Incarceration nation: Industry revenue will grow slowly due to a fall in crime rates, generating some uncertainty

Over the five years to 2017, in the Correctional Facilities industry the crime rate is projected to decrease, along with the incarceration rate. While the ultimate cause of falling crime rates is unknown, the decrease in incarceration rates is a conscious effort by the US government to reduce overcrowding in prisons. As a result, profit margins have fallen as fewer individuals have been incarcerated over the past five years. The industry also contends with mounting public scrutiny in the wake of several controversies surrounding the treatment of inmates. Over the five years to 2022, industry revenue is expected to grow only slightly, as a result of a continued decline in crime rates...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
1.1%
Forecast Growth 17-22
x.x%lock
Profit
x.x%lock
Employment
33,396
Businesses
2,209
Market Share of Companies

Industry Threats & Opportunities

  • Reduction in the inmate population will not only reduce demand, but will increase fixed costs
  • As the number of correctional facility management companies rises, industry employment is expected to increase
  • Federal and state governments will implement progressive criminal justice policies

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    Industry Report - Industry Key Buyers Chapter

    The Private Correctional Facilities industry is dominated by the three largest operators, Correction Corporation of America, Geo Group and Management and Training Corporation, which together control nearly 62.0% of industry revenue, up from 58.4% in 2012. High fixed costs, the need to obtain proper accreditation and comply with federal and state regulations and the small number of customers limit the competition for the largest industry players. IBISWorld estimates that 400 other businesses compete for the remaining 38.0% of the market.Over the past five years total market concentration has grown. Fal...purchase to read more.

    Additional Insights for the Correctional Facilities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Correctional Facilities Industry are

  • Ability to compete on tender
  • Carrying out all necessary maintenance to keep facilities in good condition
  • Provision of appropriate facilities

    • IBISWorld analysts also discuss how external factors such as Incarceration rate and Government consumption and investment in the Correctional Facilities industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Correctional Facilities Industry?

    The Correctional Facilities industry consists of operators that own or manage correctional facilities and halfway houses. Services provided by industry enterprises include private janitorial, maintenance, trash disposal, guard and security, mail routing reception, laundry and other services that support operations within correctional facilities. The industry does not include facility support services for other types of establishments, such as military bases or other government facilities.

    Industry Products
  • Community Correctional Facilities
  • Minimum security
  • Medium security
  • Maximum security
    • Industry Activities
  • Ownership and/or management of community correctional facilities
  • Ownership and/or management of prisons
  • Ownership and/or management of juvenile detention centers
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Incarceration rate
  • Government consumption and investment
  • Crime rate
  • Outsourcing for the Correctional Facilities industry

    • Current Performance
  • Outsourcing to solve overcrowding
  • Consolidation and profit growth
  • Chart: Revenue Growth

    • Industry Outlook
  • Less crime, fewer incarcerations
  • Overcrowding
  • Falling profit
  • Establishment and employee growth
  • Public image and risk
  • Table: Correctional Facilities Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Correctional Facilities Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Justice, Public Order and Safety Activities

    • Key Selling Industries
  • Dentists
  • Educational Services
  • Food Service Contractors
  • Job Training & Career Counseling
  • Municipal Building Construction
  • Primary Care Doctors
  • Psychologists, Social Workers & Marriage Counselors
  • Real Estate Investment Trusts

    • Products & Services
  • Medium security
  • Community Correctional Facilities
  • Minimum security
  • Maximum security
  • Chart: Correctional Facilities Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • State and local departments
  • Immigration and Customs Enforcement
  • Federal Bureau of Prisons
  • US Marshals Service
  • Chart: Major Market Segmentation for the Correctional Facilities Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Correctional Facilities

    • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Correctional Facilities Industry

    • Industry Globalization

    Major Companies

    Corecivic Inc., The GEO Group Inc.,
  • Table: Corecivic Inc. - financial performance
  • Table: The GEO Group Inc. - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Correctional Facilities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Correctional Facilities Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Incarceration rate (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios

    Jargon & Glossary

    Jail
  • A local facility where a person is physically confined while awaiting trial, sentencing or transfer, or while serving a sentence of less than one year.
    • Parole
  • Court-ordered community supervision of a convicted offender following a period of incarceration.
    • Prison
  • A state or federal facility where a person is physically confined and usually deprived of personal freedoms while serving a sentence of one or more years.
    • Probation
  • Court-ordered community supervision of a convicted offender, often in lieu of or after incarceration.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s industry research report on Correctional Facilities provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Correctional Facilities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Correctional Facilities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Correctional Facilities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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