Spokane-based Allied Fire & Security, which traces its roots back to the early 1900s when a customer would simply buy a safe to protect valuables, says it now is seeing customer demand for software-based, Internet-connected security systems.

The company, which has its headquarters at 425 W. Second and also operates offices in Seattle and Portland, says the systems it offers today go as far as offering video surveillance that clients can view remotely on a smartphone.

"Alarms have become more sophisticated but easy to use with technology," says Jay Hunt, its president, reflecting on trends in security for homes and businesses over the past five years. "They can be viewed over the Internet and remotely armed or disarmed."

"That's really where the world of security is going is electronics," he adds. "So much of the products these days is software based."

Today, with that sophisticated technology, if a security alarm gets triggered at a business or home, someone at a monitoring center will instantly contact a customer—often by cellphone.

"You can get a text message if someone broke into your vacation home," Hunt says as an example. "You can go to an application on your smartphone and bring up a camera view or multiple camera views and say, 'oh, that's my sister,' or it can be the real deal."

The very latest technology that the company offers is for installing what's becoming more affordable systems that go beyond just security, offering additional options to unlock a door remotely with a secured Internet connection from a smartphone or laptop, or to control lights and heating.

"These systems have been around, but they're getting more affordable," Hunt adds. "Now it's coming to mainstream America."

This trend of providing these extra options really began emerging in the past two years, he says. Although a majority of customers still want a basic security system, he is seeing more early adopters of technology request these latest features.

"Your brother's in town and you're out of town and you have a lock with a power system," Hunt adds. "You can remotely lock or unlock with an application of your smartphone, because your brother forgot his key. It's going beyond security. It's smart and important to have security, but now it's tying in other lifestyle aspects such as lighting and heating."

"It's where we're going," Hunt says. "You'll see it more and more."

That's a vast change from the company's early days.

Allied has its roots back to the 1902-chartered Spokane Safe and Lock. In 1932, Bob Hunt bought the company of five employees that mostly sold safes and handled key and locksmith services. In 1948, he incorporated the company as Allied Safe & Vault Co.

Within the first 10 years Hunt took over the business, he expanded Allied's products and services—such as doing business with the numerous new bank branches in the post-World War II boom—and opened outlets in Portland and Seattle that continue to do business in those cities today. The headquarters remained in Spokane, and has operated for decades out of the 20,000-square-foot downtown building on Second Avenue.

Today, Jay Hunt, who is Bob Hunt's grandson, represents the third generation to run day-to-day operations at the company, which employs 125 people. He owns it together with his father, Terry Hunt.

Allied offers a range of security and fire-protection products and services, including integrated security alarms, fire and life safety alarms, digital video surveillance, vaults and systems for banks, key and locksmith services, 24-hour alarm monitoring, and the retail sales of vaults and safes.

The company projects its overall revenues will hit $22 million this year, down from $26 million 2010 and $30 million in 2009. Hunt attributes the dip mainly to the decline in new construction and bank branches, as well clients dealing with the recession.

"For '08 and '09, orders were in," and the economic slowdown didn't really start hurting the business until later in 2009, Jay Hunt adds. The company also normally picks up new business from the bid market, when government entities or others seek bids for installing fire alarms and security systems, but that bid activity also tapered off during that time.

He says he does see Allied's revenue picking up, though, for 2012, mainly from clients in health care, government and industries such as petrochemical that need protection from possible terrorists. He is projecting about a 10 percent increase in revenue for 2012, and he says the company also is seeing its business pick up in Seattle and Portland's larger metropolitan areas in recent months.

At the same time, government entities are struggling financially, and newer contracts for security from that sector may lag next year as a result, Hunt says. "It's becoming a big question mark for 2012. I don't think anyone knows."

"Most of the new business we're seeing is not in residential," he adds. "It's coming from institutions, government and health care, and that will continue down the road. A large part of our business was in financial institutions, and we don't expect that will turn around next year."

During late 2010 and the first quarter of this year, the company trimmed back its work force from a total of 175 employees in 2009 to today's 125 workers regionally. The company did some restructuring, Hunt says, to centralize some functions such as dispatch and administration. Additionally, the company invested in some new technology during that time, including a new phone system, dispatching software, and smartphones for all service technicians.

However, Hunt anticipates Allied will probably add about 15 new employees among all its branches in 2012 in positions for sales and technicians who install and service systems.

Another area of business that is picking up, Hunt says, is online sales of safes and vaults, with the company projecting about $2 million in sales nationwide this year alone from its products sold over the Internet, up from $1.5 million last year. The products range from gun safes to wall safes that can be concealed within an interior wall of a home and covered with a painting.

The cost of security and fire systems vary, but a basic security system can start at a $199 flat fee for the installation, he says. Any alarm monitoring is an extra contract-based monthly fee, typically under a three-year agreement, and costs about $28 a month. Allied has a contract with another business, The Alarm Center, in Lacey, Wash., to provide 24-hour security monitoring services for its clients.

Business or residential customers who want more sophisticated systems pay an average of $600 for the system and about $38 for the monthly monitoring service. Some elaborate Internet network-based systems with the extra features allowing a customer to turn on or off lights and control a home's heating system remotely with a smartphone or laptop can start at $700.

Hunt says Allied derives about 70 percent of its revenues from providing protection products and services for businesses, about 15 percent from the specialized products and services it offers to financial institutions, and the rest from the residential security market.

For its financial-industry customers, one specialized product it offers is a dye pack device that can be placed in a hollowed-out space within a stack of cash. Once taken a certain distance from the bank in the event of a robbery, the dye pack explodes and releases an aerosol, staining and destroying stolen money.

Allied also installs bank vaults and alarm systems. "A vast majority of the banks and credit unions in the Pacific Northwest use our products," Hunt adds.

Another big part of its business is providing security systems for retail stores and government entities, Hunt says. One of Allied's major customers is Bonneville Power Administration, which came to Allied about seven years ago for security systems at its headquarters, administrative offices, distribution centers, and electrical yards to protect them from the threat of terrorists who might attempt to take down its power grid.

People still want protection from break-ins, Hunt adds, as they see more burglaries in their neighborhoods or business districts. Allied also is working to meet the changing needs of its customers who want updates or new technology, he says.

While security is more frequently tied to video surveillance and secured Internet connection, and that approach is getting more affordable, Hunt says some people express concerns about privacy issues. That means people must feel comfortable with any video surveillance for a home system, balancing it against the potential benefits of security, he says.

"More businesses than homeowners have security to begin with," he adds. "Twenty percent of homes have a security system nationwide, but now we're getting into higher technology options."