ibisworld industry report 56161 security services … security services in the us august 2012 1...
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WWW.IBISWORLD.COM Security Services in the US August 2012 1
IBISWorld Industry Report 56161Security Services in the USAugust 2012 Andrew Krabeepetcharat
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2 About this Industry2 Industry Definition
2 Main Activities
2 Similar Industries
2 Additional Resources
3 Industry at a Glance
4 Industry Performance4 Executive Summary
4 Key External Drivers
5 Current Performance
7 Industry Outlook
9 Industry Life Cycle
11 Products & Markets11 Supply Chain
11 Products & Services
13 Demand Determinants
13 Major Markets
15 International Trade
16 Business Locations
18 Competitive Landscape18 Market Share Concentration
18 Key Success Factors
18 Cost Structure Benchmarks
20 Basis of Competition
21 Barriers to Entry
21 Industry Globalization
22 Major Companies22 Securitas AB
23 G4S PLC
24 Allied Security LLC
27 Operating Conditions27 Capital Intensity
28 Technology & Systems
28 Revenue Volatility
29 Regulation & Policy
29 Industry Assistance
30 Key Statistics30 Industry Data
30 Annual Change
30 Key Ratios
31 Jargon & Glossary
www.ibisworld.com | 1-800-330-3772 | [email protected]
WWW.IBISWORLD.COM Security Services in the US August 2012 2
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The primary activities of this industry areArmored car services
Bodyguard services
Polygraph services
Private detective services
Security guard services
56145 Credit Bureaus & Rating Agencies in the USThe Credit Bureaus and Rating Agencies industry provides credit checks.
56162 Security Alarm Services in the USThe Security Alarm Services industry sells, maintains, monitors and services security equipment, including burglar and fire alarms.
Industry Definition
Main Activities
Similar Industries
Additional Resources
About this Industry
For additional information on this industrywww.sdmmag.com Security Distributing and Marketing
www.securitymagazine.com Security Magazine USA
www.census.gov US Census Bureau
The major products and services in this industry areArmored vehicle services
Investigation services
On-site security guard services
Security personnel at special events
Other services
WWW.IBISWORLD.COM Security Services in the US August 2012 3
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Corporate profit
SOURCE: WWW.IBISWORLD.COM
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Revenue Employment
Revenue vs. employment growth
Products and services segmentation (2012)
69.2%On-site security guard services
16.3%Investigation
services
9.9%Armored vehicle
services
3%Security personnel
at special events 1.6%Other services
SOURCE: WWW.IBISWORLD.COM
Key Statistics Snapshot
Industry at a GlanceSecurity Services in 2012
Industry Structure Life Cycle Stage Mature
Revenue Volatility Low
Capital Intensity Low
Industry Assistance None
Concentration Level Low
Regulation Level Light
Technology Change Low
Barriers to Entry Low
Industry Globalization Low
Competition Level High
Revenue
$28.2bnProfit
$2.3bnWages
$16.3bnBusinesses
40,874
Annual Growth 12-17
4.2%Annual Growth 07-12
-0.2%
Key External DriversCorporate profitCrime rateValue of private non-residential constructionNumber of businesses
Market Share6HFXULWDV�$%�������
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p. 22
p. 4
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 30
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 4
Key External Drivers Corporate profit&KDQJHV�LQ�FRUSRUDWH�SUR¿W�FDQ�GHWHUPLQH�WKH�UHQHZDO�RU�XSJUDGLQJ�RI�FRQWUDFWV�DQG�WKH�UHFUXLWPHQW�RI�QHZ�FOLHQWV��$Q�LQFUHDVH�LQ�FRUSRUDWH�SUR¿W�ZLOO�FDXVH�EXVLQHVVHV�WR�VSHQG�PRUH�RQ�RXWVRXUFHG�VHUYLFHV��LQFOXGLQJ�WKRVH�RIIHUHG�E\�WKLV�LQGXVWU\��7KLV�GULYHU�LV�H[SHFWHG�WR�LQFUHDVH�GXULQJ�������
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Executive Summary
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Industry PerformanceExecutive Summary | Key External Drivers | Current PerformanceIndustry Outlook | Life Cycle Stage
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WWW.IBISWORLD.COM Security Services in the US August 2012 5
Industry Performance
Current Performance
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Key External Driverscontinued
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SOURCE: WWW.IBISWORLD.COM
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WWW.IBISWORLD.COM Security Services in the US August 2012 6
Industry Performance
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SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 7
Industry Performance
Hard times bring consolidationcontinued
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More businesses, more demand
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Industry Outlook
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Industry Performance
More businesses, more demandcontinued
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WWW.IBISWORLD.COM Security Services in the US August 2012 9
Industry Performance&RPSHWLWLRQ�IURP�KLJK�WHFK�VHFXULW\�VROXWLRQV�LV�LQFUHDVLQJ
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Life Cycle Stage
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30
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Potential Hidden GemsFuture Industries
Quality GrowthHigh growth in economic importance; weaker companies close down; developed technology and markets
Time WastersHobby Industries
MaturityCompany consolidation;level of economic importance stable
Shake-out
Shake-outQuantity GrowthMany new companies; minor growth in economic importance; substantial technology change
Key Features of a Mature Industry
Revenue grows at same pace as economyCompany numbers stabilize; M&A stageEstablished technology & processesTotal market acceptance of product & brandRationalization of low margin products & brands
Credit Bureaus & Rating Agencies
Security Alarm ServicesElectronic & Computer Repair ServicesNon-Hotel Casinos
Security Services
WWW.IBISWORLD.COM Security Services in the US August 2012 10
Industry Performance
Industry Life Cycle 7KH�6HFXULW\�6HUYLFHV�LQGXVWU\�LV�LQ�WKH�PDWXUH�SKDVH�RI�LWV�OLIH�F\FOH��7KH�PDWXULW\�LV�HYLGHQW�LQ�WKH�UHFHQW�FRQVROLGDWLRQ�DPRQJ�SOD\HUV��SULFH�EDVHG�FRPSHWLWLRQ�IRU�VHFXULW\�VHUYLFHV�FRQWUDFWV�DQG�LQFUHDVLQJ�GRPLQDWLRQ�E\�D�IHZ�YHU\�ODUJH�FRPSDQLHV��)XUWKHUPRUH��WKH�LQGXVWU\�LV�H[SHFWHG�WR�JURZ�LQ�OLQH�ZLWK�WKH�RYHUDOO�HFRQRP\�LQ�WKH����\HDUV�WR�������'XULQJ�WKDW�WLPH��,%,6:RUOG�HVWLPDWHV�WKDW�WKH�LQGXVWU\¶V�FRQWULEXWLRQ�WR�WKH�RYHUDOO�HFRQRP\��PHDVXUHG�E\�LQGXVWU\�YDOXH�DGGHG��,9$���ZLOO�LQFUHDVH�DW������DQQXDOO\�RQ�DYHUDJH��&RPSDUDEO\��*'3�LV�H[SHFWHG�WR�JURZ�DW�DQ�DQQXDOL]HG������GXULQJ�WKH�VDPH�SHULRG�7KH�GHFOLQH�LQ�GHPDQG�GXULQJ�WKH�
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WWW.IBISWORLD.COM Security Services in the US August 2012 11
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Security guard services7KH�VHFXULW\�JXDUGV�VHJPHQW�LQFOXGHV�VHFXULW\�SURIHVVLRQDOV�ZKR�DUH�KLUHG�WR�JXDUG�SHRSOH��SURSHUW\�DQG�EXLOGLQJV��2Q�VLWH�JXDUGV�SHUIRUP�D�YDULHW\�RI�WDVNV��LQFOXGLQJ�PDLQWDLQLQJ�D�VHFXULW\�SUHVHQFH�DW�D�IURQW�GHVN�RU�JDWH��JXDUGLQJ�PDQXIDFWXULQJ�SODQWV�DQG�HTXLSPHQW��PRQLWRULQJ�FRPSXWHU�URRPV��FKHFNLQJ�DXWRPDWLF�PDFKLQHU\�DQG�DVVLVWLQJ�LQ�
Products & MarketsSupply Chain | Products & Services | Demand DeterminantsMajor Markets | International Trade | Business Locations
KEY BUYING INDUSTRIES23 Construction in the US
Security service companies provide construction firms with guards for residential and non-residential construction sites and materials.
