 Happy New Year and welcome back to the Think Tech Hawaii Studio for the next episode of Security Matters. We're getting the year kicked off right. We've got Matt Barnett, the incoming CEO of PSA Security Network. And I tell you what, we've had one CEO for, I think, about 20 years, Matt. So I'm glad to get you on here. We will grill you about all the PSA plans because I know you haven't had a lot of time to make any yet. But, and I'd also know you're well known in the industry. But let's, I always like to start off with my guests kind of introduce themselves. So maybe let's go back to the how you got engaged sort of with the industry and give us a little, give us your audience a little flavor of, you know, how you worked your way up to taking over for Bill, ultimately. Great to be here, Andrew. And thanks for inviting me. So it's an interesting full circle. I've been, this would be my 30th year in the security industry. I started with a security integrator that was based in Northern California and Silicon Valley. And they happen to be a PSA member. I didn't know what that meant at the time. I was an IT guy that was hired right out of college. And my first, my very first business trip in the, in the real world, so to speak, was to the PSA, PSA Tech in Denver back in 1992. And that was my, my introduction to PSA. So it goes back quite a while and it's a gone full circle. So I spent a large portion of my career, as you know, working on the manufacturer side of the business with companies, primarily in access control, but some video and most recently with HID. So hopefully I've learned a lot over the years, although always more to learn. And it's my second week on the job here at PSA. It's been quite thrilling with the great people here and speaking with members such as yourself and learning more about the inner working. Well, I'll confess, like we, we were like, who's going to replace Billy's been there so long, right? And like, and his story, you know, had PSA had some struggles, you know, back in the days that they all worked through. So a lot of attachment. So we're, I'm so glad we've got it like, got cities like this industry insider guy, right? I didn't, I didn't know you had actually 30 years in the industry. So we're pleased that you're there. That's awesome. Working for the integrators will be a little different. But I mean, you've been around our community, you know, it seems like hand in hand with us along the way, even as a manufacturer. What, what, what do you think the industry is going to look like? Because it, I know we're into 2021 and everybody's ready for the new year. But I got to confess, it feels like last year to me so far. So I know for you, it's quite different. You've moved to Denver and, you know, you got some things going. What's, what do you think the industry's got to kind of look forward to here in 2021? Yeah. So if we had a crystal ball, we could, we could all make a lot of money, right? But certainly, you know, we have to be a optimistic that, you know, we're going to come out of this pandemic. I think there's some, going to be some pent up demand, although it's going to shift. And one thing you learn on the manufacturer's side of this business, you know, you could develop great products. But if you don't have the channel to actually implement those products, you know, you go nowhere in this industry, especially. So I don't think it's that much different than other product industries. But, you know, the integration channel is really key to success and a lot of manufacturers learn that lesson maybe the hard way. But, you know, it is very difficult to set up a channel and having, you know, companies that represent your products well out there. So I've been asked that question quite a bit about, you know, working with the integrators, but really in my, my career on the manufacturing side, we are always working with integrators because, you know, they're the ones who make it work at the end of the day. So, you know, I'm excited to be, you know, in this, in this capacity, knowing how vital the integration channel is to the vitality of the industry in the whole, you know, really helping the members of PSA, you know, increase their, you know, their capabilities, working with the product manufacturers to bring those great products to market. And I do think the pandemic has accelerated a shift in products, you know, I think cloud from access control and video has certainly become much more popular now than it was a year ago pre-pandemic. We've only seen that accelerate. And I think that's, you know, certainly going to be part of the future. And the integration channel, as you, as you're well aware, cybersecurity still a big, a big issue that needs to be addressed. And, you know, hosted and managed services is still a big area that I think is still the infancy and the electronic security market has been, you know, de facto and things like alarm and burglar, burglar portion of the industry for access control and video that's still early days. But I believe that's the future. So helping, you know, bring those products and solutions and services to the channel is, I think, a big part of 2021 and beyond. Yeah, I 100% agree. You know, I've watched some of our integrators sort of adopt, you know, these new strategies, right? A lot, a lot are mired in the analog days, you might say, right? And I've talked, I've definitely been recorded talking about