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By: IBISWorld Analyst, Nate Gelman
Strategic Questions for Choosing the Right Supplier
With revenue poised to reach more than $30 billion in 2017, it’s clear that the Security Guard Services market has been enjoying strong growth in recent years. With growing revenue bases, common buyers of security guard services such as educational institutions, healthcare facility operators and property managers have upped the amount they spend on this service to protect their expanding businesses more effectively. Suppliers in this market provide security guard services to buyers with the aim to deter trespassing, theft and other crimes. In addition to patrolling, service providers are also responsible for documenting and reporting suspicious activity to law enforcement so that legal authorities can address crimes that occur on the buyer’s property more easily. While most security guards do not carry firearms while on the job, customers in many jurisdictions have the option of hiring armed guards, which offer an extra level of deterrence and are better equipped to deal with violent intruders.
With close to 10,000 providers operating in the market, and supplier types that range from local owner-operated outlets with no paid employees to multinational security companies with thousands of employees, it can be difficult for buyers to identify the ideal supplier. Significant merger and acquisition activity has occurred in recent years among multinational security firms. In August 2016, two major players, AlliedBarton Security Services LLC and Universal Services of America, merged to form Allied Universal. Given the market’s changing landscape and the litany of suppliers, buyers can often have difficulty finding the ideal supplier. Accordingly, IBISWorld recommends that buyers ask the following questions during negotiations.