, the product can serve as the primary communications

path for commercial fi re alarm systems, replacing all of the landlines users dedicate to their master control

unit. It provides a signal to central stations within fi ve minutes of an outage, according to the company.

Additionally, the product can deliver three layers of redundancy using 3G HSPA-based networks, GPRS network and SMS.securitysales.com/FREEInfo/15408

Gamewell-FCI E3 Series Combo Fire Alarm andECS System

Th e E3 Series fi re alarm and emergency communications system (ECS) from Gamewell-FCI by

Honeywell of Northford, Conn., provides advanced fi re protection and autonomous control of

building mass notifi cation.

Th e system integrates key emergency communication system (ECS) components, such as local

operating consoles (LOC), LED signage, specialized speakers and strobes, giant outside voice

systems, and interactive graphic monitoring displays (both stationary and mobile).

Th e networking of all components, including control panels and devices, requires only one pair of unshielded twisted wire or

fi ber-optic cable, according to the company.securitysales.com/FREEInfo/15409

Fike Integrated Voice Messaging SystemFike Alarm Systems of Blue Springs, Mo., has expanded its integrated voice messaging system to include

an optional local operating console (LOC) or remote microphone.

Th e UL 2572-Listed product includes integrated backup amplifi ers for built-in redundancy, virtually

unlimited messaging capability and multiple levels of fault protection. Th e LOC allows users to remotely

page and/or initiate prerecorded messages from a remote location.

Th e system can also be used with the company’s CyberCat line of fi re alarm products to provide

voice capabilities within smaller applications.securitysales.com/FREEInfo/15407

THE ESSENTIALS

FIRE ISSUE



THE PREMIER EVENTIN

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the dividends. With the maximum individual tax rate at 35%,

this could mean an additional $29,000 or more in taxes. Such

a scenario can result in total tax rates approaching 60% for

corporations earning more than $300,000.

Many C corporations avoid taxation at the corporate level

by paying a “bonus” to the stockholder(s) at year end roughly

equivalent to the corporate earnings. Th e bonus is treated as

salary expense, thereby reducing the corporate earnings to zero

and the stockholder(s) report the amount as wages.

Th is approach is only a short-term solution for a security

company. As alarm company owners know — and,

unfortunately, few tax practitioners understand — the recurring

monthly revenue (RMR) of a security company may be its

greatest asset. When an alarm company sells these assets, the

proceeds of the sale are income to the C corporation.

For a company with RMR totaling $83,000, the proceeds

would probably be around $3 million. Th e corporate tax on $3

million is approximately $1.02 million. Th is would leave nearly

$1.98 million to be distributed to the owner(s) (shareholders).

Th e tax on dividends of $1.98 million could be as much as

orming a business entity is fairly easy, but

each type of entity has its strengths and

weaknesses. Th ere is no question that oper-

ating as a sole proprietorship is not a good

idea. It is important to form an entity that is separate from the

owners for legal, tax and other considerations.

A corporation is by far the most common

form of business entity for installing security

companies, but limited liability companies

(LLCs) are increasingly receiving attention

from business owners. Th e following is

a brief defi nition of each entity and some advantages and

disadvantages for each.

Please keep in mind that the information is from a tax

and accounting standpoint only and does not consider legal

ramifi cations. For legal advice be sure to consult with an

attorney. Every situation is unique. It is also important to

consult with a competent tax professional before deciding upon

a particular type of entity.

CONSIDERING INCORPORATIONCorporations are distinct legal entities. Th ey have shareholders

and report their income and expense as a separate entity.

Corporations that do not elect to become Small Business

Corporations (S corporations) are referred to as C corporations,

and generally pay tax on their income at the corporate level.

Th is can cause what is referred to as double taxation.

A C corporation pays tax on its income. When the residual

profi ts (retained earnings) are distributed to the shareholders,

they are taxed to the shareholders as dividends. Consider the

following example: Th e C corporation has earnings of $100,000

and pays tax of $16,750. Th is leaves $83,250 to be distributed

to the shareholders. Th e shareholders would then pay tax on

Mitch Reitman is managing principal of Fort Worth, Texas-based Security Industry Capital (SIC) Consulting, which provides financial services to security alarm companies in 23 states and Canada.

Building Your Business

[email protected]

Like all firms, installing security contractors must decide on the legal structure of their business. Until recently, most chose between sole proprietor, partnership and incorporation. Now, more owners are choosing to be a limited liability company. Learn the advantages and disadvantages.

CORPORATION VS. LLC: WHICH IS BEST FOR YOUR SECURITY BUSINESS? by Mitch Reitman

PHOTOGRAPHY ©ISTOCKPHOTO.COM/ MEDIAPHOTOS & ELENATHEWISE

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the shareholders based upon their percentage of ownership.

Th is is an issue that can usually be overcome by proper tax

planning.

For the stockholders of a C corporation to elect to be an S

corporation is relatively easy, but it is very important to consult

with a competent tax advisor before making the plunge. Th e

election generally must be made by the 15th day of the third

month of the corporation’s tax year to be eff ective.

