Locksmiths
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,000 locksmiths in the US sell, install, open, modify, and service mechanical or electronic locking devices, safes, and security vaults. Major revenue categories include non-residential services, residential services, key duplication, and merchandise resale. Firms may install and service electronic alarm and surveillance systems or provide roadside assistance for locked vehicles.
Staying Current With Technology
Electronic locking technology is changing the security industry and forcing locksmiths to adapt accordingly.
Recession-Resistant, But Not Recession-Proof
While the locksmith industry is considered recession-resistant, an individual firm’s specialty can be sensitive to economic factors.
Industry size & Structure
The average locksmith operates out of a single location, employs four workers, and generates about $675,000 annually.
- The locksmith industry consists of about 4,000 companies that employ about 16,500 workers and generate about $2.7 billion annually.
- The industry is highly fragmented; the top 50 companies account for 23% of industry revenue.
- The industry primarily consists of small, independent operators that serve a local market. Franchises include Pop-A-Lock and Mr. Rekey.
Industry Forecast
Locksmiths Industry Growth
Recent Developments
Nov 16, 2024 - Services Sector Expands, Employment Flat
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fourteen of the 18 services industries reported growth in October including Retail Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Construction; Mining; Public Administration; Utilities; Real Estate, Rental & Leasing; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. Industries reporting a contraction in October were Other Services; and Management of Companies & Support Services. Employment by security system services, which include locksmiths, was flat in September 2024 compared to a year ago, according to the latest data from the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees in the industry were up in September 2024 compared to a year ago, reaching $35.44 per hour.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
- Tenant evictions, a demand indicator for residential lock-changing services, rose 15% or more in 2024 compared to before the pandemic for 10 of the 33 cities tracked by the Eviction Lab, according to the Wall Street Journal. The Eviction Lab, a research unit at Princeton University, reviewed filings over the past twelve months. The research showed that eviction filings in the past year are up 35% or more compared to pre-2020 times, in certain cities including Houston, Las Vegas, and Phoenix. In addition to the Sunbelt region, Columbus, Ohio, and the Minneapolis-St.Paul areas also posted elevated eviction rates. Filings have remained lower in certain cities that have increased protection for renters, including New York City and Philadelphia. The top reason for tenant eviction is unpaid rent, often due to job losses or medical emergencies creating financial hardships. Per the Zillow Observed Rent Index, asking rents for houses and apartments nationwide increased 30% from 2020 to 2023.
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