the, the, I think I've actually been guilty of reverse ageism or I'm saying like, there's a lot of old guys, bald-headed guys like me in the industry that haven't made this digital transition very well. And now we're moving into a cloud and a managed services transition, you know, kind of on the tails of the IT industry, right? So, you know, that there's some challenges there for the groups that don't adopt, you know, I mean, what would you think that should be a bit of a warning sign? Do we need a change of management? Do we need more education for those that are sort of stuck in the mud or whatever it may be? How can we? I think it's an education, right? I mean, the reality is it's an education. And I think, you know, you're going to see a separation of companies that, you know, the ones that are going to get on board here and really implement, it's not just about a product, as you're well aware, you have to change your philosophies, everything from, you know, the comp plans for your sales team to your accounting on how, you know, subscriptions is a different accounting system, basically. So, you know, I think the owners of companies that get on board with that are going to be more successful five years from now. And ones that aren't, you know, may be relegated to very small niche type of markets or become wire polers, right? So, you know, that to me is not a great place for companies to be. I'd rather see them really build a book of business that are based on subscription services. And I think that just pays dividends, especially when you have downturns, like we've seen, you know, in certain verticals in the electronic security market, right? Yeah, like, I know, I think security by and large, it seems that folks I've talked with did pretty well, right? We have some projects that maybe got put on hold. But by and large, as you mentioned earlier, there's just pent up demand. So for us, it's kind of like a shifting at revenues there. It'll just come a little bit later if some projects got stalled. But the AV guys, you know, that community that service, you know, hospitality, and all the business office work, because there's no one in the offices, I've heard that they really struggle. Do you have a visibility on how they've done? I know we own USAV and I don't have a lot of partners over there yet. But could you comment on the, you know, sort of, is there a compare and contrasting or are they a mixed bunch like the security group? You know, I've just started my journey and learning much more about the pro AV side and you're right, it's a piece of the PSA business that I plan to spend a lot more time and getting involved in. Early indications, you know, they weathered the storm, although, you know, as you said, people aren't going to offices, so they don't have tremendous need for the AV equipment that they were using prior. But we've seen a bit of a shift in some of the technologies that are being implemented. So, you know, the integrators I've talked to on the pro AV side, you know, certain verticals like healthcare, there has been an uptick in AV in those markets, whereas there was initial bounce in college in higher ed as well as K through 12, and then things slowed down significantly when people weren't going back to school. So, I think, you know, that market will rebound. I think education is certainly where they're going to be back in classrooms, both K through 12 and higher ed. You know, the question's going to be about corporations and we're going to be going back in the same capacity. And my belief is, you know, it's never going to be back to the pre pandemic levels. I think it's going to change. There'll be more, you know, shift schedules and people coming certain days of the week. But there will be offices, I don't know, that you get away from having corporate offices. And those offices are going to need AV. So, I think it's going to be a partial shift in technology and a partial shift to what markets are going to be where the money is, right? So, I think the successful AV contractors will move into those markets and bring products. I mean, they're in the same situation with hosted and managed services in those markets as well. And so, there'll be, I think, a big uptick in those service lines going forward. Yeah, I know I'm looking forward. We have the NSCA as its BLC conference coming up pretty soon. So, that's always a great, you know, they're pretty honest about what's going on in the industry. You know, we can always count on getting a good pulse on how they're doing because they're, they definitely run in different sort of markets than I do anyway, traditionally. Is the, so is PSA remote or you guys all still remote? Are you back in the office? How are things going up there? Small contingent of people that come into the office daily and then, you know, a few people popping in from time to time. So, like most companies, you know, we want to keep everybody safe. And so, you know, everybody's set up to work remote and that seems to be working out really well. You know, the question that we're all grappling with is, you know, what is the future going to look like? And we certainly don't need the office space we have today if this is going to continue on. Indefinitely, right? And so, you know, what is the space requirement going to be in 2022? And, you know, having that set up appropriately for where we believe, you know, the employees will, you know, be coming