Pest Analysis
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 UK 's 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
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 UK 's 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