What you need to know about the security industry

Companies or organizations that utilize security are in a predicament these days.

The Problem with the Security Industry Today

The security industry is undergoing a major shift. Why is that a problem?

There is a consolidation through acquisition of security companies in the United States. This trend is negatively affecting security industry clients in several serious ways.

The largest security companies are buying the regional and midsized companies.

The intention is to take the parent company public for profit driven reasons. These consolidations cause issues for customers in unsuspecting ways. There are times when the acquiring company used to provide security for the client and now through acquisition, the client is forced to take the security provider back because, the largest companies are buying up all the competition. One of the first things these conglomerates do is cut the management staff that ensures quality levels. They do this because the management and executive level positions are typically the highest paid in an organization. This process is an immediate positive effect to the bottom line of the security conglomerate. But, it takes time for the conglomerate to start losing contracts due to poor performance. Communication between clients and the security provider do not improve. We hear these complaints every day from frustrated security clients getting out of that cycle.

Customer Service, management and supervision are costly.

When security companies are owned by private equity groups or other financial institutions, the goal is to drive profits in order to sell the company for the most money. There is a common formula for this type of rollup. Eliminating customer service, management and supervision provide an immediate increase the profitability. The effect of this trick takes time to affect the security company’s sales. Most security clients don’t like to switch companies quickly. So, they give the security company several chances or may not even realize there is a drop in service for a little while. The security conglomerate is betting on this because they can exit and sell their company for profit before too many security clients realize what’s going on. Arrow Security makes Customer Service a priority.

Client size, Security conglomerates have massive contracts.
They may provide one client tens of thousands of security guard hours per week. These types of security companies focus their efforts on keeping only the largest of their clients happy because, losing those contracts would have an immediate effect on their profits and ability to sell their company or take the company public. Here at Arrow Security, we are committed to treating all our customers in the same way. We deliver the same quality of security and protection whether you represent a large contract or a smaller one. If a company entrusts us with protecting them, we take that honor and trust seriously. Every time
Size does matter, in this case.
Security conglomerates are too disconnected and smaller companies don’t have the resources and capabilities to stay in compliance with the ever-increasing rules, regulations and complexities of being in business today. The mid-sized companies have mostly sold to the security conglomerates. Where’s the ideal size security company – mid-sized. Arrow Security is able to compete with the largest of companies in our service areas and still able to provide great service and most importantly – maintain great customer service, supervision and flexibility.
Change, it’s understandable the hesitancy in switching security companies.
This is a unique time in the security industry. Potential clients worry about the quality of the new company or their reliability. We’ve seen the competition promise the world knowing full well they won’t be able to deliver the service. Again, this is motivated by the security conglomerates looking to boost sales because of their exit strategy.
Guard agencies are trying to offer too many services.
Your cleaning company shouldn’t be your security agency. Companies installing your camera system can’t focus on security guard service. How do these companies even split their time when they are such diversity in their services? They start the day at 9 AM and say let’s focus on the security guard service but, only until 11 AM because then we have to worry about installing alarms, and then at 12 PM we have to put our janitorial hats on and then who knows what. We provide security guards at Arrow Security. If you want to security guard in a car, we can do that. If you want security guard with a gun, we can do that. If you want to an alarm, a camera system, your office cleaned, an armored car, door locks, or consulting, then sadly we can’t help you
Invoicing – Customer complaints about invoicing are more common than one would think.
Arrow Security invoices on a weekly basis. We can provide as much or as little detail about shifts, hours, and which security guards worked. We email these invoices on a weekly basis and offer ACH payment remittance to make things even easier on our customers.

This consolidation has never been seen before in this industry. We know this because Arrow Security has been in business for 35 years. We aren’t promising that there will never be any problems. We will promise that we will always be here to address those problems with our supervision, management and ownership.

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