Private security market to reach $66B in 2012

A report released Tuesday by market research firm The Freedonia Group projects that the demand for private security in the U.S. will grow 4.7 percent annually over the next several years, reaching a total of $65.9 billion in 2012.

Among the growth factors cited by the report include a perceived risk of crime, as well as the notion that authorities are overwhelmed and unable to provide adequate security.

The Freedonia Group’s report, titled "Private Security Services to 2012", also cites the privatization of some public safety operations like guarding government buildings and managing correctional facilities as reasons why the private security market will continue its steady growth.

"We’re in an exciting time of growth right now," said John Sacht, president of Philadelphia-based private security services firm Day & Zimmerman. Sacht added that he felt Day & Zimmerman is "growing at probably greater than market or industry rates."

Michael Cooley, the company’s regional vice president for the South added that the need for private security will become even greater over the next several years as new government regulations begin to have an impact on several industries.

"There is a trend for increased government regulation," he said. "Right now you’re seeing it in the chemical industry, both with the MARSEC (Maritime Security) regulations and the CFATS (Chemical Facility Anti-Terrorism Standards) regulations, and that’s forcing companies that may have already had a contract security program to increase both the number of personnel they need, but also the technology and hardened perimeter portions of their security program that they’re going to need."

According to Jennifer Mapes, the analyst who authored the Freedonia report, many state run agencies such as court houses and correctional facilities have turned to private security contractors as a way to cut costs.