Safety and Security Equipment
Philippines
Overview
(In $ Millions)
2003* 2004* 2005* (projected)
Total Market Size N/A N/A N/A
Total Local Production N/A N/A N/A
Total Exports 4 5 6
Total Imports 15 16 18
Imports from the U.S. 3 3 3.5
*Based on unofficial trade estimates
The Philippine safety and security market remains largely import-dependent. Local production is confined to the manufacture of complementing parts and components to safety and security systems, equipment or technology that is sourced from the United States, Taiwan, Korea, Japan, China and Europe. In recent years, the market has become more price-conscious particularly in the retail segment. Demand for safety and security products is expected to surge due to the growing need to protect commercial and industrial establishments, residential communities, sensitive infrastructure, and life and personal property. New security-related technologies and solutions continue to be introduced to the local market, as there is growing interest in their varied and specialized applications.
The more established industry players are looking for integrated, system-focused solutions, as opposed to purchasing individual items or products. For instance, larger companies are seeking access control technology that can be integrated into the company’s time and attendance payroll system. The same is true for fire alarms and fire extinguishers combined with fire detection, fire suppression, or fire protection systems. Many buyers are seeking to “rationalize” security provisions by striking a balance between manpower requirements (i.e., deployment of security guards) and security equipment to achieve cost efficiency while addressing safety and security concerns.
U.S. products are most competitive in the more sophisticated, high-end markets, where conformity to internationally recognized safety and security standards and specifications (UL listing, ISO certification, etc.) are imperative. The medium- and lower-ends of the market tend to be more price-sensitive. Therefore, stiff competition from lower-priced suppliers, notably China, Korea, and Taiwan.
U.S. companies should consider a market education or “push” strategy in penetrating the Philippine security sector. Building product awareness and focusing on product differentiation are key elements in introducing new security equipment and technology.
U.S. suppliers interested in the Philippine market typically appoint their own exclusive distributor or channel their products through some of the already known distributors, sales agents or retailers, most of whom also provide complementing services (e.g.., installation and after-sales service). Support from the principals usually comes in the form of promotional materials, technical training and promotional budgets.
Best Products/Services
Industry insiders note stable demand for the following products:
· Access Control Systems (locks, ID systems, card access, anti-intrusion systems, etc.) for both residential and commercial/industrial purposes
· Closed Circuit Television (CCTV) and Digital Video Recorders (DVRs)
· Data Protection (hardware and software)
· Fire alarm systems, fire detection, prevention and/or suppression systems and similar equipment
· Industrial safety paraphernalia (e.g., protective gear, apparel, etc.)
· Integrated building management systems
· X-ray systems / container or cargo scanning equipment
· Security provisions for retail establishments (e.g., magnetic electronic security tags, handheld baggage or walk through scanners)
Opportunities
· Continuous security upgrade and maintenance of highly sensitive facilities and structures (e.g., diplomatic posts, multi-national corporations, telecommunications towers, power plants, high-tech factories, etc.) present stable demand for safety and security equipment.
· The increase in demand from new residential communities being built outside Metro Manila calls for more sophisticated access control systems and similar security installations.
· The expected growth in emerging sectors like mining and e-services (e.g., call centers, business process outsourcing) augur well for suppliers of safety equipment and related security provisions.
· Private port and cargo terminal operators continue to upgrade their security infrastructure. For instance, the International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI) have recently acquired and installed x-ray systems and complementing equipment in their facilities, partly in compliance with the U.S. Department of Energy’s Megaports Initiative.
· In line with the USG’s Container Security Initiative (CSI) and Operation Safe Commerce (OSC), the Philippine Ports Authority (PPA), the Department of Transportation and Communication (DOTC), and other related agencies have indicated port modernization is a key element in infrastructure development. The Office of Transportation Security (OTS) of the DOTC, for instance, continues to monitor various ports’ compliance with the ISPS Code.
· New airport development projects are being contemplated in key areas in the country. An integral part of such projects include safety and security systems. At least eighteen existing domestic airports are also in various stages of upgrade, rehabilitation, development, or improvement.
Resources
Department of Transportation and Communications: http://www.dotc.gov.ph
Philippine Ports Authority: http://www.ppa.gov.ph
Edu M. Niala Jr., Commercial Specialist
U.S. Commercial Service Manila
Email: Edu.Niala@mail.doc.gov , Manila.Office.Box@mail.doc.gov