Confidence is increasing in the security industry, with nearly eight in 10 respondents to the Security Industry Association’s (SIA) July-August 2023 Security Market Index survey offering a positive assessment of business conditions.
One-fourth of survey participants said that current conditions are “excellent,” and another 53% described them as “good.” Looking ahead three months, 86% of respondents foresee growth, with 28% saying things will get “much better” and 58% expecting that they will get “a little better.” Combined, this marks an 8% increase from the number expecting short-term growth in the May-June survey.
The index itself, which is calculated based on responses to multiple survey questions, increased from 49 two months ago to its current 57.
“We are excited to see the growing optimism in the security industry as we prepare for Securing New Ground, ISC East, and other events,” said SIA Chair James Rothstein said. “The year started off strong with a great ISC West, and the industry is now poised to accelerate through Q3 and into Q4.”
The survey also asked about the “biggest challenges” currently facing businesses, with multiple responses allowed. “Inflationary pressures” and “meeting labor needs/workforce development” were both cited by 39% of respondents, while “uncertain economic conditions” were referenced by 35% and “increased cost of capital” by 30%. Of least concern to respondents were “tariffs/trade restrictions,” which were noted by only 2% of survey participants.
SIA recently launched its Economic Outlook Series, which presents economic briefings for SIA members and the security industry featuring nationally recognized economists and offering perspectives into key economic trends affecting the security business community. On July 12, 2023, SIA welcomed U.S. Chamber of Commerce Chief Economist Curtis Dubay for the first Economic Outlook Series webinar. Dubay offered analysis into key areas including current and short-term projected economic conditions, market performance, labor market and consumer spending trends, recent Federal Reserve actions, and the impact of notable public policies that may impact economic growth. Watch the archived video here. SIA plans to host another Economic Series briefing in December; more details to come soon.
The SIA Security Market Index tracks industry confidence using a bimonthly survey of a select group of security leaders in SIA’s membership. The full July-August index report, which is supported by Wesco, is available on the SIA website.