State of the Market:

A dynamic landscape marked by the rising application of AI and its subsets is fostering advanced analytics and real-time monitoring, while the concurrent adoption of cloud-based solutions and edge computing underscores a shift toward scalable infrastructures.

According to SDM’s 2024 Industry Forecast, a whopping 93 percent of security professionals consider the state of the video surveillance market to be very good or excellent, while only 7 percent express it be poor or fair. Overall, video sector sentiments have stayed consistently strong, with the same percentage of security professionals reporting the market was good to excellent last year.

The year-over-year optimism is reflected in the healthy sector revenues reported by survey respondents. For example, 71 percent expect revenue from video surveillance systems (on-premise and cloud-based) to increase in 2024.

Coming up, we connect with more than a dozen video surveillance specialists to delve into their insights regarding the market. Our report encompasses a spectrum of topics, ranging from the key drivers propelling the growth of products and services to performance expectations for 2024, while addressing significant hurdles within the industry.

Video Market Rising to the Cloud

The most recent edition of the Genetec State of Physical Security (SOPS) report, released in late November, reinforces the belief that the video market in 2023 continued on an upward trajectory from 2022’s robust performance. The overall positivity is attributed to several key factors, says Nicolas Curotte, product marketing specialist, VMS solutions, Genetec, Montreal.

“First, there’s been an increase in OPEX budgets, providing organizations with more financial resources to invest in advanced technologies,” he says. “This heightened investment presents a positive impact on the video market, especially for unified solutions.”

The latest SOPS report found that 62 percent of end users expect budgets to increase or stay the same into 2024, while only 15 percent expect budgets to decline. Also, the physical security industry is catching up to other industries in its adoption of the cloud.

“The rise of hybrid-cloud solutions in 2023 had a notable positive impact on the video market,” Curotte says. “A growing number of organizations are investing in both on-premises and cloud-based video security. This shift reflects an industry-wide acceptance of connectivity and software-as-a-service, offering flexibility and scalability to meet evolving security needs.”

Over the past decade, the integration of cloud technology has been a gradual process, but lately is gaining momentum. In the 2023 SOPS survey, 44 percent of end users indicated that over a quarter of their physical security environment is cloud or hybrid-cloud compared with 24 percent in the 2022 survey.

“The market for us was better in 2023 than it was in 2022,” says Bill Hogan, president and CEO of D/A Central, an Oak Park, Mich.-based member of Security-Net. “The market is continuing to change and evolve as customers are becoming more used to all the cloud models for video. Still, most of our large enterprise-level integrations remain using site-based recording.”

One factor to impact the market at the end of 2022 and into 2023 was the recession that everyone anticipated happening but never materialized, Hogan says. Also, many projects that had been bottled up or on hold because of epic supply chain issues are now getting released and coming to fruition.

“As a result, many of our enterprise clients who expected a slowdown and kept delaying projects have now pivoted and said that they need to get some of their capital projects moving forward,” he explains. “We are especially seeing that with manufacturing and defense clients, and part of this is a result of the government money that has come through the Inflation Reduction Act or COVID-related money that continues to flow into businesses.”

Another positive that Hogan expresses from a growth-driver perspective are end users moving toward better quality and higher enterprise-level solutions, rather than seeking the lowest-priced item available in the market.

“In the video market we still see that additional education is needed as it relates to cloud video,” he adds. “Everyone wants to jump to cloud video but not everyone knows how that impacts their company or the technologies they have deployed.”

Louis Boulgarides, president and CEO of Ollivier Managed Security, Los Angeles, a member of Security-Net and PSA, expects to see the demand for cloud to continue to grow but with a caveat: Bandwidth and affordability will impact its adoption rate as moving cameras to the cloud can sometimes be an expensive undertaking.

“The bandwidth issue as it relates to cloud storage remains a challenge,” Boulgarides explains. “Everyone would love all of their devices to be in the cloud, but we still haven’t solved the affordability problem so that everyone can get their video to the cloud economically. We also need to manage the expectations of what video can do and practical uses with the customers. There’s currently a lot of information out there, so we have to be careful we are properly managing customer expectations.”

Fredrik Nilsson, vice president, Americas, Axis Communications, Chelmsford, Mass., also cites 2023 as being marked by a global supply chain recovery that allowed the industry to address pent-up demand and tackle new opportunities. In particular, the market for network video remained very strong with solid growth in nearly every industry segment.