31-33 Manufacturing in the US Manufacturing companies require security services to limit access, guard inventory and provide monitoring services.
44-45 Retail Trade in the US Retail stores use security services for inventory control, cash transfers and in-store video monitoring services.
48-49 Transportation and Warehousing in the US Public transportation companies require security services for passenger safety.
52 Finance and Insurance in the US Security service companies provide banks with security associated with cash transfers, ATMs and general patrol.
71321 Non-Hotel Casinos in the US Casinos use security service firms for cash transfers, particularly from slot machines, and general and monitored security.
72112 Casino Hotels in the US Casinos use security service firms for cash transfers, particularly from slot machines, and general and monitored security.
92 Public Administration in the US Schools, universities, health and hospital facilities and courts and prisons in the public sector demand security services from the industry.
KEY SELLING INDUSTRIES33431 Audio & Video Equipment Manufacturing in the US
The Audio and Video Equipment Manufacturing industry provides firms with security equipment.
56162 Security Alarm Services in the US The Security Alarm Services industry supplies security systems to operators.
81121 Electronic & Computer Repair Services in the US The Electronic and Computer Repair Services industry provides security service firms with repair and maintenance services of electronic security equipment.
Supply Chain
WWW.IBISWORLD.COM Security Services in the US August 2012 12
Products & Markets
Products & Servicescontinued
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Products and services segmentation (2012)
Total $28.2bn
69.2%On-site security guard services
16.3%Investigation
services
9.9%Armored vehicle
services
3%Security personnel
at special events 1.6%Other services
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 13
Products & Markets
DemandDeterminants
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WWW.IBISWORLD.COM Security Services in the US August 2012 14
Products & Markets
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Major Marketscontinued
Major market segmentation (2012)
Total $28.2bn
26%Major corporations
5%Residential clients
23%Retail clients21%
Financial institutions
16%Government clients
9%Other clients
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 15
Products & Markets
International Trade 7UDGH�GRHV�QRW�RFFXU�LQ�WKLV�LQGXVWU\�GXH�WR�WKH�VHUYLFH�EDVHG�QDWXUH�RI�VHFXULW\�VHUYLFHV��+RZHYHU��JOREDOL]DWLRQ�KDV�PDGH�PDLQWDLQLQJ�DQ�LQWHUQDWLRQDO�SUHVHQFH�PRUH�SUHYDOHQW�DPRQJ�ODUJH�SOD\HUV��
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WWW.IBISWORLD.COM Security Services in the US August 2012 16
Products & Markets
Business Locations 2012
MO1.4
West
West
West
Rocky Mountains Plains
Southwest
Southeast
New England
VT0.1
MA1.8
RI0.3
NJ3.3
DE0.3
NH0.2
CT1.1
MD3.1
DC0.9
1
5
3
7
2
6
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Additional States (as marked on map)
AZ1.7
CA16.2
NV1.7
OR0.6
WA1.5
MT0.2
NE0.3
MN1.2
IA0.3
OH2.8 VA
6.4
FL6.4
KS0.4
CO2.2
UT0.5
ID0.2
TX6.5
OK1.2
NC2.2
AK0.5
WY0.1
TN2.9
KY0.6
GA2.9
IL4.2
ME0.2
ND0.1
WI0.7 MI
2.0 PA3.2
WV0.4
SD0.2
NM0.7
AR0.4
MS0.5
AL1.0
SC1.4
LA1.5
HI0.9
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NY9.4 5
67
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SOURCE: WWW.IBISWORLD.COM
Mid- Atlantic
Revenue (%)
Less than 3% 3% to less than 10% 10% to less than 20% 20% or more
Great Lakes
WWW.IBISWORLD.COM Security Services in the US August 2012 17
Products & Markets
Business Locations 7KLV�LQGXVWU\�LV�ODUJHO\�FRQFHQWUDWHG�DFFRUGLQJ�WR�SRSXODWLRQ�GHQVLW\��$�JUHDWHU�FRQFHQWUDWLRQ�RI�VHFXULW\�VHUYLFHV�¿UPV�RFFXUV�LQ�UHJLRQV�ZLWK�ODUJH�SRSXODWLRQV�DQG�FLWLHV��LQFOXGLQJ�WKH�6RXWKHDVW�DQG�WKH�:HVW��6LPLODUO\��WKH�GLVSHUVLRQ�RI�UHYHQXH�ODUJHO\�IROORZV�WKH�FRQFHQWUDWLRQ�RI�HVWDEOLVKPHQWV��7KLV�OHYHO�RI�JHRJUDSKLF�FRQFHQWUDWLRQ�LV�QRW�H[SHFWHG�WR�FKDQJH�GXULQJ�WKH�QH[W�¿YH�\HDUV�7KH�UHJLRQ�ZLWK�WKH�ODUJHVW�QXPEHU�RI�
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SOURCE: WWW.IBISWORLD.COM
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WWW.IBISWORLD.COM Security Services in the US August 2012 18
Cost Structure Benchmarks
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Market Share Concentration
,%,6:RUOG�HVWLPDWHV�WKDW�WKH�IRXU�ODUJHVW�SOD\HUV�LQ�WKLV�LQGXVWU\�DFFRXQW�IRU�������RI�PDUNHW�VKDUH�LQ�������LQGLFDWLQJ�D�ORZ�OHYHO�RI�FRQFHQWUDWLRQ��$PRQJ�¿UPV�ZLWK�HPSOR\HHV��DERXW�������RI�HQWHUSULVHV�KDYH�IHZHU�WKDQ�¿YH�HPSOR\HHV��,QGXVWU\�FRQFHQWUDWLRQ�GHFOLQHV�HYHQ�IXUWKHU�ZKHQ�VHOI�HPSOR\HG�LQGLYLGXDOV�DUH�WDNHQ�LQWR�DFFRXQW��)RU�H[DPSOH��DERXW�������RI�SULYDWH�LQYHVWLJDWRUV�DUH�VHOI�HPSOR\HG��DFFRUGLQJ�WR�WKH�%XUHDX�RI�/DERU�6WDWLVWLFV��6LPLODUO\��ERG\JXDUGV�DUH�RIWHQ�VHOI�HPSOR\HG��0DQ\�VROH�SURSULHWRUV�RIIHU�WKHLU�VHUYLFHV�RQ�D�SDUW�WLPH�EDVLV��RIWHQ�WR�VXSSOHPHQW�RWKHU�VRXUFHV�RI�LQFRPH��2QO\�DERXW������LQGXVWU\�UHYHQXH�LV�JHQHUDWHG�WKURXJK�WKHVH�QRQHPSOR\HU�HVWDEOLVKPHQWV�
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Competitive LandscapeMarket Share Concentration | Key Success Factors | Cost Structure BenchmarksBasis of Competition | Barriers to Entry | Industry Globalization
Enterprises by employment size (2012)No. of employees Share (%)
0 to 4 51.85 to 9 12.510 to 19 11.520 to 99 16.6100 to 499 5.5500+ 2.1
SOURCE: US CENSUS BUREAU AND IBISWORLD
Level Concentration in this industry is Low
IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
WWW.IBISWORLD.COM Security Services in the US August 2012 19
Competitive Landscape
Cost Structure Benchmarkscontinued
Profit7KH�LQGXVWU\¶V�FRPSHWLWLYH�QDWXUH�PDNHV�SUR¿W��HDUQLQJV�EHIRUH�LQWHUHVW�DQG�WD[HV��VHQVLWLYH�WR�DQ\�FKDQJHV�LQ�WKH�HFRQRP\�EHFDXVH�SOD\HUV�RIWHQ�HQJDJH�LQ�SULFH�FRPSHWLWLRQ�ZKHQ�GHPDQG�IDOOV��%XVLQHVV�EDQNUXSWFLHV��UHGXFHG�VHFXULW\�EXGJHWV�DQG�ODFN�RI�VPDOO�EXVLQHVV�JURZWK�UHGXFHG�GHPDQG�LQ������DQG�������)LQDQFLDO�ORVVHV�DOVR�RFFXU�EHFDXVH�RI�PDMRU�FRQWUDFW�FDQFHOODWLRQV�DQG�GHPDQG�IRU�UHGXFHG�FRQWUDFW�SULFHV��ZLWK�¿UPV�SURYLGLQJ�WKH�VDPH��DQG�HYHQ�KLJKHU��OHYHO�RI�VHUYLFHV��3UR¿W�KDV�DOVR�EHHQ�KXUW�E\�LQFUHDVHG�FRPSHWLWLRQ�IURP�FRPSHWLQJ�LQGXVWULHV�VXFK�DV�WKH�6HFXULW\�$ODUP�6HUYLFHV�LQGXVWU\��,%,6:RUOG�UHSRUW��������2Q�WKH�RWKHU�KDQG��ULVLQJ�
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Sector vs. Industry Costs
Q Profi tQ WagesQ PurchasesQ DepreciationQ MarketingQ Rent & UtilitiesQ Other
Average Costs of all Industries in sector (2012)
Industry Costs (2012)
0
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60
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SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 20
Competitive Landscape
Basis of Competition )LUPV�LQ�WKH�6HFXULW\�6HUYLFHV�LQGXVWU\�FRPSHWH�RQ�D�YDULHW\�RI�IDFWRUV��6HFXULW\�SURYLGHUV�KDYH�IDFHG�LQFUHDVLQJ�FRPSHWLWLRQ�IURP�KLJK�WHFK�VROXWLRQV�SURYLGHG�E\�RWKHU�LQGXVWULHV��$OVR��SULFH�DQG�VHUYLFH�TXDOLW\�KDYH�EHFRPH�PRUH�LPSRUWDQW�EHFDXVH�FOLHQWV�FDQ�QHJRWLDWH�PRUH�HDVLO\��JLYHQ�WKH�XQHDV\�HFRQRPLF�FOLPDWH�
Internal competition,QWHUQDO�LQGXVWU\�FRPSHWLWLRQ�LV�ODUJHO\�EDVHG�RQ�SULFH�DQG�VHUYLFH�TXDOLW\��SDUWLFXODUO\�LQ�WKH�DUHD�RI�JXDUGV��:KHQ�LW�FRPHV�WR�VHUYLFH�TXDOLW\��FOLHQWV�W\SLFDOO\�SD\�PRUH�IRU�VSHFLDOO\�WUDLQHG�JXDUGV��VXFK�DV�WKRVH�ZKR�DUH�DOORZHG�WR�FDUU\�¿UHDUPV��&RPSDQLHV�DOVR�WU\�WR�PLQLPL]H�WKHLU�HPSOR\HH�WXUQRYHU�UDWH��KLVWRULFDOO\��WKH�LQGXVWU\�KDV�KDG�H[WUHPHO\�KLJK�WXUQRYHU�EHFDXVH�RI�XQGHVLUDEOH�ZRUN�FRQGLWLRQV��0DLQWDLQLQJ�D�ORZ�WXUQRYHU�FDQ�ORZHU�FRVWV�DVVRFLDWHG�ZLWK�WUDLQLQJ�&OLHQWV�KDYH�LQFUHDVLQJO\�ORRNHG�IRU�
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External competition([WHUQDO�FRPSHWLWLRQ�FRPHV�IURP�VXEVWLWXWLQJ�HOHFWURQLF�DODUPV��FORVHG�FLUFXLW�WHOHYLVLRQ�DQG�VHQVRUV��7KH�LQGXVWU\�DOVR�IDFHV�FRPSHWLWLRQ�IURP�WKH�6HFXULW\�$ODUP�6HUYLFHV�LQGXVWU\��,%,6:RUOG�UHSRUW���������ZLWK�VRPH�FOLHQWV�OHDYLQJ�JXDUG�VHUYLFHV�IRU�PRUH�DXWRPDWHG�IRUPV�RI�VHFXULW\��0RQLWRUHG�VHFXULW\�V\VWHPV�DUH�QRZ�D�PDMRU�FRPSHWLWRU�WR�PDQ\�RI�WKH�PRUH�ODERU�LQWHQVLYH�DUHDV��DQG�WKH\�RIWHQ�SURYLGH�D�PRUH�FRVW�HIIHFWLYH�VHFXULW\�VROXWLRQ�WR�FOLHQWV��7KLV�IDFWRU�KDV�SDUWLFXODUO\�EHHQ�WKH�FDVH�ZLWK�WKH�SURYLVLRQ�RI�PRQLWRUHG�VHFXULW\�V\VWHPV�LQ�FHQWUDO�FLWLHV�DQG�PDMRU�VXEXUEDQ�VKRSSLQJ�PDOOV��HVSHFLDOO\�LQ�SXEOLF�DUHDV�
Cost Structure Benchmarkscontinued
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Other,QGXVWU\�RSHUDWRUV�DUH�DOVR�VXEMHFW�WR�D�QXPEHU�RI�RWKHU�FRVWV��LQFOXGLQJ�
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Level & Trend Competition in this industry is High and the trend is Increasing
WWW.IBISWORLD.COM Security Services in the US August 2012 21
Competitive Landscape
Industry Globalization
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Barriers to Entry 7KH�6HFXULW\�6HUYLFHV�LQGXVWU\�KDV�D�ORZ�OHYHO�RI�FRQFHQWUDWLRQ��ZLWK�WKH�WRS�IRXU�SOD\HUV�DFFRXQWLQJ�IRU�DERXW�������RI�PDUNHW�VKDUH��7KLV�FRQFHQWUDWLRQ�LQGLFDWHV�WKDW�WKHUH�DUH�QR�VLJQL¿FDQW�EDUULHUV�WR�HQWU\�EDVHG�RQ�PDMRU�SOD\HU�GRPLQDQFH��+RZHYHU��FRPSDQLHV�WKDW�DLP�WR�HQWHU�WKH�LQGXVWU\�QHHG�WR�EH�DZDUH�RI�LQFUHDVLQJ�FRPSHWLWLRQ�IURP�DODUP�FRPSDQLHV��,%,6:RUOG�UHSRUW���������7KHVH�¿UPV�ZLOO�SRVH�D�WKUHDW�WR�WKH�LQGXVWU\�DV�PRUH�FOLHQWV�ORRN�IRU�FRVW�HIIHFWLYH�DOWHUQDWLYHV�7KLV�LQGXVWU\�LV�KLJKO\�ODERU�
LQWHQVLYH��EXW�LW�KDV�PLQLPDO�FDSLWDO�UHTXLUHPHQWV��7KH�HVWDEOLVKPHQW�FRVWV��ZKLFK�DUH�W\SLFDOO\�DVVRFLDWHG�ZLWK�KLULQJ�VHFXULW\�JXDUGV��DUH�UHODWLYHO\�VPDOO��6RPH�VHUYLFH�VHJPHQWV�UHTXLUH�PRUH�FDSLWDO��VXFK�DV�WKH�SXUFKDVH�RI�DUPRUHG�WUXFNV�IRU�FDVK�WUDQVSRUW��2Q�WKH�RWKHU�KDQG��RWKHU�VHUYLFHV��LQFOXGLQJ�WKRVH�SURYLGHG�E\�ERG\JXDUGV��UHTXLUH�DOPRVW�QR�FDSLWDO�LQYHVWPHQW�
,QGXVWU\�UHJXODWLRQ�LV�OLJKW��1R�IHGHUDO�ODZV�DSSO\�WR�WKH�LQGXVWU\��EXW�VWDWH�JRYHUQPHQWV�JHQHUDOO\�UHTXLUH�D�PLQLPXP�DPRXQW�RI�WUDLQLQJ�LQ�RUGHU�WR�JHW�D�OLFHQVH��)RU�JXDUGLQJ�DQG�SDWUROOLQJ�SRVLWLRQV��WUDLQLQJ�LV�OLPLWHG�DQG�PRVW�MREV�RIIHU�ORZ�SD\�DQG�EHQH¿WV��-REV�DUH�RIWHQ�SHUIRUPHG�RQ�D�WHPSRUDU\�RU�SDUW�WLPH�EDVLV��FDXVLQJ�ODERU�WXUQRYHU�UDWHV�WR�EH�DV�KLJK�DV�������D�\HDU��+DYLQJ�DFFHVV�WR�D�VXLWDEOH�SRRO�RI�HPSOR\HHV�FDQ�SURYLGH�RSHUDWRUV�ZLWK�D�FRPSHWLWLYH�DGYDQWDJH�
Barriers to Entry checklist LevelCompetition HighConcentration LowLife Cycle Stage MatureCapital Intensity LowTechnology Change LowRegulation & Policy LightIndustry Assistance None
SOURCE: WWW.IBISWORLD.COM
Level & Trend Barriers to Entry in this industry are Low and Increasing
Level & Trend Globalization in this industry is Low and the trend is Steady
WWW.IBISWORLD.COM Security Services in the US August 2012 22
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Major CompaniesSecuritas AB | G4S PLC | Allied Security LLC | Other Companies
71.9%Other
Securitas AB 12.6%
G4S PLC 9.7%
Allied Security LLC 5.8%SOURCE: WWW.IBISWORLD.COM
Major players(Market share)
Securitas AB (Security Services North America segment) – fi nancial performance
YearRevenue
($ million) (% change)Operating Income
($ million) (% change)
2007 3,119.7 N/C 166.2 N/C
2008 3,216.7 3.1 182.2 9.6
2009 3,098.2 -3.7 181.8 -0.2
2010 3,318.7 7.1 201.5 10.8
2011 3,460.7 4.3 196.6 -2.4
2012* 3,560.0 2.9 205.0 4.3
*EstimateSOURCE: ANNUAL REPORT AND IBISWORLD
Securitas AB Market share: 12.6% Industry Brand NamesSecuritas Security Services USA
WWW.IBISWORLD.COM Security Services in the US August 2012 23
Major Companies
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Player Performancecontinued
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G4S PLC Market share: 9.7%
G4S PLC (North America segment) – fi nancial performance
YearRevenue
($ million) (% change)Operating Income
($ million) (% change)
2007 2,245.6 N/C 80.4 N/C
2008 2,429.0 8.2 67.4 -16.2
2009 2,496.2 2.8 78.1 15.9
2010 2,590.8 3.8 87.6 12.2
2011 2,649.6 2.3 142.7 62.9
2012* 2,726.5 2.9 146.9 2.9
*EstimateSOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM Security Services in the US August 2012 24
Major Companies
Player Performancecontinued
