Locksmiths

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 3,800 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 $595,000 annually.

    • The locksmith industry consists of about 3,800 companies that employ about 15,800 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
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    May 12, 2022 - Evictions Fell to All-Time Lows in 2020, 2021
                                    • A $46 billion federal program enacted by Congress to prevent evictions during the coronavirus pandemic is expected to spend or allocate its remaining funding by mid-2022. As of February 2022, the Emergency Rental Assistance (ERA) program had obligated about $30 billion in assistance to more than 4.7 million households. Once emergency funds run out, the US Treasury department urges state and local governments to provide additional funding from the money they received through the American Rescue Plan Act. In 2020 and 2021, US evictions fell to their lowest levels on record, in part due to federal government interventions, according to an analysis released in March 2022 by Princeton University’s Eviction Lab.
                                    • Commercial bankruptcy filings decreased 4% month over month in April 2022 after a 10.8% month over month drop in March, according to Epiq Bankruptcy Solutions. On a year-over-year basis, commercial bankruptcies declined 16% in April. New Chapter 11 filings, including Sub Chapter V, decreased 15% month over month in April and were also down 15% year over year.
                                    • Housing starts increased 0.3% month over month and 3.9% year over year in March. Housing completions decreased 4.5% month over month and fell 13% year over year in March.
                                    • Demand for contactless access to buildings may decline now that the Centers for Disease Control and Prevention (CDC) has acknowledged that the risk of catching the coronavirus from surfaces is low. Researchers reported early during the pandemic that the virus could survive for days on plastic or stainless steel. The CDC advised that if someone touched one of these contaminated surfaces and then touched their eyes, nose, or mouth, they could become infected. Health experts say that revised CDC guidance reflects evolving data on transmission throughout the pandemic.
                                    • New single-family home sales decreased 8.6% month over month and declined 12.2% year over year in March 2022, according to the US Department of Commerce. US existing home sales, a demand driver for remodeling activity, declined 2.7% in March from the prior month and fell 4.5% compared to March 2021, according to the National Association of Realtors (NAR). The NAR said that rising interest rates and home prices are reducing consumers’ buying power. The NAR said it expects transactions to drop by 10% in 2022, which should help moderate rising home prices.
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