One of my question marks with regard to Avigilon since we started discussing the company here a couple months ago has been their ability to manufacture in Canada and compete with the plethora of Asian manufacturers. He talks about this here, saying confidently that Avigilon is not feeling the price pressures challenging Axis and other Asian manufacturers in the space. While he doesn’t talk about his actual cost of manufacturing, he implies that their advantage comes from being a turnkey solutions provider, and thus avoiding the commoditization trend that individual component manufacturers will continue to face.
He also mentions that the surveillance markets they operate in are currently about $15B in size in the US alone, while growing at an average 20% annual clip. The phenomenal growth in the whole market is driven by the switch from analog to HD cameras, essentially a market-wide upgrade of an obsolete installed base. By taking even a small part of the market they can hit their goal of $500M revenue in 2016.
My confidence in Avigilon continues to grow. Thank you to the great posters on this board for bringing the company to my attention.