Study to reveal 9/11 security costs

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Saturday, June 1, 2002

ALEXANDRIA, Va.-Up until now, there's been little data on the impact Sept. 11 has had on the security industry and corporate America.

That's expected to soon change - a report is due out this fall that will show how corporations are making security decisions and the financial impacts of new security demands.

"There is no one, good place that's a repository of information on security," said Jack Lichtenstein, director of government affairs and public policy for the American Society of Industrial Security.

ASIS is sponsoring the study, which is being conducted by research firm The Conference Board. The study is set to begin this month.

Researchers expect to note trends in the security market and will prepare several case studies to provide an in-depth perspective.

The call for data came from the Joint Economic Committee of the U.S. Congress,, headed by Congressman Jim Saxton of New Jersey. Saxton has called the unanticipated security costs a "terror tax" on Americans. Information from the study will be made available to the committee as it considers recommendations to Congress for new legislation that could provide financial relief for businesses and consumers.

"There is a clear lack of information on this topic," Saxton said. "In the wake of 9/11, security costs will almost certainly increase for the foreseeable future, and that will almost certainly have a corresponding impact on the U.S. economy."

Not only does Lichtenstein anticipate the study will show increases in security use, but whether security demands will continue to rise. "They are also going to look at the roles and responsibilities of security professionals," he said.

David Vidal, who heads up research for The Conference Board, said the report will "be about processes, people and orientation and what kinds of managerial decisions" are being made as it relates to security.

Lichtenstein said an executive summary of the report will be made available to ASIS members, the government and media.

"It will provide value to several major constituencies who need that information. One is the community of security professionals. Another is the community of corporate leadership and then the third is the Congress of the United States," said Lichtenstein. "I think the report will have great value to all three of those constituencies and hopefully make it easier for them to work together in issues related to security."