The market for security guard services includes building management companies, retail organizations, churches, schools, event venues, and other businesses. According to the February 2016 IBIS World “Security Services Market Research Report,” corporate profit levels increased in the United States after the recession, therefore businesses were able to devote more funds to security services. Additionally, the number of new businesses has increased during the past five years, resulting in a corresponding increase in the potential pool of clientele for industry services. The Security Service industry is also expected in expand in the years between 2016 and 2021 as well. Nationally, the largest security service organizations account for no more than 25% of market share. In 2016, security companies that employ more than 500 persons are expected to account for only 2% while 51% employ fewer than five employees. WesCon Protection is ideally situated to increase its service capability as its leaders have prepared for expansion the past several years.
According to IBIS World (2016), globalization is expected to rapidly affect the security industry. International companies continue to expand into our domestic market, which accounts for approximately 40% of the global security services market. Because industry regulation is light in the United States, the market is attractive to foreign firms, which often operate in a country where the industry has either reached maturity or market saturation. When large international firms such as G4S PLC and Securitas AB expand into the US market, they usually do so by acquiring smaller domestic firms.
Regardless of any monetary offer, we at WesCon have no intention of “selling-out” to a larger security organization of either national or international origin. As native-born residents of the Boston Metropolitan area, our loyalties are to the individuals and organizations that we serve here. We know the area, pay personal taxes and vote here. We consider our familiarity and devotion to the Commonwealth an asset and believe that it enables WesCon Protection to better serve local clients.
Business prospects in the Boston Metropolitan area are good. While the city is not ranked among the top five most violent in Massachusetts, property crimes and assaults are frequent. Crime statistics reported by the Federal Bureau of Investigation on 1 January 2016 indicate that Boston ranked 229th in safety among the 237 that comprise the Commonwealth of Massachusetts. See the graphic below.
According to the Massachusetts Government website, 29 other cities and towns comprise the Boston Metropolitan area, therefore the incidences of crime are considerably higher. For that reason, the need for private security is high and continues to increase annually.