N.A. expansion planned for Siemens security

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Tuesday, July 1, 2003

DALLAS - A year after buying Florida-based security systems integrator Security Technologies Group, Siemens intends to further increase its presence in North America by targeting vertical sales channels and other avenues for growth, such as cross-selling opportunities and marketing its own products here.
Company officials did not rule out possible acquisitions or new branches in the future as they mapped out Siemens Building Technologies plans in North America and provided a general overview of the business at an International Trade Press Forum held in Dallas in mid-June.

An internationally recognized company, Siemens has a large presence in North America, but its reach in the security market remains relatively small. Company officials estimated Siemens serves only one percent of the security market today.

Still, company officials intend to expand the current security market penetration rate in North America considerably. Already Siemens has 100 branch offices from which to work, with its security division based in Sunrise, Fla.

To expand, Siemens will build upon existing customer relationships established through HVAC, fire and building automation services, said John Szcyzgiel, vice president of sales and marketing for security for Siemens Building Technologies USA.

“There’s a lot of room to grow,” said Szcyzgiel. The expectation, he said, is the company will grow at “better than market expansion rates,” which are at 13 percent compounded annual growth.

SBT’s strongest vertical market in North America today is the education sector, where it accounts for 30 percent of total revenues, said Stan Kunka, president and chief executive officer of SBT. Other vertical focuses for Siemens on the security front include the government sector and the Homeland Security market.

Additional revenues for Siemens security operations are expected to come from new products the company is launching in North America. In Europe and Asia, Siemens has traditionally offered its own products in the video and access control market.

On the fire side of the market, Siemens is offering new audio capabilities in its FireFinder XLS, a system that interfaces with a fire control panel to pinpoint the location of a fire and provides detailed information about the area affected to firefighters and other emergency personnel.

For security, Siemens plans to roll out to its customers by early next year. SiPass, a scaleable access control system that can be combined with a video surviellance or intrusion detection system.

The reason for the product addition, said Szcyzgiel, is that “many customers are looking for a solid, long-term player,” in a security market that is in flux.

Initially plans call for Siemens to offer and install the system itself, but Szcyzgiel would not rule out the possibility of Siemens offering it to other integrators. “It’s possible in the future, but we’re not ready for it in the short term,” he said.
About Siemens
Siemens Building Technologies generates $1.7 billion in revenues in the North American market, offering products such a HVAC and other building systems technology. In all, the division accounts for 29 percent of worldwide sales for Siemens, a $5.6 billion company.