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Show 10M WW I'KOTECTION-A I'KOTECTION-A GROWING BUSINESS The wounding of the President earlier this year und the subsequent shooting of the Pope put in sharp focus the extreme violence that has become part of the wcrldwide scene. It is obvious ob-vious that crime has been on the increase in-crease everywhere for many years. During 1980 in America, for example, the number of violent crimes jumped sharply--up 13 percent-and is likely to lie even higher this year. During the first half of 1981 the alarming rise in the crime rate prompted both Time Magazine and Newsweek to feature lengthy articles on this critical situation. Even Chief Justice Warren Burger has warned about the "reign of terror in American cities." He stated that "crime and the fear of crime have permeated the fabric of American life." As might be expected, the surge in crime is greatest in the large cities, though small towns are certainly not immune from its ravages. It has been reckoned that a murder is committed somewhere in the U.S. every 24 minutes, a house is burgled every ten seconds, and a rape occurs every seven minutes. It is certainly understandable, therefore, why many people are arming ar-ming themselves with weapons, carrying mace, barring windows, putting extra locks on their doors, etc. Such protection devices are today becoming commonplace. HURTING BUSINESSES The relentless rise in crime is hurting businesses as well as individuals. Retail stores, for example, have reported that the problem of shoplifting is becoming worse despite the many precautions being taken to prevent it. The oil industry, too, is being robbed of millions of dollars worth of crude oil from its American oil fields each year. One source claims that 2 percent to 6 percent of the nation's daily production of 8 million barrels of oil-between 1 no. 000 and 500.000 barrels-is being stolen. Owing to the nature of their business, 90 percent of the crude oil thefts doubtless go undetected. Another prime target for thieves is drilling field equipment, where major losses are regularly recorded Officials suspect that over three-quarters of such thefts are committed by insiders. So. as a result, security is being notably increased. GROWTH ASSURED FOR PROTECTIVE SERVICES Those firms that deal in armed-guard services, protective weapoas, locking devices, burglar and or fire alarms, smoke detectors and the like have become a sizable and rapidly growing sector of the American economy. In the future this industry should experience even greater growth as both citizens and businesses recognize that their most reliable security against crimes and fires involves the purchase of detection equipment and security devices of various types, or the hiring of armed guards. The recent nationwide cutback of police and fire departments for cost saving should also boost markets for private detection services. Also, if there is an increase in construction activity later this year, as seems probable, there should be an upturn in demand for guards at plants and construction sites. All told, therefore, the outlook for the protection industry seems ultra bright. NUMEROUS PARTICIPANTS There is considerable competition in all areas of this burgeoning industry, with both large and small companies participating. Among the many firms that receive a significant portion of sales and profits from protection equipment or services are American District Telegraph, Burns International In-ternational Security Services, Pinkerton's, and Wackenhut. Some large diversified concerns which also have important interests in the field are Borg-Warner, Emhart, Pittston, Rollins and Scovill. The Research Department of Babson's Reports advises holding the stocks of all of these firms. For purchase, American District Telegraph, Borg-Warner Borg-Warner and Wackenhut seem attractive. |