A number of factors affect the performance of the security company industry. These drivers include:
Corporate Profit – Changes in corporate profit can determine the renewal or upgrade of contracts and the recruitment of new clients. An increase in corporate profit will cause businesses to spend more on outsourced services, including those offered by this industry.
Number of Businesses – An increase in the number of businesses will boost demand for security services, since more businesses will require security services. The number of US businesses is expected to increase slowly in the coming years.
Crime Rate – Actual and perceived increases in crime lead to upgrades of security systems and services. The crime rate is expected to decline this year, representing a potential threat for the industry.
Value of Private Nonresidential Construction – An increase in this driver is likely to boost industry demand because many of these structures require security services. The total value of private nonresidential construction is expected to increase in the coming years.