Excellent little review about the state of affairs for the private security industry last year. What I found interesting, was the details about all the acquisitions. I think of the quote about buying stocks–‘blood in the streets’, when I hear about Securitas gobbling up companies that are for sale during this recession. It’s smart, and they will probably do very well as soon as the global recession starts to turn. –Matt
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Good Year for Private Security
19 Jan 2010
By Jody Ray Bennett for ISN Security Watch
While last year closed with new security threats, 2010 looks better than ever for giant, private security companies, Jody Ray Bennett writes for ISN Security Watch.
The world’s largest defense contractor, Lockheed Martin, received an early Christmas present last year when it was awarded an $841.9 million contract to supply 24 F-16 fighter jets to the Kingdom of Morocco. According to reports, Morocco is paying $35 million per aircraft, “which includes advanced countermeasures, electronic warfare and support equipment.”
The defense industry feared losses after the Obama administration cut costly, technologically risky and often developmentally delayed defense programs that were manufactured by Lockheed and its subcontractors. However, market analysts predict that this new contract will “boost […] the company, which had shrunk to $76.4 billion [in] fiscal 2009 from $80.9 billion at year-end fiscal 2008.”
But while Morocco has been searching to strengthen its military forces, the North African country is having difficulty attracting foreign investment, primarily from neighboring Gulf states, due to “poor infrastructure, lack of proper legal framework and excessive red tape.” As intra-national security is a deep concern for potential investors, the monarchy has been looking to strengthen security in its largest cities in order to attract foreign capital.
