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 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
Recent Developments
Nov 16, 2022 - Business Formations Rise
- The rate of US business formations, a demand indicator for locksmiths, increased by 1% in September 2022 compared to the prior month, according to the US Census Bureau. The Northeast posted the strongest growth in September business formations with a rise of 2.9%, followed by the West with an increase of 2.6%. The Midwest saw a 0.7% uptick in formations, but the South was down 0.3%. Of the 20 major industry sectors tracked by the Census Bureau, all but four posted growth in business formations in September, led by wholesale trade (up 8.9%), unclassified (+8.6%), utilities (+4.5), real estate (+4.3%), and retail (+2.8%). Categories that posted declines in business formations in September were mining (down 8.7%), arts and entertainment (-2.7%), finance and insurance (-0.3%), and other services (-3%).
- High interest rates, elevated building materials prices, and a lack of affordable inventory pushed home builder sentiment lower in November, according to the National Association of Home Builders (NAHB). Homebuilder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell five points to 33 in November 2022 from 38 in October, marking the 11th consecutive monthly decline. Any HMI reading over 50 indicates more builders see conditions as good than poor. Amid weak buyer traffic, 37% of homebuilders reported cutting prices in November compared to 26% who reduced prices in September, according to the NAHB.
- Sales of existing US homes fell 1.5% in September from August and were down 23.8% year over year, according to the National Association of Realtors (NAR). August marked the eighth consecutive monthly drop as rising interest rates slow home sales. NAR chief economist Lawrence Yun said, "The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%."
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