Security industry readies for changing market
Security issues in terms of technology and quality of life have been marquee topics in much of Western Europe and the U.S. But Poland's weak, still developing economy is among many other culprits which have often forced security technology and services to the sidelines, thereby pinching the margins of many of the industry's ranks of roughly 3,500 companies.
Yet, this trend is beginning to change, as companies that provide a variety of monitoring and/or technology products, like Group 4 Falck, ADT Poland and ID Electronics, seek to increase the awareness of the need for security equipment and services. In that vein, companies also expect to bring new state-of-the-art technologies to market, such as digital CCTV devices, anti-theft systems for retailers and new technology-rich installations for residencies, among other products. This will secure the safety of the country's institutions and produce revenue along the way.
"We have had many companies that were destroyed by the economy," says Andrzej Tomczak, President of the Polish Chamber of Alarm Systems (PISA). "If (building) contractors are short on money, you first cut the security; it's the last thing that you install."
The demand for corporate security systems in Poland is elastic, much more so than in the West. This leaves the industry vulnerable to the vagaries of the economy. In this turbulent environment, industry professionals are currently seeking to change the perception of their wares and, in doing so, make their companies more resilient to recession, Tomczak says.
But, Tomczak explains, during last year's dawdling economy, real estate developers, shorter on cash than usual, often short-changed their security equipment company sub-contractors. This leaves future building tenants poorly secured and security companies even more poorly remunerated.
Dariusz Wojcieszek, Warsaw-based president of Group 4 Falck, says that the Polish Union of Security Employers was recently created, partly to 'primp up' the industry's image.
Group 4 Falck, for its part, has not fared too poorly. Wojcieszek says that corporate access control and security systems are becoming more advanced and the demand among Polish businesses is increasing, along with the improving economy and overall awareness of security issues. "This is something where we have a lot of projects all the time," Wojcieszek says, referring specifically to access control systems. He explains that Group 4 Falck outfits some of the country's largest banks, as well as the Japanese and Dutch embassies, with security systems. He adds that the demand for high-tech access control devices such as X-rays and metal detectors, in particular, is increasing.
Parent company, Denmark's Group 4 Falck, will be the largest security company in the world, once its merger with UK-based Securicor is completed. And, as a major industry player, Group 4 Falck has been able the weather the country's economy better that its smaller peer companies.
Despite the economic woes of many, some of the larger and more successful companies are expecting greater demand come May 1. Monika Kłykocińska, marketing manager at ADT Poland, expects a large boost from the European Union, especially the emergence of a more sophisticated customer base. "What we are likely to see is larger brands, such as ADT, increasing their market share as consumers become more sophisticated in their needs," Kłykocińska says. "The Polish market has traditionally been very price-orientated and that has curtailed the gains that each individual brand has been able to make," she adds. "But increased awareness of, and investment in, security products and the impending effect of EU legislation will drive a change in customer priorities in further future."
Tomczak, who is also president of Warsaw-based ID Electronics, is also optimistic.
"I see some good changes in the economy, and last year was better than the year before," he says of his company's earnings. But there is still some work to, he says, as the awareness of security issues is low. "Polish companies don't care," he says, comparing the image if security products in Poland to that in the U.S.
But as companies and other potential customers begin to take heed of the importance of security issues, Group 4's Wojcieszek sees his products and services as a happy marriage between technology and human interaction. He believes that that while technology - especially a variety of wireless and global positioning solutions - is taking more and more precedence in the industry, the human touch will always be necessary.
"The electronic technology will grow, but it will not eliminate (the need for) humans," he says. "Technology records but it does not react ... it will not help the old lady to open the door."
Yet, this trend is beginning to change, as companies that provide a variety of monitoring and/or technology products, like Group 4 Falck, ADT Poland and ID Electronics, seek to increase the awareness of the need for security equipment and services. In that vein, companies also expect to bring new state-of-the-art technologies to market, such as digital CCTV devices, anti-theft systems for retailers and new technology-rich installations for residencies, among other products. This will secure the safety of the country's institutions and produce revenue along the way.
"We have had many companies that were destroyed by the economy," says Andrzej Tomczak, President of the Polish Chamber of Alarm Systems (PISA). "If (building) contractors are short on money, you first cut the security; it's the last thing that you install."
The demand for corporate security systems in Poland is elastic, much more so than in the West. This leaves the industry vulnerable to the vagaries of the economy. In this turbulent environment, industry professionals are currently seeking to change the perception of their wares and, in doing so, make their companies more resilient to recession, Tomczak says.
But, Tomczak explains, during last year's dawdling economy, real estate developers, shorter on cash than usual, often short-changed their security equipment company sub-contractors. This leaves future building tenants poorly secured and security companies even more poorly remunerated.
Dariusz Wojcieszek, Warsaw-based president of Group 4 Falck, says that the Polish Union of Security Employers was recently created, partly to 'primp up' the industry's image.
Group 4 Falck, for its part, has not fared too poorly. Wojcieszek says that corporate access control and security systems are becoming more advanced and the demand among Polish businesses is increasing, along with the improving economy and overall awareness of security issues. "This is something where we have a lot of projects all the time," Wojcieszek says, referring specifically to access control systems. He explains that Group 4 Falck outfits some of the country's largest banks, as well as the Japanese and Dutch embassies, with security systems. He adds that the demand for high-tech access control devices such as X-rays and metal detectors, in particular, is increasing.
Parent company, Denmark's Group 4 Falck, will be the largest security company in the world, once its merger with UK-based Securicor is completed. And, as a major industry player, Group 4 Falck has been able the weather the country's economy better that its smaller peer companies.
Despite the economic woes of many, some of the larger and more successful companies are expecting greater demand come May 1. Monika Kłykocińska, marketing manager at ADT Poland, expects a large boost from the European Union, especially the emergence of a more sophisticated customer base. "What we are likely to see is larger brands, such as ADT, increasing their market share as consumers become more sophisticated in their needs," Kłykocińska says. "The Polish market has traditionally been very price-orientated and that has curtailed the gains that each individual brand has been able to make," she adds. "But increased awareness of, and investment in, security products and the impending effect of EU legislation will drive a change in customer priorities in further future."
Tomczak, who is also president of Warsaw-based ID Electronics, is also optimistic.
"I see some good changes in the economy, and last year was better than the year before," he says of his company's earnings. But there is still some work to, he says, as the awareness of security issues is low. "Polish companies don't care," he says, comparing the image if security products in Poland to that in the U.S.
But as companies and other potential customers begin to take heed of the importance of security issues, Group 4's Wojcieszek sees his products and services as a happy marriage between technology and human interaction. He believes that that while technology - especially a variety of wireless and global positioning solutions - is taking more and more precedence in the industry, the human touch will always be necessary.
"The electronic technology will grow, but it will not eliminate (the need for) humans," he says. "Technology records but it does not react ... it will not help the old lady to open the door."
