Outperforming Our Industry
by David A. Linsky — CEO, SSC, inc.
Clients and client needs drive SSC. Keeping security costs under control is what I hear most often in my conversations with business and government leaders throughout the Northeast. Spurred by the challenges of hard economic times, our clients are looking at every supplier for new ways to accelerate their business and create profits. They are not waiting for the economy to improve. They cannot wait and either can SSC.
SSC is using this difficult economic period to enhance our business model and competitiveness; distinguish ourselves in our industry; and optimize our company for continued profitable growth. We are focusing on the core elements that make SSC an extraordinary security provider, specifically, our people, our training, and our management. Through these and our ability to deliver total security solutions—we have achieved another year of industry-leading performance.
It is with some concern that we are witnessing a downturn in some segments of the contract security industry, precipitated by some of the largest security providers who are promising to deliver services at nonsensically low rates. In this race to the bottom, rates for services and the profit margins of security providers are being diminished to a point where security is becoming false security. What is happening is that some users of contract security services are buying from bottom priced providers thinking that they are protecting their facilities when they are really jeopardizing their facilities.
The rates charged for services translate into the wage relationship between pay and workforce effectiveness. Rates for service, which save dollars in the short term, are likely to endanger security over the longer term. If security providers fail to screen, properly train, drug-test, and supervise officers, it can add to the provider’s bottom line but the risk accrues to the client. The risk may materialize in the form of litigation for inadequate training, or failure to perform due diligence during the hiring process. Negative exposure in the news media for acts performed by untrained guards can be ruinous to a company’s reputation and bottom line. These events also harm the contract security industry.
As many examples illustrate, the profit motive can be an incentive to some contract security firms to “cut corners” when security contract specifications are vague or poorly defined. Contract security companies employ more than 50% of the security personnel in the U.S. The Federal Government considers contract Security Officers as “an important source of protection for critical facilities. The nation’s dependence on contract security officers for critical infrastructure protection gives rise to grave questions about the training, pay, and status of contract security employees who work for companies that “lowball” security bids.
SSC will continue to deliver strong security services. Our customer retention and financial results compare favorably to those of other leading companies without compromising our integrity or the security of our clients. SSC pledges to be diligent about providing high-level services, managing costs, delivering services at competitive, but responsible, rates and to safeguard our leadership position. We cannot and will not maintain leadership by dropping rates that diminish our ability to properly service our clients and reward our employees for their important work.
In closing, I want to thank our excellent Security Officers for bringing their notable dedication, concern, and enthusiasm to their daily work. SSC continues to “Take Care of Business” by taking care of our employees and customers alike.
© 2009 SSC, Inc.
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