“[While] the majority of the market has already transitioned from analog to IP cameras, growth was — and continues to be — driven by several key factors including an ever-increasing need for security, new applications for video analytics, advancements in AI, and a demand for operational efficiency and business intelligence,” Nilsson says.

Paul Schmick, senior vice president, security & technology, Alliance Security, New York, expresses optimism for the rising application of video systems that leverage the cloud.

“On-premise system transformation continues to the cloud,” he says. “Monthly cloud costs for larger systems are being more accepted by organizational operators as management and risk is transferred from on premise to trusted cloud operators.”

Clint Choate, senior director of security markets, Snap One, Charlotte, N.C., says last year the market, and the company’s products, saw a shift to better integrations, with an emphasis on AI and a focus on cloud functionality.

“Intelligence at the edge gained momentum as machine learning algorithms continue to mature and processing at the edge continues to grow in capability,” he says. “Our Luma product line supported our growth as we added products and features that support a variety of jobs from small residential to large commercial.”

Positive trends that fed 2023 growth, Choate says, were a general increase in demand for security as concerns around crime prevention grew; the adoption of cloud-based video surveillance systems; and integration with other building systems such as access control, intrusion detection and automation platforms.

“2023 was marked by a more stable and sustainable growth pattern,” he adds. “The market is now focusing on innovation and technology integration.”

Jason Burrows, sales director, IDIS America, Coppell, Texas, describes 2023 as the year the company came out of the pandemic and saw the return of more stable and predictable sales, despite maintaining strong sales in 2022. The company benefitted from integrators seeking NDAA-compliant wares and the FCC’s move to formally implement provisions of the Secure Equipment Act of 2021, which further restricted the sale and import of products by China-based manufacturers.

End-to-end solutions fit the bill for a wide range of businesses looking to upgrade to higher-definition video systems, including run-rate businesses of 2MP cameras and 16-channel solutions for mid-range fashion outlets and medium-sized hotels, Burrows explains.

“We also saw demand for higher specification systems in the luxury retail, high-end residential developments, and regulated sectors such as cannabis production and critical infrastructure that also included a demand for high-performance indoor and outdoor UHD cameras, 64-channel NVRs, and servers to handle significant retention periods, enterprise-level VMS, and deep learning analytics,” he added.

Tim Palmquist, vice president, Americas, Milestone Systems, Lake Oswego, Ore., describes 2023 beginning on a strong note, while the latter half saw some tapering, influenced mainly by the evolving cost of money. “Overall, the year was balanced — not as robust in growth as 2022, but certainly not disappointing. This reflects the resilience and adaptability of our industry in a changing economic landscape,” he says.

EMC Security of Suwanee, Ga., continues to see growth in video surveillance in residential, mid-size commercial and large commercial integrated systems space, says Vince Raia, president. The regional full-service provider’s top verticals in 2023 were K-12 schools, utilities, manufacturing and logistics companies and municipalities, both at city and county levels.

“Mid-market business is also showing increased interest in adding video to help reduce losses and protect their employees and facilities with a noticeable rise in property crimes,” Raia says. “System capabilities for active video monitoring, with notifications to business owners for verification, as well as third-party video monitoring services are on the rise.”

Sector Expectations for 2024

As the video surveillance market continues its rapid evolution, stakeholders eagerly anticipate a dynamic landscape ahead, marked by technological innovations, expanding applications and a constant pursuit of enhanced security solutions.

“I am optimistic about the healthy expansion of the video surveillance market in 2024,” says Ken Francis, president, Eagle Eye Networks, Austin, Texas. “Business owners — who even five years ago were skeptical about cloud — are now coming to our resellers looking for cloud video surveillance options.”

Novaira Insights has forecasted that cloud-connected cameras will grow at an 80 percent compound annual growth rate (CAGR) in the United States through 2026. That’s a predication Eagle Eye Networks agrees with, Francis says.

“We estimate that only 10 percent of video surveillance systems are cloud-based today,” he adds. “That means the addressable market for cloud video surveillance is huge. And the transition for business owners is not difficult because true cloud video surveillance systems are compatible with thousands of security cameras and can even work with some existing cameras and infrastructure.”

