As uncertainty about tariffs continues to ripple across the U.S. economy, businesses in every sector are feeling the strain. Prices for materials, inventory, and operational necessities are climbing—sometimes unpredictably. Every day seems to bring new developments, making it harder for businesses to forecast costs and protect their margins.
But while executives and managers focus on supply chain disruptions and financial planning, there’s another critical issue they can’t afford to overlook: physical security.
When the cost of goods rises, crime often follows. Thieves, vandals, and opportunistic criminals are quick to notice when high-value assets become even more valuable—and more vulnerable. Warehouses, distribution centers, construction sites, retail stores, and even office buildings are increasingly seen as lucrative targets. In an economic climate where replacement costs are soaring and supply chains are strained, even a single incident of theft or vandalism can have devastating consequences.
Unfortunately, many businesses are reacting too slowly. Some assume that tightening budgets means cutting back on security services or delaying technology upgrades. However, this is a dangerous gamble. In reality, this is the exact moment when investing in physical security becomes more critical than ever.
Why the Current Economic Climate Increases Physical Security Risks
Economic stress has long been linked to increases in property crime, and recent data from 2024 supports this connection. While overall property crime rates have shown a downward trend, specific categories have experienced significant upticks. For instance, shoplifting incidents rose by 24% in the first half of 2024 compared to the same period in 2023, and motor vehicle thefts more than doubled compared to five years prior. These increases suggest that certain types of property crimes are becoming more prevalent, potentially driven by economic pressures- making physical security of heightened concern.
Tariff uncertainty adds another layer of risk for businesses. The imposition of new tariffs, such as the 145% tariff on Chinese imports introduced by the Trump administration, has led to increased costs for materials and inventory. In response, many businesses have resorted to stockpiling goods to mitigate future price hikes, resulting in larger quantities of valuable inventory being stored for extended periods. This practice inadvertently creates more opportunities for theft, as these stockpiles become attractive targets for criminals. The unpredictability of tariff policies has made it challenging for businesses to plan effectively, further complicating their efforts to secure assets.
Tariffs are also significantly impacting various industries in the United States and Canada, leading to increased costs and heightened security concerns. Here’s how specific sectors are affected:
Construction Industry
The construction sector is grappling with elevated material costs due to tariffs on imports like steel, aluminum, and lumber. These increased expenses are causing project delays and cancellations, leaving construction sites vulnerable to theft and vandalism. The National Association of Home Builders reports that tariffs could raise the cost of building a single-family home by $7,500 to $10,000, exacerbating housing affordability issues.
Automotive Dealerships
Auto dealerships are facing challenges from a 25% tariff on imported vehicles and parts, leading to higher prices and supply chain disruptions. These factors increase the value of on-site inventory, making dealerships more attractive targets for theft. While recent executive orders aim to ease some tariff impacts, uncertainties remain, compelling dealerships to reassess their security measures.
Multifamily Residential Developments
Tariffs on building materials are inflating construction costs for multifamily housing projects, potentially leading to rent increases and project delays. These delays can result in partially completed structures, which are susceptible to unauthorized access and damage. Developers are urged to enhance site security to protect investments during these uncertain times.
Scrap and Recycling Industry
The recycling sector is experiencing volatility due to tariffs on metals, affecting the flow of recyclable materials and commodity prices. This unpredictability can lead to stockpiling valuable materials, increasing the risk of theft at recycling facilities. Operators are advised to implement robust security protocols to safeguard their assets.
Shopping Centers
Retailers in shopping centers are contending with price adjustments due to tariffs, which can lead to inventory accumulation and heightened theft risks. The National Retail Federation notes that while tariffs may not drastically impact prices, the associated uncertainties necessitate vigilant security measures to protect merchandise and maintain consumer confidence.
Ultimately, tariffs are creating economic pressures across multiple industries, inadvertently increasing the importance of physical security. Businesses must proactively address these challenges to protect their assets and ensure operational continuity.
Now Is the Time for Proactive Physical Security Measures
Businesses can’t afford to take a “wait and see” approach. Implementing strong, proactive physical security measures now can help deter would-be criminals before they can strike. That includes not only traditional approaches like fencing, locks, and lighting, but also modern solutions like:
- Live Video Monitoring: Real-time surveillance that can catch and respond to suspicious activity before it escalates.
- Access Control Systems: Managing who can enter facilities and when helps minimize internal risks as well as external threats.
- Mobile Surveillance Units: For businesses with changing environments, like construction sites or remote facilities, mobile units provide flexibility without sacrificing protection.
In addition to helping deter crime, strong security measures can help businesses maintain insurance coverage, lower premiums, and reduce liability in the event of an incident.
No one knows exactly how the next round of tariffs or economic shifts will play out. But one thing is certain: businesses that neglect physical security do so at their own peril. In this volatile ongoing climate, protecting assets, employees, and operations must remain a top priority. By staying proactive, companies can better weather economic uncertainty and avoid becoming an easy target when the stakes are higher than ever.
Learn more about how live video monitoring and mobile surveillance units can help protect your property in challenging economic times and beyond when you speak with an expert on security in your industry.
