Summary: The Correctional Facilities Industry

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Introduction
The correctional facilities industry is considered to be one of the most polarizing industries in the United States. This is due to the fact that the crime rate, coupled with levels of intense and reoccurring criticism, can positively or negatively affect the industry's landscape from a revenue point of view. This document will assist you in understanding the scope of the correctional facilities industry by providing a comprehensive overview of it’s components. The report contains an industry overview, information related to markets and drivers, the two tier system, prison privatization, and government regulations.

Industry Overview
The correctional facilities industry operates primarily through the leasing and managing of prisons …show more content…

The first state level private prison opened in Kentucky in 1986. The success of this prison led to a change in balance of state and federal prisons in the following years. The share of state prisoners held a private facilities increased by 3 percent in 1999 and increased to 19 percent in 2015. (Mumford et al., 2016)

Monopolized corporations in the private prison industry have very specific aspirations. They set out to achieve goals and maintain standards in areas that federal prisons cannot. These goals are set with hopes of proving to the United States government that the privatization of the prison industry was the correct course of action in the 1980s. Individuals who advocate for private prisons argue that the exclusion of governmental control in the marketplace leads to an improved prison …show more content…

These standards and legislations can lead to both positive and negative consequences for the industry from a revenue point of view. According to King, et al., 2013, prison occupation deals are a significant cause for the industry’s success. Deals between monopolized private prison corporations and the US government force private prisons to maintain up to 90 percent “bed occupancy” at all times. This incentive is signed with the goal of creating an “efficiency standard”. These deals have a direct correlation to revenue increases in the correctional facility industry. (Kaeble et al.,

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