From upgrading mechanical locks to adding electronic access control options, the multi-family/multi-housing sector continues to offer opportunities to both locksmiths and security manufacturers. In the latest Locksmith Ledger webcast on the topic, the panel looked at trends they are seeing in this area, including the latest in locking and smart locking products and systems, ways locksmiths are upgrading customers from mechanical to electronic access control solutions and the rise of mobile access and credentials and cloud-based access control systems.
The panel included Elizabeth Parks, president and CMO, Parks Associates, a leading research firm in the security space; Joshua Sands, owner, Key City Locksmith and Security in Kansas City, Mo.; and Michael Rooney Director, Business Development Multifamily ASSA ABLOY Door Security Solutions.
To start things off, the panel looked at some of the data on the increased demand for security within the multi-family space. For example, recent Parks Associates research finds:
· 90% of multi-dwelling unit (MDU) owners and operators in the U.S. are planning to deploy, upgrade, or replace a smart building solution in the next 12 months.
· 70% of multifamily companies have an access control system on at least one property; 50% of those with systems report having one in their newest property
· 70% have smart door locks on at least one property
· 92% report having an intercom or callbox in at least one property
Elizabeth Parks shared some of the research her firm did with 600 multifamily property owners, noting that in the U.S. there are about 122 million U.S. Internet households with 34 million of those households living in multi-dwelling or multifamily units. And within that bigger picture of the multifamily sector, the firm has counted 29 million apartments and 10 million condos, with 17% of all of these considered smart apartments or smart condos (see slide).
“This is really emphasizing the greater demand that we're going to see in the coming years to create more connectivity across the board through the broadband services, and then we'll get all these different devices and systems in not just the individual units that people are living in, but also those access points throughout the environment, which could be the gates on the outside, or be the gyms, etc.” she explains. “The vast majority of multifamily environments right now have access control and smart locks. Because of the way technologies have advanced and the different shifts now going from local to the cloud, new applications are available because of integration with mobile devices and that ability to control the environment.”
Parks also touched on another interesting area, which focuses on access control replacement cycles (see chart) that are also driving property owners to look at upgrading to the latest technology and try to future-proof systems.
“This piece of data here showing off how frequently these properties are replacing their access control systems is really interesting because the vast majority of them are looking to do upgrades in this area as well as other areas like energy efficiency, not just safety and security,” she explains. “And to be able to understand the ins and outs of what's going on in the environment is one of the highest priorities we're seeing in multifamily right now.”
Rooney agrees, noting, “What we're seeing here is the multifamily electronic access control market is certainly continuing to trend upwards, in new construction as well as retrofit applications. They might have electronic access control possibly on the perimeter, but many times not at the apartment unit entry door, so retrofits are a big opportunity for this market.”
He continues, “They're really looking for more solutions from fewer suppliers. Elizabeth talked electronic access control, about intelligent package delivery, locker delivery, visitor and parking solutions, so one of the things that we work on daily is to go to our customers and eventually those end users and offer a product portfolio where it's not so confusing and so complex.”
Sands sees growth on the locksmith side as well, and astutely identifies a key shift that has taken place as end users become more educated and tech-savvy on what options are available. “Now I don't have to upsell as much anymore,” he says. “Now I get phone calls and emails with them telling me they want the electronic access, so there's a huge trend toward it and the [consumer] already knows that this stuff's out there and affordable.”
Sands continues to see an uptick in retrofit opportunities as well as new construction and encourages other locksmiths to make those connections with general contractors, system integrators and construction companies working on projects in their area.
“And with that customer knowledge now wanting it and coming to me first, there is a lot of retrofitting going on,” Sands says. “I go to a few business meetings here in the Kansas City area to talk to other business owners, not just security, but just regular business owners, and they're very interested in what we can provide. We're also talking about retrofitting work with general contractors.”
Rooney agrees, adding, “It's typically cheaper to retrofit than build from the ground up, so we're seeing a lot of retrofit work. In a retrofit, when they go to deploy an electronic access control solution, pulling wires is never easy, so what we're seeing are solutions for electronic access control that don't require wire runs to every apartment door and that don't require a lot of wire runs, repeaters or gateways, or wireless protocols throughout the building. We use our sensor solutions and card- and mobile-based solutions where it doesn't require those wire runs, which is critical for retrofits that have minimal IT infrastructure.”
With technology moving toward mobile and cloud-based solutions, Rooney is seeing more and more property owners choosing these options to reduce their reliance on keys and key control. “I think it's important to offer locks that have a key-free option where they don't have a key cylinder, but then also offer some people a mechanical key override, so I think it's important to offer both.”
Parks agrees, noting that she is also seeing a rise in interest in mobile- and cloud-based access control solutions.
“Continuing with some research that we did with those 600 multifamily property owners, the overall satisfaction with properties that have mobile credentials continues to be much higher than those without,” she explains. “When we're looking at the actual types of systems that are getting purchased, and then understanding whether it's a cloud-based system or a local system, it's very interesting to take a look at how this is playing out as these new options are being offered.
She continues, “And one market beyond multifamily to consider as well that we're looking at is the build-to-rent markets, where houses are getting built and their sole purpose is to be an asset. And they will never be sold; they will always be rented. So, these builders have a different view of technology and the value that is being provided there on the access side with locks and just the ability for people to easily and securely come and go out of a property. This also provides incredible value no matter what environment we're talking about.”
Sands is equally excited about where this new technology can go and the opportunities it provides for locksmiths. “When we're talking about the access control piece for multifamily, there are some really cool integrations we can do with that, and the cloud has allowed more robust features to come in with a lower price point … such as if you want to integrate your camera system with your access control,” he points out.
As Rooney noted earlier, property owners want more solutions from fewer companies, which means they want to work with fewer stakeholders when they finally do decide to upgrade their systems.
“The more solutions from fewer suppliers is kind of the gift that keeps on giving for the entire life cycle, right?” Rooney says. “You could have a meeting with one company for electronic access control, a different company for visitor buzzing, yet a different company for a parking solution for your building. So, these are very time-consuming and very confusing selection cycles for these companies to have one meeting with one company and then another. And in my example, use electronic access control, visitor buzz-in and a long range parking solution – providing that solution in one meeting dealing with one company … that takes a huge burden off their shoulders and takes a lot of and saves a lot of time in their day.”
Parks adds that her firm is doing a lot of research in this area as well. “One of the things that we're trying to understand it at Parks Associates with our research is the pace of decision making, the challenge of making the decision, especially with the volume of vendors and suppliers that are offering these groups new applications and services,” she explains. “What we were repeatedly being told by them in different ways through our research is that they don't want to get bombarded with different solutions. What we're hearing a lot now is brand loyalty. Service is becoming very, very important. The trusted partner aspect is key because staff are going to come in and out for these property managers, so it becomes an important point is the ease of use, the ease of training, the ease of retraining.”
For access to the full webcast, please visit www.locksmithledger.com/webcasts. The Locksmith Ledger State of the Industry Webcast is set for Jan. 29 at 1 ET, and you can register for that webcast at the website as well.
