Jason Burrows, Regional Sales Director, IDIS America
The ongoing coronavirus has quickly and irrevocably changed the economic landscape. Many sectors have been hit hard by the pandemic, and while many are now bouncing back others have managed to thrive.
Cannabis, which was deemed essential during the first lockdowns in 2020, is enjoying record-breaking sales numbers.
The Global Cannabis Report: Second Edition released December 16th, 2021 highlights how the global cannabis industry is heading into a progressive period marked by widespread legalization, innovation, and considerable growth. In the report, Prohibition Partners finds combined global sales of CBD, medical and adult-use cannabis topped US$37.4 billion in 2021 and could rise to US$102 billion by 2026. And, as of May 2021, states in the U.S. reported a combined total of $7.9 billion in tax revenue from legal, adult-use marijuana sales. In addition to revenue generated for statewide budgets, cities and towns have also generated hundreds of thousands of dollars in new revenue from local adult-use cannabis taxes.
This staggering growth spurt in this highly compliance-driven market is also driving an increase in demand for security solutions. And all that projected growth may multiply at an even faster rate if cannabis is legalized on a federal level.
The Hospitality sector, on the other hand, has undoubtedly been hit hardest. Yet, as the sector recovers, we’re already seeing a steady number of delayed video upgrades getting underway as hotels need to migrate from both analog and legacy IP.
In the summer, we saw a boom in domestic tourism as Americans enjoyed staycations rather than flying overseas. And it’s not just the risk of the pandemic, but climate change concerns are also making overseas, long haul travel less attractive when the United States has a wealth of vacation options from frenetic cities, golden beaches, spectacular national parks and canyons, snow-capped mountains, luxury desert spa resorts through to many of the world’s most famous tourist attractions.
The return of international travelers may still be uncertain, yet we have already seen how fast the sector can rebound when swathes of Europeans returned to the United States for both business and pleasure once borders reopened for vaccinated travelers in the fall.
As guests flock back to hotels for city breaks and business travel and visit world-renowned destinations, hospitality organizations are evaluating their security technology to ensure they are mitigating risk as well as meeting compliance and duty of care obligations. With labor shortages and wage inflation being felt across the sector, they are also going to need increased levels of automation to continue to deliver that American standard visitor experience. Advanced AI-powered video analytics combined with remote monitoring services are well-positioned to support that transition.
The COVID-19 vaccination rollout and the shoring up of U.S. pharmaceuticals and medical supplies will see logistics and warehousing operators continue to play a major role in federal supply chains. We’ve already seen this result in significant video upgrades as they migrated away from Chinese technology to meet NDAA-compliant surveillance equipment. With the Secure Equipment Act of 2021 being signed into law - which is likely to see the Federal Communications Commission (FCC) no longer approve any new authorizations of Chinese surveillance equipment - we expect the migration to continue on pace.
Accelerated by the pandemic, online sales have grown annually 16% since 2020. Consequently, this also translates into major investments in logistics operations to ensure retailers can fulfill consumer expectations of rapid deliveries to compete with online giants like Amazon. To operate within this highly competitive landscape, logistics operators must also work to mitigate internal and external shrink and meet duty of care obligations. Labor shortages and wage inflation are making staff retention challenging and all the more critical to ensure safe and hygienic working environments.
According to the U.S. Bureau of Labor Statistics, the storage and warehousing industry averages about 15,000 work-related injuries and ailments per year, with the average cost of a recordable injury at $35,000, according to the U.S. Department of Labor. As a result, there’s increasing focus on safety with demand for smart solutions that encompass IoT devices and sensors as well as intelligent, AI-powered video analytics to increase operational efficiency and better meet OSHA compliance.
The shift to e-commerce is also accelerating a trend toward a hybrid retail model. Stores are adopting innovative fitting rooms, hospitality offerings, improving returns, and shipping online orders from brick-and-mortar locations as they bring in-store shopping and e-commerce fulfillment into the same space. Retailers are also evolving to drive footfall to their stores as these locations continue to be vital for customer loyalty and profits. Providing consumers with an engaging, secure yet friendly shopping experience is what will keep customers coming back for more. And video technology is set to give them the business intelligence and eyes to help realize that vision.
We’ve also seen education facilities gain access to a variety of federal grant programs, including the Elementary and Secondary School Emergency Relief (ESSER) Fund, the Coronavirus Aid, Relief and Economic Security (CARES) Act, and the Coronavirus Response and Relief Supplemental Appropriations Act. We have already seen delayed projects coming back online since schools reopened, but additional funding has meant many education facilities are now better positioned to upgrade their video capability and implement COVID countermeasures that leverage analytics capabilities.
Coming back from the myriad challenges that the COVID-19 pandemic presented will continue to be an ongoing process for many industry sectors. The security industry is playing a pivotal part in helping organizations of all kinds rebound back safely and securely.