in again, I think it's going to be more split shifts and certain people will never come back to an office, I believe. So, I just think we're going to be dealing with this new dynamic for, you know, for the long term. Yeah, I've heard a lot of people initially express like, wow, I'm actually really productive at home. And then it went to, wow, I'm actually overworking at home. I'm like, can't get away from the work. And now they're like, I miss all my people. I want to get back in the office. So, there's been this interesting conversation that's changed over the year for sure. Just, just, you know, we'll be 10, 11 months in here now. Tell you what, we're getting to about midway. So, let's, we'll jump off and we'll pay some bills and we'll be back in about one minute with Matt Barnett. Stick around. Awesome. Welcome back to Security Matters. We're talking with Matt Barnett. And we're just kind of going through, you know, how there's been a cultural shift in the industry where everybody was freaked out to have to stay home. Then they figured out how to work remote. Then they overworked. And then now they all want to, they miss each other getting back into the office. And I know I miss the PSA tech community. I mean, you know, we're so used to seeing everybody at all the conferences. What do we, what do we got on the radar? You think we're going to be able to have tech this year? You think we're going to be virtual? I don't even know, I haven't even heard the plans for that yet. Yeah, that's again, the million dollar question. We're planning, you know, we're basically going down three paths and we have to, in the next probably 30 days, you know, make a call. It's going to be either in person, fully virtual or a hybrid. I personally am hoping right now that, you know, the hybrid approach I think is going to be most likely as things hopefully improve. And we can convince people like yourself to make the trip here to Denver that we'll have a contingent of, you know, the management and owners of companies come in. And I think that's, you know, in speaking with some of the sponsors, that's really what they're looking for. And people are just itching to get out. And so as long as they feel safe, you know, they want to get in front of people. And that's the, you know, the big struggle. A lot of our partners, vendor partners, you know, have sales forces that have been unable to travel for nine, 10 months now. And so, you know, they're itching to, you know, get out and meet with people and talk about what they're doing. I think we're all kind of burned out with webinars at this point. So, you know, getting in front of people and talking about what their problems are and offering solutions. We're hoping that PSA Tech is going to be one of the first industry events in 2021. So we'll keep our fingers crossed. Yeah. And I think there's a challenge there that the AV community can help us with. I'm the hybrid idea. I think even when we're fully healthy, people are going to expect a hybrid audience like live people and people that are joining remotely. And maybe the guests, you know, that we're always up there as panelists, maybe, you know, three people are live and two people are beamed in remotely, right, that are part of the discussion. It keeps it sort of global. And I don't think this hybrid is going, the idea is going to leave, you know, I think there's just a lot to be gained from being able to do things with a sort of a digital component, you know, like a webinar or someone that's, you know, a big, a big head like this, you know, sitting on the screen. You think, is there, how are you approaching the potential hybrid? Is that, is that what it looks like, like broadcasted as well as beamed in as well as live people? Yeah, I think it's all of the above. So it's funny, I was talking to a nephew in a mind who's in the university. And he was going to the classroom last semester. And there was only, you know, a handful of people showing up, but the teacher was being beamed in the teacher didn't want to go to the classroom is, you know, the professor was, was, you know, in that, in that target range of age and didn't want to be in, you know, mixing and mingling with the students. But they were, so they were beaming them in, I just think it's become de facto now. So people are just used to it, right. And I think we're going to have a combination of some of the, some of the sessions, they'll be potentially in, in person, as you said, and there'll be some people beaming in. And if you're, you are remote and want to watch what's going on, you know, we'll have all of the AV to make that, you know, work seamlessly. That's all. I mean, that's a, I mean, that's one of the things that's going forward. You know, I think like it's an improvement on the industry because it invites more participation, you know, you know, really from, from like global partners or a speaker you could normally get because they're in Asia or they're in China or they're in, you know, wherever they are. So yeah, I'm looking forward to that. What do you think you mentioned a little bit about the, the spacing in the, in the offices and that kind of stuff. Do you think we're going to see a sort of a permanent hybrid workforce as well? Is that what's your perspective on that kind of idea? Yeah, I've been, I've been trying to research and I've talked to people in the commercial real estate and there's the two, two schools