Security Firms Post Strong 2000 as Fuel Prices, Deals Play Out
The booming economy of the past few years has meant there are more businesses and homes that need to be protected.
Last year, the 10 largest security guard firms operating in Orange County saw their hours billed surge by 21% to 10.6 million vs. 1999. The number of licensed personnel working at the firms increased 22% to 4,760 people. Total employment at the 10 firms increased 27% to 4,667.
Even so, the changing economy could be coming into play at security guard firms. This year’s growth rate in hours billed slipped from 1999’s 28% clip. And at least one executive said he’s starting to feel the pinch of higher fuel prices for fleet cars.
“High gasoline prices have caused us to go back to the customer and ask for price increases, which has been difficult,” said Mike Schmidt, vice president of the southwest division of No. 1 Pinkerton Security, a unit of Sweden’s Securitas AB.
The local security guard industry also has undergone consolidation in the past year. Pinkerton acquired Burns International Security Services, the No. 5 firm on last year’s list. Before that, Burns itself had bought Wells Fargo Guard Services, the No. 6 firm last year.
The Burns buy helped move Pinkerton up a notch to the top spot this year. The firm showed an acquisition-fueled 20% gain in hours billed, while licensed personnel jumped 50% to 1,500 with new hiring at the firm.
Without Pinkerton, the trend in hours billed remained constant at the other nine firms, increasing 22% to 6.7 million.
Nordic Security Services, a unit of Costa Mesa-based Dansk Enterprises Inc., debuted in the No. 10 spot this year with a 117% jump in hours billed to 185,120 this year.
“We picked up big accounts last year,” said Peter Jenson, Nordic Security’s president, who added that his company contracted with a number of gated communities in OC last year.
No. 6 Guardsmark in Santa Ana saw a downturn as the company lost 17% of its accounts last year.
“Nothing out of the ordinary has happened, it’s just the normal business cycle,” said James Crum, facility account manager for Guardsmark. “We have a couple of accounts that we’re close to completing.”
Security firms, which include companies that provide systems and alarms, also grew last year, with the number of OC employees on this year’s list increasing 13% to 1,153 people.
ADT Security Systems, a Tyco International Ltd. unit, retained the No. 1 position, gaining 25 new employees. ADT supplies access control, closed-circuit televisions and burglar alarms.
No. 2 Edison Security, a unit of Edison International, saw its employee count hold steady last year. The company’s business is about 30% commercial and 70% residential.
No. 3 The Greater Alarm Company Inc. saw its local employment slip by seven people, or 5%, to 140. n
