by JOHN P. RUEHL
In August 2024, due to a $4 million budget shortfall, Idaho’s Caldwell School District terminated its $296,807 contract with the local police department, opting instead for armed guards from Eagle Eye Security. The new $280,000 contract is just a drop in the bucket of the roughly $50 billion U.S. private security industry and the $248 billion global market that is reshaping law enforcement worldwide.
While private military companies (PMCs) like Blackwater (now Academi) and Wagner have gained notoriety in war zones, private security companies (PSCs) are rapidly expanding in non-combat settings. Despite some overlap between the two, PSCs generally protect assets and individuals. Often collaborating with law enforcement, the effectiveness and ethical standards of PSCs vary widely, and armed guards are increasingly common. Security guards in the U.S. in 2021 outnumbered police by about 3:2.
Public policy is still playing catch up. Unlike police forces, PSCs operate under contract rather than direct taxpayer funding. They also don’t have the same level of regulation, oversight, or accountability. Criticisms of the police—such as excessive force and inadequate training—are frequently directed at private security officers as well. Many former police officers with controversial histories find employment in PSCs, where barriers to entry are low. Turnover, meanwhile, remains high, while wages are minimal. Yet the sector’s ongoing expansion appears inevitable.
Government forces and private security forces have been a part of society for millennia. Government forces mainly responded to unrest rather than preventing crime, often relying on volunteers. Private security options included hiring guards and bounty hunters, while communal efforts like the “hue and cry”—where villagers collectively chased down criminals— were also common ways of enforcing security. With increasing urbanization, though, traditional law enforcement methods became less effective, prompting the creation of the first modern police force, the London Metropolitan Police, in 1829. Distinct from the military, more accountable to city authorities and business interests, and focused on crime prevention, this model was adopted by Boston in 1838 and spread to nearly all U.S. cities by the 1880s.
The emergence of public police forces coincided with the birth of the modern private security industry. Founded in the U.S. in 1850, the Pinkerton National Detective Agency, as it was eventually called, is considered the first modern PSC. With its nationwide reach, investigative expertise, and role in safeguarding companies, Pinkerton distinguished itself by protecting businesses from theft, vandalism, and sabotage. Its controversial role in events like the Homestead Strike of 1892, when the company “essentially went to war with thousands of striking workers,” led to greater regulatory scrutiny, but the company continued to drive industry growth.