Daily Archives: 04/10/2013

BSIA leads talks on security regulation at party conferences

As this year’s political party conference season draws to a close, the British Security Industry Association (BSIA) has reflected on a number of successful discussions with MPs, Think Tanks and Police and Crime Commissioners which saw the issues of police reform, regulatory change and the CCTV Code of Practice at the forefront of the agenda.

Attending both the Conservative and Labour Party Conferences, the BSIA’s CEO James Kelly led the way in championing the views of Association members, raising awareness among Parliamentarians of the issues and challenges currently facing the UK’s private security industry.

At the forefront of these discussions was the transition to a new regulatory regime, and in particular the urgent need for clarity from the Government on the timings and costs involved.

James Kelly: CEO at the British Security Industry Association

James Kelly: CEO at the British Security Industry Association

Primary legislation: the essential next step

“Primary legislation is an essential next step in the transition to a new regulatory regime, effecting the change in status of the Security Industry Authority (SIA), the introduction of new enforcement powers and the transfer of responsibility for the industry’s quality hallmark – currently the Approved Contractor Scheme – to industry,” explained Kelly.

“Perhaps the most important of these changes is the granting of new civil enforcement powers to the Security Industry Authority (SIA), which would give the organisation the power to issue penalty fines or take legal action against companies breaching the terms of their licence.”

Kelly continued: “Recently, there has been talk of a ‘half-way house’, by which the introduction of business licencing would be effected through secondary legislation without granting civil enforcement powers to the SIA. It’s our view that this compromise could potentially threaten the current standards of professionalism within our industry, as it increases the risk of lower-level and semi-serious breaches going unpunished, in turn increasing the risk to customers and the public.”

The BSIA’s leader added: “Despite the necessity of primary legislation, the failure of Government to identify a suitable legislative vehicle by which to enact these changes is placing the original implementation target of 2014 in real jeopardy.”

Support for the BSIA’s cause

Support for the BSIA’s cause was pledged from both Labour and Conservative politicians, as well as a number of Police and Crime Commissioners (PCCs), many of whom depend upon private security companies to provide back office support to forces and help police officers return to front-line duty.

Hosting a networking dinner at the Conservative Party Conference with keynote speaker Lord Taylor of Holbeach (Parliamentary Under-Secretary at the Home Office), the BSIA was able to explore this issue in more detail with PCCs, MPs and local council leaders.

Lord Taylor of Holbeach

Lord Taylor of Holbeach

“The standards set and maintained by industry regulation and licensing are key to the ability of police forces across the UK to place their trust in private security suppliers,” urged Kelly. “It’s essential that the future regulatory regime continues to provide this element of reassurance.”

The BSIA’s political engagement programme is set to continue into 2014 as the Association seeks to build upon the progress made at the party conferences.

“With the 2015 General Election fast approaching, it’s important that the BSIA continues to engage with the entire political spectrum and ensures that our industry is fully represented throughout this period of transition and change,” concluded Kelly.

“The BSIA is proud of its role as the voice of the UK’s private security industry, and we’re looking forward to building upon our success at conference to actively represent our members’ needs.”

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“Competition not consolidation” will rule in $110 billion physical security equipment and services sector

According to the latest research from IHS Inc, the global industry for physical security equipment and services was worth a massive $110 billion in 2012, with the Americas accounting for more than 40% of the overall market.

Generating $46 billion in revenue last year, North and South America combined made up 41% of the worldwide trade for physical security equipment and services.

Asia was next with $33 billion, followed by the collective Europe, Middle East and Africa (EMEA) region with $29 billion.

Strong growth is predicted in all the markets for the next few years in the IHS report entitled ‘Total Physical Security Equipment and Services: 2013’.

The global industry for physical security equipment and services was worth a massive $110 billion in 2012

The global industry for physical security equipment and services was worth a massive $110 billion in 2012

At its current level, the industry’s annual revenue is double the budget of the US Department of Homeland Security, and is also on a par with the global revenue of giant corporations such as Nissan Motor Co. of Japan, Tesco in the UK or IBM from the United States.

“This is an industry that managed to stay strong during the recession,” said David Green, senior analyst for video surveillance and security services at IHS. “Now, with the general improvement in the global economy we expect total industry revenue to reach $170 billion a year by 2017, even though growth rates will probably peak before then.”

Competition Rules come into play

As the market matures, questions are arising on whether the industry will consolidate.

Convention states that, as markets age, manufacturers will consolidate until a select few dominate the supply. This is a theory supported by many within the industry.

However, IHS isn’t convinced that this will occur because of the huge level of competition within, and the current fragmentation across the market.

Only two entities, for instance, broke the $2 billion level in annual revenue, with both accounting for a combined market share of 10%. Behind them, only five other companies possess a market share of 1% or higher.

In fact, the Top 15 together only just managed a market share of just above 20%, with the remainder of the market (more than 78%) up for grabs among thousands of other companies.

