After an encouraging balance in 2010, the Mexican security industry is optimistic for what will be this year, but at the same time is aware of the great challenges that 2011 brings.
By Santiago Jaramillo H.
Despite the difficulties that the security industry faced during the crisis, this year brings with it an enormous economic expectation for the Mexican market, because according to official forecasts, the Gross Domestic Product (GDP) will grow 4%, and according to the Economic Commission for Latin America and the Caribbean (ECLAC), Mexico's growth this year will be 3.6% and will be driven by the rise in oil prices and the increase in domestic exports. In addition, the International Monetary Fund (IMF) makes a projection of national growth of 3.9%, but does not ignore that the expected is lower than other economies in the region.
In the context of the region, Brazil, the largest Latin American economy, would expand by 4.6% in 2011. South America is expected to continue to increase its GDP slightly above the regional average (4.5%), while the growth rate in Caribbean countries will be 2.2%.
According to a United Nations report, the Economy of Latin America would reduce its speed of expansion during the present and next year due to a moderation of trade flows that go to the region, mainly to Mexico and some Central American countries.
In this sense, Latin America would grow by 4.1% in 2011 and 4.3% next year, from the 5.6% expansion estimated in 2010, says the UN report on the situation and prospects of the world economy.
According to the same report, the risks to exports will be most palpable in the economies of Mexico and Central America, where dependence on manufacturing exports to the United States is greater, as well as competition from China.
Brazil would grow by 4.5% and 5.2% in 2011 and 2012, respectively, compared to an expansion of 7.6% in 2010.
In the case of the region's second-largest economy, Mexico, GDP would rise to 3.4% and 3.5% in 2011 and 2012, compared to an estimated 5% in 2010, according to the same report.
For developed economies, the United Nations estimates an expansion of 1.9% in 2011, compared with an estimated 2.3% for 2010.
This borders on the good figures that the security industry threw last year and its prospects, which thanks to the dynamics presented in 2010 can speak, in many cases, of increases not less than double digits in their businesses.
"Despite the global crisis, the Mexican market registered at the high, since the infrastructure in updating technologies in video surveillance and access control have had most of the success, in addition to that I am sure that it will continue like this for a large part of this year. It should be noted, in the same way, that continuous progress and sales is also why we have to get down to work with this to meet the technological and service needs, "says Guillermo Hernández, Key Account Manager of the Mexican company Equipos de Seguridad Magocad S.A. de C.V.
For his part, Jaime Murow, general director of the Mexican company Connect Everywhere S.A. de C.V., indicates that the prospects of the security industry in Mexico "Are encouraging at the state and federal government level because due to the resurgence of violence they have been forced to spend more resources in the field of protection and security. Similarly, I see growth in the intelligence, espionage and counter-espionage, urban video surveillance, and access control sectors. The problem I see in the face of the above is that there is no congruence in the standards, nor risk analysis that are necessary and many tenders are made without knowing for sure what the end customer requires. "
Meanwhile, Enrique Martínez, security advisor in Mexico, said that 2010 left good results, and that "the security industry, especially in the segments of urban video surveillance and access control, gave the greatest boost for the auspicious moment that is lived."
Another factor that portends good returns in this industry is that Latin America has normalized economically: there are greater capital flows and foreign investors are turning their eyes to the region.
"It is important to emphasize the issue of investors since they are the ones who today trust more that the processes of their businesses are profitable and have surplus value by taking care of their interests and who provide services, we give them that option of intelligence in security, for this reason the expansion is required to the extent of the increase of national and foreign investors, " Hernandez says.
Murow complements the above by reiterating that "Due to the climate of violence that exists in Mexico, technology companies, especially those that have to do with security systems, have found an environment conducive to increasing their business volumes. But I think the winner in all of this will be the one who can provide more flexible systems, easier to maintain with standards and who really want to retain a presence in Mexico in order to maintain and provide all this equipment."
On this behavior, the CEO of the Mexican company Connect Everywhere S.A. de C.V., states that "2010, from our point of view, was a year where consumers of the security industry in the Mexican market and the whole world, driven by the decline in economic activity, made leaps and bounds in the understanding that a security system under the strictest measures and demands, it can complement everyday life and increase the theme of life tranquility."
He also said that the focus on quality, good product performance and compatibility with the demands of the industry, have been key in the growth of the business and companies.
In terms of research and development, various initiatives have also been advanced that in some way are helping to mark the security sector, as recognized by the representative of Seguridad Magocad S.A. de C.V. when indicating that "undoubtedly telecommunications as a development of technology and the opening of investments of Telcos and developments in CCTV, fiber optics and IP make a perfect synergy."
Martínez complements the above by highlighting that "electronic security is a very important tool as one of the elements participating in comprehensive security systems. So every day they have a higher percentage of application in security systems, due to the greater profitability and certainty they generate, since they are effective complements of security personnel in terms of security, they are determining elements in the deterrence of crime. "
Regarding training and process improvement, our guests also highlight the importance of these aspects in order to have a more productive segment: "In the risk prevention and civil protection segment, they should create a standard of requirement so that in the fire detection sector it would require having a system to prevent disasters such as: the famous ABC nurseries, because if we talk about the protection of lives, this area must be indispensable in any institution, whether private or public, "ponders Guillermo Hernández.
