Expect to see ‘restricted’ growth in the manned guarding sector, and overall moderate growth of 4pc between now and 2010, according to a market study.
The UK manned security market continues to be highly competitive and margins continue to be squeezed, the MBD report adds. The UK market for manned security has seen growth in nominal and real terms in the five years to 2005, the report says. In 2005, the value of the market is projected to increase by a nominal 4pc to £2946m. This follows stronger annual growth closer to 10pc in the previous four years. The report puts the more moderate development of the market in 2005 down to new, Security Industry Authority regulations with, the research says, major cost and time implications for companies, which had to invest in the licensing and training of staff. The current slowdown in economic growth is believed to have started to affect demand from some enduse sectors, in particular retail, the study adds.
The UK market for manned security is forecast to demonstrate real term growth throughout the five years to 2010. Annual growth levels are expected to remain relatively consistent between 2pc and 3pc in real terms. Overall, the market value is forecast to increase by 13pc in real terms between now and 2010. Market growth is expected to be driven
by a strong development in the custodial services sector, and further growth in CIT (cash in transit) services.
All sectors of the manned security services market are expected to show growth in real terms over the five years to 2010. However, the most significant growth is expected in custodial services, where the value is anticipated to grow by 47pc in real terms between 2005 and 2010. The CIT sector is also expected to rise strongly, due to a continued trend towards outsourcing by financial institutions, and more cash machines (ATMs) in the UK. The value of CIT services is expected to increase by 22pc in real terms between now and 2010.
Market development is expected to be hindered, according to the report, by private security industry regulation, which will result in increased costs for operators. Expected fewer market entrants, and the market exit of some smaller operators, the report adds. The manned guarding sector continues to face competition form electronic monitoring.
The licensing of the industry will increase costs of providing security services, which is likely to be reflected in higher average prices of manned security, according to the survey. There will be a need for innovation and development to provide greater added value to customers. In terms of security officers, it is widely believed, the report claims, that the manned security sector continues to suffer from a poor image, unable to attract and retain the right calibre of staff. This is due to a number of reasons, such as low rate of pay, poor career prospects and poor training, the report closes.
For more details
For a copy of the UK manned security sector report, by MBD, priced £550, ring 0161 247 8600 or fax 0161 247 8606. The firm also offers reports on other industries, such as facilities management, and mechanical and electrical contracting; and in security, CCTV, access control and security equipment.
