Riga

1
15 Years of Private Security Services in Estonia

• With some parallels to Latvia and Lithuania

2
It started in 1991...

• The first private security company Estonian
  Security Service (ESS) was established in March
  1991
• The same year it was followed by some other
  private security services companies

3
Before that...

• Still under the soviet rule in Estonia there was
  in1968 established a division of state militia
  that specialized in guarding
• It was the first of the type guarding
  organisation in the former Soviet Union.
• After the restitution of Estonian Republic it
  became a state owned guarding company State
  Guarding Center

4
privatisation

• State Guarding Center remained the biggest and
  technically best equipped guarding company almost
  for five years enjoying at the same time state
  subsidies.
• Based on government decision in 1997 SGC was
  privatized and merged by Estonian Security
  Services Ltd that became the leading private
  security company in Estonia.
• Starting from 1997 all security services in
  Estonia were delivered on private bases.

5
first regulation

• First Security Services Act was adopted in 1993
• Licencing of companies
• Training requirements for security guards
• Professional certification
• Second Security Act was enforced in 2004

6
consolidation of security services providers - ESA

• In 1993 was established Estonian Security
  Association,NGO thats aim was to represent the
  interests of private security industry. It have
  been the only representative body for the
  security industry in Estonia, covering all fields
  of security business, except IT-security.

7
ESA

• At the present moment ESA has 17 corporate
  members.
• The market share of ESA members is about 72 of
  the whole security market and 85 of guarding
  services.

8
private security market in 2005

• Overall estimated turnover - 110 bln
• Guarding services - 52 bln
• Sales of security installations - 37 bln
• Overall growth of the security market is about
  12

9
private security market in 2005

• More than 7000 emloyees incl. close to 6000
  security agents working in the sector in 2005.
• Average monthly salary in the sector approx.
  595
• 380 in guarding companies
• In the end of 2005 the average salary in Estonia
  was 515

10
private security market in 2005
11
Trends of the private security market
12
Trends of the private security market
13
References to latvia and Lithuania
14
References to latvia and Lithuania
15
References to latvia and Lithuania
16
References to latvia and Lithuania
17
conClusions 1

• All national economies in the Baltics are growing
• (in Estonia GDP growth in 2005 8,2)
• Stable private security market growth approx. 10
  a year
• Balanced growth in all private security services
  sectors

18
conClusions 2

• Our biggest concern is the shortage in labor
  force and the lack of qualified security guards
• Main reason for that is the price competition
• Inspecting authorities are not concerned of
  unfair competition

19
conClusions 3

• Opening up of European labor markets
• Cooperation between employers and trade unions is
  week or unexisting, not speaking about social
  dialog
• To ensure development in security industry we
  need to grow up to the level we can integrate all
  our efforts for supporting sustainable growth in
  our sector