Fire & Life Safety Insights from Industry CEOs

Regulation Continues to Fuel Demand and Consolidation

The publication of the Grenfell Tower Inquiry Phase 2 report (September 2024) serves as a reminder that U.K. and European fire safety is still evolving. Fire safety operators expect continued regulatory evolution on a global scale as the world’s urban population is set to double by 2050, according to World Bank data. This persistent regulatory-backed demand is helping to drive increased industry activity across Europe.

The regulatory landscape will change significantly in terms of product and service perspective.

While there is growing support for pan-European fire safety standards and codes, enforcement regimes seem set to remain on a country-by-country basis. In response, the fire safety industry has seen a crop of country and/or regional leaders (depending upon the mix of active versus passive fire offering) consolidate.

A fire in an office building in London is the same as a fire in an office building in Frankfurt. International standards are needed but not liked by everybody.

Companies Must Ignite Adaptability to Keep Up with New Normal

Fire safety is not immune to the recent macroeconomic and political challenges. However, companies that have demonstrated the ability and willingness to adapt have emerged stronger and as leaders in their field. While regulatory changes and economic pressures continue to pose challenges, the fire safety sector has shown remarkable resilience by implementing unique strategies to navigate the new normal.”

Agility and flexibility are key. You need to adapt for uncertainties and focus on what you can do – control operating expenses and stay in front of it.

Technological advancements are increasingly impacting companies in the fire protection sector. Operators in this industry recognize the critical need to stay current with the latest developments, particularly in Enterprise Resource Planning (ERP) systems, Customer Relationship Management (CRM) systems and field-based software solutions. By prioritizing these technologies, fire safety companies are enhancing their operations and positioning themselves at the forefront of the industry.

We are focusing on a field service concept with direct communication between functions (sales and engineers) to improve the work environment for our employees.

Global M&A Efforts Heating Up

Sentiment in the fire and life safety sector continues to strengthen in Europe and the U.K., attracting increasing attention from international players. New entrants and established players alike are keen to expand their presence over the next 12 to 24 months. U.S. platforms in particular are pushing into Europe, and those who already have a European foothold are looking to continue to expand.

We have successfully focused on our business and built a strong European platform. Now we are prepared to ramp up our M&A efforts.

Company culture and ability to integrate are top of mind for many operators when considering M&A. Beyond this, fire safety operators look to M&A with various objectives in mind, such as better serving existing customers or unlocking new customers via product / service expansion and footprint expansion.