In general, the Latin American security industry is going through a good time so far in 2011, and is solid to face next year, which already augurs prosperous figures in its commercial years.
by Santiago Jaramillo H.
The figures that accompany this 2011 are extremely encouraging and, if this continues, they will surely allow to close the year with excellent balance sheets to the bulk of the companies that are linked to the security industry in Latin America. A clear reflection of this postulate is the increase in sales of products and facilities that have been made so far in the region.
Just to put two specific cases, countries such as Mexico and Brazil have significantly increased their percentage of sales. In the section of Smart Cards, Mexico in 2011, has exported about two million 300 thousand units, for a figure that exceeds US $ 85 million, according to the statistical portal Datamyne, while in 2010 the number of units sold reached only 690 thousand, worth close to US $ 72 million.
This means that the number of units exported by Mexico in 2011, exceeds by about 70% the figure of 2010, and these businesses represented 16% more in their value. The main destinations of these exports were the United States with 69%, Venezuela with 6%, and Chile, Argentina and Colombia with 4% each.
Meanwhile, Brazil so far in 2011 has sold about 52.5 billion units worth $48 million, while in 2010 these exports accounted for 49.5 billion units and businesses for $49.5 million. This represents an increase of 8% in units sold and a decrease, so far, of 4% in their value.
Brazil's main trading partners in the sale of Smart Cards are Argentina, which buys about 34% of its exports, Mexico 21%, Chile 11% and, to a lesser extent, Colombia that acquires 6%.
In the field of smoke detectors, the figures are equally encouraging, since only Mexico so far this year has exported five million 430 thousand units, worth close to US $ 167.2 million, while in 2010 this same item of exports only reached four million 770 thousand units and US $ 132.2 million in such sales.
The increase compared to the previous year is 12.1% in the units sold, while the value of the same exceeded 20%.
The United States was the main Mexican partner, buying five million 429 thousand units, which represents 99.95% of purchases.
For its part, Brazil, in this same item, sold so far 145,885 units, the amount of these businesses reached US $ 4.2 million, while in 2010 it reached 178,000 units and US $ 3.6 million. This represents an 18% decrease in units sold and a 14% increase in the money paid.
Argentina with 36%, Colombia with 16% and Mexico 15% are the main buyers of these products for Brazilian companies.
Current situation, synonymous with good business
The situation of insecurity experienced by most Latin American countries and therefore the imperative need to protect themselves in the best way has represented an important business opportunity for many companies, as described by Jorge Albarrán, Sales Engineer of the company Senstar Latin America.
"The current threats and the urgent need to detect an intruder before it can cause any damage has caused security managers to realize that detection is a very important factor in terms of security, without which a site will never be really protected," says Albarrán.
He also expresses that this awareness has made the perimeter detection segment, a business to which his company is dedicated, has grown and they request their products more frequently.
Among the products that have delivered the highest returns this year, according to the representative of Senstar Latin America, are the IntelliFiber and FlexPS, OmniTrax, UltraWave and Tunnelguard. Below we make a description of the use of each one.
1. IntelliFiber and FlexPS (formerly IntelliFlex) - Sensor Cable in Fence. This type of system is one of the most popular for its ease of installation and long service life. IntelliFiber is most commonly used for long perimeters (several kilometers). While FlexPS, being more economical, is requested for smaller perimeters.
2. OmniTrax - Buried Sensor Cable. This type of sensor that with its reliability is unique, is very requested for the fact of being "invisible" (everything that can not be seen is much more difficult to evade!), its long service life and low maintenance.
3. UltraWave (formerly IntelliWave or MPS-4100) - Volumetric Detection Sensor. This type of sensor is very requested for vehicular access or protection of small perimeters.
4. Tunnelguard – AntiTunnel Geophonic Sensor. This sensor is requested to protect bank vaults and we have proposed it for correctional facilities and prevent leaks through tunnels. On the other hand, the products that decrease in sales are those whose technology prevents them from integrating with modern information systems or via the network. Likewise, products whose detection technology is based on mechanical means (such as magnetic or vibration sensors of mechanical devices) are less requested.
According to Jorge Albarrán, "the trend now is to request products whose technology is more based on software or electronic media, such as, for example, vibration analysis in the case of FlexPs and IntelliFiber and the analysis of the disturbance of the field generated by the OmniTrax or the UltraWave. These products continue to evolve and their strength lies in the intelligent nature of their algorithms, their good manufacturing as well as their ability to integrate with other systems."
On the other hand, Basilio Ángel Holowczak, engineer of the Latin American & Caribbean area of the company Takex, maintains that from the experience of his company "the products that currently present the best returns are all those related especially to control or external electronic security".
In the same way, he argues that those who have been decreasing in the security segment are those whose technologies have been surpassed and also those of great technological sophistication due to their high cost or value of acquisition and implementation.
In the specific case of which is the strongest segment of sales in the security market, Holowczak maintains that the strongest is that destined to residential exterior security and the protection of large perimeter lengths (closed neighborhoods, industrial plants, penitentiaries or prisons of high level of security, etc.).
Meanwhile, the representative of Senstar Latin America affirms that the most important segments that his company serves are: correctional facilities, oil and gas, airports and power plants.
Investments and the future
Where are this year's major investments in the industry leaning and where are the hopes for the future? Faced with this questioning, our guests affirmed, according to their experience, what the perspectives were.
Jorge Albarrán indicated that he is in the perimeter security area, because it has begun to become aware of the importance it has. That is why in greater quantity private industries request perimeter protection systems.
On the other hand, Albarrán argues, Latin American governments are making a great effort to improve their security levels and invest in the perimeter protection of their strategic sites such as correctional facilities, power stations and oil extraction and refining sites.
"In the future we expect governments to continue to invest in the perimeter protection of strategic sites and for industries to invest more in the protection of their plants, warehouses and buildings," he says.
For his part, the representative for the Latin American & Caribbean region of the company Takex comments that "the main investments this year in the industry are CCTV, exterior and interior protection against intrusion, fire detection and alarm, access control, followed by the rest of the other applications. Those that encrypt the hopes for the future, according to my personal opinion are: CCTV and external security and especially the home or residential.
On the other hand, and when asked about the balance sheet that 2011 has shown so far in the Latin American industry, Basilio Ángel Holowczak indicates that "the results have been very positive and with sustained growth".
Likewise, Jorge Albarrán, indicates that "currently we have had a very good year in terms of projects carried out and products sold. We have several projects on the doorstep and others already in the implementation phase. In the same way, we carry out maintenance and revision of the sites already installed".
Regarding how representative the Latin American security market is in relation to the international concert, Albarrán concludes that "the Latin American market is of great importance worldwide, not only because of the extension and the large number of countries involved, but that the region experiences an increase in violence and in the type of attack towards strategic or high-risk sites. This market is slow in times of sale and difficult in investments, however, it represents a high percentage in the requests we receive, in the projects we carry out and in the sale of products. In the case of the companies of our Group (with offices in Israel, Canada, the United States, Germany, Spain, Mexico (Latam), Colombia (Andina), China, Australia) the Mexico office rises in 2011 probably to the third place in terms of operation in terms of sales volume".
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