of thought, right. Some are saying, you know, companies are actually going to need more office space because they're going to bring employees back and they need to keep them more spread out and social distance. And then there's the other that say companies are going to downsize, but they're going to need temporary space. And, you know, the, the we work type of scenario where, you know, when you need to have a meeting with 15, 20 people, you're going to rent a room that's big enough and has enough space to house those people, but you only need it for a day or two, right. So we'll see. I'm not sure how that, you know, how that all is going to work out. We, we have to be again, a little optimistic that people are going to come back to an office or, or our industry is going to, you know, change significantly, but not, not sure exactly right now what that's going to look like in the future. Yeah, I was involved in a discussion and I guess there's just so much empty, empty office real estate in New York and they were like saying they're going to convert it into like condominiums so that there's places for people to live where they used to be able to live before. And I was like, wow, that's a major sort of a, of a, of a shift of locating people, not all of the services are there to support that, but interesting idea nonetheless. Yeah, you see big companies like Google and Amazon and others bought space, you know, bought buildings in Manhattan because the prices are, are great right now. And they're, I guess, anticipating having their workforce come back, you know, in some capacity. I do think again, it's, it's, it's not going to be everybody showing up eight to five, you know, Monday through Friday. I think there's going to be a lot of flexibility in time, but they'll have a place to go and at least, you know, a couple days a week, and, and maybe just hoteling space in that, in that office, right. Yeah, those, those big, big tech firms have done actually really well during this pandemic, you know, do you, do you have a bellwether on our industry yet, how, how ultimately the security industry did in 2020? Have you heard, I haven't heard any sort of economic data yet about 2020? Maybe it's too early to close out Q4, I don't know. You know, based on my discussions with, you know, mostly on the manufacturing side, you know, people were down now, it's all depending on what they're comparing, you know, year over year, they were down maybe five to eight percent. Some people as much as 15 to 20 percent, I think it really depends on, you know, where you're selling into the market. I think from what I've experienced, you know, the SMB space has hit very hard in the pandemic. There's people, you know, the small office environments, you know, just were completely shut down, and they're not going to put in access control video or other systems if there's nobody going to the office. So I think the SMB space took a bigger hit if that's the vertical you were in, you probably were hurt more than the enterprise space where we actually saw an uptick in business year over year. So big companies, as you were saying, they, you know, they're investing and spending money on their infrastructure. So, you know, if you were in the enterprise space, you probably weren't hit as bad as some of the other markets. Yeah, and we saw that, and we also saw DOD did really well. They actually started accelerating projects for us to keep their workforce busy, which was interesting. You know, we lost our international stuff because they wouldn't let our guys travel that do maintenance and bases in Korea and Australia and places like that. But by and large, the critical infrastructure industry seemed to do pretty well. Healthcare and the places that had to operate, and they needed, oh, well, this is a good one. Did you see the, did you see a blending of visitor management and access control kind of wrapped around, you know, answering the questions, the six COVID questions and all that sort of stuff? Did you witness any of that, any of the places that you went? We were asked to install quite a bit of that stuff actually in the last, you know, six months. You know, we had a problem in my previous life, and there was, there was an uptick in interest. And, you know, as people started talking about return to work, return to work, and, and how are we going to manage that process? And so there was a lot of activity there. I think at the end of the day, before they even got a chance to start implementing these things, you know, things got pushed out. So I certainly think there's still some validity there in that those are going to be needed to track who's, you know, who's in, who's out. When did they come? Who did they, you know, who was in the office? Because, you know, even if the vaccine meets critical mass here, we're not talking about 100% you know, extinction of this virus. So I think there is going to be tracking that's going to be required in offices as part of the return to work. And certainly, I think visitor management is a big component of that. There's some other, you know, really cool technologies that are available that may fill that, you know, fill that gap. But, you know, again, it takes money for companies to spend. I think everybody's a little nervous about, you know, putting, putting a lot of capex into offices when they're not quite sure yet when that day is coming. Yeah, for sure. I think everybody's