Incidental Benefits of Homeland Security Efforts
Posted Sep 12, 2003

In mid August 2003, GovExec.com, online companion to Government Executive, a monthly business magazine for federal executives and managers of governmental departments and agencies, highlighted several industries that may benefit from homeland security efforts. Since a downturn in the economy generally means more restrictive immigration laws and attitudes, any good news for U.S. businesses is good news to immigration, since it helps to create more jobs and boost the U.S. economy overall.

Security Technology Providers

The Department of Homeland Security (DHS) has proposed a rule that would limit the legal liability of security technology providers, should the products or services fail to prevent future terrorist attacks. Various trade associations have come together to submit comments in support of extending the length of time the products are free from liability. They are also commenting on related issues, such as: shortening the review periods needed to receive "qualified anti-terrorism technology" and "approved product for homeland security" designations; retroactivity of the regulations; broadening of designations; product confidentiality; and more financial support from the government in the event of lawsuits. Any steps the DHS takes to protect these businesses supports further development of anti-terrorism technologies. Since many of these technologies will require workers skilled in information technology (IT), these developments may decrease the ranks of unemployed or underemployed IT professionals in the wake of the dotcom bust and the aftermath of 9/11.

Private Airport Security Firms

Currently, private airport security firms only conduct screening at five airports throughout the U.S. Employees of the Transportation Security Administration (TSA) conduct screening in the remaining airports. In the next year, more airports will be eligible to opt out of the federal screening program and use the existing or new private airport security firms. Before September 11, 2001, this security was handled by individual airlines. These private airport security firms are not a part of the airlines, but are independent businesses.

As long as these firms adhere to the U.S. Department of Transportation (DOT) non-discrimination guidelines, discussed in our February 1, 2002 article, DOT Issues Guidelines for Airport Screeners, the expanded use of private screeners should have no negative affect on the travel process. Historically, however, private airport security firms have had a higher employee turnover rate than the TSA, and this does raise concerns over whether the private firms will consistently continue to train their new employees as they are hired. We would also encourage these private screeners to consider employing trained, former TSA employees from any airports they take over, in order to ensure that they immediately have a qualified staff in place. This will also help to avoid further swelling unemployment rates.

U.S. Defense Firms

The Bureau of Customs and Border Patrol (CBP) is considering the use of unmanned aerial vehicles (UAVs) to patrol expansive sections of the U.S. borders. The CBP will award a contract to a defense firm able to meet their specifications for temporary UAVs, though the CBP has not determined whether these aircraft will be used in the long term. Use of the UAVs will also need to be approved by another government agency, the Federal Aviation Administration (FAA). It is unclear, however, what UAVs will do to stop people who are illegally crossing the border. The production of UAVs should again create new employment opportunities.