It is clear that there needs to be a dialogue opened between the Regulated Security Industry and the Security Industry Authority. As I have written on many occasions, the Regulated Security Industry is at best, standing still. There are issues which need to be discussed, such as the Apprenticeships Levy, Living Wage increases, the Approved Contractors Scheme, commoditizing of the security industry and pensions, most of which are not accepted by end users. Challenges from other industries, such as electronic security, are resulting in security services diminishing. Robots are being viewed as a replacement to manpower. The industry needs to work with the Regulator in developing a road-map as to the future path of the industry.
Released today on Infologue.com is a blog by Peter Webster, chief executive of Corps Security, a regular Infologue.com blogger, Peter Webster – The SIA Chief is open to debate. Peter discusses his meeting with Alan Clamp, Chief Executive Officer of the Security Industry Authority, writing: “As the key driver behind regulation in the private security industry, the Security Industry Authority (SIA) is under the spotlight like never before. As someone that hasn’t pulled any punches when it comes to outlining where I think the organisation is going wrong, I was both surprised and delighted when Alan Clamp, its Chief Executive Officer, invited me to discuss some of the industry’s big issues. “Our meeting concluded having covered significant ground, with food for thought on both sides. The task ahead of the SIA should not be underestimated and it is up to the security industry as a whole to question and support our regulatory body by working together. I therefore believe Mr Clamp’s willingness to engage in debate and discussion should be welcomed and built upon”.
Echoing these sentiments is Stuart Lowden, Executive Director of Wilson James, Five Times winner of the Security Excellence Awards, Best Security Guarding Company and numerous other personal and company awards. Stuart comments: “As I look back on 2016 I see a year very similar to the one that went before, so little has really changed. Even the monumental event that was Brexit has failed to make a significant impact on the sector. Many of the challenges and opportunities still remain.
“The biggest challenge, the growing pressure on prices, is creating a two-product industry. The more expensive product, the delivery of professional managing security services, is increasingly being sacrificed in favour of a more commoditised supply of manpower. Essential overheads, those invested in support management, on-site supervision and skills training, are stripped out to reduce operating costs. In fighting to gain or retain work, our sector is too often complicit in dumbing down what should be a vital, professional service.
“In rising to this challenge, those amongst us who pride ourselves as security professionals need to work harder at communicating the values of a fully managed service. We also need a better, more appropriate, measure to judge ourselves by. The ACS is perfectly fine as an entry level standard and needs to be used by procurement teams as the very minimum standards for either style of service. But thereafter there is nothing tangible and measurable that defines the higher standards of a professionally managed service. In short, those trying to offer such a service have no easy way of differentiating themselves from the market at large.
“If we are to turn the tide we need to work at this together. I respect every company’s right to sell their services in the way that best suits them. I also respect their right to bid for work at competitive margins. But no one can benefit from the current situation where buyers expect a managed service but at commodity prices, that can only end in disappointment for one or both parties. There has to be some common sense applied; 2017 would be a nice time to start.”
Infologue.com Top 30 UK Companies in the Regulated Security Sector
Turning to the Infologue.com Top 30, we believe that the estimated turnover of the regulated security sector is £4-4.2 Billion, higher than previously estimated at £3.9 billion. This is a correction, as opposed to business growth. The Top 30 security businesses make up 77.2% of the regulated security services market. In the Top 30, 70% of security businesses are within facilities services provider groups. The Infologue.com Top 30 mirrors the regulated private security sector, which includes companies operating within the following security disciplines: Guarding, Cash and Valuables in Transit, Close Protection, Door Supervision, Public Space Surveillance (CCTV), Security Guarding and Key Holding. Please read our health warning below our Top 30 Table.
|Rank||Company Name||2016 Turnover||Est Market Share|
|2||Mitie Total Security Management||£320,000,000||8.00%|
|3||Securitas Security Services Ltd||£270,000,000||6.75%|
|4||Vision Security Group Ltd (VSG)(Compass)||£181,000,000||4.53%|
|5||Interserve Plc (First Security (Guards) & Knightsbridge)||£120,000,000||3.00%|
|5||OCS Group UK Ltd||£120,000,000||3.00%|
|7||Loomis UK Ltd||£120,000,000||3.00%|
|9||Kingdom Security Ltd||£90,000,000||2.25%|
|10||TSS (Total Security Services)||£83,000,000||2.08%|
|11||ICTS UK Ltd||£82,000,000||2.05%|
|12||Wilson James Ltd||£78,500,000||1.88%|
|13||Corps Security Ltd||£73,000,000||1.83%|
|14||Ultimate Security Services Ltd||£72,000,000||1.80%|
|16||ISS Facility Services Limited||£70,000,000||1.75%|
|17||Axis Security Ltd||£68,000,000||1.70%|
|19||Profile Security Services Ltd||£44,000,000||1.10%|
|20||CIS Security Ltd||£42,550,000||1.06%|
|23||Cardinal Security Limited||£29,000,000||0.73%|
|25||Ward Security Limited||£28,000,000||0.70%|
|26||STM Group Ltd||£27,000,000||0.68%|
|28||Lodge Service Ltd||£21,000,000||0.53%|
|29||Man Commercial Protection Limited||£20,000,000||0.50%|
|30||CE Security Limited||£20,000,000||0.50%|
|31||Emprise Services Plc||£15,000,000||0.38%|
|32||Incentive Lynx Security||£15,000,000||0.38%|
|Estimated Turnover of Top 33||£3,050,481,000||77.27%|
|Est. Turnover of UK Regulated Security Industry||£4,000,000,000||100.00%|
The above table is based on estimates and historical published data of annual turnover and should be viewed only as a guide to the approximate size of the largest companies in the manned security industry. The turnover is calculated on an annualised basis as of end November 2016 and relates only to revenue derived from the regulated sector of the Private Security Industry. Some companies have non-related areas of business in their statutory accounts which Infologue.com attempts to estimate and factor out of the estimated turnover. Whilst some companies are now providing information on turnover to Infologue.com, all figures will not be accurate as statutory information can be up to two years out of date. Infologue.com welcomes input from the companies in the Infologue.com Top 30 and will amend any verified inaccuracies as soon as possible. Therefore these figures should be treated with caution and be regarded as a best guess. The Infologue.com Top 30 UK Companies in the Regulated Security Sector 2016 is an exclusive production of Infologue.com and may not be replicated without the express written permission of the producers thereof.
Infologue welcomes input from companies within the Infologue.com Top 30 and will amend any inaccuracies as soon as practically possible.
In order to be fair and reasonable, we have set a cut off period of 30 days for addition/corrections of 30 days from publication. The final decision on any amendments is strictly decided by the publisher.
When we publish the Infologue.com Top 30 each year we invite any substantiated errors in the table. This year is no exception and we have had four requests to change the table, including two new entrants, CE Security Services and Incentive Lynx Security. We have rejected two requests and added the two aforementioned companies meaning we now have 33 companies in the table. We are considering increasing the number of companies in the table to 35 in the December 2017 release.