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 7,400 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 108 workers, and generates $4 million annually.
- The security guard and patrol services industry consists of about 7,400 firms that employ about 801,000 workers and generate nearly $32 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 USA, Allied Universal Security, and Canada-based GardaWorld. 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
Recent Developments
Oct 4, 2024 - Organized Retail Crime Rises
- Organized retail crime (ORC) continues to rise, according to the recent ORC Across the States survey by the Loss Prevention Research Council (LPRC). The survey asked retail respondents, “In the past 12 months, has organized retail crime increased, decreased, or stayed about the same in the areas you serve?” Respondents were also given the option to answer “not sure” or “do not have access to this information.” More than 68% of respondents reported that ORC had increased, 20.7% said ORC had stayed the same, 1.3% reported a decrease, and 9.9% either didn’t have the information or weren’t sure. States with some of the largest increases in ORC were California, Indiana, Florida, Wisconsin, and Missouri. States with the smallest rises in ORC were Maine, Connecticut, Massachusetts, Oklahoma, and Georgia. No state saw a drop in ORC.
- In September, Amazon’s CEO announced that starting January 2, 2025, the company’s corporate staff would have to return to the office full time, according to The Wall Street Journal. Since the end of the pandemic, hybrid work models have persisted, often due to management concerns that top performers might leave if they were required to spend more time in the office. However, as the labor market has tightened, the balance of power has shifted to favor employers, and some are eager to use their upper hand to require five days of in-office work. However, over the last year, the number of companies requiring five days in the office has fallen by 15%, according to Flex Index, which tracks the work policies of about 6,300 firms. A recent survey of CEOs by KMPG showed that 80% expect corporate employees to return to the office five days per week within three years. More firms returning to five-day in-office schedules could boost demand for security guard and patrol services.
- According to a recent survey by the US Bureau of Labor Statistics (BLS), the percentage of workers who work from home has increased over the last year. In June 2024, 22.3% of the US workforce teleworked on a non-seasonally adjusted basis, up from 19% in June 2023. The share of workers who teleworked increased even though the total number of workers remained essentially unchanged. However, over the same period, the average weekly hours for remote work fell from 28.7 to 27. The BLS attributed the drop in weekly hours spent working from home to wider adoption of hybrid models where workers divide work between the office and home. Between June 2023 and June 2024, the percentage of workers who telework full-time fell from 53.2% to 48.4%. Remote work can put downward pressure on office space demand, reducing demand for security guards and patrol services.
- The security guard and patrol services industry is forecast to notch steady growth for the next several years following expected sluggishness in 2024. The industry’s year-over-year sales increased by 5.5% in 2022 and 6.3% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to slow to 2.7% in 2024, then rise to 4.7% in 2025. The industry will then see stronger and steady average annual growth of about 5.9% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
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