The overall economy and climate always has a bearing on growth from a macro standpoint and certainly the security market is impacted as well. US economic growth has been healthy at 3% through the first half of 2017. Combining that with jobs growth and we have a marketplace that is ripe for growth and expansion.
Continued focus on cybersecurity
One major trend that expanded in 2017 would be the continued focus and concerns on cybersecurity. There is stronger demand from customers and company executives that want to show their organisations are practicing good cyber hygiene. All of this focus leads to significant growth opportunities for cybersecurity product and service providers.
Another trend we saw starting in 2017 was the transition from the traditional approach of selling a system and then moving to the next sales opportunity to managed services sales. This emerging model can really lower the upfront systems costs for a customer and lock a longer term commitment for recurring monthly services from customers as well.
Influence of AI and machine learning
A third significant trend in 2017 that is not new but is certainly pervasive is the rapid advance of technology in our security marketplace. The examples are many from the influence of artificial intelligence to machine learning to advances in security robotics as well as video analytics.Continuation of trends from 2017 will allow strong companies to grow even stronger
Primarily, I think in 2018 we will see a continuation of trends from 2017 – continued economic growth, expansion of managed services offerings and cloud-based solutions, cyber, cyber, cyber and technological advances in security offerings – allowing strong companies (manufacturers as well as security service providers) to grow even stronger. In 2018, we may also see a return of the acquisition and consolidation trend from the past few years after the lull we experienced in 2017.
First strategic acquisition for PSA
PSA was very successful in 2017. Our equity owner security integration companies had a very successful year so therefore PSA had strong organic growth. In 2017, PSA also made its first strategic acquisition when we purchased USAV – a company that serves the Pro AV market.
We continue to expand and grow our company by seeking to combine forces with the best and brightest integration companies in our respective markets as well as providing the best products and services available in our marketplace. 2018 will be challenging, just like every other year, but we feel we are poised for further growth as this new year unfolds.