As President Trump embarks on his second term, his executive orders are poised to reshape certain aspects of the security industry landscape. With a focus on border security, trade policy, and artificial intelligence (AI), the directives present opportunities and challenges for security technology providers and integrators, industry sources tell SecurityInfoWatch.
Border Security: Opportunities and Uncertainties
President Trump’s renewed emphasis on border security is expected to create significant opportunities for the security industry possibly. Dave McCarthy, program manager for government relations at Axis Communications, notes that the executive orders call for barriers supported by technology and personnel, which could lead to increased government contracts for security technology providers and integrators.
“The border security directive presents a significant opportunity for security technology providers and system integrators,” McCarthy says.
McCarthy notes that Section 2 of the executive order explicitly calls for constructing “barriers monitored and supported by adequate personnel and technology.”
“The executive office will direct personnel and resources to the southern border to bolster security, creating ample opportunities for the security industry to offer products and solutions to government agencies,” he says. “As a result, we can expect an increase in government contracts related to border security in the coming weeks and months.”
Lynn de Seve, President of GSA Schedules, echoes this sentiment, highlighting the potential for the industry to provide expert knowledge and the latest technology to complete unfinished projects. “With a renewed strong focus on securing the border, including finishing the wall, there will be significant opportunities for the industry,” she says.
Jake Parker, senior director of government relations at the Security Industry Association (SIA), points out that while the executive orders do not explicitly outline new investments in border security technology, a legislative package is expected to provide significant funding for the Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), and Border Patrol.
“We expect significant new funding for border security in what they call the reconciliation package,” Parker explains. "I think we can expect to see some technology-specific funding in there.”
Trade Policy and Tariffs: A Double-Edged Sword
The “America First” trade policy and associated tariffs are a significant concern for the security industry. McCarthy warns that President Trump’s threats of imposing punitive tariffs on non-domestically manufactured products could complicate supply chains and increase costs for security equipment.
“The President’s threats of imposing punitive tariffs on non-domestically manufactured products may be part of a negotiating strategy with foreign leaders,” he says.
De Seve adds that while bipartisan support exists for increasing the required content for items made in the U.S., meeting these content levels remains a challenge.
“It is a challenge for certain commodity items that are important security components working to meet the content levels proposed now,” she notes. She also highlights concerns over tariffs, which have caused uncertainty within the industry.
Parker elaborates on the potential impact of tariffs, explaining that the executive order calls for a review of trade agreements and potential tariff adjustments. “The most anticipated issue right now is tariffs,” he says. “If new tariffs are imposed on Mexico, that could have a much bigger impact than even higher China tariffs.”
Many security products have shifted manufacturing from China to Mexico and other East Asian countries. Therefore, he explains, new tariffs on Mexican imports could disrupt these newly established supply chains and substantially affect the industry.
AI Policy Shifts and Federal Tech Modernization
The new AI executive order aims to keep the U.S. as a leader in AI innovation, which is encouraging for the security industry. Parker notes that the Government Efficiency executive order prioritizes modernizing federal technology, including physical and electronic security systems. “The federal definition of IT systems includes physical access control systems, video surveillance systems and alarm systems,” he says. “Some agencies are in dire need of upgrades, and this policy could open up investment opportunities.”
Similarly, Parker adds that Trump’s return to in-person work directive, which aims to bring more federal employees back to office spaces, may accelerate investment in building security systems.
Emerging Opportunities and Industry Priorities
McCarthy and Parker both highlight emerging opportunities for the security industry. McCarthy points to the Federal Building Security Act of 2024, which requires modern security measures in federal buildings. As federal workers return to offices, there will be a significant push to upgrade security systems. “Security industry professionals should focus on leveraging this opportunity offered by President Trump’s executive order and the federal building security law enacted under President Biden,” McCarthy advises.
A lesser-known but potentially significant initiative is a new AI-focused data center project involving OpenAI, Oracle and other companies, which could see substantial investment in security technology. “These data centers require extensive security infrastructure, presenting major opportunities for the industry,” Parker says.
The first facility, planned for Texas, could see investments reaching up to $500 billion. “I’ve learned from talking to SIA members that there’s anticipated to be a very significant investment in security technology as part of that project,” admits Parker. “These data centers require extensive security infrastructure, so that could be an area where the industry sees major opportunities.”
The security industry should prioritize collective advocacy and engagement with the federal government. McCarthy emphasizes the importance of bipartisan collaboration and staying informed to identify emerging opportunities.
“Security industry professionals looking to engage with policymakers should prioritize collaboration with industry associations and stay informed to identify emerging opportunities,” he suggests. Companies should connect with elected officials representing areas with significant corporate presence to advance industry goals.
De Seve adds that the industry should collectively voice its technology standards and new ideas to the Trump leadership team, agencies, and DHS. “It is of great importance for the security industry to collectively voice both their technology standards and new ideas based on technology developments to the Trump leadership team but also with the agencies and DHS,” she says. Engaging them as soon as possible is crucial, she adds.
Navigating Unintended Consequences
Sources say the executive orders could have unintended consequences. For example, McCarthy warns of potential inflation due to tariffs, which could introduce uncertainty and complicate business models in the security sector.
"Tariffs are inherently inflationary, and if President Trump follows through on implementing tariffs at the levels his rhetoric suggests, we could see another spike in inflation,” he cautions.
De Seve notes that some executive orders requiring staff to report back to the office may lead to departures for those finding it difficult to adjust. “Based on some of the executive orders for staff to report back to the office, there may be departures for those finding it personally difficult to adjust,” she says.
Staying Agile and Informed
Industry stakeholders should stay informed and engaged to adapt to these changes. McCarthy advises integrators to stay closely connected with industry associations to remain agile and informed about upcoming developments.
“To remain agile in response to these executive orders — and the potential changes they may bring — I advise integrators to stay closely connected with their industry associations,” he recommends.
De Seve emphasizes the importance of engaging with new government decision-makers and communicating what works and what does not in both administration and security functions. “Communicating what works and what does not work in both administration and security functions is critical,” she advises.
Parker highlights the importance of staying informed on evolving policies, as their impact on procurement, trade and technology adoption will become clearer in the coming months. He also mentions ongoing discussions around tax reform, which could impact security firms in several ways, including extending 100% bonus depreciation, restoring favorable interest expense deductions and reinstating the R&D tax credit.
“These tax provisions are important across industries, but for security firms, the ability to expense system installations and maintain R&D incentives is critical,” Parker notes.
