Safety and Security Equipment and Services

An Expert's View about DIY, Housewares, Appliances and Electronics in Mexico

Posted on: 30 Jun 2012

In 2011, the combined budget for the security agencies (Defense and Navy) was up to USD$5.5 billion.

Safety and Security Equipment and Services A Top Export Prospect for Mexico June 2012 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 Top rt t 2 US Expo Prospects in Mexico 2012: Safety and Security Equipmen and Services 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. Back to top 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 Top Prospects 12: ces 3 US Export in Mexico 20 Safety and Security Equipment and Servi 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: • American Association for Industry Security Mexico Chapter: • Citizen Institute of Insecurity Studies, A.C. (ICESI): • National Council of Private Security, A.C.: • Mexican Association of Integral Security Specialists, A.C.: Back to top Top Export ts d 4 US Prospec in Mexico 2012: Safety an Security Equipment and Services For More Information Please contact Commercial Assistant Alejandra Calderon (Safety) at or (11-52- 55) 5140-2651 or Commercial Specialist Silvia I. Cárdenas (Security, Defense) at or (11-52-55) 5140-2670 at the U.S. Commercial Service in Mexico. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 30 June 2012

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