Essay About Private Security And Security Services

Pest Analysis
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INTRODUCTION
This chapter identifies the main external influences on the UK market for
private security and fire protection, using the four headings of a PEST
analysis: political, economic, social and technological.
Where such influences have more than one dimension, they are considered
under the heading that is considered to be the most relevant.
POLITICAL FACTORS
The Terrorist Threat
Precautions against terrorist attacks have been stepped up since the events
of 11th September 2001, and there is strong demand for security services
and equipment in the public sector. The UK, and especially London, has been
on a high level of alert since the war in Iraq. Some of the UKs export
customers are also concerned about the threat from terrorism.
Airport Security
In the important airport and airline security sector, the effects of terrorism
have been mixed. In the US, the Federal Government took over all passenger
screening from the private security industry, and it plans to retain direct
control until 2005. Because UK firms play an important role in airport
security, this meant the loss of an important customer sector. In the UK, the
Department for Transport (DfT) took over the approval of companies
providing airport security, but it left the work in the private sector.
Around the world, heightened awareness of the need for airport security has
been a positive driver for the private security industry. There are still many
airports where security needs to be improved.
Regulation of the Security Industry
After at least 8 years of discussion, compulsory regulation of the security
industry has begun in England and Wales. It will take some time to extend
registration to all regions and all the security activities that need to be
covered, but the result should be improved standards and improved
customer confidence in the manned security sector. However, the increase in
labour costs caused by regulation is likely to eliminate some of the lower-cost
services and raise the prices of others.
The Scottish security industry is in favour of similar legislation for Scotland,
but it will take some time for this to go through the Scottish Parliament and
for a scheme to be set up.
The Expanded EU
The expansion of the EU should assist the development of the Unions new
members and lead to growth in construction work in these countries, which
will in turn produce demand for security products. UK manufacturers are
already facing growing competition from manufacturers in Eastern Europe,
but the opportunities for exports are also improving.
EU Legislation on Services
In July 2004, the Chairman of the British Security Industry Association
(BSIA), David Dickens, expressed concern about a proposed European
Directive on Services in the Internal Market. This Directive would allow EU
nationals to market their services in the UK while complying only with the
regulations that apply in their home countries, regardless of any additional
rules that may exist in the UK. The Directive would cover a very wide range
of services, including security services.
Mr Dickens pointed out that the legislation could cause abuses of competition