By: Ben J. Carnevale, Managing Editor
An increasingly challenging security (physical and IT) related threat environment for U.S. businesses remains a major topic for all security management team in companies throughout the country.
And, without a successful ability to align senior management strategic thinking with those threats still too often leaves those team under-funded and without the critical support needed for achieving their objectives.
To shed some light on this critical issue and perhaps give some needed information to help in security management team presentations to upper management, our staff would like to point to a fact that recently, ASIS International collaborated with the Institute of Finance & Management (IOFM) to gather data through a combination of joint original research and analysis of existing studies of the security industry. This collaboration resulted in the release of report entitled, “The United States Security Industry: Size and Scope, Insights, Trends and Data”. Our staff believes that there is much said in this report that should or could be said to upper management by all the security management teams in their companies.
Some of the findings of this report show;
- That the U.S. Security market, inclusive of operational and IT security is estimated in size to be about U.S. $351 billion.
- Homeland Security spending to support this industry is expected to grow at about 4-5% annually to 2020.
- The operational products and equipment market projected annual growth rate is about 6.6% –a bit lower than the annual growth rate of 7.1% from a decade ago.
- Growth will be strongest in basic systems, such as access control, alarms and especially surveillance.
- The operational/physical security market is expected to grow about 5.5% in 2013, while IT is expected to grow about 9% –with the primary driver for growth in both areas being the desire to cut costs.
- Operational security related budgets are rising fastest for businesses in arts, entertainment and recreation, finance and insurance, and professional, scientific and technical services.
- Media budget growth in the U.S. for security related programs is expected to exceed 13% in 2013.
- In terms of the amounts spent on private sector security services, the training and maintenance costs are higher for IT relative to the total size of the budget.
- Spending on employee screening services is projected to increase at 36% of organizations in 2013.
- 62% of respondents have no intention to spend more on consulting, planning, and management services for security related projects in 2013.
- The estimated size of the U.S. security sector market as measured in full-time security employees (FTE’s) is between 1.75 and 1.94 million individuals.
- The private detective/investigator career in security is expected to be one of the fastest growing of all occupations – with growth of 21% projected through 2020.
- At organizations with a formalized risk analysis process, security was not given a seat at the table from the beginning of that process 41% of the time.
- Given the growing value which companies now place on intangible assets, such as intellectual property and brand reputation, there is a need for companies to shift their focus of security’s role in that company.
- Brand protection is now the number one reason that CEO’s care about security.
- There is a strong agreement that companies have to get their external business partners on board to accept shared responsibility for that company.
- The report cautions that “organizations should not take the effectiveness of electronic security systems for granted” —-training staff and monitoring system performance is still a critical requirement.
- The report states “the goal of more sophisticated security accounting should not be to more accurately describe the value of security spending versus the cost of residual risk”.
- Ultimately, Chief Security Officers (CSO’s) must adapt or die. As the report states, “….if top security leaders fail to promote a more business-like, strategic risk management approach to security, then the strategic thinking will be handed to others”.
Click here to read a free Executive Summary of this report.
To get the full report, contact ASIS Customer Service at (703) 519-6200.
If applicable, please this information along to those security management team members in your organization.