Consolidation on security services market inevitable

The security services market, worth some PLN 7.5 billion a year, will soon see a major wave of consolidation, according to experts quoted by daily Rzeczpospolita. The reason for the reshuffle is the new law that will make social security contributions mandatory for all mandate contracts starting 2016. The new law will greatly increase labor costs for security firms, which have been experiencing strong price competition for a few years. Currently 70 percent of the total of 300,000 employees in the sector are employed on mandate contracts. There are some 2,500 security firms operating in Poland.