Allegion Dedication to Innovation the Cause of Schlage Upswing

For those interested in home security, there's a good chance you know Schlage, who are the makers of some of the best ANSI Grade 1 rated commercial and residential locks on the market in 2015. On this website, the name Schlage is practically synonymous with security, for both home and commercial use, as their deadbolts are some of the most popular amongst all its competitors, which include Yale, Kwikset, and other lock companies who also produce great quality locks. In this article, we want to take a closer look at that popularity, and identify its source.

Allegion Dedication to Innovation

It is at this point, then, we must mention the company Allegion, of which Schlage is a subsidiary. Allegion Plc is responsible currently in 2015 for 27 global brands including Schlage, as well as Interflex, Von Duprin, Ives, and many others; all of which fall under the category of home security, which is the specialization of Allegion.

With headquarters worldwide, Allegion has the slogan "Pioneering Safety", which is reflected in their subsidiary companies, who are at the forefront of technology focused on security. Allegion came about in 2013 when it spun off of Ingersoll Rand, and became its own publicly traded company at this time.

What evidence do we have to point to Schlage's dominance as a brand ?

In terms of overall popularity, is there a way we can show in a more objective manner that Schlage is as people, including ourselves, say it is; that being one of the most popular lock companies in the world. What evidence do we have to point to Schlage's dominance as a brand in 2015 and that can point to how well Schlage is actually faring as a company at this current time?

One way to analyze this popularity in a way that everyone is forced to agree on is capital, and so we must then look at how its parent company, Allegion is doing financially. Hearing what customers are saying in reviews is one thing, but looking at financial statements indicating the well-being of the company which is responsible for Schlage locks is a whole other thing.

According to thestreet.com, and the chart shown below, all is well financially with Allegion, as their market capital sits at over 6 billion dollars as of November, 2015, and all trends for the year show their stocks are rising.

Taking a look at their 2015 quarter earnings report transcript, featuring analyses of all the latest global market trends by the key players in Allegion, things are looking quite promising for the foreseeable future.

In fact, as their Chairman, President, and CEO Dave Petratis remarked in regards to this year, "This is our fourth straight quarter with double digits earnings per share growth. We are raising our full year 2015 adjusted EPS guidance to a range of $2.70 to $2.80 per share."

In this 10-page transcript, you will read insightful information about the reasons for Allegion's continued growth from both Dave Petratis and Patrick Shannon, SVP / CFO.

At one point in the report, Jeff Kessler, Imperial Capital Analyst, posed the following question: "I am wondering where you think you have a competitive advantage, competitive perhaps and maybe some admitted disadvantage in opening up your APIs as well as sticking to that and NFC, one form of wireless, as opposed to going out in spreading your wings and doing it three or four at once."

Dave Petratis responded tellingly: "Jeff, we've got major competitors that you know that have formidable positions in the marketplace with technology. We think moving into the market with open platforms helps us to grow more quickly.

We also, as we listened and survey customers - customers in the security space as well as the electrical space that I come from, do not want to be handcuffed by legacy systems. And as we can integrate more open protocols, we think it's a better way to grow. And ultimately it will end up that way.

So that's our perspective. Our technical people have more insight into it, but in my viewing of technology advances over the year, open platforms I think, enhances our opportunity for growth."

We encourage anyone who is interested in Allegion / Schlage / home security in general to read the entire transcript of this earnings report, as we think this key excerpt of the report by CEO Dave Petratis does speak to Allegion's overall commitment to quality and listening to their customers, in order to produce superior products.

Indeed, it is this very attitude which reflects attention to the concerns of customers and the understanding of the home security industry which is behind the Schlage name as well. This spirit, which Allegion exudes, in turn anticipates the buyer response to Schlage products that there is a definite tandem going on between Schlage, their parent company Allegion, and the average customer which Allegion fosters through this complex relationship, and which results in the financial growth which Allegion has seen in the past year.

In terms of the competition, you can take a look at various earnings reports from some of those companies, such as this one from Spectrum Brands Holdings, which is the company behind the Kwikset name, in order to judge for yourself if they share similar philosophies which could explain why Kwikset, too, is one of the major players in the home security niche. The information is out there and available for anyone willing to look for it and take the time to read it.

To conclude, we think that this upward trend in the financial success of Allegion has been proven to positively influence all of its subsidiaries, including Schlage. This trend, overall, is brought about by how the Allegion, and, in turn, Schlage, listens to the needs of the customers and this explains why Schlage is, on the level of your average home security consumer, providing the most innovative home security products available at this time.