Back story: Improvements in the labor market will sustain demand for industry services

The Background Check Services industry comprises companies that offer tenant and employment background screenings to consumers, landlords, corporations and other organizations. Improvements in the labor market and a decline in rental vacancy rates over the past five years have boosted demand for background check services, as more people were offered jobs and the rental market became more competitive. Over the past decade, the internet has been the primary driver of industry growth. Traditionally, background check services were largely conducted manually, but the internet has streamlined and automated many of the processes formerly performed by hand...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
3.8%
Forecast Growth 18-23
Profit
Employment
19,267
Businesses
1,872

Industry Threats & Opportunities

  • Improvements in the labor market and a decline in rental vacancy rates over the past five years have boosted demand
  • New entrants to the market, especially venture-backed companies, have led to price competition
  • Favorable macroeconomic conditions will enable businesses to better afford industry services
  • Industry Report - Industry Investment Chapter

    The Background Check Services industry has a low level of capital intensity. While many companies operate online, minimal computer hardware and software is required to provide services. As a result, capital investments are low for this industry. Industry operations are also moderately labor intensive. Small companies require a relatively large number of employees to provide services, while large operators have mostly automated data collection and report generation infrastructure. Employees' primary duties include customer service, sales and product development. Over the past five years, capital intensity not changed; in 2018, as in 2013, for every dollar spent on labor, industry companies are expected to spend $0.03 on capital investments...purchase to read more.

    Additional Insights for the Background Check Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Background Check Services Industry are

  • Must comply with government regulations
  • Economies of scale
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Rental vacancy rates and National unemployment rate in the Background Check Services industry impact industry performance..

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    What's in this report

    What is the Background Check Services Industry?

    Operators in this industry offer tenant and employment background screening to consumers, landlords, corporations and other organizations.

    Industry Products
  • Reference check services
  • Credit check services
  • Criminal record-check services
  • Industry Activities
  • Credit check services in conjunction with other background check services
  • Criminal record-check services
  • Reference check services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rental vacancy rates
  • National unemployment rate
  • Percentage of services conducted online
  • Consumer spending

  • Current Performance
  • Industry demand
  • The internet’s impact
  • Increased competition
  • Chart: Revenue Growth

  • Industry Outlook
  • The labor market
  • Regulation
  • Services conducted online
  • Table: Background Check Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Background Check Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Space Vehicle & Missile Manufacturing
  • Tank & Armored Vehicle Manufacturing
  • Retail Trade
  • Finance and Insurance
  • Apartment Rental
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Data Processing & Hosting Services
  • Database, Storage & Backup Software Publishing
  • Public Administration

  • Products & Services
  • Credit check services
  • Criminal record-check services
  • Reference check services
  • Chart: Background Check Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other sectors
  • Landlords
  • Retailers
  • Financial services providers
  • Healthcare services providers
  • Chart: Major Market Segmentation for the Background Check Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Background Check Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Background Check Services Industry

  • Industry Globalization
    First Advantage, SterlingBackcheck,
  • Table: First Advantage - financial performance
  • Table: SterlingBackcheck - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Background Check Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Background Check Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Rental vacancy rates (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Adverse Action
  • Employers or landlords making an adverse decision on employment or tenancy (such as rejection for rental or employment).
  • Consumer Reports
  • A report that contains information about an individual. Information includes credit history, personal characteristics and general reputation. Commonly referred to as background checks.
  • Personally Identifiable Information (Pii)
  • Information that can be used to uniquely identify, contact or locate a person.
  • Pre-Adverse Action
  • Employers presenting the background check to applicants to provide them with an opportunity to dispute inaccuracies prior to a final decision.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Background Check Services 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 Background Check Services:
    • 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 Background Check Services 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 Background Check Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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