Growth Prospects

Expanding the Stanley Security business in 2010 and beyond

The Convergent Security market is currently valued at close to $40 billion and market studies have shown it has the capacity to grow 7%-8.5% annually during normal times. The $21 billion Mechanical Security market is also expected to see growth of 2%-4% on an annual basis. It's no wonder we've built our businesses in both areas and are poised to seize on the many opportunities that lie ahead.

Growth through acquisitions
Acquisitions have been a big part of the Stanley strategy to grow within Security Solutions. We have created a highly successful approach to bringing acquisitions into the Stanley family — with a track record that speaks for itself in terms of earnings and, most importantly, in terms of customer response and satisfaction with Stanley solutions.

International
For 2010 and beyond, our Security segment has set its sights on Europe and Asia as the primary locations for acquisitive growth. The Security market in China was estimated to be $30 billion in 2008 (60% CSS and 40% MAS) with 20%+ growth expected in next two years.

Organic growth
Stanley's commitment to the Security segment doesn't end with acquisition. In fact, it's just the beginning. We have a number of plans in place to grow our business organically as well.

In respect to our CSS business, with our best-in-class customer service, we continued to embrace our Five Customer Touchpoints as a way to gain business from the competition.

Five Customer Touchpoints
We believe success lies in constantly working with our customers to anticipate their needs and surpass their expectations. Our framework to do this is set within our Five Customer Touchpoints:

  1. Account Management: responsive, professional and comprehensive account management and system design support
  2. Installation: consistent, on-time and on-budget installations, delivered per the customer requirements with proactive project management
  3. Service: prompt, thorough and professional service repair, tests and inspections, and other service work delivered with accurate scheduling communication
  4. Monitoring: accurate, timely and informative monitoring services, delivered in a disciplined and professional manner
  5. Billing: accurate, detailed and timely invoice billing, delivered in an easy-to-understand and professional format

eServices and our National Account Performance Scorecard
CSS has been able to keep a healthy growth rate through acquisitions and the successful implementation of our eServices — the services that customers want to help them. This is real-time data information that none of our competitors are bringing to the market today.

  • eServices: What is eServices? Three words: Our Competitive Advantage. eServices serves our customers with everything from:
    • Viewing installation schedules
    • Service repair status
    • Alarm incidents
    • Fire inspection history and facility access activity
    • Managing access control systems or video monitoring services
    eServices is anything our National Account customers could want, real-time, at their fingertips.
  • National Account Performance Scorecard: Our Scorecard provides the opportunity for a customer to review performance metrics used by CSS to operate its overall business. It provides a snapshot of the results for the quarter as well as quarter-over-quarter trending data for all CSS customers.

    We're constantly communicating with our customers to ensure we stay at the top of our game.

Learn about the Stanley Fulfillment System.

Download a full copy of the 2009 Stanley Black & Decker Annual Report To Shareholders, which includes the Letter to Shareholders, Stanley Financial Summaries and the Stanley 10-K. You can also download a copy of the 2009 Black & Decker 10-K.

Watch our Securities videos to learn more about our Mechanical Access Solutions and Convergent Security Solutions.

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