Why & How Integrators Can Succeed in
Building Automation
Security integrators can gain revenue opportunities and deepen customer relationships
when integrating security systems with building automation systems. But there’s a learning
curve.
By Heather Klotz-Young
September 10, 2014
The Perot Museum of Nature & Science is a recently completed project that “took security and
building automation to the next level,” according to Steven Turney, security program manager
for Schneider Electric, the project’s integrator. “When all was said and done, the system brought
security, intercom, access control, fire alarm, building automation, EV charging stations and
CCTV into a single, unified system that the customer can control from one location if desired.
Other goals included LEED certification, a reduced carbon footprint and an overall energyefficient facility,” Turney notes.
The equation 1+1=2 is simple. It is one of the first concepts learned in math. But it is not as
straightforward as it would seem, really. The proof for 1+1=2 is more than 300 pages long and it
wasn’t conclusively proven until the 20th century by Bertrand Russell. Likewise, building
automation systems (BAS) are a very complex manifestation of a simple principle: control.
Mastering that complexity takes time, planning and intention for integrators choosing to offer
BAS. SDMspoke with several leading integrators about their experiences with BAS, asking about
how they are finding success, any stumbling blocks to avoid, resources needed, profit
opportunities and more.
Although the concept of building automation has been in existence for a long time, growing
awareness, new technologies, and a demand for energy-efficient buildings and enhanced security
are driving the BAS market forward and creating new opportunities for integrators.
“Customers and engineers are starting to see the benefits of truly integrated building
solutions. Anyone can plug disparate control panels into the same network switch, but few can
provide a holistically integrated solution that leverages the individual capabilities of those
disparate control panels to build a system that secures a facility and protects its occupants — but
also keeps them comfortable while saving energy at the same time,” observes Steven Turney,
security program manager at Carrollton, Texas-based Schneider Electric. Customers benefit from
reduced installation and support costs as well as an increased flow of information that allows
them to make more informed decisions, he adds.
By managing various building systems, the automation system ensures the operational
performance of the facility as well as the comfort and safety of building occupants. But it takes
time and training to design, install and maintain such a complex system.
Every integrator offering BAS has taken a different path to get there, whether through
partnerships, acquisition, staff hiring/training, or another route. There is no silver bullet, and
every integrator must carefully weigh what works for his or her unique company. Advantech
Inc., located in Dover, Del., forged into BAS about eight years ago when it recognized that there
was not a suitable product for its end users to easily manage and control the security systems for
large facilities. This was especially true for facilities management and custodial staff, who didn’t
have access to control rooms or security equipment, shares Eric Schaeffer, the company’s
president and this month’s cover subject.
Today, Advantech has developed its own customer GUIs and command stations that serve as an
intuitive interface for building and facility management. The company is also a Honeywell
Integrated Security (HIS) National Dealer of the Year for 2008, 2010 and 2011, utilizing the ProWatch Integration Program, enables integrators and end users of the program to integrate
security with building, industrial or enterprise systems, using an open architecture platform.
For its first project, the company worked with a high school to develop a customer touch screen
controlled graphical user interface (GUI), multiple system integration, and more. But it used the
expertise of its current staff, who Schaeffer says had the drive to be successful in developing new
solutions for the customer’s challenges.
The initial team included Dave Sweeney, director of sales, and John Gampp, director of system
support. “Their focus on testing and validating in our test lab prior to customer deployment has
made our projects move smoothly and successfully,” Schaeffer says. “Since then we have trained
additional existing employees and have also added staff with strong networking and IT skills. A
little over a year ago we also hired a sales engineer, Frank Yoder, with more than 20 years in the
BAS industry.”
“After this initial project we started adding more functionality into the GUIs. We also started
deploying these solutions in other vertical markets,” Schaeffer shares. “Initially, the primary
focus was on security, but as the capabilities increased these solutions became more and more
valuable for operations and facility management.
The interfaces Advantech designs greatly simplify control of multiple systems and functions
creating significant efficiencies, which greatly reduce man-hours. Schaeffer estimates the
efficiencies Avantech offers with its BAS often save customers 100 man-hours a month or more,
a huge savings of time and resources. “In many applications the pay back can be achieved in a
matter of months,” he says.
Other integrators use acquisitions to enter the field. It worked best for Draper, Utah-based Utah
Yamas Controls, which acquired a local BAS integrator (see related article on page 67) and
Chicago-based System Development Integration LLC (SDI), which acquired i-sys, Charleston,
S.C., a veteran BAS provider (see related article on page 64).