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AlliedBarton Security Services (US segment) – fi nancial performance
YearRevenue
($ million) (% change)Operating Income
($ million) (% change)
2007 1,484.7 17.7 47.6 63.0
2008 1,607.3 8.3 59.6 25.2
2009* 1,526.9 -5.0 45.8 -23.2
2010* 1,543.7 1.1 39.0 -14.8
2011* 1,575.0 2.0 49.0 25.6
2012* 1,635.0 3.8 52.0 6.1
*EstimateSOURCE: ANNUAL REPORT AND IBISWORLD
Allied Security LLC Market share: 5.8% Industry Brand NamesAlliedBarton Security Services
WWW.IBISWORLD.COM Security Services in the US August 2012 25
Major Companies
Player Performancecontinued
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Other Companies ,Q�DGGLWLRQ�WR�WKH�LQGXVWU\¶V�PDMRU�SOD\HUV��PDQ\�VPDOO�RSHUDWRUV�H[LVW��0RUH�WKDQ�KDOI�RI�WKH�¿UPV�RSHUDWLQJ�LQ�WKLV�LQGXVWU\�KDYH�IHZHU�WKDQ�¿YH�HPSOR\HHV��0DQ\�¿UPV�SURYLGH�PRUH�VSHFLDOL]HG�VHUYLFHV��VXFK�DV�SULYDWH�LQYHVWLJDWLRQ��6LPLODUO\��FRPSDQLHV�OLNH�%ULQN¶V�KDYH�EHHQ�DEOH�WR�JURZ�EH\RQG�WKH�VPDOO�EXVLQHVV�ODEHO�E\�RIIHULQJ�VSHFLDOL]HG��\HW�ZLGHO\�XVHG�VHUYLFHV��VXFK�DV�FDVK�WUDQVLW�
The Brink’s CompanyEstimated market share: 2.7%+HDGTXDUWHUHG�LQ�5LFKPRQG��9$��WKH�%ULQN¶V�&RPSDQ\�LV�D�JOREDO�VHFXULW\�VHUYLFHV�FRPSDQ\�ZLWK�RSHUDWLRQV�LQ�����FRXQWULHV��7KH�FRPSDQ\¶V�86�VHJPHQW�JHQHUDWHV�DERXW��������PLOOLRQ�DQQXDOO\��,WV�PDLQ�VHUYLFHV�LQFOXGH��DUPRUHG�FDU�WUDQVSRUW��$70�VHUYLFLQJ��FXUUHQF\�DQG�GHSRVLW�SURFHVVLQJ��FRLQ�VRUWLQJ�DQG�ZUDSSLQJ��VHFXUH�DLU�WUDQVSRUW�RI�YDOXDEOHV�DQG�GHSOR\LQJ�DQG�VHUYLFLQJ�RI�VDIHV�DQG�VDIH�FRQWURO�GHYLFHV��,WV�FOLHQW�EDVH�LV�ODUJHO\�GUDZQ�
IURP�EDQNV��LQGXVWULDO�DQG�FRPPHUFLDO�EXVLQHVVHV��LQYHVWPHQW�EDQNLQJ�DQG�EURNHUDJH�¿UPV��DQG�JRYHUQPHQW�DJHQFLHV��5HWDLO�FXVWRPHUV�XVH�WKHLU�VHUYLFHV�WR�FRXQW�DQG�UHFRQFLOH�FRLQV�DQG�FXUUHQF\��SUHSDUH�EDQN�GHSRVLW�LQIRUPDWLRQ�DQG�VXSSO\�FRLQV�DQG�FXUUHQF\�LQ�UHTXLUHG�GHQRPLQDWLRQV�%ULQN¶V�KDV�UHFHQWO\�XQGHUJRQH�VRPH�
VWUXFWXUDO�FKDQJHV��7KH�FRPSDQ\�KDV�IRFXVHG�RQ�VHOOLQJ�VRPH�RI�LWV�SUHYLRXVO\�KHOG�VHJPHQWV�WR�EHFRPH�D�VHFXULW\�RQO\�¿UP��'HVSLWH�WKLV�IRFXV��%ULQN¶V�VSXQ�RII�%ULQN¶V�+RPH�6HFXULW\�+ROGLQJV�LQ�2FWREHU�������7KH�VHJPHQW�KDG�EHHQ�WKH�WKLUG�ODUJHVW�UHVLGHQWLDO�PRQLWRULQJ�VHUYLFHV�RSHUDWRU�LQ�1RUWK�$PHULFD�
Loomis ABEstimated market share: 2.3%/LNH�%ULQN¶V��/RRPLV�ODUJHO\�RSHUDWHV�LQ�WKH�VSHFLDOL]HG�FDVK�KDQGOLQJ�DQG�WUDQVLW�PDUNHW��/RRPLV��ZKLFK�RSHUDWHV�DFURVV�(XURSH�DQG�WKH�8QLWHG�6WDWHV��¿QLVKHG�LWV�¿UVW�IXOO�\HDU�DV�D�VWRFN�H[FKDQJH�OLVWHG�FRPSDQ\�LQ�������3UHYLRXVO\��
WWW.IBISWORLD.COM Security Services in the US August 2012 26
Major Companies
Other Companiescontinued
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6HFXULWDV�ZLWK�VKDUHV�GLVWULEXWHG�WR�VKDUHKROGHUV��7KH�FRPSDQ\�LV�HVWLPDWHG�WR�JHQHUDWH�DERXW������PLOOLRQ�DQQXDOO\�LQ�LQGXVWU\�UHODWHG�UHYHQXH�
WWW.IBISWORLD.COM Security Services in the US August 2012 27
Capital Intensity 7KLV�LQGXVWU\�UHTXLUHV�D�ORZ�OHYHO�RI�FDSLWDO�LQYHVWPHQW�EHFDXVH�DOO�RI�LWV�PDMRU�DFWLYLWLHV�LQYROYH�D�KLJK�GHJUHH�RI�GLUHFW�ODERU�LQSXW��:KLOH�VXEVWDQWLDO�LQYHVWPHQW�PXVW�EH�PDGH�IRU�VRPH�VHUYLFHV��VXFK�DV�WKH�SXUFKDVH�RI�DUPRUHG�WUXFNV�IRU�FDVK�WUDQVSRUW��WKH�PDMRULW\�RI�UHYHQXH�LV�GHULYHG�IURP�ODERU�LQWHQVLYH�VHUYLFHV�0RVW�LQGXVWU\�HPSOR\HHV�PXVW�
FRPSOHWH�D�PLQLPDO�DPRXQW�RI�WUDLQLQJ�FRPSDUHG�ZLWK�RWKHU�VHUYLFH�LQGXVWULHV��'HVSLWH�WKLV�IDFWRU��ZDJHV�DUH�WKH�ODUJHVW�FRVW�IRU�RSHUDWRUV��DFFRXQWLQJ�IRU�������RI�UHYHQXH�LQ�������/DERU�FRVWV�FRPH�LQ�WKH�IRUP�RI�JXDUGV��LQYHVWLJDWLYH�ZRUN�DQG�FRUSRUDWH�HPSOR\HHV��,%,6:RUOG�
HVWLPDWHV�WKDW�IRU�HYHU\�GROODU�VSHQW�RQ�WKH�XVH�DQG�UHSODFHPHQW�RI�EXLOGLQJ�DQG�HTXLSPHQW�LQ��������������LV�
Operating ConditionsCapital Intensity | Technology & Systems | Revenue VolatilityRegulation & Policy | Industry Assistance
Tools of the Trade: Growth Strategies for Success
SOURCE: WWW.IBISWORLD.COM
Labo
r Int
ensiv
eCapital Intensive
Change in Share of the Economy
New Age EconomyRecreation, Personal Services, Health and Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labor skills are key to product differentiation.
