September 3, 2003—UK companies may need to reconsider their security spending if they want to maintain current manned guarding levels, says the British Security Industry Association.
Speaking to Norwich Union’s ‘Net Risk’, BSIA chief executive David Dickinson warned that changes in the way the security industry is to operate in future will mean a significant increase in costs. These are likely to be passed on to customers, Dickinson added.
Citing the national minimum wage, the Working Time Directive and the licensing of security personnel, Dickinson said: “The industry simply cannot afford to absorb these additional costs. Estimates of the likely impact vary, but it could be in the region of 4-7%.
“End users need to realize that we are talking about something more than simply inflation-only cost rises,” he noted. “A number of guarding companies are already reported to be making losses and we need to improve margins to be able to afford the investment that will be required. Customers who will receive the benefits of improved quality, consistency of service and higher standards should pay for this.”
The BSIA is working with the new Security Industry Authority to develop a consistent approach to these issues. A joint opinion on the likely financial impact is expected in September. A series of seminars will then be arranged to provide customer organizations with more information and guidance in preparing security budgets.
The Financial Times reports that Securicor has budgeted up to 120m for acquisitions in an effort to become one of the world’s three largest security services groups. Chief executive Nick Buckles has said that if United Technologies, which recently acquired Chubb, decided to put any of that company’s businesses up for sale, Securicor would be keen to bid.
Buckles said: “We believe in further consolidation within the industry, and if UTC were to sell off Chubb’s manned guarding businesses, it is highly likely we would be interested.”
—Elliott Chase
Reprinted with permission; copyright 2003 i-FM
