U.S. Perimeter Security Sector Expects Drop in Spending

After the devastating events of 9/11, the demand, and subsequent investment in airport perimeter security skyrocketed with an estimated 650 million U.S. dollars spent in that sector between 2001 and 2011.

Although the FAA shelled out $58 million in grants to improve safety, a recent Frost & Sullivan report expects a steep drop in demand for perimeter security in terms of new fencing and security systems in airports, as no new airports are expected to be built in the U.S. in the foreseeable future.  Most works in the perimeter security sector will be repairs and refurbishments over the next five years and those will mostly be granted to local firms and suppliers, it is estimated.

“You will see some stagnation and a decline [in the market],” said John Hernandez, Frost & Sullivan senior aviation industry analyst, “It will never go up to the point it went up to after 9/11.”  Mr Hernandez added that the security enhancement area of the industry sector, the area that provides security cameras, sensors and monitoring, could, “Look rosier.”

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