Midstate Security celebrates 10 years under new ownership

Company doubles in that time, sees 25 percent growth rate the past few years Paul Ragusa Wednesday, August 9, 2017

WYOMING, Mich.—Midstate Security has seen significant growth over the past 10 years, since Dave Nemmers and his partner purchased the business from Johnson Electric.

The company, founded in Grand Rapids, Mich. in 1981, was in Grandville when purchased by Nemmers, who moved the company five years ago to a new building here. Since taking over the company, Nemmers said that Midstate has doubled in size in terms of topline revenue and has grown to 78 employees from 46, with many of the original employees still at the company.

“The past 10 years have been amazing and I can’t believe how fast it has gone,” Nemmers told Security Systems News, pointing out that much of the credit should go his “great team of employees” who have “fueled our growth.”

For the last four years, Midstate was named one of the 101 Best & Brightest Companies to Work for in Western Michigan. “I am really proud that we’ve got such a positive culture of growth, of community involvement, caring for each other,” said Nemmers. “And that we have been able to not only grow the business but also to attract and retain some really exceptional people.”

Sue Priest, a 25-year veteran of the security integration firm, said in a prepared statement, “Dave cares about the employees and that’s why so many of us are still here.”

Another secret to Midstate’s success is the company’s increased focus on the customer experience for its more than 6,000 monitored accounts.

“Providing exceptional customer service is our No. 1 priority,” said Nemmers. “We preach that message and we preach consistency, and I think that has resonated with our customers, who come back to us with a lot of repeat sales as they grow. So, it is great to be their provider of choice and grow along with our customers.”

In addition to burglar, fire systems and a monitoring center, over the past 10 years the company has added video analytics, cloud-based products and access control to their products and services. Nemmers explained that many of their commercial customers want one provider who can manage everything—monitor for fire, intrusion, video and even temperature fluctuations in refrigeration units in facilities nationwide.

“You are seeing more and more people becoming comfortable with the cloud and bundled services,” he said. “You would be surprised at how many people say, ‘I want security off my plate, and a single point of contact to handle everything,’ which is why we are selling a much more comprehensive solution today. It is becoming more than just security … we’ve got cameras on production lines, we’ve got cameras in retail locations doing heat mapping, to see customer traffic, for example.”

Nemmers has also faced challenges since taking over the company. Early on his partner was in a severe accident, which eventually led to Nemmers taking over majority ownership of Midstate. He also has overcome personal tests during his oldest daughter’s fight with cancer as well as taking on the guardianship of two nieces and a nephew after the death of their parents.

In 2015 the Huizenga Group invested in Midstate Security as part of their security group, replacing the initial private equity capital Nemmers secured. That belief in the company is paying off, as Midstate has grown at a 25 percent compounded growth rate annually the last several years.

“We have seen a real acceleration the last three years,” said Nemmers. “Part of it was a stronger economy, part of it was our customers growing, and part of it was increasing our product offerings, bringing them comprehensive and complete solutions.”

So what is the goal for the next 10 years? “To build on what we do well—providing a great customer experience—and continually trying to get better at that each day,” he said. “The other thing is to grow organically as well as through acquisition including possibly increasing our geographic footprint.”

He continued: “It is truly exciting to see where we have gone in 10 years, and I am excited to see where we are going to go in the next 10 years. We would love to be a top 30 integrator nationwide and I think there is real opportunity based on what we do so well.”

Topic:  Commercial and Systems Integrators Tags:  Midstate Security Company, Dave Nemmers
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