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 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 10, 2023 - Growth Ahead for Industry
- Sales for the US locksmiths industry are projected to rise at an about 5% CAGR from 2022 to 2027, reflecting a recovery in spending on consumer services, according to a recent Inforum forecast. This rate is faster than the projected growth of the overall economy. The forecast follows industry variability during the pandemic in 2020 (-3.4%), 2021 (0.97%), and 2022 (11.6%).
- Commercial bankruptcy filings, a demand indicator for business-related lock-changing services, grew 61% in the first nine months of 2023 compared to the same period in 2022, according to Epiq Bankruptcy Solutions. The total number of commercial Chapter 11 bankruptcies filed in the first nine months of 2023 reached 4,553. Small business filings, captured as Subchapter V elections within Chapter 11, grew 55% in the first nine months of 2023 compared to 2022. The overall commercial filings registered 18,680 in the first nine months of 2023, a 17% increase over the same period in 2022. According to ABI Executive Director Amy Quackenboss, “While still below pre-pandemic levels, the numbers of filings demonstrate the difficult challenges and growing debt loads that financially distressed families and businesses are facing in this current economic environment.”
- Locksmith demand may rise if businesses shutter due to their inability to pay rent. The average national rent delinquency rate in August was 39%, up eight percentage points over July, according to Alignable's "August Revenue & Rent Report" report, a social media outlet for small business owners. The types of small businesses that continue to need help making rent include automotive (41%), construction (40%), and retail (39%). The report noted several factors negatively affecting independent business owners, including the effects of high inflation, climbing interest rates, rent spikes, labor conflicts, and a drop in consumer spending.
- The average service call rate for locksmiths in 2023 is $90, according to the Locksmith Ledger’s 2023 National Average Price Survey. Locksmiths said their pricing models factor in mileage, parts, and other factors. The average lockout call charge increased to $110 in 2023, compared to $85 in 2022, with uncertain fuel costs factoring into the price. Average hourly rates grew slightly to $95 in 2023 over $92 in 2022. The past 12 months have been challenging, with annual inflation rates expected to hover between 3.5-4% and higher interest rates making financing new equipment more costly. The article states, “The products that locksmiths install have become more expensive, too, with most distributors passing price increases down the line to their customers.” Locksmiths are benefiting from lower gas prices, with a gallon of gas costing $3.46 in March 2023 compared to $4.22 a year ago.
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