‘Spending wisely but slowly’ - SSN readers weigh in on Q1

YARMOUTH, Maine - Reports that came out of the first quarter of 2024 were a mixed bag for most companies in the security industry.As organizations increasingly tighten belts and return to the fundamental parts of their business, Security Systems News (SSN) has turned to readers in the July News Poll to provide their outlook on the first quarter of 2024.Interestingly, in spite of growing AI adoption there was a general agreement that traditional industry segments performed the best in the quarter. 71.43% of respondents agree that physical security was the top dog, followed by cybersecurity with the remaining votes.As for what contributed most to the financial performance of the industry in the first quarter, opinion was split across most available poll options with users split between technological advancements and economic fluctuations accounting jointly for two thirds of the vote. However, one reader provided insight into his reasoning. “Thinking of the commercial markets only, nearly all vertical market end users are spending wisely but slowly. Sales cycle are being extended by months. We are still dealing with high interest rates, inflation, and I have to wonder if spending budgets are also being impacted by an election year.”Regardless, the majority of respondents said they are somewhat confident in the growth prospects of the industry coming out of the first quarter based on the results they saw, with only 14.29% being ‘somewhat concerned.’“We continue to see a focus on acquisitive growth and an appetite for our sector from private equity and some large industrials,” one reader wrote. “Our space has largely been spared the employment reset experienced by the broader tech sector. Progressive, digital-outcomes focused talent continue to be in high demand.”That’s it for the July News Poll. Be sure to check out www.securitysystemsnews.com to read our latest available poll and make your voice heard.