having difficulty predicting that sort of their revenue is longer term. It's definitely been tumultuous. You mentioned cyber earlier and I know we've got we've got several committees at PSA, you know, that I've worked on. Is that that component, you know, it's part of like on the federal side that you have to keep your access control logs for your facilities and all that kind of stuff. So there's a there's a definitely need there. Do you think that that that logging of that visitor management, you know, kind of like the if it's an idea of contact tracing or whatever it may be. Do you think that that's going to help proliferate a little bit more as we get back, you know, outside of the enterprise or kind of everybody's going to need some sort of something in their lobby to digitally log who's coming and going or whatever. I do. I think there's, you know, whether it's a manual process or, you know, there's some really cool technology we implemented, you know, facial recognition, which is also, you know, tracking for your wearing a mask and temperature. And so, you know, if you were approved to be in the office and you're wearing your mask and you're within the right temperature range, it would unlock the door. And, you know, I think new and that's not that facial recognition is new. Certainly, if you know, fingerprint biometrics, I think it's going to have a struggle for for the future. I think anybody in that space is figuring out how to pivot to either iris or facial recognition. And the technology is really gotten robust over the last year, especially. And it was amazing how fast these companies were introducing algorithms to look for a mask. And still can identify you even wearing a mask and check your temperature. And then it's sending out, you know, either a direct command to unlock the door or it's integrated into an access control system. So I think there's, you know, certainly a big market for technologies like that, that we're just going to help not only, you know, in the tracking, but also just making people, you know, it's kind of like the TSA model. You know, it makes people more comfortable knowing that everybody's getting checked going into that airport, right? And that's, and I think that's going to be part of it, making people feel comfortable returning to an office. Yeah, there's a, we talk about it as a, we always talk of duty of care. It's kind of like for your traveling employees, but there's this duty of care at home now that's kind of come home to everybody, all the business owners and how do we take care of our staff? And I think even their health and mental wellness, there's a lot of considerations that were not as prominent, you know, as they were, as they were in the past, maybe, or as prominent as they should have always been, maybe I should say. We've got a couple minutes left, Matt. What kind of, let's see, what do you want to give to the audience to maybe take forward, give them some inspiration? What do you say about 2021? Again, you know, I'm looking at it very, very optimistically as we emerge from the pandemic. I mean, we weathered, you know, a huge storm here. And while, you know, the government certainly been funding a lot of activity through stimulus and other means, you know, companies have, you know, by and large have weathered. There have been a lot of companies that have been devastated, obviously, in a terrible time to be in retail or, you know, in the restaurant and hospitality. But I do think there's pent up demand now. And, you know, it's interesting talking to people, you know, they're not all that anxious. They're interested in meeting with people, but they're, they're maybe a little gun shy, so to speak. But then they say, well, I'm going to Hawaii on vacation. You know, I'm going to, I'm going to Florida to spend a week on the beach. So they're willing to get on airplanes and go places and do things. And I think there's a lot of pent up and pent up demand. So I do think, you know, we're, we're, we're pack animals at the core. And I do think we want to, we want to be around others. And I think a lot of people have been locked down and locked down significantly through this and they're itching to get out. So as soon as things really start to open up, we get over this wave of activity, the vaccine gets out, you know, I'm optimistic for this industry. And I do think technologies are going to help solve some of these problems that, you know, we're offering and may be shift for a lot of the integrators. But I do think between the package that PSA has to offer on the AV side as well as on the security side, you know, we're looking at it as, you know, there could be good times ahead for this part of the industry. Yeah, I agree. I agree 100%. There's a new sheriff in town of PSA, folks. Matt Barnett's going to get us through this thing. We are getting there. I believe you. I'm right there with you, man. I'm very optimistic about what we're going to do going forward and looking forward to help out helping the PSA community. Whatever, whatever we need to do, I know we're all going to embrace like realistically soon enough and we'll get it done. Great. Send my best to Christina there. I'm looking forward to seeing you guys in one shape or another, whether in person at PSA Tech or somewhere else. Yeah. Appreciate you joining me today, Matt. We'll see you soon, sir. Take care. Aloha. Have a good day. Thanks, everybody. Thank you.