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 2016.
On this website, the name Schlage is practically synonymous with security, and product lines such as their residential and commercial deadbolts are some of the most relied upon and popular even amongst some stiff competition, including other popular security companies like Yale and Kwikset, and a select few other companies who also produce superior quality products in the home security field.
In this article, we want to take a closer look at what makes Schlage one of the most reputable security companies in the world right now – but first, have a look at this video by Schlage which talks about the “keyless era”, and this should give you an idea of why they’re regardest as being among the best in the world.
It is at this point in the story, we must mention the company Allegion, of which Schlage is a subsidiary. Allegion Plc is responsible currently in 2016 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.
Since its inception, Allegion, as a technology company, has been growing in leaps and bounds due their forward thinking philosophy which integrates the concept of open platforms into their technical advancements. More on that shortly.
According to thestreet.com, and the chart shown below, Allegion has seen a general upswing, as their market capital sits at over 6 billion dollars as of November, 2015, and all trends for the year show their stocks are on the rise. As you read this, you may wonder what this has to do with simple things like the lock on your home, when it actual fact this continual growth relates directly to your home’s security in a very tangible way.
Looking at their 2015 quarter earnings report transcript, which may come as dry reading to some, we must note that this document features analyses of all the latest global market trends by the key players in Allegion, and this does have a direct effect on subsidiary companies like Schlage and the overall quality of their products.
Whereas some companies stagnate creatively sometimes as they grow, we think this actually translates into good news for those who actually care about security technology. As Allegion’s 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.” Take this statement and then compare it to recent developments in some of Schlage’s most popular deadbolt locks such as the Schlage Touch Camelot, and you will see there is a direct correlation between Allegion’s growth and Schlage’s development.
If you take the time to read this 10-page transcript, there is a clear indication that strong leadership is one of the main reasons for Allegion’s continued growth, with Dave Petratis and Patrick Shannon, SVP / CFO at the helm.
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.”
Take a look at this video and which features Dave Petratis speaking at ISC West in 2014, and, although the quality of the video isn’t what you’d call HD, you can tell that Allegion is lead by someone with a natural enthusiasm for the technology field.
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.
Overall, we simply want to point out that if you’re going to put your trust in a security company, you should take a look at the upper management of that company to see who’s at the helm of the ship. Are they relatable? Are they doing what you consider to be good work? Is progress being made? In the case of Schlage, the fact that Allegion is doing well is good news for Schlage, and that is also good news for the consumer, if things are done correctly. Other companies, who we won’t mention here, may not have the same commitment to development as Allegion (and Schlage, by extension), and this results in sub-par products. Meanwhile, Schlage is producing products that always serve to benefit the home or business owner, and so long as their products are as good as they are, we will continue to talk about them.