Allegion, the spin-off from Ingersoll Rand, has become an independent and publicly traded company. Focused on providing security products and services for the commercial and residential sectors, Allegion shared with a&s their thoughts on the future of the security industry and how they plan to penetrate the global market.
Allegion, the spin-off from Ingersoll Rand, a global provider of mechanical and electronic security products and solutions, made its debut as a publicly-traded company at the end of 2013. As an independent company, Allegion will boldly capitalize on major trends in both commercial and residential security.
Allegion sells more than 23 brands in over 120 countries, specializing in security around the doorway and beyond — from residential and commercial locks, door closers and panic release bars, and access control systems and workforce productivity systems. To ensure continued support to customers from both companies, Allegion has made temporary transition service agreements with Ingersoll Rand, which will end in 2014.
Allegion intends to pursue strategic acquisitions that complement and enhance its existing business, while investing in research and development and product development.
Growing Opportunities in Security
Allegion anticipates long-term growth opportunities in the global security market. “The North American markets are recovering from a difficult economic cycle. Although we see some recovery in the residential space occurring now, we think pre-peak housing starts are still a few years away. We expect the commercial market recovery to lag the residential recovery which has been the case historically. The European recovery will be much slower. However, we do anticipate growth in the emerging markets at a much faster pace than our traditional markets,” said John Stanley, VP of Finance and Acting EMEIA Regional Leader for Allegion.
Focusing on Emerging Countries
Allegion plans to build on its operational excellence program, pursue growth in emerging markets, and recruit new talent and expertise. “The fastest growth is in the developing world — where widespread codes and standards for security and building access have yet to be developed.
That is where Allegion fills a crucial leadership role in working with foreign governments and municipalities to ensure their building security standards are where they should be and to ensure the devices they operate are the best. The Safety and Security Institute we helped establish in Shanghai, China, in July 2011 is a prime example,” said Stanley.