Traditional Service EconomyWholesale and!Retail. Reliant on labor!rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth.
Old EconomyAgriculture and Manufacturing. Traded goods can be produced using cheap labor abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialize in niche, high-value products.
Investment EconomyInformation, Communications, Mining, Finance and Real Estate. To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan.
Credit Bureaus & Rating Agencies
Audio & Video Equipment Manufacturing
Security Alarm Services
Electronic & Computer Repair Services Non-Hotel Casinos
Security Services
Capital intensity
0.5
0.0
0.1
0.2
0.3
0.4
SOURCE: WWW.IBISWORLD.COMDotted line shows a high level of capital intensity
Capital units per labor unit
Security Services
Administration, Business Support & Waste
Management Services
Economy
Level The level of capital intensity is Low
WWW.IBISWORLD.COM Security Services in the US August 2012 28
Operating Conditions
Revenue Volatility )ROORZLQJ�WKH�UHFHVVLRQ��LQGXVWU\�RSHUDWRUV�H[SHULHQFHG�D�GHFOLQH�LQ�GHPDQG�DV�EXVLQHVVHV�UHGXFHG�WKHLU�VHFXULW\�EXGJHWV��0DQ\�FOLHQWV�VWDUWHG�XVLQJ�PRUH�FRVW�HIIHFWLYH�DOWHUQDWLYHV��RU�WKH\�UHGXFHG�WKHLU�XVH�RI�VHFXULW\�JXDUGV��)XUWKHUPRUH��VRPH�FRPSDQLHV�WKDW�XVHG�VHFXULW\�VHUYLFHV�ZHQW�RXW�RI�EXVLQHVV��KXUWLQJ�WKH�LQGXVWU\��7KH�ULVH�LQ�EDQNUXSWFLHV�UHGXFHG�UHYHQXH�DQG�GHPDQG�GXULQJ�
������DQG������E\�OLPLWLQJ�WKH�QXPEHU�RI�SRWHQWLDO�FOLHQWV�$OWKRXJK�UHYHQXH�GHFOLQHG�LQ�
UHVSRQVH�WR�WKH�UHFHVVLRQ��LW�KDV�RQFH�DJDLQ�VWDUWHG�JURZLQJ��1HYHUWKHOHVV��UHYHQXH�YRODWLOLW\�KDV�UHPDLQHG�UHODWLYHO\�ORZ�RYHU�WKH�SDVW�¿YH�\HDUV��7KLV�WUHQG�LV�ODUJHO\�EHFDXVH�EXVLQHVVHV�DQG�JRYHUQPHQW�ERGLHV�KDYH�LQFUHDVHG�WKHLU�VHFXULW\�RXWVRXUFLQJ��KHOSLQJ�PLWLJDWH�WKH�ORVVHV�FDXVHG�E\�D�VORZLQJ�
Technology& Systems
,%,6:RUOG�DQDO\VLV�LQGLFDWHV�WKDW�WKH�LQGXVWU\�KDV�H[SHULHQFHG�PLQLPDO�WHFKQRORJLFDO�FKDQJH�LQ�UHFHQW�\HDUV��1HYHUWKHOHVV��FRPPXQLFDWLRQV��VXUYHLOODQFH��DODUP�DQG�DOHUW�HTXLSPHQW�DUH�LQFUHDVLQJO\�EHLQJ�XVHG�WR�VXSSRUW�WUDGLWLRQDO�JXDUGLQJ�DQG�SDWURO�VHUYLFHV��6HFXULW\�JXDUGV�DUH�DOVR�EHLQJ�HTXLSSHG�ZLWK�D�ZLGHU�DUUD\�RI�HTXLSPHQW��LQFOXGLQJ�SHSSHU�VSUD\�DQG�VWXQ�JXQV�6HFXULW\�SURYLGHUV�QHHG�WR�EH�
DZDUH�RI�H[LVWLQJ�DQG�HPHUJLQJ�
WHFKQRORJLHV�WR�HYDOXDWH�DQG�SURYLGH�DSSURSULDWH�VROXWLRQV�WR�FOLHQWV��7KHVH�WHFKQRORJLHV�LQFOXGH�DODUP�PRQLWRULQJ��&&79�DQG�HPHUJLQJ�ELRPHWULFV�SURGXFWV��H�J��¿QJHUSULQW�VFDQQHUV��UHWLQD�UHFRJQLWLRQ�DQG�DFFHVV�V\VWHPV���$OVR��SURYLGHUV�LQFUHDVLQJO\�XVH�VDWHOOLWH�WHFKQRORJ\��LQFOXGLQJ�YHKLFOH�LPPRELOL]DWLRQ�V\VWHPV�DQG�JOREDO�SRVLWLRQLQJ�V\VWHPV��*36��IRU�FDVK�KDQGOLQJ�YHKLFOHV�
Capital Intensitycontinued
VSHQW�RQ�ODERU��$V�VXFK��WKLV�LQGXVWU\�LV�GHHPHG�WR�KDYH�D�KLJK�OHYHO�RI�ODERU�LQWHQVLW\��+RZHYHU��GXULQJ�WKH�
¿YH�\HDUV�WR�������ODERU�LQWHQVLW\�LV�SURMHFWHG�WR�GHFUHDVH�DV�¿UPV�LQYHVW�LQ�PRUH�DXWRPDWHG�WHFKQRORJLHV�
Level The level of Technology Change is Low
SOURCE: WWW.IBISWORLD.COM
Volatility vs Growth
Reve
nue
vola
tility
* (%
)
1000
100
10
1
0.1
Five year annualized revenue growth (%)–30 –10 10 30 50 70
Hazardous
Stagnant
Rollercoaster
Blue Chip
* Axis is in logarithmic scale
Security Services
A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment.
When a fi rm makes poor investment decisions it may face underutilized capacity if demand suddenly falls, or capacity constraints if it rises quickly.
