Industry News

Will Security Services Be Affected by Economic Downturn?

The stock market experienced a 20% decline from the October high; the economy appears to be on a downward spiral; and consumer confidence is dropping.

Some knowledgeable insiders say that the security services market is immune to economy-related downturns because even in distressed times buildings need to be protected and that building owners recognize this.

Other experts say that at some point in a downturn, the users of security services will cut their budgets for security and, historically speaking, security is one of the first functions to be reduced.

The wages of security service guards is now at $6.55 per hour ($13,624 per year). However, when adjusted for inflation, the actual value of the minimum wage has declined 20% since 1980.

Most agree that the government is largely responsible for the current economic mess and that the only curative is a drop in oil prices. However, nothing substantive is being done to drill for our own oil. Blame that on the Congress.

The profit-loss status for security services companies, while not entirely bleak, forebodes tough times ahead, and deserving of plans to tighten the belt. Source: Security Newsletter, New York, NY.

Top Ten Threats According to Largest US Corporations

1. Workplace violence
2. Lack of business continuity planning
3. Exposure to attacks against cyber communications
4. Exposure due to poor or no job applicant/employee screening
5. (tie) General employee theft
5. (tie) External theft and vandalism
7. Terrorism
8. Fraud/white-collar crime
9. Unethical business conduct
10. Political unrest and national disasters
(Source: Security Letter, 166 E. 96th St, NYC, NY 10128.)


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