not necessarily through acquisitions, but through organic growth, or the beefing up of sales and marketing. “South America is just an example of a market with reasonable size that has not been approached by Siemens with its products,” Grillo said. “Since the software is available for all the products lines in Spanish and Portuguese languages, we should have a good chance to penetrate this area.”
security company that can cater to the needs of a wider range of customers. Siemens SP’s portfolio includes access control, intrusion alarm, and video surveillance products. Vanderbilt, on the other hand, is strong at access control and video management software as well as integrated solutions. In September 2012, Vanderbilt Industries acquired the bright blue, SMS, and video products from the Schlage division of Ingersoll Rand. Since that time the company has “PROVIDER OF been focusing on product development, INTEGRATED SYSTEMS” including integration to systems from According to Grillo, purchasing different manufacturers. These companies — Assa Abloy, Siemens SP would boost Vanderbilt Vanderbilt’ss “These Allegion, and Salto — have introduced stature as a comprehensive, all-around in the last few years ve very sophisticated online and offline lock locking solutions, but they need a software softw solution to integrate to, and th that’s one of our strengths,” Grillo stress stressed, adding with the purchase, Va Vanderbilt aims to become a “provide “provider of integrated intrusion, access cont control, and video surveillance system systems. The systems are integrated with each other, as many custom customers want today.” Joe Grillo, These solu solutions can address Managing Director, the needs o of various vertical Vanderbilt markets, wit with Grillo citing International education and healthcare as two verticals that will especially enjoy impr impressive growth. Acco According to an EU agi aging report, the n number of people aabove 65 willl rise ffrom 17 percent n now to 30 percent by 2060 in Europe, trigg triggering demand for more senio senior care facilities. secur has always As for schools, security been a concern. A Napco Security rep pointed out Technologies report since 1980, there have been 137 shoo fatal school shootings in the U.S.
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CONSOLIDATION A TREND With the Siemens SP purchase, what’s next? According to Grillo, Vanderbilt currently doesn’t have any acquisition plans in the making, considering the one with Siemens SP hasn’t been completed. However, Grillo said that the company is “well-funded” and will keeping looking for deals that are in line with the firm’s strategy and overall objectives. According to Grillo, consolidation is a natural trend in the security industry, which is heavily fragmented. An October 2013 report by IHS showed that the two firms that broke the US$2 billion mark in terms of annual revenue had a combined market share of just 10 percent. The top 15 firms, meanwhile, had a combined market share of only 20 percent. “With a highly fragmented industry, you tend to see consolidation occurring,” Grillo said. In fact, Grillo said that consolidation in the industry carries various benefits, one of which is higher-quality products and services provided by companies that are more capable and competitive. “Customers can benefit from suppliers that are financially stronger to provide greater research and development efforts and technical and customer service resources,” he said. While consolidation will continue to occur, the industry will also see more and more new entrants — entrepreneurs and start-ups with new technology, fresh ideas, and less corporate bureaucracy. “There will continue to be new companies all the time, especially in the field of video, with so much change going on over the past few years,” Grillo said. “I think this industry has always had two things going on. There have always been consolidations, but at the same time, there’s always been new entrants. There is going to be a bit of both.”
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