PONTIAC -- When rap star Eminem agreed at the last minute to perform at the $175-a-ticket Rockin' the Rooftop party held in conjunction with the Freedom Festival Fireworks, The Parade Company quickly placed a call to Gallagher Security Inc. for additional security.
GSI already had a contract to provide security for the fireworks at Detroit's Hart Plaza and maintain a 300-foot security perimeter around the explosives prior to the event. The company previously worked with Eminem's own security detail.
The experience that GSI agents had with rock concerts paid off when they caught 15 people trying to crash the party with duplicate party credentials, according to Victoria O'Kane of The Parade Company.
"We never would have caught that on our own," O'Kane said.
GSI was formed in 1999 when CEO Tony Fedewa and Brad Lemke, who had experience providing security for concert tours, joined forces with Art Gallagher and Dale White, who had a private investigation firm.
All managers have law enforcement or military experience, and about 30 employees are licensed to carry guns.
The company's full-time staff of 40 expands to more than 400 when it provides security for the North American International Auto Show in January.
Summer is a busy time with major events like the TasteFest and the Montreux Detroit Jazz Festival.
Last week, GSI provided security for a music festival in Lansing, Freedom Hill in Sterling Heights, Majestic Theater in Detroit and a Kid Rock concert at Boyne Mountain.
GSI plans to open offices in Ohio and Florida later this year.
Fedewa predicts revenues will increase by more than 50 percent to $3 million -- 60 percent from events and 40 percent from asset protection for businesses and organizations.
"Since 9-11 everybody is a lot more security conscious," Fedewa said. "There's a lot more logistical preparation."
According to a recent study by the Freedonia Group of Cleveland, the world market for private contractual security services will grow 7.7 percent annually to $137 billion by 2008.
The study found a trend toward outsourcing public and in-house guard operations to private contractors.
According to Fedewa, outsourcing reduces liability issues for business owners who don't want to keep up with the training required for an in-house security force.
Fedewa said his company maintains a high employee retention rate by paying more than the industry average.
Starting pay is $7 to $10 an hour and many employees make $15 to $20 an hour.
Pre-employment and ongoing training are important, according to White, a former security manager for Dayton-Hudson.
"We're trying to change the perception of security guards," he said. "They are smart and they know what they're doing."
White is a board member of the Michigan Contract Security Association, which is working with State Rep. Leslie Mortimer, R-Jackson, on a bill that would establish training requirements for security personnel in the state.
Gallagher said he and his partners may move company headquarters from Pontiac to Detroit, where a majority of its employees live and many clients are located.
They recently entered a partnership with a minority-owned company, Hampton Security Group LLC of Harper Woods.
Eric Pope is a Metro Detroit freelance writer.
