Many of us can attest to large businesses’ domino effect on small businesses in the Protection Industry. While no reliable data is available with a breakdown of the Security Industry’s various slices, some of the hardest-hit areas include the Executive Protection and Event Security disciplines. 

Some other security industry areas, primarily the guarding sector, experienced some business influx due to the country’s ongoing civil unrest. Interestingly, business clients called upon security organizations to monitor COVID infections early on, with many of these added services dropping off a short time later in 2020.

Our observations tell us the security industry will experience a slight increase in 2021 over 2020, with more growth in 2022. Overall gains in US security service will continue based on actual and perceived risk activity. One of the most challenging hills for security consumers to navigate is the quality of services received based on vendors’ abilities to recruit appropriate security personnel. Today the security personnel industry still outnumbers law enforcement nearly 2 to 1, and this trend will likely go unchanged.

Small Business

The share of New York’s small businesses reporting negative impacts has been consistently more significant than the national average, which has also declined more quickly. In April 2020, almost 90 percent of small businesses nationally reported a negative impact; by the first week of March, that figure dropped 18 percent to 72 percent.

For many small businesses, the pandemic quickly resulted in a revenue decline. According to the Census Bureau, 77 percent of New York’s small businesses reported a decrease in revenues, sales, or receipts, not including financial assistance or loans, at the end of April 2020. While few small businesses say that revenues are growing, most are no longer seeing declines: only 27 percent reported declines in the first week of March while 65 percent reported no change.

The current National Average is 28%. Data collection for these states and the impact of COVID 19 on Small Business Revenue represents the period between March 8, 2021, and March 14, 2021.

States with Higher Declining Small Business Revenue 

New York 6.8% Higher 

Connecticut 6% Higher

Nevada 5.6% Higher

California 5.1% Higher 

States with Less than the National Average

Idaho 14.6% Lower

Utah 11.2% Lower

Arkansas 11% Lower

Alabama 11% Lower

Adapt and Overcome

As I previously stated, competition and service quality are the most prominent concerns I have as our industry continues a growth pattern – we will see in the coming year as we all watch closely and, most importantly – participate.In my opinion, the protection industry’s diversity will allow it to overcome the current challenges and those that lay ahead. The last year’s impact of COVID caused workforce reductions in some instances, but we found other consumers having a greater appreciation for their need for security staffing in different situations.

Another unfolding trend to watch is the significant acquisitions taking place within the “guarding” industry. 

Small security businesses can benefit from supporting the more prominent industry players as these entities require fulfillment needs. Other small companies may find a door opening to serve more significant consumers who choose to steer away from the large security companies.

As I previously stated, competition and service quality are the most prominent concerns I have as our industry continues a growth pattern – we will see in the coming year as we all watch closely and, most importantly – participate in the positive outcome.

Information Sources: New York State Comptroller’s Office and the United States Census Bureau