S corporations must also typically have calendar years

as fi scal years are generally not allowed. Electing to be a S

corporation may cause the corporation to lose certain tax

breaks, such as the carry forward of net operating losses. So,

again, consult with a competent tax advisor before electing

S status.

ABC’S OF SELECTING LLC STATUSLLCs are the “new thing” in entities. Th ey are easier to form and

operate because in most states there are no restrictions on their

ownership. An LLC is not subject to the formalities by which

corporations must abide.

LLCs have members as opposed to shareholders. An

LLC may be managed by its members, which means the

owners operate the company. In a member-managed LLC,

responsibility is delegated to managers who do not have to

be owners of the LLC. At present, the IRS does not place any

restrictions on the distribution of profi ts by an LLC; profi ts do

not necessarily have to be distributed based upon percentage of

ownership as in a S corporation.

Th e owners of an LLC, especially a sole owner/operator,

must report the profi ts as self-employment income and

generally must pay self-employment tax on all of the earnings

of the LLC. Th ere is no opportunity to pay a salary and let the

excess earnings “pass through.” Also, a single-member LLC is

substantially treated as a sole proprietorship for tax purposes,

and the member must report the income and expense on

his/her individual tax return. LLCs can elect to be treated as

corporations, but this makes them subject to the tax issues

discussed previously regarding corporations.

While LLCs are easier to form and manage, they typically

do not provide signifi cant advantages to security companies

owned and managed by one to four owners/employees. As

LLCs become more prevalent, Congress may place more

regulations and other requirements on them, further eroding

any advantages they may have.

It is important to consult with an informed, competent, tax

advisor regarding the best entity for your business, but the S

corporation is the best entity for most security businesses.

$670,000 for a total of $1.69 million or

56% of the proceeds.

One way to avoid the double taxation

is for the C corporation to elect S

corporation status. By virtue of its S

corporation status, a small business

corporation is typically not considered a

taxable entity. Th ere are some restrictions

on S corporations. For example, S

corporation stockholders must typically

be individuals (no corporations or certain

other entities), must have one class of

stock (with some exceptions) and may not

have more than 100 shareholders (with

some exceptions).

Since an S corporation is typically not

a taxable entity, its taxable income is

“passed through” to its shareholders, who

report the income on their personal tax

returns. Not only does this eliminate the

end of year bonus issues discussed above, it presents a huge

advantage if RMR is sold.

Assuming the same RMR sale discussed above, the S

corporation would pay no tax and pass the proceeds to its

shareholder(s). Th e RMR would be considered a capital asset

and the gain on its sale would be substantially a long-term

capital gain. Currently, long-term capital gains are taxed at 15%,

so the tax bill could be as low as $450,000.

Another advantage of S corporations is that its net income

is not considered “employment income” to shareholders. Th is

means it is not subject to “self-employment” tax (Social Security

and Medicare), which is substantial at 15.3%.

It is important to remember that an employee/shareholder

cannot manipulate this situation by taking a nominal salary

so as to avoid any employment taxes. Th e Internal Revenue

Service reviews the wages paid to owners of S Corporations

to determine if the salary is reasonable by industry standards.

Shareholder(s)/employees must take a reasonable salary to

avoid scrutiny by the IRS.

Th e earnings of a S corporation must also be distributed to

Since an S corporation is typically not a taxable entity, its taxable income is “passed through” to its shareholders, who report the income on their personal tax returns.

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ment, such as an association meeting, allow members and ex-

ecutives to freely share information about their companies

and business management practices. In a unique way, it’s a

kind of force multiplier.

GIVE AND TAKEHere is an idea you might try at your next association meeting;

see if you have some fun with it: Everyone should come to the

meeting with an idea that they would like to share. If the group

is small enough, have each person spend a minute or two just

sharing the idea with no discussion. You’ll all know if the ideas

were good by how many people were taking notes. If they’re

great, you’ll see people in the audience not only taking notes,

but nodding their heads positively and smiling.

An association gathering can be a marvelous exchange

for not only ideas and theories, but for philosophical expres-

sions of your core beliefs about the industry. Try it at your next

meeting, or if you’d like, just try it with a friend at lunch some-

time. You might eventually hook up with people who get to-

gether for nothing but idea exchanges.

Th e beauty of it is that everyone grows as a result. I think

Wilkins knew this when he shared his great idea with me, and

frankly, I do fi nd it “earth-shattering.”

Along with serving as president of Louisiana

Life Safety & Security Association (LLSSA),

Don Wilkins Jr., is a special systems engi-

neer for Facility Automation Inc. in Baton

Rouge, La. As mentioned in last month’s column, I was recent-

ly a guest speaker at the LLSSA winter meeting where I spent

some time with Wilkins discussing the association, as well as

the future of the industry.

When I pursued Wilkins’ great idea, he paused for a mo-

ment, saying, “Well, it’s not earth-shattering … ” Take a mo-

ment to review his idea. He said he became actively involved

in LLSSA, not simply to share his own ideas, but mostly be-

cause it aff orded him the opportunity to hear and learn from

the legions of other successful alarm industry pros.

