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Manned Security - UK - November 2015

Manned Security - UK - November 2015

“Low cost delivery demands continue to push down prices, making competitive contract bids even more difficult for smaller firms in the manned security industry. Larger facilities management companies that can offer customers greater economies have a price advantage, but are also seeing a fall in revenues achieved per contract. Upcoming minimum wage increases and the introduction of the living wage in 2016 will add further pressure to a market traditionally reliant on lower waged staff, with the manpower-intensive manned security sector particularly affected.”

– Ambreen Ahmad, Research Analyst

This report will explore the following key issues regarding the manned security industry in the UK:

What are the key factors creating demand for manned security?
How have changing economic conditions affected the market?
How can small companies compete with larger facilities management providers?
How is technology impacting the manned security market?
What does the future of the UK’s manned security sector look like?


EXECUTIVE SUMMARY
The market
Custodial services driving growth
Figure 1: UK market for manned security, 2010-15
Vulnerable guarding sector faces threat from price-sensitive contracts
Central government continues to seek outsourced prison and custodial solutions
Figure 2: Segmentation of the UK market for manned security, by sector, 2011-15
Market factors
Business licencing implementation delayed further
Technological innovation by larger companies
Manned guarding demand as retail and factory numbers rise
Figure 3: Number of business premises in the UK, 2011-15
Companies
Rising costs
Figure 4: Minimum wage level in the UK 2005-15
Cash-in-transit services
Figure 5: Number of cash machines in the UK, 2009-14
What we think
KEY INSIGHTS
How is the public sector outsourcing climate affecting the manned security sector?
What impact is price competition having on the manned guarding sector?
What can companies do to compete with electronic security substitutes?
How will the trend towards cash payment reductions affect the cash-in-transit sector?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
The regulator
The customer
The supplier
UK ECONOMY
Overview
Figure 6: UK GDP quarterly development, 2003-15
Figure 7: UK GDP in economic downturns and recoveries since 1979
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Figure 8: UK GFCF 2003-15
Imports
Exports
MARKET FACTORS
Key analysis
Market factors
Fluctuating construction sector results in variable demand
Figure 9: UK economic output, by sector, 2013-15
Retail stores and factory numbers increase
Figure 10: Number of business premises in the UK, 2011-15
Figure 11: Distribution of business premises by region, England 2015
Large scale infrastructure projects on the rise
Figure 12: Number of projects and programmes in government infrastructure pipeline, 2014-15
Expanded probation service outsourcing
Resettlement prisons
Prison sell-off to fund house building
Marginal growth in prison population
Figure 13: Average prison population, England & Wales and Scotland, 2011-15
Cash-in transit security demand boosted by increase in outsourcing and cash machines
Figure 14: Number of cash machines in the UK, 2009-14
Cash transactions decline as card payments increase
Figure 15: Total volume of cash payment transactions in the UK, 2003, 2008, 2013 and 2014
Crime against persons and households continues to fall
Figure 16: Total crime levels in England and Wales, 2005-14
Retail and leisure sectors suffer most from commercial crime
Figure 17: Experience of crime in the last 12 months, in England and Wales, 2013-14
Planned increases in the minimum wage
Figure 18: Minimum wage level in the UK 2005-15
International opportunities
Figure 19: UK Security Exports – Annual Totals: 2012-14 (value)
MARKET SIZE
Key points
Market size
Figure 20: UK market for manned security, 2010-14
Public sector reliance
Price competition pushes down manned guarding revenues
Electronic security proliferation in manned guarding sector
Cautious private sector
Larger firms undertake acquisition activity in 2014-15
Internal cost cutting in a competitive environment
Marketing cash-in-transit services
SECTOR PERFORMANCE
Key points
Custodial services sector continues rapid expansion
Figure 21: Segmentation of the UK market for manned security, by type, 2011-15
MARKET TRENDS
Key points
Market trends
Continued delays in business licencing
Blurring of lines between sectors and technology
Minimum wage increases
INDUSTRY STRUCTURE
Key points
Industry overview
Takeover activity continues in 2015
Sector growth in 2015, despite acquisition activity
Figure 22: Analysis of changes in the UK private security activities industry, 2011-15
Structure by turnover
Figure 23: Analysis of the financial structure of the UK private security activities sector, 2014-15
Structure by employment
Figure 24: Analysis of the employment structure of the UK private security activities industry, 2013-14
CORDANT SECURITY
Recent company activity
Figure 25: Financial analysis of Cordant Security, 2010-14
Company strategy
AXIS SECURITY SERVICES
Recent company activity
Figure 26: Financial analysis of Axis Security Services, 2010-14
CARLISLE SECURITY SERVICES
Recent company activity
Figure 27: Financial analysis of Carlisle Security Services, 2010-14
CIS SECURITY
Recent company activity
Figure 28: Financial analysis of CIS Security, 2010-14
Company strategy
CORPS SECURITY
Recent company activity
Figure 29: Financial analysis of Corps of Commissionaires Management, 2010-14
Company strategy
FIRST SECURITY
Recent company activity
Figure 30: Financial analysis of First Security (Guards), 2010-14
Company strategy
G4S CASH SOLUTIONS (UK)
Recent company activity
Figure 31: Financial analysis of G4S Cash Solutions (UK), 2010-14
Company strategy
G4S SECURE SOLUTIONS (UK)
Recent company activity
Figure 32: Financial analysis of G4S Secure Solutions (UK), 2010-14
Company strategy
GEO AMEY PECS
Recent company activity
Figure 33: Financial analysis of GEO Amey PECS, 2012-14
Company strategy
KINGDOM SECURITY
Recent company activity
Figure 34: Financial analysis of Kingdom Security, 2010-14
Company strategy
LOOMIS UK
Recent company activity
Figure 35: Financial analysis of Loomis UK, 2010-14
Company strategy
MITIE CARE AND CUSTODY
Recent company activity
Figure 36: Financial analysis of Mitie Care and Custody, 2011-15
Company strategy
SECURITAS SECURITY SERVICES (UK)
Recent company activity
Figure 37: Financial analysis of Securitas Security Services (UK), 2010-14
Company strategy
SHIELD GUARDING COMPANY
Recent company activity
Figure 38: Financial analysis of The Shield Guarding Company, 2010-14
Company strategy
SODEXO
Sodexo Justice Services
Recent company activity
Figure 39: Turnover of Sodexo Justice Services, 2010-14
Company strategy
VISION SECURITY
Recent company activity.
Figure 40: Financial analysis of Vision Security Group, 2010-14
Company strategy
WILSON JAMES GROUP
Recent company activity
Figure 41: Financial analysis of Wilson James Group, 2010-14
Company strategy
FORECAST
Key points
Market size
Figure 42: Forecast UK market for manned security, 2015-20
Polarisation of the market to accelerate in the coming two years
Segment performance
Figure 43: Forecast UK market for manned security, 2015-20
Outsourcing trend to spur growth in prison and custodial services sector
Manned guarding sector to consolidate further
Short-term prospects hide big picture constraints for cash-in-transit sector
Industry
Foreign focus as mature UK market struggles to deliver margin growth
FURTHER SOURCES & CONTACTS
Trade associations
Trade magazines
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

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