Adam Lowenstein, product director, i-PRO Americas, Houston, says to expect cybersecurity concerns and new legislation, such as the 2024 mandate for zero-trust architecture from the White House for all government entities, to have a trickle-down effect on integrators servicing any organization wishing to do business with the government. He also forecasts AI use cases will continue to expand as data-hungry organizations increasingly see AI cameras as smart sensors that collect data beyond security.

“At the same time, privacy concerns will also be on the rise,” he adds. “Integrators must be able to demonstrate that they can protect assets without compromising privacy. Similarly, ethical and responsible use of AI will be a hot topic that requires education for integrators and end users alike.”

Among key trends to continue supporting market growth in 2024, Nilsson cites ongoing investment in technological solutions; AI-based analytics becoming more advanced and more impactful; and new areas of physical security will rapidly shift to IP including access control, audio and intercom.

“As organizations seek to navigate an evolving job market, address staffing challenges and gain operational efficiencies, they will increasingly find answers in technological solutions,” he explains. “New technologies and innovative applications will help to fill gaps in the workforce and improve productivity by automating mundane work and repetitive tasks, freeing up employees to perform higher level work.”

Nilsson also posits the trend toward digitization and system integration will continue, and companies will increasingly turn toward network solutions. Accordingly, the physical security industry will experience a more rapid shift to IP in areas like access control, audio and intercom.

“This shift will not only augment video solutions and provide organizations with a more holistic layered approach to security,” he says, “but these more comprehensive solutions will offer many potential benefits such as greater access to data, remote monitoring and maintenance, system scalability, actionable insights and real-time decision-making.”

The evolution of the market’s understanding of visible cameras as sensors that generate valuable information has resulted in increased acceptance of non-visible cameras — like thermal and other sensors like radar — being pulled into the equation to help produce more accurate and actionable data, explains Jennifer Hones, director of sales, security, FLIR, a Teledyne company, Wilsonville, Ore.

“For years, organizations have been focused on protecting the interior of their buildings. We are having increased conversations with organizations now placing higher priority on protecting their perimeters: fence lines, parking lots and gates, just to name a few,” she says. “This protection comes through a multi-layered physical security approach and implementing a combination of technologies, such as multi-spectral cameras, radar and others.”

The intelligence that is gathered from visible and thermal cameras expands beyond core security functions, as with the blending of operations and security teams, Hones says.

“Organizations are working to automate manual yet compliance-driven processes such as the monitoring of critical assets to help support preventive maintenance schedules,” she explains. “Turning handheld monitoring into a solution leveraging fixed mount cameras to achieve this maintenance is a small investment now that could extend the lifecycle of an asset and protect the people that work in those environments.”

Video surveillance in the U.S. is still set to shape the future of security in 2024 and will likely also come of age in tackling other operational challenges, Burrows suggests.

“With technological advancements, people seek more sophisticated and efficient surveillance systems to keep their homes, businesses, and public spaces safe,” he says. “It’s not just about having a camera in the corner anymore — we’re talking about high-definition, 360-degree coverage, AI-powered analytics to detect and rapidly respond to suspicious activity.”

Hogan’s projection for “solid growth” in 2024 centers on analytics becoming a very mature technology.

“As a result, manufacturers have upped their game in that regard with more analytics on the edge,” he says. “Also, ONVIF’s Profile M is making it easier for less innovative companies to come to the game and play in the analytics space, which in turn provides more technology options for our customers. Still, a gap in training and deployment remain challenges for the industry.”

Palmquist anticipates the video security market will maintain its current trajectory in 2024. And though challenging to predict with absolute certainty, Milestone’s strategic planning revolves around a steady, stable growth pattern and being well-prepared for any shifts in the market landscape.

“This year will undoubtedly be interesting as we traverse a unique landscape where economic uncertainties coexist with the evolution of video management from on-premises to hybrid/cloud models,” Palmquist says. “This transition marks a pivotal moment for the industry and our company. “We’re committed to adapting and innovating, ensuring that we not only meet but exceed the evolving needs of our channel partners and end users in these dynamic times. Our focus remains on delivering reliable, open-platform, data-driven solutions while maintaining the trust and satisfaction of those we serve.”

Speco Technologies, Amityville, N.Y., is also forecasting the video surveillance market to continue its growth trajectory, driven by advancements in technology, says T.J. Dickson, vice president of marketing. The business is experiencing substantial growth across categories, he says, with many customers opting for remote-managed preventive surveillance, boosting integrators’ standing with these end users.

