Sadto say, building and managing prisons is a growth opportunity for those private firms which are being called upon to assist law enforcement agencies under the new privatization trend. About 1.5 million people are jailed in the U.S. and the inmate population is growing at 8 percent per year. Experts estimate that two new 1,000 bed facilities must be built each week just to keep up with demand.

• Contracts with private prison firms cover less than 5 percent of the inmate population -- but that is increasing.

• The private prison industry does $600 million in annual sales now and is growing at an annual rate of 30 percent.

• Private operations are cheaper to run, since as the head of one prison contractor estimates, his firm builds prisons for up to 40 percent less and operates them at up to 20 percent less than it costs the government while maintaining service quality.

About 35 states now allow privatized prisons, but only 15 have awarded such contracts.

Source: Robin M. Grugal, "Prison Operator Thrives in Crime Crackdown," Investor's Business Daily, March 4, 1996.