Level The level of Volatility is Low
WWW.IBISWORLD.COM Security Services in the US August 2012 29
Operating Conditions
Industry Assistance 7KH�'HSDUWPHQW�RI�+RPHODQG�6HFXULW\�SURYLGHV�D�V\VWHP�RI�ULVN�DQG�OLDELOLW\�PDQDJHPHQW�EHQH¿WV�WR�FHUWL¿HG�SURYLGHUV�RI�DQWL�WHUURULVP�SURGXFWV�DQG�VHUYLFHV�XQGHU�LWV�6XSSRUW�$QWL�WHUURULVP�E\�)RVWHULQJ�(IIHFWLYH�7HFKQRORJLHV�
�6$)(7<��$FW��7KH�$FW�DOVR�SURYLGHV�WKLUG�SDUW\�OLDELOLW\�LPPXQLW\�IURP�FODLPV�WKDW�DULVH�IURP�WHUURULVP�DFWV�ZLWKLQ�WKH�8QLWHG�6WDWHV��7KH�SURWHFWLRQ�IURP�WKLUG�SDUW\�OLDELOLW\�H[WHQGV�WR�WKH�¿UP¶V�VXEFRQWUDFWRUV�DQG�FOLHQWV�
Regulation & Policy :KLOH�PRVW�VWDWHV�UHTXLUH�D�OLFHQVH�WR�RSHUDWH�DV�D�VHFXULW\�RI¿FHU��WKH�UHJXODWLRQ�RI�WKH�6HFXULW\�6HUYLFHV�LQGXVWU\�YDULHV�IURP�VWDWH�WR�VWDWH��1R�IHGHUDO�ODZV�DSSO\�WR�WKLV�LQGXVWU\��+RZHYHU��JXDUGV�ZKR�FDUU\�JXQV�PXVW�XQGHUJR�WUDLQLQJ�DQG�EDFNJURXQG�FKHFNV��$UPHG�JXDUGV�KDYH�TXLFNO\�EHFRPH�WKH�QRUP�LQ�WKH�DUPRUHG�FDU�VHUYLFHV�VHJPHQW��:LWKLQ�WKH�VHFXULW\�JXDUG�VHJPHQW��JXDUGV�KDYH�WKH�VDPH�SRZHU�DV�RUGLQDU\�FLWL]HQV�UHJDUGLQJ�FLWL]HQ¶V�DUUHVW��7KHUHIRUH��SHRSOH�ZKR�DUH�DSSUHKHQGHG�E\�VHFXULW\�JXDUGV�DUH�QRW�WDNHQ�WR�MDLO�XQOHVV�ORFDO�ODZ�HQIRUFHPHQW�LV�FRQWDFWHG�7KH�DPRXQW�RI�WUDLQLQJ�UHTXLUHG�WR�
EHFRPH�D�VHFXULW\�RI¿FHU�DOVR�YDULHV�EHWZHHQ�VWDWHV��)RU�LQVWDQFH��$ODVND�UHTXLUHV����KRXUV�RI�WUDLQLQJ��ZKLOH�
PDQ\�RWKHU�VWDWHV�UHTXLUH�DV�OLWWOH�DV�IRXU�WR�HLJKW�KRXUV��6RPH�MXULVGLFWLRQV��LQFOXGLQJ�WKH�'LVWULFW�RI�&ROXPELD��GR�QRW�UHTXLUH�DQ\�WUDLQLQJ�IRU�XQDUPHG�JXDUGV��)XUWKHUPRUH��XQDUPHG�JXDUGV�GR�QRW�KDYH�WR�EH�OLFHQVHG�LQ����VWDWHV�RU�XQGHUJR�HPSOR\HH�EDFNJURXQG�FKHFNV�LQ����/LFHQVH�IHHV�DSSO\�WR�WKLV�LQGXVWU\�
DFURVV�PRVW�VWDWHV��LQFOXGLQJ�&DOLIRUQLD��1HZ�-HUVH\�DQG�2NODKRPD��)HHV�DUH�OHYLHG�LQ�OLQH�ZLWK�FRVWV�DVVRFLDWHG�ZLWK�SURFHVVLQJ�DSSOLFDWLRQV��EDFNJURXQG�FKHFNV�DQG�RWKHU�LQTXLULHV��LQFOXGLQJ�ZLWK�WKH�)%,��$UPHG�JXDUGV�PD\�DOVR�EH�UHTXLUHG�WR�WDNH�D�SV\FKRORJLFDO�WHVW��)LUPV�PXVW�DOVR�SD\�D�YDULHW\�RI�HPSOR\PHQW�DQG�SD\UROO�WD[HV��ZKLFK�FDQ�EH�TXLWH�KHIW\��JLYHQ�WKH�KLJK�SHUFHQWDJH�RI�UHYHQXH�WKDW�LV�VSHQW�RQ�ZDJHV�
Revenue Volatilitycontinued
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Level & Trend The level of Regulation is Light and the trend is Increasing
Level & Trend The level of Industry Assistance is None and the trend is Steady
WWW.IBISWORLD.COM Security Services in the US August 2012 30
Key StatisticsRevenue
($m)
Industry Value Added
($m)Establish-
ments Enterprises Employment Exports ImportsWages ($m)
Domestic Demand
Number of Businesses With Employees
(Million)2003 25,317.6 18,426.5 54,500 40,573 666,497 -- -- 15,034.0 N/A 7.32004 25,839.6 18,752.0 55,154 40,978 692,761 -- -- 15,289.5 N/A 7.42005 26,533.9 19,557.6 55,816 41,388 706,819 -- -- 16,002.1 N/A 7.52006 27,616.4 20,021.1 56,374 41,760 716,075 -- -- 16,375.7 N/A 7.62007 28,517.6 20,464.1 56,938 42,178 721,876 -- -- 16,756.8 N/A 7.72008 27,771.0 19,759.0 57,379 42,629 725,119 -- -- 16,343.3 N/A 7.62009 26,407.7 18,675.5 55,601 41,459 701,074 -- -- 15,506.6 N/A 7.52010 26,852.5 18,823.6 55,329 41,352 700,920 -- -- 15,735.6 N/A 7.62011 27,394.3 19,296.5 55,250 41,201 699,585 -- -- 16,036.6 N/A 7.62012 28,189.0 19,732.3 54,853 40,874 703,034 -- -- 16,321.4 N/A 7.72013 29,649.2 20,585.4 55,829 41,509 709,387 -- -- 16,997.9 N/A 7.92014 30,988.7 21,341.9 57,144 42,424 728,836 -- -- 17,592.3 N/A 8.02015 32,318.6 22,080.1 57,898 42,919 738,638 -- -- 18,137.2 N/A 8.12016 33,216.8 22,896.3 60,089 44,544 771,052 -- -- 18,810.7 N/A 8.22017 34,628.0 23,799.8 62,549 46,402 798,570 -- -- 19,540.6 N/A 8.3Sector Rank 8/26 6/26 6/26 6/26 6/26 N/A N/A 6/26 N/A N/AEconomy Rank 275/706 129/706 108/705 121/705 54/706 N/A N/A 89/706 N/A N/A
IVA/Revenue (%)
Imports/Demand
(%)Exports/Revenue
(%)
Revenue per Employee
($’000)Wages/Revenue
(%)Employees
per Est.Average Wage
($)
Share of the Economy
(%)2003 72.78 N/A N/A 37.99 59.38 12.23 22,556.74 0.162004 72.57 N/A N/A 37.30 59.17 12.56 22,070.38 0.152005 73.71 N/A N/A 37.54 60.31 12.66 22,639.60 0.152006 72.50 N/A N/A 38.57 59.30 12.70 22,868.69 0.152007 71.76 N/A N/A 39.50 58.76 12.68 23,212.85 0.152008 71.15 N/A N/A 38.30 58.85 12.64 22,538.78 0.152009 70.72 N/A N/A 37.67 58.72 12.61 22,118.35 0.152010 70.10 N/A N/A 38.31 58.60 12.67 22,449.92 0.142011 70.44 N/A N/A 39.16 58.54 12.66 22,923.02 0.142012 70.00 N/A N/A 40.10 57.90 12.82 23,215.66 0.152013 69.43 N/A N/A 41.80 57.33 12.71 23,961.39 0.152014 68.87 N/A N/A 42.52 56.77 12.75 24,137.53 0.152015 68.32 N/A N/A 43.75 56.12 12.76 24,554.92 0.152016 68.93 N/A N/A 43.08 56.63 12.83 24,396.15 0.152017 68.73 N/A N/A 43.36 56.43 12.77 24,469.49 N/ASector Rank 5/26 N/A N/A 24/26 5/26 11/26 23/26 6/26Economy Rank 24/706 N/A N/A 684/706 15/706 367/705 597/706 129/706
Figures are inflation-adjusted 2012 dollars. Rank refers to 2012 data.