I have some news for Wilkins. His great idea really is

thought provoking because it comes from someone whose

fi rst concept of belonging to an industry association is one of

participation, rather than singular leadership. Allow me to ex-

plain. Most of the industry executives I speak to tell me they

join associations and participate primarily to “give back” to

the industry. It’s their way of paying their dues.

Wilkins, on the other hand, has taken a diff erent tack. He’s

in that role primarily to become “actively involved” in not just

the association, but with all of the thinkers and people who he

comes in contact with during the time he spends on associa-

tion business. Wilkins’ approach, and his professionalism, has

earned him a great deal of respect. I heard it fi rsthand from

LLSSA members at the meeting, including the State Fire Mar-

shal I sat with during the luncheon.

To emphasize Wilkins’ approach, here’s an interesting con-

cept summed up in this simple parable: If I give you a dol-

lar, and you give me a dollar, all we’ve done is exchange dol-

lars. However, if I give you an idea and you give me an idea, we

both grow immeasurably!

Th e sharing of ideas and philosophies in a positive environ-

[email protected]

The Art of Learning From the Peers Among You

THE BIG IDEA

IDEAOF THE MONTHIf you had just one really great idea you could share with the alarm industry, what would it be?

This month’s great idea comes from Don Wilkins Jr., who is president of Louisiana Life Safety & Security Association (LLSSA).

Wilkin’s great idea: Keep an open ear, and an open mind, to understand philosophies of the experienced, forward-thinking individuals who contribute to the alarm industry.

Ron Davis is a SSI Hall of Fame inductee and President of Davis Mergers and Acquisitions Group Inc. Also known as The Graybeards, the company is active in acquisitions and mergers exclusively in the alarm business.

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NEWS. ANALYSIS. RESEARCH.www.SecuritySales.com

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to your subscriber’s requests for

assistance, service and information is

also helpful. If there is a loss, however,

you should immediately report that

potential claim to the carrier. Should

you hear from the subscriber asking

for information about the alarm, you

should insist that your carrier engage

counsel immediately to assist you with

any response. You paid for insurance

and you shouldn’t hesitate asking for

coverage.

If the carrier assigns an attorney

who doesn’t know the alarm industry,

don’t be shy about demanding another

attorney who does. You can ask for

specifi c counsel, though the carrier

does have the right to select counsel,

but only if competent.

Alarm companies are an identifi able target

when a subscriber suff ers a loss. When the

investigators and damage control people

arrive, they see lawn signs, window stickers,

stickers on panels, and alarm equipment hanging on windows,

doors and walls. Th e subscriber had a loss; the homeowner’s

policy covers the loss, or not, and somebody has to pay. May as

well be the alarm company. Th ey fi gure, what the heck was the

alarm for anyway?

Th e trouble with providing alarm services is you might end

up being the target for a loss you certainly did not cause, and

probably didn’t contribute to either. Th e loss could be the result

of illegal activity, a fi re caused intentionally or from an unknown

source, breaking pipes, heat, cold, etc. Every cause other than a

loss caused by faulty alarm equipment or wiring — that I’ve yet to

encounter. So you get sued because your system or service failed

to prevent a loss. You could and should have installed it better or

responded faster.

A lot of alarm companies can go through an entire lifetime

without any lawsuits. Th e problem is that it only takes one.

Defending a lawsuit can cost anywhere from a few thousand to a few hundred-

thousand dollars. If you get tagged with a judgment, the loss can be from a few

hundred to a few million dollars. Th e average alarm company, even if it could aff ord

the defense cost, doesn’t want to have to.

Th at’s why errors and omission insurance is so important. While I am on that

kick, please check all of your insurance. Make sure your general liability includes

errors and omission coverage and that it’s written by an insurance company that

understands the alarm industry.

I just received a denial of coverage from a so-called insurance company with an

alarm program. Th is provider had the audacity to deny coverage with a letter from

its attorneys that was too complicated for me to understand, just an old country

lawyer, but seemed to say that since there was no “bodily injury or property

damage” there wasn’t any coverage. Well in alarm defense cases there’s often a

burglary loss, and that’s not bodily injury or property damage. And, the alarm

company expects coverage when sued for negligence and breach of contract.

Check your coverage and make sure your carrier is going to be there when you

need it, not dancing around fi guring out how to get out of covering the claim.

Th ere is little you can do to escape lawsuits other than having the proper alarm

contracts and performing your services to the best of your ability. Being responsive

GUARDING AGAINST SUBSCRIBER LAWSUITS by Ken Kirschenbaum

Ken Kirschenbaum has been a recognized counsel to the alarm industry for 35 years and is principal of Kirschenbaum & Kirschenbaum, P.C. (www.kirschenbau-mesq.com). His team of attorneys, which includes daughter Jennifer, specialize in transactional, defense litigation, regulatory compliance and collection matters. The opinions expressed in this column are not necessarily those of SSI, and not intended as legal advice.

||| LEGAL BRIEFING |||

A lot of alarm companies can go through an entire

lifetime without any lawsuits. The problem

is that it only takes one. That’s why errors

and omission insurance is so important.

[email protected]

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Documents

SSI May 2012