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Show ami Mmmm PROTECTION INDUSTRY When crime figures are occasionally reported by the Federal Bureau of Investigation, it usually comes as no surprise to most citizens to discover that robberies, motor vehicle thefts, rapes, suicides, and other violent crimes are continuing to increase year after year. Bank robberies in particular have been alarmingly frequent, with more than 5000 reported last year alone. The fact that there are more branch banks in outlying areas than in previous years is, of course, an important factor behind the advance in such heists. Crime experts attribute much of today's troubles to such social factors as high unemployment, inflation, and the lenient prison sentences that do not appear to do much in deterring would-be would-be robbers. SHOPLIFTING AND FIRE Another rapidly growing crime is shoplifting. It has been estimated that retail establishments lose a staggering $3 billion a year to shoplifters. This figures out to some 2 percent of sales, which is often a higher rate than a firm's profit margin. In addition to the criminal activities mentioned above, fires are another major concern of most citizens, especially home owners and businessmen. In the industrial-commercial industrial-commercial area arson has been spreading rapidly throughout the country. But according to reliable sources nine out of ten persons who die in building fires every year lose their lives in residences. PROTECTION TO THE FORE Because of the bitterly sharp yearly increase in crime, ine protection industry in-dustry has of course become a large, rapidly growing business There are now great nuir.bers of companies engaged in supplying armed guards, armored vehicles, burglar alarms, fire and smoke detectors, protective weapons, photographic security systems, and lock devices for businesses and the general public. In coming years there will be excellent ex-cellent growth for the industry as it becomes ever more necessary for both citizens and businesses to protect themselves against crimes and fires through special equipment or the hiring of armed guards Even during a. recession the protection industry should fare well, especially in methods of detecting internal company crimes Another positive factor for companies supplying security devices stems from the nationwide pruning of police and fire forces to sae costs, thus requiring more private security services U MO'S WHO IN PROTECTION There are numerous participants in all areas of the protection industry. To certain businesses and firms it is extremely ex-tremely important, while to others it is only a small (mrtion of the total Nevertheless, there is heavy competition com-petition in all phases of the field. Among those firms to which "protection" activities are deemed all-important all-important are American District Telegraph. Burns International Security Services. Pinkcrton's Inc.. Pittway Corp., Purolator. Sensormatic, and Wackenhut. Other diversified companies also having important interests in the field include Borg Warner (through Baker Industries i, Emhart. Kidde (Walter), Pittston. Rollins, and Scoviil. There are some giant firms that are involved in the protection industry in varying degrees, including American Express, Honeywell. North American Philips, and Warner Communications It ltSON ADVICE The Research Department of Babson's Reports recop, mends purchase of the stocks of American District Telegraph, American Express. North American Philips, and Scoviil for those investors who may wish to acquire some degree of represenlation in Ihe expanding protection industry. Hold advices are maintained on the other issues mentioned above, although our Research Department dix-s not regularly follow Kidde, Pinkcrton's, Pillway. Sensoi malic, or Wackenhut. |