“Increased integration of artificial intelligence, remote solar solutions, 5G adoption, increased demand for cloud storage, and the demand for smart solutions will likely fuel expansion,” Dickson says.

Top Market Drivers to Track

With the normalization of markets and the return-to-the-office trend continuing, Schmick of Alliance Security is seeing more capital investment in the public sector and commercial market.

“In 2024 to contain operational cost, preserve insurance premiums, and drive crime deterrent value, we are expecting double-digit growth in deployments for our two main verticals — commercial and public sectors,” he explains. “We are seeing more widespread adoption of cloud in the private sector in comparison to the public sector; however, the trend and levels of inquiry dictate public sector operators to embrace more cloud VMS deployments and options.”

Looking to key market drivers in the year ahead, Burrows of IDIS predicts AI will be adopted even by smaller organizations, as it doesn’t have to be complicated or expensive. He explains there is a much wider choice beyond specialist software on VMS-based AI; an array of edge AI camera models are available that target specific high-risk areas and powerful PTZs with auto-tracking for perimeters.

“Smaller businesses can also opt for AI plug-in devices with essential security analytics such as line crossing, intrusion, face, and object detection,” he says.

One fundamental expectation is the ability of AI-enabled video surveillance to identify and track objects of interest accurately, Burrows adds. This includes recognizing individuals and vehicles and understanding their behaviors and interactions within the business environment.

“By leveraging highly accurate, deep learning algorithms, businesses can anticipate more precise and reliable monitoring of their premises, leading to improved security measures and operational control,” he says. “Moreover, video surveillance systems can provide security and safety benefits and valuable insights for business operations. AI-powered video surveillance can offer enhanced object recognition and behavior analysis capabilities, allowing businesses to make informed decisions and improve efficiency.”

As a managed security provider, Ollivier Managed Security is trying to use video to help customers manage costs. A few market drivers will include the evolution of analytics and cloud storage, along with remote monitoring and guarding, Boulgarides says. “We are seeing many customers build regional operation centers with an emphasis on video monitoring so this will be a big driver going into 2024,” he adds.

The heavy focus on analytics will continue to evolve, so Boulgarides expects to see a more robust and larger range of analytics becoming available in the security market, such as weapons detection and appearance search capabilities. Yet, if the recent past is any indication, stakeholders can expect to face challenges centered on educating the customer about the importance of incorporating event-based analytics as part of monitoring and also the limitations.

“Many clients think that video is going to solve all of their problems, but it’s important to educate them so that they understand that video and analytics can be used to augment staff, enable business intelligence and support better processes,” Boulgarides says.

With IT departments demanding new levels of cybersecurity protection for physical security installations and retrofits, Lowenstein of i-PRO says increased cyber-awareness will drive a further wedge between cheap, non-protected devices and those purpose-built to protect businesses from those seeking to exploit IoT devices.

“Edge-based AI capabilities will continue to evolve and i-PRO’s many innovations, such as AI on-site learning, scene-change detection, and AI cameras that can add AI capabilities to non-AI cameras, will drive additional demand,” he says.

AI-powered solutions and technology integration are both becoming commonplace, observes Choate of Snap One, and almost a necessity to stay relevant in the video market.

“As the value and features of our products continue to grow and we beat consumer expectations, we expect sales to continue growing,” he says. “We are focused on enhancements such as access anywhere (mobile, computer, television); increasing AI/machine learning capabilities such as package and vehicle detection; and the convergence of video and intrusion services. These will drive demand regardless of the state of the economy.”

One of the primary objectives of D/A Central in 2024 is to provide clientele with out-of-the-box solutions that enable them to leverage features within existing security systems for the benefit of their business. For example, Hogan says, this includes using metadata for measurement, vehicle tracking, people counting or material handling.

“All of these things, which you can now do with video analytics, are coming together and then they are being integrated with additional technologies such as ground-based radar or very robust visitor management integrations,” he says, adding, “We see the world moving toward workflow and every company has its own workflow process. We have to align our security integration with their workflow and to go way beyond Active Directory integration.”

EMC Security is forecasting 8 percent overall revenue growth in the commercial sector in 2024, with video being a large part of that increase. Raia explains that Georgia has allocated additional funding for school safety in 2024, with much of that dedicated to enhancing video and access control systems.

