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Sector study

A study on the development of statistical data on the European security technological and industrial base has shown that the UK’s security sector is in a promising era of growth, says a trade body.

Published in June 2015, the study, commissioned by the European Commission Directorate-General Migration and Home Affairs, aimed at developing statistical data that would allow to obtain a clearer picture of the technological and industrial base of the security industry in Europe.The research took into account existing statistical data, whilst also carrying out a company survey in seven EU member states (UK, Germany, Estonia, Spain, France, Italy and Poland), with the results extrapolated to compile an assessment of the size, structure and performance of the overall EU security industry sector and market. From these results, the outlook for the UK’s security industry looks very positive, the BSIA suggests.

According to the research, UK turnover growth has grown by more than any of the other member states surveyed, with 35pc of UK respondents citing that turnover has increased by more than 25pc over the past five years. A further 15pc of UK respondents reported growth of up to 25pc and only 13pc stated that they have experienced a decrease in growth.

According to the research, the UK’s security industry can expect growth of 16pc over the next five years, well above the average growth rate for all respondents of 10pc.

For the UK’s security industry, the total turnover for all security products and services, as defined by the research, is 25.4 billion euros (not including defence), and an estimated 352,000 people are employed by the UK’s security industry.

James Kelly, pictured, Chief Executive of the British Security Industry Association (BSIA), said: “This research demonstrates the economic importance of the UK’s security industry and it is pleasing to see data that supports the notion that the UK’s security industry is growing.

“The statistics show that our industry is performing well domestically as well as wider afield in global markets, positioning the UK as a global leader in security products and services. This is something that we should be proud of, the ‘Great British brand’ is in demand and I expect that this will continue to grow as more and more UK companies expand their business overseas.”

As for export market share in total sales of security products and services, the UK has the strongest export share in total sales, with about 55pc of UK respondents admitting to having a degree of export exposure. Some 15pc of UK respondents claimed to have an export share of between 75pc to 100pc (that is, all) of total sales.

Members of the BSIA’s Export Council – a forum for BSIA member companies who are focused on extending their business to overseas markets – have also reported an increase in the demand for British security products and services according to research conducted by the Association. A majority, 60pc of respondents to the annual survey cited a 60pc increase in overseas business during 2015, and a further 30pc stated that the level of business had remained the same.

According to the BSIA’s research, further increases in overseas trade are expected for 2016, with a clear focus on the Middle East as an important market for the UK’s security sector. Some 40pc of respondents identified the Middle East as the single most important target market and 80pc of respondents are looking to increase their level of business in this region. Many of the companies surveyed are showcasing British security to buyers in the Middle East at Intersec Dubai 2016, from January 17 to 19.

BSIA members exhibiting at Intersec this year include: Remsdaq (Stand S2-F25), RGL Electronics Ltd (Stand S1-G20 UK Pavilion), GJD Manufacturing Ltd (Stand S4-F39 IMCI stand), Storm-AXS (Stand S1-H29 UK Pavilion) and Texecom Ltd (Stand S1-G34 UK Pavilion). As a UKTI Approved Trade Organisation (ATO), the BSIA is responsible for facilitating the UK Pavilion at Intersec 2016 which brings together a number of UK companies to promote the ‘Great Britain’ brand. The BSIA will be based on stand S1-E46 throughout Intersec.


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