Security engineering companies are facing more and more difficulties and challenges, how should they deal with it?

A security engineering company is an enterprise engaged in the construction, installation, maintenance and service of security equipment. As an intermediary and bridge between security production enterprises and users, it plays a crucial role in promoting the rapid development of the security industry. my country's security engineering enterprises started in the 1980s. After more than 30 years of development, today's security engineering enterprises have greatly improved both in scope and technical level, and have gradually developed into the main force in the security industry.

Security engineering companies are facing more and more difficulties and challenges, how should they deal with it?

However, with the transformation of security systems to digitization, IT, and intelligence, security engineering companies will face higher-tech competition. At the same time, the participation of a large number of IT vendors, service providers, and communication operators will make the competition even greater. As fierce. The army of engineering companies is growing stronger and newer system integration and engineering companies are constantly under pressure. The original security engineering companies have felt more and more pressure to survive. Coupled with the flat implementation of manufacturers’ channels, security engineering companies have a profit margin. Was squeezed repeatedly. As a result, the situation of security engineering companies is becoming more and more difficult, facing many problems and challenges.

1. Project resources are tight. This is mainly reflected in three aspects: First, a large part of the newly-built government projects are contracted by integrators in other places. They have more funds and more resources, which has doubled the pressure on local excellent engineering companies. The second is the real estate bubble economy. A few years ago, many real estate projects were constructed and blossomed everywhere, but with the saturation of the real estate market, weak electricity investment was small and arrears were high, many engineering companies wanted to do it but did not dare to do it.

2. The number of peers has increased and competition has increased. Due to the low entry threshold of security engineering companies, the requirements for registered capital and personnel and technical qualifications are not high. Enterprises do not need large plants and advanced equipment, do not need a large amount of advancement, and even some projects can directly receive prepaid funds. This greatly eases the situation. The financial pressure of the project contractor. This has led to uneven competition and disorderly competition in the market.

3. Price war. "Price war" seems to be a topic that will be talked about anytime and anywhere. Because this is indeed a problem that the entire industry faces but cannot be solved in the short term. Price wars come from upstream manufacturers and PK from peers. In order to increase share, manufacturers have started a price war, which has led to a reduction in the gross profit that engineers can load on their products, and many service costs are difficult to reflect in other service items. At the same time, competition at low prices in order to get projects is even more exhausting.

4. technical problem. Lack of technical talents: Most of the projects are still relatively weak in terms of technology and rely on manufacturers, mainly due to the high cost of talents, and the nature of engineering companies is more difficult to retain talents. Information asymmetry: There are so many products and solutions on the market that engineering companies can’t find suitable products and solutions when they have project needs. The root cause is the disconnection of information between engineering companies and manufacturers.

5. The management level is not high. In terms of business management, most engineering companies focus on projects, and the person in charge of the company is the person in charge of the project. Larger companies may have a more detailed division of labor. Under this business model, the company is not complete in terms of related management processes and operating specifications, let alone the ideas and methods of corporate management. Therefore, it will cause poor management, which often requires the person in charge to deal with or solve it. In terms of management, there is a big gap with those relatively standardized weak current integrators.

How to "break the game" in the fierce competition in the city is one of the most difficult problems for engineering companies! Here, the following suggestions are made:

Solve funding problems in multiple ways

At present, most large-scale projects require the construction company to advance funds to start construction, that is, there is no advance payment in the early stage of the project, and often only a promise from Party A can be obtained first. Therefore, financial capability is also one of the issues that cannot be ignored by security engineering companies. Therefore, the security engineering company must also have a certain degree of economic strength, or have a trustworthy cooperative relationship with the bank, and if necessary, be able to use the conditions for winning the project to lend money to solve the problem of advanced payment for the project.

More flowers, a single spark can start a prairie fire

At present, for security engineers, it is necessary to fully tap the potential needs of market segments and enrich their own solutions. There are still huge gold mines waiting to be excavated in segmented areas such as store monitoring, schools, passenger stations, and scenic spots. If a large engineering project is covered, then look for a small and medium-sized security engineering project. If you gather your arms into a fur, you must know that a single spark can start a prairie fire.

Use the brand to build your own advantage

In the bidding of large-scale security projects, the scale and performance of the company, the experience accumulated in past projects, and the reputation of the industry are the keys to stand out from the competition. Especially at present, Xueliang projects are mainly based on government bidding, and the company's brand and project experience are highly valued by the government. of. Therefore, the brand established over the years is an important factor in gaining a favorable position in the industry competition, and gradually forming brand barriers.

Conclusion: There is a saying in all walks of life nowadays: If you don't transform, you're waiting for death, and transforming may be about death. Many engineering companies are hovering between transformation and non-transformation. More and more companies are forced to make transformations. Some have succeeded and avoided being eliminated by the market, and more have ended in failure in the transformation. However, under the predicament, engineering agents can only usher in developmental vitality if they have innovative ideas and open their horizons. In the era of accelerating industry integration, every engineering company must learn to go out and "leverage" and integrate more resources to achieve greater development.

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