This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
SOURCE: IBISWorld Inc.
The industry has recorded impressive growth over the past decade, with double-digit revenue gains. A rising trend toward privatization has been driven by cutbacks in state and local funding for public sector fire departments. Consequently, governments are increasingly contracting with private sector fire departments, which can be hired on an as-needed basis. For these reasons, industry research firm IBISWorld has added a report on the Private Firefighting Services industry to its growing industry report collection.
Los Angeles, CA (PRWEB) December 03, 2012
The Private Firefighting Services industry has recorded impressive growth over the past decade, with revenue posting double-digit gains. Industry growth is largely attributable to a rising trend toward privatization, driven by cutbacks in state and local funding for public sector fire departments. Consequently, governments are increasingly contracting with private sector fire departments, which can be hired on an as-needed basis. For instance, from 2009 to 2011, the number of public sector firefighters decreased an average 0.6% per year, while the number of private firefighters grew an average 16.9% per year, according to data sourced from the Bureau of Labor Statistics. “Furthermore,” says IBISWorld industry analyst Caitlin Moldvay, “insurance companies are increasingly employing private firefighters to pre-treat insured properties and aid in fire suppression efforts to limit potential property damage in the event of a wildfire.” These factors have led to an expansion of private sector firefighting services. Over the five years to 2012, industry revenue is estimated to rise at an average annual rate of 12.5% to $2.1 billion, including projected growth of 9.7% during 2012.
The Private Firefighting Services industry includes privately-operated companies that charge a subscription fee to homeowners and business owners to provide fire prevention and suppression services. “Most often, subscription services are provided to small towns or unincorporated areas without a publicly funded fire department,” adds Moldvay. In addition, companies provide fire protection services to airports and industrial facilities on a contract basis or are employed by insurance companies or government agencies. Over the past five years, the number of private sector firefighters has grown at an average annual rate of 15.0% to an estimated 16,880 employees. The industry exhibits a low level of market share concentration; industry firms are small because there are no economies of scale to be gained through expansion. Additionally, concentration has fallen over the past five years, primarily due to industry expansion.
The Private Firefighting Services industry is expected to continue expanding, with industry revenue projected to rise through 2017. Continued state and local budget shortfalls are anticipated to lead to greater outsourcing to the private sector. Moreover, insurance companies offering private firefighting services to homeowners in the West and Southwest regions will be a continued source of growth for the industry over the coming five years. For more information, visit IBISWorld’s Private Firefighting Services in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Companies in this industry primarily provide fire protection and suppression services on a subscription basis to residential and commercial property owners. Companies may also provide forestry services, airport and industrial complex fire protection services. This industry does not include government and volunteer fire department services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/12/prweb10191707.htm