Revenue (%)
Industry Value Added
(%)
Establish-ments
(%)Enterprises
(%)Employment
(%)Exports
(%)Imports
(%)Wages
(%)
Domestic Demand
(%)
Number of Businesses With Employees
(%)2004 2.1 1.8 1.2 1.0 3.9 N/A N/A 1.7 N/A 1.42005 2.7 4.3 1.2 1.0 2.0 N/A N/A 4.7 N/A 1.42006 4.1 2.4 1.0 0.9 1.3 N/A N/A 2.3 N/A 1.32007 3.3 2.2 1.0 1.0 0.8 N/A N/A 2.3 N/A 1.32008 -2.6 -3.4 0.8 1.1 0.4 N/A N/A -2.5 N/A -1.32009 -4.9 -5.5 -3.1 -2.7 -3.3 N/A N/A -5.1 N/A -1.32010 1.7 0.8 -0.5 -0.3 0.0 N/A N/A 1.5 N/A 1.32011 2.0 2.5 -0.1 -0.4 -0.2 N/A N/A 1.9 N/A 0.02012 2.9 2.3 -0.7 -0.8 0.5 N/A N/A 1.8 N/A 1.32013 5.2 4.3 1.8 1.6 0.9 N/A N/A 4.1 N/A 2.62014 4.5 3.7 2.4 2.2 2.7 N/A N/A 3.5 N/A 1.32015 4.3 3.5 1.3 1.2 1.3 N/A N/A 3.1 N/A 1.32016 2.8 3.7 3.8 3.8 4.4 N/A N/A 3.7 N/A 1.22017 4.2 3.9 4.1 4.2 3.6 N/A N/A 3.9 N/A 1.2Sector Rank 19/26 20/26 24/26 24/26 23/26 N/A N/A 17/26 N/A N/AEconomy Rank 299/706 402/706 528/705 511/705 491/706 N/A N/A 356/706 N/A N/A
Annual Change
Key Ratios
Industry Data
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Security Services in the US August 2012 31
Jargon & Glossary
BARRIERS TO ENTRY Barriers to entry can be High, Medium or Low. High means new companies struggle to enter an industry, while Low means it is easy for a firm to enter an industry.CAPITAL/LABOR INTENSITY An indicator of how much capital is used in production as opposed to labor. Level is stated as High, Medium or Low. High is a ratio of less than $3 of wage costs for every $1 of depreciation; Medium is $3 – $8 of wage costs to $1 of depreciation; Low is greater than $8 of wage costs for every $1 of depreciation.CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using 2012 as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the ‘real’ growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.DOMESTIC DEMAND The use of goods and services within the US; the sum of imports and domestic production minus exports.EARNINGS BEFORE INTEREST AND TAX (EBIT) IBISWorld uses EBIT as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding tax and interest.EMPLOYMENT The number of working proprietors, partners, permanent, part-time, temporary and casual employees, and managerial and executive employees.ENTERPRISE A division that is separately managed and keeps management accounts. The most relevant measure of the number of firms in an industry.ESTABLISHMENT The smallest type of accounting unit within an Enterprise; usually consists of one or more locations in a state or territory of the country in which it operates.EXPORTS The total sales and transfers of goods produced by an industry that are exported.IMPORTS The value of goods and services imported with the amount payable to non-residents.
INDUSTRY CONCENTRATION IBISWorld bases concentration on the top four firms. Concentration is identified as High, Medium or Low. High means the top four players account for over 70% of revenue; Medium is 40 –70% of revenue; Low is less than 40%.INDUSTRY REVENUE The total sales revenue of the industry, including sales (exclusive of excise and sales tax) of goods and services; plus transfers to other firms of the same business; plus subsidies on production; plus all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); plus capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.INDUSTRY VALUE ADDED The market value of goods and services produced by an industry minus the cost of goods and services used in the production process, which leaves the gross product of the industry (also called its Value Added).INTERNATIONAL TRADE The level is determined by: Exports/Revenue: Low is 0 –5%; Medium is 5 –20%; High is over 20%. Imports/Domestic Demand: Low is 0 –5%; Medium is 5 –35%; and High is over 35%.LIFE CYCLE All industries go through periods of Growth, Maturity and Decline. An average life cycle lasts 70 years. Maturity is the longest stage at 40 years with Growth and Decline at 15 years each.NON-EMPLOYING ESTABLISHMENT Businesses with no paid employment and payroll are known as non-employing establishments. These are mostly set-up by self employed individuals.VOLATILITY The level of volatility is determined by the percentage change in revenue over the past five years. Volatility levels: Very High is greater than ±20%; High Volatility is between ±10% and ±20%; Moderate Volatility is between ±3% and ±10%; and Low Volatility is less than ±3%.WAGES The gross total wages and salaries of all employees of the establishment.
Industry Jargon
IBISWorld Glossary
BIOMETRICS A technology that involves the use of face, fingerprint or similar recognition of individuals to allow secure access.
CLOSED-CIRCUIT TELEVISION (CCTV) A technology that uses video surveillance equipment to transmit images to a specific set of monitors.MONITORED SECURITY SYSTEM A security system that involves the use of video, such as CCTV systems.
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