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

                                    Jun 14, 2022 - Evictions Return to Pre-Pandemic Levels
                                    • After the Supreme Court struck down the moratorium on evictions last summer, many expected a flood of evictions, but federal, state, and local rental aid programs mostly kept evictions at bay. Congress enacted the Emergency Rental Assistance (ERA) program in 2021 to prevent evictions during the coronavirus pandemic. Of the $46 billion allocated, as of the end of February 2022, the ERA program had paid out $30 billion to 4.7 million households. The remainder of the ERA funds is expected to be paid out by mid-2022. However, as rental aid programs wind down, in the spring of 2022, evictions were back to pre-pandemic levels, according to Princeton University’s Eviction Lab, which monitors eviction filings in six states and 31 cities.
                                    • Commercial bankruptcy filings decreased 2% month over month in May 2022 after a 4% month-over-month drop in April, according to Epiq Bankruptcy Solutions. On a year-over-year basis, commercial bankruptcies declined 4% in May. New Chapter 11 filings increased 32% month over month in April and were up 34% year over year.
                                    • Housing starts fell 0.2% month over month but increased 14.6% year over year in April. Housing completions decreased 5.1% month over month and fell 8.6% year over year in April.
                                    • 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 16.6% month over month and declined 26.9% year over year in April 2022, according to the US Department of Commerce. US existing home sales declined 2.4% in April from the prior month and fell 5.9% compared to April 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 expects the US housing market to return to pre-pandemic levels after a surprising demand surge that lasted two years.
                                    Get A Demo

                                    Vertical IQ’s Industry Intelligence Platform

                                    See for yourself why nearly 40,000 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.

                                    Request A Demo