Locksmiths

The 3,900 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.

Sep 23, 2026 - Electronic Access Drives Locksmith Growth

• The locksmith industry outlook is increasingly tied to electronic access control, home automation, and recurring service revenue rather than traditional lock-and-key work alone, according to a Locksmith Ledger report. Cloud-based access systems are expanding, while higher-capacity keypads are opening opportunities in multifamily and smaller commercial properties. These jobs can generate more revenue because they require additional labor, wiring, equipment, and compliance work, while service contracts and remote system management can create recurring monthly income. However, the shift also raises the importance of technical training, licensing, and skilled labor. Hiring and retention remain difficult, which could constrain growth for firms unable to add qualified technicians. Overall, locksmiths that build electronic-security and automation capabilities appear better positioned for growth.
• Rising bankruptcies point to a more challenging operating environment for US locksmiths, especially those serving small businesses and commercial properties, according to recent Epiq AACER and ABI data. Total US bankruptcy filings increased 8% year over year in August 2026, while commercial filings rose 2% and commercial Chapter 11 filings increased 1%. SubChapter V filings, used by small businesses seeking streamlined restructuring, jumped 63%. For locksmiths, higher business distress could weaken demand for discretionary upgrades such as electronic access control, high-security locks, and large retrofit projects as customers conserve cash. At the same time, business closures, ownership changes, foreclosures, and tenant turnover can generate demand for rekeying, lock replacement, access resets, and emergency service. Overall, the data suggest softer spending on major security investments but continued need for essential locksmith services tied to property transitions and business restructuring.
• Smart locks and connected garage door openers are gradually reshaping the US locksmith industry as consumers increasingly integrate access control into broader home security systems, according to a report in Locksmith Ledger. According to Parks Associates, smart door locks and smart garage door openers were installed in 11% of U.S. internet households by mid-2025, with adoption largely driven by home purchases, renovations, and security system installations. New interoperability standards and biometric features are improving compatibility and convenience, creating opportunities for locksmiths to expand installation and service offerings. However, adoption remains tied to housing activity, while high equipment costs, long replacement cycles, and installation complexity continue to moderate market growth.
• Weak architecture billings point to a softer pipeline for US locksmiths tied to nonresidential construction, according to the AIA/Deltek Architecture Billings Index. The index registered 47.2 in August 2026, remaining below the 50 threshold that signals growth, while new design contracts also declined. Because the ABI typically leads nonresidential construction activity by about 9-12 months, continued weakness could translate into fewer future opportunities for locksmiths supplying and installing locks, access-control systems, door hardware, and related security products on new buildings and major renovations. Conditions were uneven: commercial/industrial firms reported a slight uptick, which could support some future demand, while institutional and multifamily specialists remained soft. Overall, the data suggest locksmiths may face slower construction-driven growth into 2027 and could rely more heavily on repair, replacement, and security-upgrade work.

Industry size & Structure

The average locksmith operates out of a single location, employs four workers, and generates about $667,100 annually.

• The locksmith industry consists of about 3,900 companies that employ about 16,300 workers and generate about $2.7 billion annually.
• The industry is highly fragmented; the top 50 companies account for 22% of industry revenue.
• The industry primarily consists of small, independent operators that serve a local market. Franchises include Pop-A-Lock and Mr. Rekey.