NAPCO CEO and President Kevin Buchel: An Exclusive Interview

This exclusive SSI interview with NAPCO president and CEO Kevin Buchel follows news earlier this month about a leadership transition at NAPCO. Richard Soloway, a 2004 SSI Industry Hall of Famer, will now serve as founder and executive chairman, with Kevin Buchel having transitioned from president and COO to now being CEO and president. SSI spoke to Buchel exclusively, asking him about how Soloway and he will divide responsibilities, how he will position the company for its next phase of growth and which priority is commanding his attention first. Later in the interview, SSI digs into striking a balance between protecting NAPCO’s reputation and boldly innovating, how he’ll further strengthen the complete NAPCO portfolio and how NAPCO plans to lead the way for dealers and integrators. SSI Interview with Kevin Buchel of NAPCO Security Sales & Integration: You’ve spent more than 25 years at NAPCO, most recently as president and chief operating officer. As you step into the CEO role, what from those years shaped how you intend to lead, and what should the security channel take away from this transition? Kevin Buchel: I’ve spent more than 25 years learning every part of this business, and the biggest lesson is that success starts with listening to customers and executing consistently. While my title has changed, my approach hasn’t. Our dealers and distributors should see this transition as continuity with momentum. We’re building on a very strong foundation while continuing to move the company forward. Security Sales & Integration: Richard Soloway founded NAPCO more than 55 years ago and stays on as founder and executive chairman, focused on strategic initiatives, product innovation and key industry relationships. Practically speaking, how will the two of you divide the work, and what does that continuity signal to dealers and integrators watching this handoff? Kevin Buchel: Dick’s vision helped build NAPCO into the company it is today, and we’re fortunate to continue benefiting from his experience. I’ll lead the company’s strategy, operations and execution, while Dick remains focused on long-term strategy, innovation and industry relationships. It’s a partnership that provides both continuity and stability to our customers and will continue to do so going forward. Security Sales & Integration: Every leadership change raises the question of continuity versus change. What do you consider untouchable about NAPCO as it exists today, and where do you see room to put your own stamp on the company? Kevin Buchel: The things that made NAPCO successful — innovation, quality, reliability and customer relationships—are non-negotiable. Where I’ll leave my mark is by increasing speed: faster decisions, faster execution and bringing new opportunities to market more quickly. Security Sales & Integration: NAPCO describes this moment as positioning the company for its next phase of growth. When you look past the announcement, what does that next phase actually look like on the ground? Kevin Buchel: It’s about expanding the opportunities we already know well. We’ll continue growing recurring revenue, strengthening our commercial business, investing in new technologies and helping our channel partners win more business. We will also be opportunistic on M&A, looking for acquisitions that add complementary technology, expand our recurring revenue base and generate more leverage from our low-cost offshore factory in the Dominican Republic. Any deal we consider must be accretive from Day 1 and create additional value for both dealers and shareholders. Security Sales & Integration: Your remit now spans day-to-day operations, business strategy and the execution of marketing and sales plans. Where are you directing your attention first, and why there? Kevin Buchel: Execution of marketing and sales plans. We have great sales and marketing teams, as well as brilliant engineers and with our outstanding products we have a clear strategy. My focus is making sure every part of the organization is aligned so we consistently deliver for our customers. At the same time, I have our team looking ahead in terms of product strategy and where the market is heading and what new capabilities and features our dealers are looking for over the next few years. Security Sales & Integration: Different stakeholders — from dealers and distributors to suppliers and investors — will naturally look at this transition from different perspectives. What do you think each group should be watching over the next year to prove the transition’s success? Kevin Buchel: They should watch for consistent execution. Dealers should see innovation and responsiveness and should continue receiving the quality and service they have come to expect. Investors should see disciplined growth of both top line revenue and bottom-line net income and adjusted EBITDA. Suppliers should continue to see a dependable business partner. Security Sales & Integration: NAPCO’s products have built a reputation for innovation, technical excellence and reliability. As CEO, how do you protect that reputation while pushing the product line forward? Kevin Buchel: Our reputation has been earned over decades. We’ll continue investing aggressively in innovation- we now have over 80 engineers, a significant increase from five years ago but never at the expense of quality or reliability. Customers should continue to expect both. Security Sales & Integration: NAPCO often talks about its highly differentiated business model. For integrators who may know the products well but not the business strategy, what makes the model different and compelling? Kevin Buchel: We combine innovative hardware with recurring communications services. That creates value for our dealers, our customers and our shareholders while strengthening long-term relationships. Security Sales & Integration: NAPCO’s portfolio spans security hardware, communications services and recurring monthly revenue, along with brands like Alarm Lock, Continental Instruments and Marks USA. How do those businesses strengthen one another under your strategy? Kevin Buchel: Our brands complement one another. Together they allow us to provide integrated solutions, create more cross-selling opportunities and deeper customer relationships. None of our competitors are in all three areas of security (alarms and connectivity, locking and access control) like NAPCO is. That helps us win many different types of jobs, especially in the area of school security, as customers prefer one supplier, “one throat to choke” and no finger pointing or clashing software. Security Sales & Integration: School safety solutions sit within NAPCO’s portfolio at a moment when that category carries real weight for institutional customers. How does this growing demand influence where NAPCO invests in products and partnerships? Kevin Buchel: School safety remains a very important market. We’ll continue investing in practical technologies that help schools improve security while making life easier for administrators and first responders. Again, being in all segments of security is important. As an example, it was an important factor in the Pepperdine University decision to go with our products in their desire to lock down their dorm rooms, with the push of a button. Pepperdine is just one example of a very satisfied school security customer, and we have supplied product to many other schools as well as providing products for additional jobs for Pepperdine (such as for their admin offices, classrooms and remote campuses). Security Sales & Integration: NAPCO products are installed by tens of thousands of security professionals across commercial, industrial, institutional, residential and government applications, in what the company calls a multibillion-dollar and rapidly expanding market. Where do you see the biggest opening for NAPCO right now, and what does the company need to do to seize it? Kevin Buchel: The continued move toward connected security solutions and recurring services. That’s exactly where we’ve been investing and we believe we’re very well-positioned. Recurring revenue is approximately 51% of our total revenue. As we develop more and more recurring revenue products, we expect that percentage to significantly increase. Security Sales & Integration: Dealers and integrators are navigating economic uncertainty, labor shortages and rapidly evolving customer expectations. What do you think they most need from manufacturers over the next several years, and where will NAPCO lead the way? Kevin Buchel: They need a manufacturer they can trust — one that delivers high quality, innovative, dependable products, who provides strong support and a genuine commitment to helping them grow. That’s exactly the partner NAPCO is and will continue to be. The post NAPCO CEO and President Kevin Buchel: An Exclusive Interview appeared first on Security Sales & Integration.