Securitas AB Annual Report 2005
Securitas AB Annual Report 2005
Securitas AB Annual Report 2005
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In <strong>2005</strong>, all branch managers in the USA took part in a comprehensive training program focusing on fi nance, sales and human resources<br />
development. In November, branch offi cers in the New York/New Jersey region took part in one of these training sessions in Parsippany,<br />
New Jersey. Training branch offi cers is central to the organization and plays an important part in the development of its operations.<br />
In <strong>2005</strong>, extensive training programs were carried out to<br />
increase competence in our local organizations. All managers<br />
at branch offi ces participated in fi nance, sales, and<br />
human resource development training.<br />
The division also has a broad and ambitious training<br />
program in preparation for and during assignments as<br />
well as specialized training. <strong>Securitas</strong> Online Academy<br />
provides on-line training. New courses have also been<br />
developed to refi ne certain services and meet new regulatory<br />
requirements.<br />
Having recruited and developed our staff, the next<br />
step is to keep them. This is important in order to maintain<br />
and develop a high level of service and expertise.<br />
To achieve this, there are a number of different incentive<br />
systems in place to reward high performance. The division<br />
also strives to create career paths that provide opportunities<br />
for personal and professional development.<br />
Markets and customers<br />
The total market for security services in the USA is<br />
worth approximately MSEK 106,000. The market witnessed<br />
a temporary surge after the events on September<br />
11, 2001, but then fell back considerably. Over the last<br />
few years, however, there has been a stabilization of the<br />
market, which has started to grow again.<br />
In <strong>2005</strong>, the market grew some 4 percent, compared<br />
to 3 percent growth the previous year. The U.S. market<br />
is characterized by tough competition and is primarily<br />
price driven for permanent guarding services. In contrast<br />
to Europe, mobile services are unusual in the USA.<br />
The majority of security offi cers work for one customer<br />
at a time.<br />
Sales and market shares<br />
Country<br />
Sales<br />
MSEK<br />
Sales<br />
MLOC<br />
Market<br />
share, %<br />
USA 20,257 2,684 19<br />
Canada 1,122 179 17<br />
Mexico 237 341 2<br />
Total 21,616 17<br />
Market position<br />
<strong>Securitas</strong> is the market leader in the USA, with a market<br />
share of 19 percent. The division has approximately<br />
100,000 security offi cers and has wide coverage of geographical<br />
regions and business segments in the USA.<br />
There are only three large nationwide security<br />
companies in the USA, namely <strong>Securitas</strong>, followed by<br />
Wackenhut and AlliedBarton. The latter was formed<br />
in 2004 through the merger of Allied and Barton.<br />
In addition, the U.S. Federal Government has emerged<br />
as a big player in the market since it took over airport<br />
security in the wake of the attacks of September 11, 2001.<br />
Approximately 50,000 guards are federally employed.<br />
The federal share of the market for guarding services<br />
has grown by more than 10 percent annually for the past<br />
two years, which is more than twice the average market<br />
growth.<br />
For historical reasons, <strong>Securitas</strong> has a weaker position in<br />
the fast-growing market for government related security<br />
services, and thus has not been able to grow fully in line<br />
with the market in <strong>2005</strong>. <strong>Securitas</strong> aims to strengthen the<br />
division’s offering to the government market.<br />
The remaining security industry is very fragmented,<br />
with over 13,000 companies, mostly local companies<br />
with no national ambitions or operations. <strong>Securitas</strong><br />
expects the consolidation in the industry to continue.<br />
The U.S. market’s fi ve leading players, MUSD<br />
Companies Sales<br />
Branch<br />
offi ces Employees<br />
Security Services USA<br />
Market<br />
share, %<br />
<strong>Securitas</strong> 2,684 650 102,780 19<br />
Wackenhut 1,500 120 38,000 11<br />
AlliedBarton 1,099 79 37,000 8<br />
Akal Security 1,000 50 12,000 7<br />
Guardsmark 509 155 18,500 4<br />
Total 49<br />
The fi ve largest security companies in the USA have a total market share of 49 percent.<br />
Source: <strong>Securitas</strong> and Security Magazine.com<br />
SECURITAS <strong>2005</strong> 45