As regulatory pressure mounts across the security sector, particularly in the manned guarding industry, the implementation of the four new Labour Codes has made compliance both more complex and more costly. For many business owners, this shift represents not just an operational challenge, but a defining inflection point.
With regulations continuing to tighten, smaller agencies are increasingly facing closure, while mid-sized firms are turning to mergers and acquisitions as one of the viable ways forward. Whether driven by choice or necessity, a growing number of owners are seriously considering an exit to preserve value, transition responsibly, and ensure continuity for their clients, while many others are looking for optimisation opportunities to boost their competitiveness
Manned Guarding Still Matters in a Technology-Driven World
Manned guarding services provide a visible, professional on-site security presence that protects people, property, and assets in ways technology alone cannot. Uniformed security guards offer an immediate visual deterrent against theft, vandalism, and trespassing, while their presence reassures employees, customers, and visitors alike. For most people, seeing a trained guard on site is far more comforting than relying solely on cameras or robotic systems. Beyond deterrence, guards manage access control, monitor safety, and perform frontline roles such as visitor handling and incident reporting, contributing to a secure and welcoming environment. Guards remain the primary first-responders to incidents.
Equally important is the human element that physical security brings. Trained security guards can assess situations in real time, exercise judgment, and respond instantly to incidents or emergencies – reducing risk, operational disruption, and potential asset loss. They can coordinate with internal teams and law enforcement when required, and act with discretion and professionalism in sensitive situations. In an era of rising risks and complex threats, human awareness, adaptability, and accountability make manned guarding an indispensable component of a holistic security strategy.
However, to streamline and formalise this critical sector, one that provides employment to millions, the government is tightening compliance requirements and compelling security agencies to align with and implement the new Labour Codes.
Compliance Is Becoming More Demanding
A new swell of regulatory reforms is forcing security agencies to rethink the way they operate. The government’s drive for greater accountability and compliance now demands transparent record-keeping and far stricter conformity with statutory requirements.
For owners, meeting these expectations is no longer a one-time exercise. It entails sustained investment in staff training, digital infrastructure, and expanded administrative processes, adding to the long-term cost and complexity of doing business.
Smaller Agencies Are Feeling the Pressure
Many independent, family-owned security businesses have thrived on strong local relationships and hands-on service. Yet these advantages can only carry them so far as compliance costs continue to climb. Owners often find themselves spending more time on regulatory paperwork than on client engagement or business growth.
Low margins and cash flow pressures, exacerbated by delayed client payments and penalties for underperformance, are further squeezing these smaller agencies, making it increasingly difficult to meet statutory obligations.
Meanwhile, larger firms, public companies, and private equity-backed platforms leverage their scale to distribute compliance costs, implement centralized systems, and stay ahead of regulatory shifts across the fast growing manned guarding services sector. This growing disparity makes it increasingly challenging for smaller operators to compete effectively on both price and processes.
Dreaming Big
Small agency owners often have ambitious visions for growth, but the practical realities of their operations can be a heavy anchor. Unlike larger, well-capitalized competitors, they rarely have the deep cash reserves needed to offer credit to clients or absorb delays in payments. Bigger agencies can leverage external funding, including private equity, public investment, or internal reserves, giving them the flexibility to take calculated risks and scale quickly.
For smaller operators, access to bank financing is also limited. Without substantial collateral, lenders are reluctant to extend credit, leaving these businesses dependent on immediate cash flow to meet statutory obligations and operational costs. The result is a constant tension: while the desire to expand and innovate exists, the financial and structural constraints often force owners to prioritize survival over growth.
From Survival Mode to Sustainable Growth
Smaller security agencies are not without options, even in a capital-constrained and compliance-heavy environment. The first priority is to strengthen financial discipline and cash-flow management. This includes tightening client payment terms and actively following up on receivables. Wherever possible, agencies should renegotiate contracts to factor in statutory cost increases, ensuring that compliance costs are not absorbed silently into shrinking margins.
Second, smaller operators can improve competitiveness through professionalisation and selective technology adoption. Simple workforce management software, digital attendance systems, basic payroll automation, leave management, and automated scheduling can reduce leakages, improve compliance, and enhance credibility with both clients and lenders. Building clean books, transparent records, and documented SOPs also makes the business more “bankable”.
Overall, it is time for a hard rethink. Older methods of operating will no longer work in a tech-driven world that is rapidly moving towards enhanced compliance, transparency, and formalisation. Rising regulatory pressure, tighter labour laws, and increasing client expectations are reshaping the manned guarding industry. Smaller agencies, in particular, can no longer rely on informal practices, thin margins, and delayed payments to survive. Professionalisation, digital adoption, clean governance, and stronger financial discipline are no longer optional, they are essential. Those who adapt will remain relevant and competitive; those who do not risk being left behind in an industry that is undergoing structural transformation.
The author is the Editor of SECURITY TODAY
