Details are in: Stanley reveals plan
INDIANAPOLIS- When Stanley Works began building its security business two years ago through its acquisition of systems integrator and lock manufacturer Best Access Systems, those within the security industry knew the company wanted to become a significant player in this market.
But until recently, Stanley Works released little information on its Stanley Security Solutions division, a group it formed two years ago to solidify its approach in the security market.
In September, Justin Boswell, president of Stanley Security Solutions, and two other executives, detailed for the first time expectations that the division will grow to between $2 billion to $3 billion with the next three to five years and account for 50 percent of sales for the entire corporation.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re not done,Ã¢â‚¬Â said Boswell. Ã¢â‚¬Å“We havenÃ¢â‚¬â„¢t built what weÃ¢â‚¬â„¢ve said yet.Ã¢â‚¬Â
So far Stanley Security Solutions generates $700 million in revenue, with 3,500 employees and 50 field offices in North America.
The source for some of the growth is expected to come organically, thanks to a greater emphasis on service and becoming a single solution provider to customers. But company officials also expect additional market share to come from acquisitions, as the company looks to bring more access control products to its lineup.
The details come after Stanley Works spent the last one and a half years integrating Best Access into its operations. It also comes as the company completes the first in a multi-phase project to cross train technicians on both security and automatic door products, but separate installation and service functions.
Stanley Works can credit some of its depth in this market so far to its acquisition of Canadian systems integrator Frisco Bay Industries this year, a transaction that gave it a service arm across that country.
But much of the companyÃ¢â‚¬â„¢s reach came from Stanley WorkÃ¢â‚¬â„¢s existing automatic door business and its purchase of Best Access in late 2002. Not only did Best Access provide Stanley Works with an installation arm and service branches throughout the United States but a manufacturer of door hardware and locking products.
Other acquisitions have followed for Stanley Works, such as its purchase of Blick Plc, providing it with an integration arm in the United Kingdom and parts of Europe, and Senior Technology, a company that manufactures a device to track wandering patients.
The acquisitions have already boosted the divisionÃ¢â‚¬â„¢s recurring revenue to account for 46 percent of business, compared with just 15 percent in 2000, according to Philip Bradney, vice president of sales mechanical access control business for the Best Access division of Stanley Security Solutions. (thatÃ¢â‚¬â„¢s one loooong title)
Bradney said additional growth has also come from the company providing services beyond its traditional retail market, such as by expanding into the healthcare, government and education markets.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re able to have a much more rounded solution,Ã¢â‚¬Â said Bradney, by offering items such as automatic door systems that tie into a video recording system. Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re really bringing a complete value equation.Ã¢â‚¬Â
Officials at Stanley Security Solutions said that approach will give the company an advantage over its competitors who they characterize as fragmented when it comes to serving this market.