Will Economic Doom Effect the Security Industry?
Once
upon a time, most people felt relatively safe. That is, until 9/11 took away
those rose colored glasses and forced the world to take a good hard look at the
prospect of security in an age of terrorism and made it a part of every aspect
of our lives. You don't have far to look, either. Airports have tightened their
grip with longer lines at checkpoints and government buildings and local
agencies have added more procedures and responsibilities to coordinate and contend
with orange alerts.
Make
no mistake, Americans on the whole have become more security conscious and
society has gotten more dangerous with each passing year. But, striking a
balance between public and personal privacy has also seen an ever-increasing
number of security firms flourish, until, now. With a heightened sense of
danger, the security and safety sector, which encompasses a wide range of
companies that produce everything from sensors, alarms and cameras could
suddenly take a turn for the worse during the current economic downfall. If
these security firms fail, who will protect us, then? A scary thought.
Especially
when you consider the stakes. For instance, Tyco International sells the
largest home invasion alarms for five million households. What if this company
was no longer operating? Or what if other firms that specialize in security
systems for jails and prisons on behalf of the government should cease to
exist? The gravity of security firms that deal with screening systems for theft
or issues of fire and safety, ambulance services, or the detection of
explosives and toxic chemicals is certainly not to be taken lightly. So, it
remains today and probably well into the future, security is our number one
priority.
But
luckily, although this industry has already begun showing signs of a slow down,
the possibility of it disappearing altogether remain, unlikely, mostly, due to
the enormity of market, itself
The
security industry consists of thousands of businesses outside of public law
enforcement. With over 300 companies selling electronic security products,
along with the nine conglomerates claiming nearly half of the market, the
possibility of this industry faltering is slim. Especially, when the mainstays
are General Electric, United Technologies, Honeywell International, Siemens,
Tyco, L-3 Communications, Diebold and Schneider Electric.
Electronic
security systems have steadily skyrocketed over the past five years, although
next year's growth won't be nearly as substantial. Nonetheless, electronic
security is expected to see above average growth, particularly for industrial
sites, office buildings and the entire services sector. Part of the reason
behind this growth is the perception of a growing crime risk. In addition, homeowners
and businesses are taking matters into their own hands with the belief that
public safety organizations are overburdened. Improved technology and lower
costs should also increase spending for upgrades on existing security systems.
But, the best opportunity for growth will come from those products and services
that are geared towards a high level of protection and less human interaction
which won't necessarily add to unemployment statistics, but may actually
fine-tune efficiency.
But,
the thoroughbred of security systems with the biggest expectations will be the
maker of biometric controls, which uses fingertips or iris scans to grant
clearance to government agencies. This new innovation represents the wave of
the future.
So, if you're still wondering whether or not our security industry will see us through this current economic crisis? Rest assured, although the stock market may be volatile, we'll prevail, come what may.