U.S. Contract Security Guard Industry: an Introduction to Services and Firms (CRS Report for Congress)
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| Release Date |
Aug. 13, 2004 |
| Report Number |
RL32523 |
| Report Type |
Report |
| Authors |
Paul W. Parfomak, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
Private security guards have long supplemented public law enforcement in the United States;
however they face new requirements since the terror attacks of September 11, 2001. The 9/11
Commission report has noted: "homeland security and national preparedness ... often begins with
the private sector." The use of contract guards for public security raises policy issues related to
capabilities, oversight, and cost-effectiveness. To assist Congress in addressing these issues, this
report provides background information concerning the contract guard industry.
According to the Bureau of Labor Statistics (BLS), in 2003 there were approximately 960,000
private security guards employed in the United States -- compared to 650,000 U.S. police officers
working that year. Security guard employment in the United States declined over the last five years,
notwithstanding the nation's heightened terrorism concerns since 2001. Overall, the number of
private guards fell by approximately 124,000 (11%) between 1999 and 2003, while the number of
police increased by approximately 34,000 (6%) during the same period. According to the BLS,
approximately 533,000, or 55%, of private security guards in the United States were employed by
contract guard companies in 2003.
According to the BLS, contract guards earned average salaries below $19,400 per year in 2003,
less than half the average salary for police. Many contract guard companies have no specific
educational requirements, although they prefer high school graduation or equivalent certification for
armed employees. Most states require guards to be licensed by the state, which typically requires
a guard to be over 18 years old, pass background and drug checks, and complete classroom training
in property rights, emergency procedures, and criminal detention. The amount of additional training
guards receive depends upon their assignments.
Contract guard services is one of the largest segments of the broader security industry, with
U.S. revenues of approximately $11 billion in 2003. The contract guard industry is somewhat
fragmented, however, with several large national companies and thousands of smaller regional and
local companies. The four largest contractors in the United States, Securitas, Wackenhut,
Allied/Barton, and Akal Security, collectively account for 50% of industry revenues and 35% of
contract employees. The two largest contractors are foreign-owned.
In its terrorism alert of August 1, 2004, the Department of Homeland Security (DHS) revealed
that surveillance by terrorists included the deployment, armament, and activity of private guards at
key financial institutions. This alert demonstrated that, in addition to their traditional roles, private
security guards could be the first line of defense against future terrorist attacks in the United States.
This report will not be updated.
