Statistics on what’s happening with the crime rate in America are a matter of perception. Data is data and is gathered in an attempt to supply “black and white” information to provide an unbiased view of the overall picture. So, when the debate over the status of crime in our country is initiated in our Nation’s Capital, a local municipality or even amongst friends over dinner; people will generally defend their stance based on statistics and selectively decide which data to use that best reflects their opinion.Peter F. Vallone, Jr., Chairman of the New York City Council's Public Safety Committee, wrote recently on this topic with respect to NYC. Mr. Vallone’s words brought light to the way crime statistics are compared to statistics from two decades ago to show that crime is down, which is accurate when compared in that manner, but quickly pointed out the rash of crime that is spreading again throughout the boroughs and beyond. When comparing crime data to recent years, Mr. Vallone calls the data “alarming” and does not expect it to get better in the near future considering police staff lay-offs as a result of budget cuts and legislation and initiatives that were designed to empower the police and secure the streets being modified or even eliminated; making the likelihood of an increase in criminal activity even greater.
To get the opinion of someone who is directly impacted by crime in the U.S. from a corporate perspective, we spoke with Richard L. Soloway, CEO of Amityville, NY-based NAPCO Security Technologies, Inc. (NASDAQ:NSSC). NAPCO manufactures alarms, locking products and access controls for more than 10,000 security dealers and locksmiths who service residential and commercial establishments. Mr. Soloway explained that the recession and slowing of commercial construction has affected that end of their business, but criminal activity, including home invasions, has led to a rise in residential security equipment sales over the last three quarters. Echoing the sentiments of Mr. Vallone, Mr. Soloway commented, “Check the headlines and recent statistics and I think that you will see it’s pretty clear that crimes are on the rise and that fact is reiterated in our sales. I don’t expect a reversal in this trend anytime soon as more and more people are realizing the importance of securing and protecting their property.” He continued, “We are seeing hints that commercial applications are starting to pick back up as well and believe that the reasoning is two-fold based on discussions with our customers. Primarily, because of heightened awareness of rising crime and decreasing numbers of police, companies are looking to our systems and equipment to monitor and secure their premises. Additionally, the economy is continuing to recover which naturally returns demand for our products as companies want to detour criminals and properly protect new builds immediately.”
No matter if a person wants to compare data from 2011 to 1990, 2005 or 1920 is really not what is important, although the comparisons will continue to be made as people continue to try and make their point. The vast majority of our population will agree that even one crime is too many, but we must be realistic, not idealistic, and understand that crime is basically inevitable as there will always be those who prey on others through the element of surprise for their own benefit. The budget cuts resulting in slashing law enforcement teams is a travesty and being used by these brazen criminals looking to capitalize on fewer police being on the street. Spend a few minutes reading on how bold robbers are getting and what the experts are saying. You will find a few common threads in the literature: crime is on the rise and don’t get caught off guard. Protect yourself, your family and property.
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Andrew Klips (“the author”) has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified; the author makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author only and are subject to change without notice. The author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, the author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
The author owns no shares of NSSC.
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