The Security Services Cost Array Analysis is designed to provide the breakdown of costs associated with Security Services (Guarding) operations. For the purposes of providing a "baseline trend" the below Cost Array detail provides a guideline on operation expenses and does not include Capex costs . Updates will occur at least semi-annually, but more frequent as market conditions change based upon market variability, criticality of events and velocity of market conditions, such as inflationary increases / resource and material availability.
1. Overview
Security Services Cost Expense Detail
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100%
Labour- 78%
Operating Profit- 7%
Direct Expense- 9%
SS-008 Ver 1.0 (May 23)
Confidential & Proprietary | 2024 CBRE Inc.
P & L Expense Labour Direct Exp Op Profit S G & A Sales TOTAL
Factor $0.78 $0.09 $0.07 $0.05 $0.01 $1.00
Average Annual
Increase 22% 16% 0% 4% 4%
Average Increase
Factor $0.17 $0.01 $0.00 $0.00 $0.00 $0.1893
Estimated Supplier 2023 Annual Increase 18.93%
- Brent Crude Cost / Barrel (July 13, 2022) - $ 99.60
- Cost Reduction Marker - (request supplier cost reduction when cost per barrel of oil hits ) $ 75.00
Estimated CBRE Supplier Partner 2023 Annual Increase = 17%-19% (Mostly attributable to Labour)
Consider:
- Mark-ups
- Labour
- Maintenance costs
12 Month Snapshot
Consumer price inflation:
- Upward pressure on wages due to COVID-19 market disruption
- Private-sector wages increased at more than 45 percent annualized since December 2019
2. Supplementary notes
Identifying Cost Elements
Sales- 1%
- N/A
Key Point
Key opportunities
Safety Priority
- Improved compliance reporting
- Improved ratings - reduce rates
Correct work methods training
- Technical instructions
- Safety training
Business Process / Labour Efficiency
- Better Resource deployment
Technology Investments
over Labour
- Reduction in manual labour costs
Demand Management
- Outcome reporting analytics