The global security industry is a market in excess of $100 billion made up of tens of thousands of businesses engaged in the protection of assets and prevention of loss. While once relegated to the sidelines of property management, security increasingly falls under the purview of corporate IT budgets and is often a major consideration of C-level executives. This shift is due in large part to an increase in crime rates, convergence of building control technology with security functions and IT systems, and an increased focus on security demonstrated by the US government through its massive reorganization which created the Department of Homeland Security and subsequently appropriated billions of dollars of funds.

Industry analysts believe the security industry will grow at double-digit rates over the next five years, and we are seeing strength and momentum in the market place to date in 2003. USBX' Integrators and Manufacturing indices have both outperformed the S&P 500 in the year to date and numerous M&A transactions have taken place indicative of the consolidation of a fragmented market. Additionally, certain transactions such as United Technologies Corporation's purchase of Chubb Plc are portentous of the impending drive toward convergence.

The need to protect assets does never ceases, which makes the security industry recession resistant. Indeed, in 2002, the security industry outperformed the S&P 500 even as most corporations struggled during the difficult economic times. Going forward, biometrics, emergency preparedness, security systems integration, alarm monitoring and digital security are a few of the many growth sectors in the industry.