Fears of Y2K problems fueled another strong year for Orange County security guard firms, which also saw further consolidation in their ranks.
Companies listed on the Business Journal’s list of security-guard firms billed a total of 7.7 million hours, up 28% from last year. That was an even better showing than in 1998, when the number of total billable hours increased 15% from 1997.
This year, the No. 1 slot is again occupied by Universal Protection Services. The Orange-based firm’s primary business is guarding office buildings, but it enjoyed an increase in business in retail markets and gate-guarded communities in 1999.
“We’ve had another banner year,” said Brian Cescolini, Universal Protection Services’ president. “We had a huge increase because of Y2K (fears), which made for a great December and January.”
Banks, malls and some other businesses laid in extra security as a precaution in the event of end-of-the-millennium panic buying or unrest, he said.
In 1999, Universal Protection Services introduced two new services: electronic security, which include surveillance cameras and card-access systems, and emergency planning and training for individuals and businesses.
No. 2 Pinkerton Security of Santa Ana saw a 61% increase in billable hours. It acquired Santa Ana-based Bonafide Systems in February 1999. Securitas AB, which acquired Pinkerton’s parent company in March, also acquired American Protective Services (No. 5 on last year’s list) in December and merged it into Pinkerton.
Burns International Security Services’ billable hours jumped a whopping 63%. Company officials attributed the sharp increase partly to getting the account for Albertson’s Distribution Centers, which includes three locations in Southern California. The account brought in 2,700 hours a week.
Equipment Providers
This year, the Business Journal is introducing a new list: security firms. These companies are also in the security business, but they provide systems and alarms rather than manpower. The ranking is based on the number of OC on-site employees.
Like their security-guard cousins, the security firms also posted a large overall increase in 1999. The companies on the list reported a total of 863 employees, up 17% from their year-ago levels. Reasons cited by the companies included Y2K concerns and the commercial real estate boom, which is expanding the client base.
ADT Security Services tops the new list with 200 employees, up 33% from the previous year. The firm’s products include electronic card-access systems, burglar alarms and closed-captioned television. Its parent, Tyco International, is based in Bermuda.
According to Curt Hilliard, director of sales for the west for ADT, the company has seen a substantial growth in residential business as well as increased sales of CCTV for small businesses.
The second-largest firm,The Greater Alarm Co. Inc.,has 147 employees, up 21% from last year.
While the top two firms have roughly the same number of business and residential clients, No. 3 Westec Security Group is all business. Like ADT, Westec’s parent company is based abroad, in Tokyo.
No. 6 ASSI Security Inc. of Irvine posted the largest percentage gain in personnel, up 63%, from 40 to 65. The 7-year-old company, which exclusively installs commercial security systems, saw an increase in demand for system upgrades partly because of Y2K and partly due to a boom in commercial real estate construction in the county.
“We’re busy,” said Larry Picone, director of operations for ASSI. “By summer we will probably add 20 more people. Business is good.” n