Focusing on the equipment market shows a similar story, with a very shallow curve to the market share table. In all, about 40 players in the space achieved revenues in excess of $100 million per annum in 2012.

“It’s extremely competitive in every vertical, product and region,” Green explained. “You have several companies that are offering virtually the same product in specification and price, yet the highly personal nature of security sales means that each company can claim its own little niche within the market.”

With the split of Tyco International — one of the largest companies represented in the 2012 data — into ADT, Tyco and Pentair Ltd as separate publicly traded companies, the service market is also set to become even more fragmented in the near-term future.

Is consolidation inevitable?

All this means that consolidation of the market may not be as inevitable as one might expect.

“True, mergers and acquisitions in the physical security market are inevitable and will happen, especially on the product side of things, but not with the impact you might see in other markets,” noted Green.

For a company to make significant moves up the market share table, it would realistically need the combined share of five or more existing manufacturers.

“That’s just not going to happen overnight. This is not an industry where one acquisition propels you straight to the top.”

There’s still a general expectation that in the long-term future the industry will start to become dominated by a select few, but it will be a much slower process than traditional market economy studies predict.

“Yes, it defies accepted market logic to some extent,” concluded Green, “but then at $110 billion and beating the recession, it’s hardly a typical industry anyway.”

The IHS report ‘Total Physical Security Equipment and Services: 2013’ combines annual product revenues for the following equipment types: video surveillance, access control, intruder alarms, perimeter security, entrance control (pedestrians and vehicles), consumer video surveillance, thermal cameras and wireless infrastructure as well as service revenues assigned to Video Surveillance as a Service (VSaaS), Access Control as a Service (ACaaS), remote monitoring services and security systems integration.

Find out more about the research

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MITIE expands FM partnership with Essex County Council

MITIE has furthered its FM contract with Essex County Council, supplying additional services on top of its current offer.

MITIE’s Total Security Management (TSM) business, which already provides security systems installation and maintenance and response services to Essex County Council (ECC), is now working with the council to patrol and manage 12 car parks throughout the county.

ECC looked towards MITIE to enhance its capability in respect of enforcing parking regulations. Following the team completing a parking enforcement training programme, MITIE proposed a patrol plan to support the portfolio of sites in an efficient and effective manner.

In the first week, the MITIE team increased ticket issuing by six times more than the previous level, while overall season ticket compliance has improved as car park users now see visible car park management.

MITIE TSM's officers: proving added value for Essex County Council (Photo: VisMedia)

MITIE TSM’s officers: proving added value for Essex County Council (Photo: VisMedia)

Driving up compliance and revenues

Danny Vant, mobile services director at MITIE TSM, commented: “The results of the first month were really pleasing. The parking revenue is vital to assist ECC in funding the parks for people to enjoy. By driving up compliance and revenue, this allows the council to maintain them.”

Vant continued: “The feedback from the Park Rangers was extremely positive. They’re really seeing the benefit of the additional parking enforcement service we are providing.”

Tim Dixon, head of parks at ECC, added: “The role of MITIE in this aspect of our work has been of tremendous benefit when it comes to maintaining the credibility of the system while also ensuring the income generated through parking charges is maintained.”

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G4S wins major UK security contract with Bank of America Merrill Lynch

G4S has won the contract to provide security solutions to Bank of America Merrill Lynch operations in the United Kingdom.

From December this year, the three-year contract will see over 200 officers from G4S Secure Solutions (UK) secure six key sites for the Bank in a move that will form one of the company’s largest commercial UK contracts.

Under the contract, G4S employees will provide reception security, access control solutions, patrolling, administration functions, CCTV operation/systems, intelligence and risk management at the six sites across the UK and Ireland, including Bank of America Merrill Lynch’s headquarters at King Edward Street, London.

G4S’ contract with Bank of America is another addition to the growing partnership between the two companies. G4S currently provides security solutions to over 3,000 Bank of America branches across the United States and facilities across the world.

The deal will also see G4S provide sophisticated technology-based security solutions to the Bank, including handheld devices for G4S officers providing intelligence, reporting and monitoring.

Technology-enabled operations will include reporting procedures harmonised between the UK and the US leading to a single global standard for the Bank.

Doug Hewitson: group managing director at G4S Secure Solutions (UK)

Doug Hewitson: group managing director at G4S Secure Solutions (UK)

Industry-leading security solutions

Doug Hewitson, the group managing director at G4S Secure Solutions, said: “This is a key strategic contract win for G4S in the UK and Ireland. Our officers will hit the ground running with the provision of industry-leading security solutions to Bank of America. Building on our ethos of partnership working, we look forward to beginning the contract later this year, which includes the delivery of technology-enabled officers as part of our complex security offering.”

G4S Secure Solutions (UK) employs more than 24,000 people throughout the UK, working with a wide range of public sector and commercial clients including 59 FTSE 100 companies.

The company provides specialist security solutions to over 6,000 customers across a range of sectors including Government, the utilities, financial institutions, leisure and tourism companies and transport bodies.

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