Safety and Security (SEC)
The safety and security industry in Chile grew approximately 14% during 2011, and according to industry contacts, the same growth is expected in 2012. The market share for 2011 imports was: China 30%, followed by the United States with 25%, and Germany with 4%. These figures include security equipment and devices used in the construction of residential, commercial, and industrial compounds, firefighting, and safety devices. China’s market share can be explained both by the price factor and the China-Chile Free Trade Agreement, enacted a couple of years after the US-Chile FTA, in place since 2004.
President Piñera recently announced a framework law for firefighters, mandating the state to provide them with a dedicated annual budget. The law highlights the relevance of the service provided by firefighters during emergencies, giving them the resources to upgrade their equipment.
Opportunities continue to be present in the residential, commercial, and industrial sectors. For example, there are numerous shopping malls under construction that will require security equipment. At the same time, the administration is facing the need to supply the police with modern crowd control equipment, due to increased demonstrations.
High priority is placed in upgrading the prison system because of inmate overcrowding. Accordingly, there is a second concessions program for the construction of penitentiary compounds.