Industry Analysis & Industry Trends
Operators in the Security Services industry provides security measures for businesses and public areas that have chosen to outsource security systems rather than take on the logistical burden of protecting their facilities themselves. Therefore, as US corporate profit levels increased after the recession, businesses had more funds available to spend on security services. In addition, an increase in the number of new businesses during the past five years has led to an expansion in the potential pool of clientele for industry services. In the five years to 2021, the Security Services industry is expected to face serious competition from security alarm service systems, which install remote-monitoring security systems, as well as provide off-site response services... purchase to read more
Industry Report - Industry Investment Chapter
This industry requires a low level of capital investment because all of its major activities involve a high degree of direct labor input. While substantial investment must be made for some services, such as the purchase of armored trucks for cash transport, the majority of revenue is derived from labor-intensive services.
Most industry employees must complete a minimal amount of training compared with other service industries. Despite this factor, wages are the largest cost for operators, accounting for 65.2% of revenue in 2016. Labor costs come in the form of guards, investigative work and corporate employees. IBISWorld estimates that for every dollar put toward labor in 2016, $0.01 is spent on capital expenditures... purchase to read more