Is the winter over for security in Southeast Europe? a&s Adria explores.
The 2008/2009 financial and economic crisis took its toll on many developed world economies. In our last year's report, “hazy” was predicted for the Adriatic region; Vladimir Grigorov from the Vienna Institute for International Economic Studies highlighted that countries in the region were headed to a severe recession, due to their poor export base, insufficient loans and dried up foreign investment. Fitch Ratings also warned against a series of trade and financial shocks that would hit emerging economies in Central and Eastern Europe.
Is the winter over for security in Southeast Europe? a&s Adria explores.
The 2008/2009 financial and economic crisis took its toll on many developed world economies. In our last year's report, “hazy” was predicted for the Adriatic region; Vladimir Grigorov from the Vienna Institute for International Economic Studies highlighted that countries in the region were headed to a severe recession, due to their poor export base, insufficient loans and dried up foreign investment. Fitch Ratings also warned against a series of trade and financial shocks that would hit emerging economies in Central and Eastern Europe.
But how are things shaping up this year in the security business in the region?
CROATIA
Miroslav Krleza, GM of Uniplus: Business risk, against potential earnings, has increased significantly due to very high insolvency. In years 2009 and 2010, we were relatively successful as we realized several projects in cooperation with our partners. This year so far has been in a “safe mode,” and we are reevaluating market research and potential. We believe that, in the next few years, intense technological development and innovation in video surveillance systems will continue. Therefore, we are expecting a dynamic recovery with exciting job opportunities. Growth can be seen in increased implementations of IT/IP-based equipment and realization of value-adds through integrating with business systems.
Kresimir Paic, Director of Eccos Engineering: Most research reports yield erroneous results, so we do not base our business decisions on their predictions. To stay in this business, cost optimizations and savings, investment in knowledge expansion, and export-oriented organizational thinking are required. I believe that the highest growth will come from video surveillance and access control equipment. The previous downward slope is stopped for now due to increased activities in neighboring foreign markets, but I would not dare to make a long-term prognosis.
Robert Pazitka, CEO of Pro Alarm: The recession caused by the global crisis was only the trigger for many internal problems of former Yugoslavia, which previously were not fully expressed or were pushed aside. The art of surviving means quick adaptations to different ways of doing business and continuous adjustments to business dynamics on a daily basis. Measures include maximum reduction and continuous monitoring of costs, company reorganization for greater efficiency and better utilization of existing resources. The positive shift observed in the current year, through a number of inquiries and new bids, is hopefully a sign that we had reached the bottom. Our favorite is video surveillance, whose growth has lasted for several years and still has not seen “the end.” We expect access control systems to increase in the total volume, alongside loss prevention, intelligent video, and fleet management and protection systems.
Mladen Ozimec, Director of Salon Ozimec: The 104-percent increase in our turnover from 2009 to 2010 speaks volume about the recovery. New legislative changes that support our operations in the E.U. are one of the key growth factors. Sectors with biggest growth include transportation, banknote-processing facilities and cash in transit.
Boris Popovic, CEO of Alarm Automatika: The market is definitely more active than last year — more inquiries, contacts, presentations and meetings. It is recognizable that users can no longer wait to solve their security and operational problems. I attach great importance to research results, especially those of independent institutions. These results are useful in selecting the right product characteristics that we offer or develop. We have developed in some new markets, opened new offices in Banja Luka, Bosnia and Herzegovina, hired new people and reinforced software development efforts. We expect the biggest growth in the applications of IP-based products and wireless technologies, which partially simplify and make cheaper implementations of security measures in different types of buildings. It is important to select equipment based on open platforms, which are becoming more available every day. Aside from integration of security systems, building management software connected to business operations such as MIS and ERP is equally important and promising.
BOSNIA AND HERZEGOVINA
Azemina Harkcom, Director of DSC BiH: What happened was exactly what we expected to happen. We believe that with a little more effort and work, everything can be overcome, especially when it comes to doing business in safety and security, which should not be challenged for any reason. A lot of good, positive changes are expected to come in the second half of this year. A key business action should be driving further investment in and support to customers in all segments, including the construction sector which has started to move.
Mirsad ?ati?, President of Securitas: During the recession, we refocused our energy on clients who were not much affected and catered to their needs exclusively.
So, the key element in success would be striking a balance between extremes and planning your operations wisely and accordingly. Maintaining strategic business relationships with the right banks and active clients also means stability. It is also vital to keep improving product and service quality. Always think, always do something new, always innovate and always invest!