“Utility and municipal purchasing is anticipated to stay elevated,” Raia says. “Mid-market commercial customers are concerned about rising theft and after-hour burglaries, and have shown increase interest in video monitoring, including active video monitoring by third parties. Changes in economy, such as entering a recessionary period, may have an effect on customer spending.”

The concept of asset monitoring to support preventive maintenance schedules places security integrators in a position where they can gain access to not just the security department, but also expand their business into areas they haven’t captured previously, explains Hones of FLIR.

“The continued focus on various initiatives like the strength of our national security with NDAA and climate change concerns, like the recent EPA announcement on regulations reducing methane gas emissions from the oil and gas industry, will drive organizations toward advanced technologies that help them stay in compliance,” Hones says. “To elaborate on the methane emissions reduction example, looking toward fixed-mount sensor technology to detect methane leaks and confirm resolution is poised to help minimize the impact to the environment and significantly decrease dollars lost from avoidable leaks.”

Once only available as handheld devices from condition monitoring (CM) and oil and gas (OGI) applications, Hones explains the heavy focus on leveraging sensor technology into fixed-mounted cameras is growing the addressable market for security integrators.

“Together with end users, security integrators are poised to take advantage of the technological advancements coming from a manufacturer like FLIR where, in addition to its wide range of security camera offerings, is comprised of divisions that focus on CM and OGI,” she says.

One public sector arena where video is finally taking a stronghold is emergency communications centers (ECCs), says Mark Fletcher, vice president, public safety, 911inform, a Wall Township, N.J.-based provider of a notification and security management platform.

“With nearly every call originating from cellular devices and almost every cellular device capable of video capture, sending in multimedia of an incident is becoming commonplace on an as-requested basis by the public safety answering points (PSAP),” he explains. “Over-the-top applications can send a URL to the device, where they can then transmit video back to the ECC.”

This scenario will ultimately change the role of the call taker, Fletcher says. “As more data starts to come in, a unique talent set will need to be developed to deal with the data aspect of the job on top of recording the incident and dispatching units,” he says. “Therefore, I predict the industry will respond by implementing a new co-pilot position. While this will not be a 1-to-1 pairing, you may see a 1-to-5 pairing, and then as data increases, more will be assigned to the functionality.”

Market Headwinds Do Exist

Geopolitics will be at the heart of several challenges faced by the video market in 2024, according to Nilsson of Axis Communications, as demonstrated through notable regulations around AI, privacy and supply chain. He explains the following:

Artificial intelligence — As more cameras and related applications are enabled by AI, the industry should pay close attention to three key pieces of AI legislation: The European Union Artificial Intelligence Act; the U.S. Artificial Intelligence, Research, Innovation and Accountability Act, and President Biden’s Executive Order 14110: Safe, Secure and Trustworthy Development and Use of AI. These proposed laws intend to provide governance around AI and seek to protect fundamental rights while still encouraging innovation. In doing so, guidelines, prohibitions and compliance measures will be put in place with implications for the video market.

Privacy — As digitalization transforms every industry, data protection and privacy rights will be front and center. Emerging technologies could be subject to existing laws or addressed through their expansion. For example, AI applications that process personal information could be subject to the EU’s General Data Protection Regulation (GDPR). Privacy laws like GDPR will continue to undergo updates in order to address the evolving landscape. Most recently in July 2023, a new data privacy framework was enacted to ensure that data can flow safely between the U.S. and EU, prompting the U.S. to change laws around U.S. intelligence, its access to EU personal data and surveillance practices. As camera usage becomes more pervasive and video technology advances, debate will undoubtedly continue about what’s considered personal data and what measures should be taken to protect privacy.

Supply chain — Section 5949 of the U.S. National Defense Authorization Act was enacted to protect the supply chain from perceived national security and economic risks by prohibiting U.S. government agencies from procuring or using any product or service that includes or utilizes certain Chinese semiconductors. Manufacturers will need to be particularly careful about performing due diligence when it comes to their own devices, including verifying with their component providers that they do not include any banned materials or parts.

“It will be critical for manufacturers to provide accurate, up-to-date information to integrators or customers who have questions about NDAA compliance. Since there is no formal certification process for Section 5949, this means it is largely up to businesses to police themselves to ensure that they remain compliant — and that their vendors and partners do as well,” Nilsson says. “It will be crucial for everyone throughout the channel to educate themselves and work with trusted partners and avoid costly penalties including the potential loss of working with the government and partnering with any company that works with the government.”

