SecurityWorldMarket

30/01/2007

We are mainly looking for manufacturers

Uwe Glock, President of Bosch Security Systems GmbH

Bosch Security Systems have expanded heavily in recent years through acquisition to become one of the world leading companies in this field with a turnover of 964 million Euros and 6,750 employees. The company is now one of the top five multi-nationals in this industry and the expansion will continue with further acquisitions. Detektor magazine met with Mr. Uwe Glock, the president of Bosch Security Systems worldwide, who in this interview gave some insight into this fast expanding business.

By Christer Hedlund

Although there is a long history and much re-organisation within the Bosch group in the past, one could say that the company in its current form and shape started in the year 2000 under the name of Bosch Security Systems.
This first year of the millennium was also the starting point of a more export oriented business. Where are Bosch standing today or heading towards in today's security market? If anybody is able to answer these questions, it is Uwe Glock, the President of Bosch Security Systems.

How would you describe Bosch Security Systems? As a manufacturer, distributor, installer, systems integrator, wholesaler. or as something else?
- As a worldwide manufacturer.

You have expanded in latter years through acquisition.
Are you planning any further acquisitions?
- Yes we are but I can't reveal any details for obvious reasons. We are mainly looking for manufacturers. Geographically, Asia and America are highest on the agenda, but other countries may also come into the picture.

There have been a number of mergers and acquisitions in recent years in the security industry. Will this trend continue or are we approaching a consolidation phase?
- Yes it will continue, but as the few real big players now have been consolidated, the companies that are left to acquire are those in the sub 50 million Euro turnover sector.

Who do you see as you main competitor?
- Generally our competitors are the big players like Honeywell, GE, Tyco, Siemens, UTC etc. Who the main competitor is varies from territory to territory.

You offer a wide product range. Which applications offer the best profit margin and which are less profitable?
- There is not really any big difference in margins between the various product ranges. Even within the alarm product sector, which traditionally is exposed to heavy price pressure, we have been able to maintain the same margins as for other products.

Do you have any manufacturing in low cost countries? What are the plans in this respect in the future?
- Some of our alarm products are manufactured in our plant in China which helps to keep production costs low. We also have some manufacturing in Portugal where production costs are lower than in some other European countries.

Have you any plans with regards to the new EU states in Eastern Europe?
- We are already active in these countries but we have currently no plans to start any manufacturing there. It is worth noting that in Germany we only assemble and test but don't manufacture anything.

This industry has shifted from having had a very local or national aspect to the multi-national industry of today. Looking into the near future will there be any applications that will continue to stay national?
- There are still some country specific applications in bank systems. Also fire system can sometimes be rather national due to local standards. The opposite applies to CCTV where there are very few national standards.

What will this industry look like in five years time?
- There will be no dramatic changes, rather a continuation of current trends i.e. more IP-based systems which in turn may introduce some new channels to market. Also the trend of more systems integration will continue.

You have had a good growth in South East Asia. Is this a priority area for further expansion?
- That is correct and this area continues to be important to us. We had a flying start in the region when we acquired Philips CSI which had established a strong position in the area. Having said that, the US market is still bigger for us and a priority market for further expansion. For example the market for residential systems in the US is bigger than the one in Europe and has further potential for expansion for us.

You acquired ADC in Singapore in August 2005. What was the main driving force behind that acquisition? Will not part of the ADC product range compete with other units within Bosch Security Systems?
- ADC added local project competence which has been useful. In addition ADC also manufactures a low end access control system which Bosch didn't have.

What threats to your business can you see, if any, in the foreseeable future?
- We may face new competition from IP vendors in the future. If manufacturers and installers join together in one business unit, then the current distribution structure may become affected.

You are involved in the Essen Security Show. How would you compare Security Essen with IFSEC?
- Essen is 2.5 times bigger and covers a wider range of products and services. On the other hand Essen is biennial whilst IFSEC is annual. IFSEC is more international possibly for reasons of language. Clearly these are the two leading events in Europe in the security industry.

I understand you are the vice president of Deutsches Forum fur Kriminalprävention. In addition you are also actively involved in Zentralverbandes der Elektroindustrie (ZVEI) as well as Bundesverband Deutscher Wach- und Sicherheitsunternemen (BDWS). You seem to be a busy man. How is it possible to find time for all this?
- Firstly it is not as time consuming as it may look. There are also some synergies which both parties benefit from so it is well worth doing.



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