A renewed tightening and extension of the lockdown will not lead to the temporary closure of many businesses in Germany. Instead, the fears of economic experts will be realised and a wave of insolvencies will follow. This means that the security industry will also lose clients.
How is the lockdown affecting the security industry?
The customers of a security service often include companies that require special security measures due to crowds of people. This can be simplified using the example of events: At major events, security service providers ensure that the event runs smoothly. Starting with admission control, further security services such as event security in the stage area, keeping emergency exits clear and much more are required. In addition to the event industry, the trade fair industry has also been hit hard. Not a single trade fair has been held in Germany for a year now. An end to this lockdown is not in sight, as trade fairs are currently not allowed to take place even under the condition of corona protection measures. In Bonn, too, the major events Rhine in Flames and Pützchens Markt 2020 have been cancelled for the second time in a row due to the pandemic.
Retail in lockdown
The retail sector is also suffering: However, a distinction must be made here between the food and other retail sectors. The former can count itself lucky to have been categorised as systemically relevant. During the lockdown, security services were certainly able to accommodate the odd doorman for a few weeks. However, there can be no talk of a „crisis winner in the security industry“ here. But why is that? Retailers generally employ security services for shop detectives, and in rare cases also for doorman activities. Logically, the closure of shops also means that the security business is no longer needed. Other open shops, such as opticians, can only be entered by appointment. This makes shoplifting more difficult or almost impossible. Shop detectives are therefore no longer deployed here.
Another line of business in the security industry is the transport of money and valuables. After the first lockdown at the latest, paying with cash is not considered secure and should preferably be done electronically by debit or credit card. However, the trend towards cashless payments was already noticeable a few years earlier. Added to this is the extensive closure of the retail sector. A closed department stores' therefore does not need a service provider to collect cash reserves.
Even in the hotel industry, security staff are often deployed as night auditors or night porters. As night auditors, employees of security services take over the restricted hotel operations at night. They not only keep an eye on the hotel, but also provide ancillary services such as late check-in/out and reception services. Closed hotels and a ban on accommodation will also lead to the loss of this service. It also remains to be seen how long the hotel industry will survive another coronavirus lockdown.
Property protection is part of the industry's core business. But even here, clients are cutting jobs. Many companies are affected by short-time working and partial closures. Others have sent their entire workforce to work from home, meaning that all but a few people are no longer working in the factory and/or company.
The following security services are not required due to the current coronavirus pandemic:
The following services are currently only in limited demand or required:
It remains to be seen how the security industry will adapt in 2021. In our opinion, many mostly smaller competitors will not survive. As is so often the case in life, it is important to adapt to demand and rethink.
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