Security Guards and Patrol Services

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 6,800 security firms in the US provide security guard, patrol, and related services, including personal and property protection. Security guards are a supplement to public law enforcement, and act as a deterrent to crime. The majority of industry revenue comes from securing buildings and parking facilities. Other services include crowd control and bodyguard services. In addition to guards, firms use electronic security systems or guard dogs to enhance protective services. Firms may provide consulting services, such as security system design or training.

High Cost Of Failure

The nature of the security business puts companies at risk for liability for personal injury, property damage, and financial losses.

Limited Pricing Flexibility

The security guard services industry’s struggle to maintain profitability is complicated by stubborn low growth in pricing.

Industry size & Structure

The average security guard and patrol services provider operates out of a single location, employs 111 workers, and generates $5 million annually.

    • The security guard and patrol services industry consists of about 6,800 firms that employ about 757,600 workers and generate about $35 billion annually.
    • The security guard and patrol services industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for 64% of industry revenue.
    • Large companies include Securitas North America, Allied Universal Security, and G4S (formerly Wackenhut). Some large firms are foreign-owned or have international operations.
    • The industry includes large international companies, regional firms, franchises, and independent operators.
                                  Industry Forecast
                                  Security Guards and Patrol Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 29, 2023 - Retailers Report Uptick in Shoplifting
                                  • Some major retailers are experiencing an increase in shoplifting as levels of in-person shopping return to normal, according to The Wall Street Journal. During recent calls with analysts, executives at retailers, including Macy’s, TJX Co., and Target, suggested that “shrink” is starting to affect margins. Shrink is a term used to describe the discrepancy between actual inventory and what is on a company’s books. It can include lost inventory or inaccurate inventory data, as well as internal and external theft. To combat the rise in shoplifting, some retailers are hiring more security guards, adding cameras, locking up high-end goods, and using facial recognition software to identify repeat offenders.
                                  • By the end of 2023, 48% of worldwide information workers will have a hybrid work schedule, according to a recent report by Gartner. Another 9% of information workers will be fully remote by the end of 2023. The remaining 52% of global information workers will work entirely in person. For many information workers, hybrid work environments are increasingly an expectation rather than a perk. The trend is even more pronounced in the US, where 51% of knowledge workers with work hybrid and 25% will be 100% remote. Gartner defines hybrid workers as those in the office at least one day per week. Demand for guarding services may drop if office occupancy levels remain below pre-pandemic norms.
                                  • In early February, the US Senate introduced the Combating Organized Retail Crime Act of 2023. The bill would establish a multi-agency response to emerging threats in organized retail crime, including a broadening of statutes dealing with the transport of stolen goods. The measure would also provide additional resources to law enforcement on the state and federal levels. In the week following the introduction of the Senate bill, a companion bill of the same name was introduced in the US House. According to a report by the National Retail Federation, organized retail crime resulted in $94.5 billion in losses in 2021.
                                  • At the CES consumer technology show in January, security firm ADT Commercial debuted its new EvoGuard brand of autonomous guarding solutions. EvoGuard, which ADT expects to begin commercializing in 2023, will offer autonomous robots and drones that provide comprehensive surveillance in a number of commercial settings. The EvoGuard humanoid robots are being developed with partner Halodi Robotics to offer several security functions, including autonomously patrolling commercial spaces, performing two-way communications between the public and an operator, safely inspecting and removing hazards or obstructions, and self-docking for recharging. In avatar mode, the robot can be operated by a human controller via a virtual reality system. With partner Indoor Robotics, ADT is developing a drone for 24/7 patrol and surveillance of indoor facilities.
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