Burrows echoes similar concerns about NDAA compliance and how upgrading video surveillance solutions is still a pressing challenge for many end users and systems integrators.

“When it comes to video security equipment, it’s no longer a value-add but critical for end users and systems integrators to work only with video surveillance vendors that offer NDAA-compliant solutions, especially since the grace period ended and was quickly followed by the Secure Equipment Act of 2021,” he says.

NDAA regulations are far-reaching and encompass not only an organization’s new contracts but also the renewal and extension of existing ones, Burrows explains. They also apply regardless of whether the contractors utilize cameras and other associated surveillance equipment for government contract work, whereby companies sell and install unlawful equipment in a local convenience store. This makes them non-compliant with other initiatives that involve federal dollars.

“That is particularly important for electrical contractors that win surveillance projects through partnerships with IT or security systems integrators and construction firms,” he says. “If they haven’t already, these companies will ask for evidence that contractors use compliant kits for their smaller projects and work with manufacturers with trustworthy supply chains and manufacturing origins.”

Dickson of Speco Technologies anticipates challenges in the video surveillance market for 2024 include heightened concerns over privacy and data security. “Another challenge could be the integration of video surveillance systems with emerging technologies like edge computing and IoT devices, requiring seamless connectivity and compatibility,” he says. “Demystifying the perceived complexity of AI integration and compatibility will also pose some challenges.”

Curotte of Genetec foreshadows the video market can expect to face significant challenges, with cybersecurity standing out as a predominant concern. According to the Genetec 2024 SOPS report, 31 percent of end users reported that their organization fell victim to cyberattacks in 2023. This highlights the persistent threat posed by cybercriminals and underscores the need for robust cybersecurity measures, he explains.

“Compounding this challenge is the fact that cybercriminals now have a broader array of tools at their disposal to target organizations’ security systems,” he says. “In response, organizations, video system manufacturers and systems integrators should continually prioritize the implementation of enhanced cybersecurity strategies.”

Curotte adds a notable challenge in the video market for 2024 revolves around the misconception that cloud video solutions are less secure. “Addressing this perception and promoting greater confidence within the video market is important,” he says.

Education of both integrators and end users will remain a difficult proposition in 2024 as technology advancement never stops and cyber threats continuously evolve, says Lowenstein of i-PRO. More stringent cybersecurity requirements, he says, mean that integrators will need to reassure IT staff that any network security devices are adequately protected.

“We live in an app-based world where customization and specialization are inherently expected,” Lowenstein adds. “Failing to provide fully customizable and flexible solutions will impact an integrator’s ability to win business. Security cameras are not all the same and one size does not fit all.”

As surveillance hardware has become mature and standardized, platform and service will be critical in how a partner chooses their supplier, Choate says. As more advanced features become common, partners will have to fully understand their options to determine the differences and balance value vs features.

“The consumer value will continue to shift to ‘how do I access my video system?’ and ‘how useful is the video system as it pertains to informing me of useful events?’ Consumers place a high value in visual evidence, but they want it to be on the device of their choice, at the time of their choosing, and the event needs to be relevant,” Choate explains.

Choate also suggests some installers in the industry will be challenged by how smart and integrated surveillance systems have become. “Leading consumer brands have shaped user expectations to expect easy-to-use and cost-effective integrated intrusion and monitoring solutions,” he says. “This challenges traditional surveillance dealers with independent, standalone solutions.”

Some video management systems offer open platforms, while others have taken the closed proprietary route. That latter fact presents a dilemma for the industry, says Francis of Eagle Eye networks. Proprietary video management systems require business owners to buy certain cameras and other equipment.

“In many instances, those proprietary cameras will cease to function if the end user wants to terminate a contract,” he says. “In addition, closed systems cannot readily integrate with third-party technologies. Increasingly, business owners are recognizing the inherent limitations of closed systems. We expect providers of closed, proprietary systems to face continued market challenges in 2024 and beyond.”

One of the biggest challenges Hogan expects to see continue in 2024 is the dearth of skilled and qualified manpower. Currently, D/A Central’s best success has been bringing in new people and training them, in large part because there really are not a lot of alternatives to attract talent, he says.

“Another challenge is that client expectations are higher,” Hogan adds. “What’s making this more challenging is that customers want all of the value added — such as extreme project management with thorough engineering and complex solutions — but when the RFP hits the street they want bare bones pricing rather than a well-thought-out and executed plan.” SDM