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Security and Safety Equipment and Services

Overview

 

2010

2011 (e)

2012 (e)

Total Market Size

2,210

2,746

3,319

Total Local Production

1,892

2,232

2,567

Total Exports

1,462

1,554

1,647

Total Imports

1,780

2,068

2,399

Imports from the U.S.

590

744

930

U.S. million dollars

(e) Safety and Security equipment and services imply several different industrial sectors, including some defense items; the above figures represent an estimate and partial market estimated value assessment. Figures are not comparable with CCG 2011, due to methodology changes.

Sources: Global Trade Atlas 2012

In Mexico, the year of 2011 had a strong recovery in the security and safety industry with an average market advance of 18%. However, the whole economy grew only 3.9%, a little less than expected by several lead financial institutions. The growth tendency for the sector in 2012 is positive and could be situated between 15-18% .The demand for security and safety products and services has expanded in all categories of the industry, but mainly in personal protection and perimeter surveillance/protection. Other residential and industrial security solutions represent leading market segments. Organization and citizens have increased their awareness to create security policies to keep their assets safe. The security market offers information and diverse solution for all type of consumers, but the sector has seen new players looking to enter the market.

The private sector considered 2011 a good year for the industry. Some segments were more dynamic than others, such as CCTV, alarms, perimeter and personal protection devices, and GPS applications, but the industry has maintained its place as one of the most dynamic industrial sectors in the country. The outlook for 2012 also has good perspectives; the economic forecasts are estimating an economic growth of around 3.2%.

Opportunities for government procurement contracts are also expected to continue throughout 2012. Federal and state governments are aware of the need to modernize their prison systems and reduce the saturated level of inmates. However, such projects will face moderate budgets, even though they are urgent. The upcoming presidential elections may delay their approved budgets. At the same time, command operation centers around the country were installed in the last two years and may represent business opportunities for maintenance, integration services and improvement projects. Some other state governments will be following this tendency to be more effective in terms of providing better public security.

In 2011, the combined budget for the security agencies (Defense and Navy) was up to USD$5.5 billion. Both the Ministry of Defense and the Navy have taken an active role in the fight against drug traffickers and drug cartels, mainly cooperating with the Ministry of Public Security (SSP) and with other law enforcement agencies, such as the Office of Attorney General (PGR) and the Center of National Security and Intelligence (CISEN). These three entities also received significant resources in 2011 (USD $6.1 billion). At the same time, state and local government consumption is not as large as the federal, but it is relevant, considering that each state has its own public security budget.

Regarding the safety industry, safety standards are an integral part of any manufacturing operation. Although Mexico has not had a strong preventive culture, this is changing due to globalization, higher flows of direct foreign investment, increased awareness of productivity, and lowering operative costs. The presence of multinational OEM’s are bringing to Mexico safety requirements observed in their global operations plants, and these large corporations demand that their supply chain partners maintain safety standards too. Mexican businesses are modifying their internal practices and realize the importance of acquiring safety equipment and products to increase the security of their assets. Recently, the Mexican Ministry of Labor required all companies to comply with the corresponding regulations to operate their factories.

Best Prospects/Services

Best prospects for products and services in the security and safety sector include:

Government:

* Access control solutions

* Perimeter surveillance

* Electronic devices for mobile phones

* Biometric solutions

* Tactical equipment

* Personal protection products

* Communications systems (wireless, internet, GPS, etc.)

* Integrated security solution (compatibility/integration services)

* High-tech night vision tactical equipment

* Infra-red cameras/equipment

Commercial

* CCTV

* Perimeter protection solutions

*Access control

* Alarms

* Digital system (analog systems are being displaced)

* Residential solutions

* Personal protection devices

* Industrial protection accessories (safety goggles and earplugs)

* Industrial protection suits and gloves

* Communication integration services

* Anti-static uniforms/apparel

Opportunities

The scope of security and safety products is diverse, but the consumption of personal protection products, alarms, CCTV, residential protection solutions, and even electronic security devices is expected to increase significantly in the commercial market. Government purchases continue to be large in body protection equipment, combat systems, CCTV, personal and transportation GPS (chip), security vehicles and maintenance services, as well as for military and defense equipment.

Resources

Latin America Security Association (ALAS) Mexico Chapter: http://www.alas.org.mx

American Association for Industry Security Mexico Chapter: http://www.asis.org.mx

Citizen Institute of Insecurity Studies, A.C. (ICESI) http://www.icesi.org.mx

National Council of Private Security, A.C. http://www.cnsp.org.mx

Mexican Association of Integral Security Specialists, A.C. http://www.amexsi@org.mx

For more information on the security and safety sectors in Mexico, please contact:

Alejandra Calderon, Commercial Assistant (Safety)

U.S. Embassy Mexico City

U.S. Commercial Service

Tel: (011-52-55) 5140-2651

Fax: (011-52-55) 5566-1111

alejandra.calderon@trade.gov

Silvia I. Cárdenas, Commercial Specialist (Security, Defense)

U.S. Embassy Mexico City

U.S. Commercial Service,

Tel: (011-52-55) 5140-2670

Fax: (011-52-55) 5566-1111

silvia.cardenas@trade.gov