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
Sep 25, 2024 - Employment Falls, Wages Flat
- Employment by security system services, which includes locksmiths, fell 1% in July 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 flat in July 2024 compared to a year ago, reaching $35.83 per hour. Consumer spending levels increased 2.6% in June 2024 compared to a year ago and was up 0.2% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
- 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.
- Overall commercial bankruptcy filings, a demand indicator for business-related lock-changing services, grew 8% in August 2024 year over year, according to Epiq AACER. The total number of commercial Chapter 11 bankruptcies filed in August 2024 reached 616, a 3% decline from a year ago. Small business filings, captured as Subchapter V elections within Chapter 11, grew 5% in August 2024 year over year. According to Michael Hunter, VP of Epiq AACER, “August new filing volumes remained relatively flat month-over-month to end the summer while year-over-year volumes continue to show a steady increase.” He said filing volumes were expected to continue to increase in the fall and winter of 2024.
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