Already a strong player, particularly in New Zealand and Australia, Gallagher is still climbing in the U.S. market, which it sees as a big opportunity to invest in the company. Active in the United States for 10 years, Gallagher undertook a more aggressive growth strategy about five years ago.
There are 52 employees in Gallagher’s U.S. security business, and about half the workforce has been hired in the last couple of years. They have grown from three sales territories to 16, operated by a full sales and engineering staff.
Culture of innovation sets
As it happens, Gallagher’s U.S. headquarters is located a short drive from my home office in the wider vicinity of Atlanta. I missed seeing them at GSX in Dallas, so we scheduled an in-person visit to catch up on their company.
Gallagher’s strong culture of innovation sets them apart, as does their “people-first” commitment, says Scott Elliott, Gallagher’s Executive Vice-President, The Americas. “We have intentionally recruited for a diversity of thought that drives the business,” says Elliott. “We are a people business.”
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| Melissa Vidakovic, Director of Marketing, Americas; and Scott Elliott, Executive VP, Americas, at Gallagher Security's office in Canton, GA. |
Unified approach
An advantage Gallagher has in the market is total ownership of their supply chain; it manufactures each of the hundreds of products used across their solutions, from plastic components to readers to controllers to their own software systems.
Among other advantages, the unified approach enables tighter control from a hardening and cybersecurity perspective, enabling them to minimize any threat vectors or vulnerabilities. The strategy also avoids dependence on third-party suppliers, which was a huge advantage during recent supply chain disruptions. While competitors struggled with availability issues related to third-party manufacturers, Gallagher’s supply was uninterrupted.
Gallagher’s commitment
Gallagher uses the same norms as the nation and subjects its effects to inner and outer penetration
As a manufacturer serving a broad spectrum of markets, it’s Gallagher’s commitment to the high end of the market (e.g., high-security applications), where the company incorporates core tenets such as authentication and encryption. Gallagher uses some of the same standards as the government and subjects its products to internal and external penetration testing. These core strengths are also integral to Gallagher’s complete product line. “If it’s good enough for a high-level customer, it’s good enough for Mr. Business Owner,” says Elliott.
The New Zealand company was founded in 1938 and was the first company to commercialize the electric fence, which it still uses for its agriculture business sector, separate from the security business. Gallagher entered the access control business 35 years ago in 1988 when a product used to restrict access to fuel pumps evolved into broader access control.
Gallagher platform
In the intervening years, the product has grown into a unified platform that incorporates access control, intrusion detection, and perimeter detection in a single ecosystem. “The platform is all-encompassing,” says Elliott. “No other platform does all three.”
Augmenting access control, intrusion, and perimeter protection, there are other applications available in the Gallagher platform, such as workforce management, health and safety functions, and a spectrum of features useful to a wider stakeholder community.
Fatigue management applications
For example, Gallagher can implement routine randomized checks to proactively mitigate potential risks such as drug or alcohol abuse, thus ensuring workers are fit to work, to operate various machinery and that they do not pose a threat to fellow employees or the company.
“Fatigue management” applications can monitor the use of equipment to avoid repetitive injuries or manage how long an employee works at a job site, requiring a worker to swipe or tap a card to a reader mounted on a machine to monitor and limit the time they operate that machine. Mobile mustering provides location and identification of evacuees in case of an emergency.
Impact of digital transformation
Gallagher’s “Better Ways of Working” concept zeroes in on the impact of digital transformation
Gallagher is also embracing the “digital transformation” of the industry. Security companies must adapt to a more agile workforce and shifting processes, says Elliott. Gallagher’s “Better Ways of Working” concept zeroes in on the impact of digital transformation on their workforce. They also seek to address the changing workforce, where Gen-Z’ers work side-by-side with tenured, experienced workers, and where creating trust is the best approach to closing the generational gap.
Gallagher also seeks to educate the market on trends such as artificial intelligence (AI), machine learning, cloud adoption, various service delivery models, and other issues.
Industry consolidation
Gallagher has more than 1,200 employees; operates in 140 countries, from South America to Canada, Europe to the Asia-Pacific and Australia; and serves almost 16,000 customers. Gallagher is part of New Zealand’s growing technology export sector, which is growing 30% faster than the overall economy and is now the second-largest export sector in New Zealand.
In an age of industry consolidation and a market dominated by corporate conglomerates, Gallagher is a privately held organization seeking to be agile and innovative, and to deliver customer value more quickly. Gallagher re-invests about 15% of its profits into research and development. “Our customer service is the primary reason people buy from us,” says Elliott.
Security integrators
Security integrators quickly appreciate the breadth and strength of the product line
Gallagher positions itself as an alternative in a market in the midst of disruption. Brand awareness continues to be a challenge in the United States, and the sales team often hears the question: “Who is Gallagher?” Once the introduction is made, security integrators quickly appreciate the breadth and strength of the product line, says Elliott. “We allow our customers to select among best-of-breed platforms, and [using open systems,] we are not limited by the technology we offer,” says Elliott.
“Our value proposition to the integrator channel is our focus on the relationship,” says Elliott. Supporting end users through an authorized, certified channel, Gallagher also emphasizes value, cost-competitiveness, and cybersecurity. “Our partner relationships are built around cultural alignment,” says Elliott.
Product innovation perspective
What’s ahead for Gallagher and for the industry as a whole? Hard to say, notes Elliott, given the unfolding of unpredictable geopolitical and financial trends.
However, from a product innovation perspective, Gallagher will continue to evolve, balancing a dependence on “cash cow” legacy product lines with investment in leapfrog innovations such as frictionless access control, cloud platforms, and mobile systems. In general, Elliott predicts AI will yield an opportunity to analyze a person’s pattern of behavior and intent, thus enabling a security system to adapt down the road. “With the ability to predict with some degree of certainty what might happen, these capabilities will evolve,” says Elliott.
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