How will the Security industry hold up during a recession/depression?

The first thing people cancel when they're "financially strapped" is their monitoring contract. The LAST thing they cancel is the cable TV. They won't stop buying cigarettes, alcohol, or drugs. They're all far more important than "security".

I agree with Frank's comment. However, since the security industry is so diverse and touches many different markets, recession and depression will have different effects on the industry as a whole. The market Frank's comment pertains to the most, numbers wise, is probably the largest and most common part of the market and that is the everyday middle and lower class residential burglar alarm market. There are sectors of the residential market that recession and even depression does not effect, at least as much, and they are the ones with the most to loose. Commercial applications are fairly sound, unless they go completely out of business, because security is largely insurance driven in this market and service will be a large part of the ongoing business, even if they don't have the funds to upgrade or add on. Fire is a must have and will always be there. The builder market will suffer but that is a market that one really needs to know before getting involved. The potential for building an account base looks great, but there are pitfalls regardless of the economy. Over all, your geographical location, demographics, mix of residential, commercial, industrial and history on how the area has done during these highs and lows, as a whole, is probably the best indicator.