Incarceration nation: Prison overcrowding and federal government attitudes will offer a boon to the industry

The Correctional Facilities industry owns, manages and leases prisons, community correctional facilities and juvenile detention centers on behalf of government agencies. Decreasing crime and incarceration rates, coupled with increased scrutiny in the wake of several high-profile scandals at privately operated facilities, have resulted in marginal growth rates over recent years. However, continued overcrowding of prisons at the state level is expected to prevent major hits to industry revenue. Moreover, moves by the US Department of Justice (DOJ) to reauthorize the use of private prisons on the federal level and changing immigration policies under the Trump administration are expected to offer the industry a boon during the outlook period...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
2.9%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
33,597
Businesses
2,285
Market Share of Companies

Industry Threats & Opportunities

  • Reduction in the inmate population will reduce demand and increase fixed costs
  • Industry employment has risen alongside the number of correctional facility companies
  • The number of crimes is expected to fall as the US population ages

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    Industry Report - Industry Analysis Chapter

    The Correctional Facilities industry owns and manages prisons, community correctional facilities and juvenile detention centers on behalf of government agencies. Industry operators provide full-scale support services for correctional facilities, including janitorial, maintenance, guard, security and food services. Over the five years to 2018, industry revenue is projected to grow at an annualized rate of 2.9% to reach $5.8 billion, including a projected 3.3% increase in 2018 alone. In 2017, the US Department of Justice (DOJ) announced its intention to dramatically overturn a previous ruling that aimed to reduce private prison contractors. Whi...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 in correctional facilities. The industry does not include facility support services for other types of establishments, such as military bases and 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Incarceration rate (2009-2023)

    • 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?

    The Correctional Facilities industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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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