Letter to the editor

December 2002 News

Sir

Consolidation was a breeding ground for crisis

The Competition Board should have given more serious consideration to the possible outcomes involved before allowing the South African security market to consolidate from a number of independent operators, into what is now effectively only a few large players.

These larger operators are pushing the smaller operators right out of the ballpark - and even putting them out of business - by giving away systems 'free of charge' and pressurising suppliers to sell their products at unfeasible margins. There is little or no training or support attached to these deals.

We are sure this dramatic bulldozing effect by foreign investment would not have been the intention of the Competition Board at the time. Acquisitions within our industry have often been justified by weighing up customer density against manpower requirements in certain areas to provide a return on investment. In financial terms this may be so, but it has also led to deterioration in response times in general.

Enter the vendors who sold out their monitored alarm/armed response companies some time ago. Their non-compete clauses are expiring and many of them are planning to re-enter the market as soon as they can.

They do of course have all the intellectual property needed to set up shop in their respective areas and may indeed win back a meaningful part of their previous clients - these clients will only be too happy to have that good old-fashioned personal service back on their doorsteps again. They are tired of being just a number!

Honeywell-TeqTrader has been monitoring this resurgence and we have aligned ourselves to initiatives which will ensure these vendors start growing into meaningful, quality independent operators all over again - just in time to balance the scales of the security industry back to normality.

Frank Fowles

Honeywell-TeqTrader

011 805 1201

Do you agree with the writer?

Have your say by sending your comments in the form of a letter to the editor to gerard@technews.co.za




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

TAPA: The role of an effective treasury function in business risk management
June 2019, Technews Publishing , News
Neil Le Roux, the Founder of Diligent Advisors will speak at the TAPA SA (Transported Asset Protection Association) annual conference on 26 July 2019.

Read more...
Platforms are us
September 2019, Technews Publishing , News
A conversation I had at the recent Residential Estate Security Conference Hi-Tech Security Solutions hosted in August (which will be reviewed in the October issue) got me to thinking about the security ...

Read more...
TAPA conference 2019 explores layered approach to security
September 2019, Technews Publishing, TAPA (Transported Asset Protection Association) , News, Transport (Industry)
The Transported Asset Protection Association (TAPA) held its annual South African conference at Emperors Palace in Johannesburg on 26 July 2019.

Read more...
Hennie Lategan joins Centurion as head of exports
September 2019, Centurion Systems , News, Access Control & Identity Management
Centurion Systems has announced the appointment of Hennie Lategan as the head of the company’s exports department.

Read more...
New Africa sales manager for Axis Communications
September 2019, Axis Communications SA , News, CCTV, Surveillance & Remote Monitoring
Axis Communications has appointed Brendon Hall, previously the founder and MD of Pentagon, as its new sales manager, Africa.

Read more...
Check Point appoints new regional director for Africa
September 2019 , News, Cyber Security
Check Point Software Technologies has appointed Pankaj Bhula as regional director for Africa.

Read more...
ISO standard for protecting personal data
September 2019 , News, Cyber Security
Tackling privacy information management head on: first ISO standard for protecting personal data has been published.

Read more...
Hikvision helps secure African Union Summit
September 2019, Hikvision South Africa , News, CCTV, Surveillance & Remote Monitoring
Hikvision established a complete intelligent video solution to ensure the security of the thirty-third African Union (AU) Summit held on 7 July in Niamey, the capital of Niger.

Read more...
The hunt for the Carbanak group
September 2019 , Editor's Choice, Cyber Security, News
Tomorrow Unlocked has released a free four-part documentary that tells the story of the notorious Carbanak APT group and its $1 billion bank heist.

Read more...
Rockwell Automation a founding member of ISA Global Cybersecurity Alliance
September 2019 , News, Industrial (Industry)
To better secure today’s complex and often vulnerable production operations, the ISA Global Cybersecurity Alliance recently announced Rockwell Automation as a founding member.

Read more...