Introduction The locksmith industry is comprised of selling mechanical or electronic locking devices, safes, and security vaults or installing, repairing, rebuilding, and adjusting mechanical or electronic locking devices, safes, and security vaults.
Analysis
The locksmith industry has relatively low barriers for entry. The startup costs are low with the courses to become a locksmith being cheap and many are available on line or at local trade schools. There have been many developments in the industry such as fingerprint identification, biometric design, and iris and facial recognition. The industry has done very well in keeping up with advances in technology. The amount of competition is relative to the area of location. Many locksmiths get most of their business from people walking in off the street. A key competitor in this industry is Tyco International Ltd.
As of 2002, there were 3,801 establishments in the U.S. locksmith industry. Sales were approximately $1,315,042. Since 1997, the industry has had approximately the same amount of establishments with an increase in sales totaling approximately $233,725. Locksmith services total approximately 79% of industry sales compared to merchandise, key replication, and security systems. Locksmith services had the highest revenues in the industry with total sales of $1,315,042. The second most profitable product line was key duplicating services with total sales of $771,440. There was an increase in the number of employees from 1997 to 2002. Annual payroll for the industry was approximately $423,772. In 2002 the locksmith industry in Alabama had 314 establishments with total sales of $320,148. There are 10 less establishments than in 1997, but sales have grown by $110,323, with an increase of 1,671 employees. Annual payroll was approximately $161,565. The median salary for locksmiths in Alabama is $22,000. All locksmiths must have a license in order to operate in the State of Alabama. In order to obtain a license, the applicant must go before a board and pass a competency test and criminal background check. All applicants that are approved are issued a state ID and must carry it at all times. There are very few locksmiths in the Phenix City area and the census does not have information on those businesses. Georgia had 716 locksmith establishments with $1,005,492 in sales in 2002. From 1997 to 2002, the number of establishments increased by 18 businesses. In the same time frame, total sales increased by $475,821 and the total number of employees increased by 4,933. Annual payroll was approximately $509,823. The median salary in Georgia is $ 28,000. Muscogee County had a total of 10 establishments in 2002 with all 10 being located in Columbus alone. The median salary for locksmiths is $31,331 per year. Those interested in becoming a locksmith can learn through on-the-job training, which usually takes one to twelve months. Employers prefer to hire high school graduates. Courses in mathematics, mechanical drawing, and machine shop are useful. Candidates can prepare for their on-the-job training by taking courses in locksmithing or attending courses at a vocational/technical school. The Associated Locksmiths of America (ALOA) offers hundreds of classes that train people to become a certified locksmith; the organization also provides scholarships to those looking to get started in the field. Classes can often be taken on weekends, allowing those taking classes to continue working in another job while training to become a locksmith. In some areas locksmiths must be licensed.
Most locksmiths work in locksmith shops. Many have their own businesses. Hardware and department stores sometimes employ locksmiths. Some locksmiths work for manufacturers of safes and locks, government agencies, and large industrial plants. Locksmiths must be patient, trustworthy and personable. Most deal regularly with customers who may be anxious about their own personal security, or companies that need a job completed quickly. Many locksmiths are on call 24 hours a day 7 days a week. Typical start up costs for a locksmith business is around $10,000. A van is also needed in order to keep all the tools needed to travel to customers. Marketing is key to getting new clientele. Credibility is 80% of the battle in getting and keeping new clients. Customers want to make sure that their locksmith does not have a criminal record and is trustworthy.

Problem Statement
Locksmith companies tend to be relatively local businesses, while large hardware stores tend to provide key duplication services. It is difficult to expand locksmith industries due to the fact that they often cater to incident-based clientele.
Alternative Courses of Action
A locksmith can open up multiple establishments in different areas by examining the need per city. A company could also unify with a towing service and try to secure patronage from an insurance company. A company could focus more on the security system aspects and become a distributor of a specific alarm company.
Recommendation
I suggest creating a locksmith company combined with a towing service. The benefits would come from a steady clientele, such as contracts with AAA Car Service and other insurance companies that offer roadside assistance.
Implementation Strategy A company would need to acquire at least one tow-truck and locksmith tools. The truck would serve them better if it had an extended cab to carry the extra tools. They would need to hire and train locksmiths with CDL licenses to operate tow trucks. It would benefit to start in a moderately-sized city. The responsibility would be on the company to deliver high quality service to secure the patronage of AAA and other insurance agencies. After securing clientele, then expansion can occur into other metropolitan areas and within each store after there is data to determine the demand. I did not find a publicly-traded locksmith company in my searches. There seems to be a market for a brand-name service in many areas. A brand name would need to be created to secure the company’s niche. Marketing and advertising would need to be increased to catch the potential customer’s attention and keep the company in the fore front of their mind. After each expansion, a marketing and advertising blitz would need to done to get new clients at each location. An up to date website also needs to be created. On this website all locations and certifications need to be easy to find. This website can be used to keep the customer informed of specials and events, new locations, and a local locksmith look up. The company also will need to meet with local apartment communities, hotels, and motels to offer their services when people get locked out, new keys need to be made, or locks need to be rekeyed. Discounts need to be offered to these clients to keep their business.