In addition to acquisitions, establishing relationships with the key vendors and providing training
opportunities to the staff to educate them about the products, capabilities and features is a key to
success, advises Denny Stover, executive vice president, San Diego and Northern California,
Universal Protection Security Systems, Santa Ana, Calif. “It takes patience and finding the right
partners and the right products to create the right solution, he adds. “You can’t take any shortcuts
in this industry,” he told SDM.
Major BAS Industry Drivers
Operational costs savings and energy efficiency are major drivers of BAS installations and
retrofits.
Industry surveys have determined that building owners and managers are realizing the many
financial benefits of intelligent technologies, such as lower energy costs, lower maintenance
costs and lower repair and replacement costs, says Rawlson O’Neil King, communications
director, Continental Automated Buildings Association (CABA), Ottawa, Ontario, Canada, an
international not-for-profit industry association with more than 400 members dedicated to the
advancement of intelligent home and intelligent building technologies.
“Energy costs represent about 30 percent of an office building’s total operating costs, providing
enormous opportunity for building owners not only to reduce operating costs, but also to make
significant improvements in the overall environmental performance of their properties. By
changing energy management practices and instituting intelligent building technologies that
enhance energy efficiency, building owners and managers can reduce energy consumption by up
to 35 percent,” King estimates.
The ability to demonstrate the savings grabs end users’ interest more quickly.
“If you look at security in many phases, there are intangible benefits. Security systems meet
insurance requirements, they provide protection for possible events, and the value, while real, is
less tangible on what you get back from a building automation system that brings in some very
measurable benefits. When the HVAC system is turned off or the lights are turned out after
everyone has left for the day, you save a measurable amount of money,” explains Chris Koetsier,
director, product marketing, Honeywell Security, Melville, N.Y. “You can show the savings. But
one of the challenges for integrators actually is that building automation is a different sale. You
are talking about a very objective model.”
In addition to the different sales model, there are regulations to master. Building automation is
driven by regulation, especially in Europe and Japan, and this is growing in the United States.
“While regulation is lower in North America right now due to the nature of our economy and the
way the free market trumps government directives, this is changing. You will start to see more
and more regulations grow that demand an increase in energy efficiency,” King says.
Mirroring the Home
The awareness and expectation for automation in general is growing, making building managers
more receptive to BAS.
It’s important to remember that facility managers are consumers like the rest of us, says Alan
Stoddard, senior director, marketing at Honeywell Security. “They go home and manage their
lives with their smartphones. If they see that adding a smart thermostat to a security system saves
money on their home electrical bills, then it would stand to reason they would want the same
benefits and intuitive user experience for their buildings as well,” he adds.
Integrators are able to succeed in building automation by capitalizing on commercial property
owners’ needs, empowering business owners to take control of their building systems, and
helping commercial end users optimize their systems to save the most money over time,
Stoddard says. “Much like we’re seeing in the connected home space, security technology is
ideal to serve as the core for these types of building systems because it knows when the building
is occupied, who is in the building, and where they are within the facility.”
BAS By Numbers
Between rising energy costs, looming regulations and automation awareness, the numbers
predicted for BAS growth are impressive, making the efforts of mastering the offering easier to
accept.
The U.S. market for building automation equipment is set to grow by more than 40 percent
within a five-year period ending in 2017, spurred by the need in commercial buildings for more
efficient energy consumption, according to a report from IHS Inc. released in late 2013. Solid
growth ranging from 7 to 9 percent is expected in the next four years, with industry revenue
forecast to hit $2.24 billion by 2017, equivalent to a 43 percent increase from 2012.
Research and Markets predicts that the market for global intelligent building automation
technologies will increase to $74.8 billion by 2019. Among all the technologies discussed,
energy management technologies are registering a high growth rate followed by emergency
response and commercial lighting control. North America is leading the global intelligent
building automation technologies market with a share of more than 40 percent in 2014, followed
by Europe.
The spiraling cost of electricity is a major factor in the operational efficiency of a commercial
building structure, which explains why building automation systems could play an important
role.
“With budgets cut and many large companies struggling to grow at more than 5 percent on an
annual basis, the higher cost of electricity could prove to be a major headache for commercial
and government building owners,” said Sam Grinter, market analyst for the Building
Technologies group at IHS. “Making buildings as efficient as possible is crucial to driving down
energy consumption. And one way to increase energy efficiency is to install an integrated
building automation system,” he says.
BAS solves myriad end user needs, which attracts more integrators to it in order to provide a
comprehensive, needs-focused solution. Also, while the integration and control possibilities do
continue to grow more complex, technology developments such as wireless and auto-discovery
IP devices are providing a counterbalance, allowing more companies into the arena.
BAS knowledge once seemed to be the exclusive domain of the ‘wizard-behind-the-curtain,’ but
those days are long gone,” says Kevin McKeegan, building operations manager, SDI. More
integrators are successfully learning what really makes 1+1=2.