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 $575,000 annually.
- The locksmith industry consists of about 4,000 companies that employ about 16,500 workers and generate about $2.3 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
May 17, 2023 - Commercial Bankruptcy Filings Up
- Commercial bankruptcy filings, a demand indicator for business-related lock-changing services, increased slightly in April 2023 compared to April 2022, according to Epiq Bankruptcy Solutions. Subchapter V small business filings within Chapter 11 grew 81% in April 2023 compared to April 2022. According to Epiq, the substantial year-over-year increase in subchapter V elections reflects statutory developments from last year. According to ABI Executive Director Amy Quackenboss, “As small businesses employ millions of Americans and individual spending is a key driver of our economy, maintaining an established path to reorganizing debts in bankruptcy is key. I look forward to the work of ABI’s Subchapter V Task Force in identifying ways we can improve eligibility for a financial fresh start for businesses and individuals.”
- Labor quality was the top business problem for small business owners, called out by 24% of owners, according to a survey by the National Federation of Independent Business (NFIB). The NFIB’s Small Business Optimism Index declined 1.1 points in April 2023 to 89.0, marking the 16th consecutive month below the 49-year average of 98. According to NFIB Chief Economist Bill Dunkelberg, “Optimism is not improving on Main Street as more owners struggle with finding qualified workers for their open positions. Inflation remains a top concern for small businesses but is showing signs of easing.” Owners are still encountering supply chain disruptions, with about half reporting a significant or moderate impact on their business.
- According to the Jobber Home Service Economic Report, sustained consumer demand, new business formation, and rising costs are trends for home service businesses such as cleaners, landscapers, locksmiths, and HVAC technicians. Home service businesses had low to flat revenue growth in 2022 over 2021, following very high growth in 2021; gains were primarily driven by higher invoice values as the number of invoices sent per month has only risen slightly. The rising costs for home service businesses have contributed to an average invoice value increase of 10% year over year since 2020. New business formation has consistently grown since mid-2020, with more than 40,000 new construction businesses and 30,000 new lawn care and cleaning businesses starting each month. Materials and labor costs rose in 2022, major costs for the home services industry. Commodities with the biggest effect on service providers in 2022 were gasoline, HVAC equipment, and steel products.
- Locksmith demand may rise if businesses shutter due to their inability to pay rent. The average national rent delinquency rate in February was 32%, up two percentage points from January 2023, according to Alignable's monthly "Small Business Rent Report" report, a social media outlet for small business owners. The types of small businesses that continue to need help making rent include construction (13%) automotive (23%), and transportation (16%). In February, the percentage of small businesses retailers that failed to pay their rent in full and on time fell four percentage points to 38% compared to the prior month.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.