Manned security sector prospers despite threat of mass recession

The latest research conducted by market analyst Plimsoll states that 10,000 job losses are imminent in the UK security industry, while a quarter of the sector is already showing signs of recession. Only 13% of the manned security sector, though, is exhibiting any kind of economic slowdown.

For the last three years, it seems, the cost of managers employing staff has been increasing at a greater rate than the industry has been able to afford – with the cost of salaries rising by 28% and sales by a disproportionate 24%. An estimated 76% of all the top 1,000 companies surveyed in the 'Security' report are spending more on salaries than they were in 1998.

Importantly, the cost of salaries as a function of sales has increased by 5%, and already a quarter of those companies questioned are now running at a loss. Next year, Plimsoll forecasts that salaries will increase by an average of 3.8% (from £21,006 to £21,795).

Accordingly, nearly 70% of all companies will need to shed jobs in the next financial year.

The news is not so gloomy in the manned security sector, though. Over 40% of security providers are showing no signs of recession at all, posting an average sales growth of 15.5% combined with a profit margin of 5%.

Current market growth in the manned sector is a healthy 13%. Although profitability is low (at 2%), sales per number of employees average out at £16,000 per staff member.

Many of the 75 guarding contractors surveyed in Plimsoll's 'Manned security' report plan on going for growth no matter what happens in terms of the recession. A brave but possibly cavalier approach, suggests Plimsoll.

No less than 27 of those firms questioned by Plimsoll are growing at an average of 22%.