Honduras
Safety & Security Products & Services

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2019-10-13

This is a best prospect industry sector for this country. Includes a market overview and trade data.


Overview>

The demand for safety and security equipment in the country continues to grow in Honduras Despite statistics pointing a to a significant drop in violence, crime is still widespread especially in urban areas. Poverty and unemployment along with significant street gang and drug trafficking activity have contributed to the high crime rates.

Political demonstrations occur frequently in the major cities of Honduras. During demonstrations protestors frequently block public roads to press their political views or to seek concessions from the Honduran government. Vandalism and destruction of public and private property are also frequent occurrences during these protests. The Honduran police have been known to use tear gas and water cannons to disperse demonstrators.

Violent crime occurs in all parts of Honduras with the north coast and central portions of the country historically having the highest crime rates.  Copan, Roatan/Bay Islands, and other tourist destinations have a lower crime rate than other parts of the country.

The location and timing of criminal activity is unpredictable. There is no information to suggest that criminals specifically target U.S. citizens or foreigners. However, the San Pedro Sula area has seen armed robberies against tourist vans, minibuses, and cars traveling from the airport to area hotels. International non-governmental organizations (NGOs) and USAID implementing partners have reported threats and violence when visiting some rural communities. Those traveling with tour/missionary groups report fewer criminal incidents.

Roatán and the Bay Islands experience lower crime rates than the mainland and other Caribbean islands. However, theft, break-ins, and other violent crimes do occur. According to the Roatán authorities, criminal events decreased in 2018 compared to previous years.

U.S. firms should plan their market entry very carefully. Given its strategic location and boasting the largest maritime port in the region, Honduras is an important gateway for U.S. exports entering the Central American market.

Decisive factors in the purchasing of safety & security equipment in Honduras are price, quality, estimated delivery times and terms of credit. This trend puts Asian manufactured goods at the forefront of the market. However, in recent years importers have begun looking for other supply channels in the United States and Europe, as the need for more reliable, robust and smarter systems have become a necessity. Personalized service is paramount as the evolving market demands a higher technical knowledge of the industry in order to better approach the end users in the private and public sectors with new technologies and smarter and more efficient products.
 
A significant advantage for U.S. exporters exists in the positive perception of U.S. manufactured goods and the relatively close proximity between both countries. Communication and information sharing becomes another critical factor as the Honduran business community traditionally prefers to establish a level of personal relationship with their suppliers.

It is critical for a successful U.S. supplier to familiarize themselves with the dynamics of doing business in Honduras as it will vary from the other countries in Central America. Despite its smaller economy, Honduras has two major commercial centers: Tegucigalpa, the capital city and San Pedro Sula, known as the industrial capital of the country. In choosing to enter this market the selection of a representative or licensed distributor with the capacity and experience to operate in both these regions is instrumental in securing a solid market share.

The Honduran government has been investing heavily in upgrading national security assets and institutions. In 2014 and 2015, the Honduran armed forces purchased large quantities of tactical equipment for the Honduran national armed forces and specialized tactical police units. There is a growing demand for safety and security products by the private sector; however, these items are restricted to commercial firearms and surveillance technology. Opportunities may exist for U.S. companies looking to approach the Honduran Ministry of Defense and the Ministry of Security. 

The security market in Honduras is highly competitive as demand for security services grows in the region. Currently, there are 300 companies registered with the Honduran Security Service Providers’ Association, employing approximately 100,000 people. However, the majority of providers can be found in the informal sector and are not licensed or trained; they provide mostly residential security services. The Honduran Security Service Providers’ Association is working hand-in-hand with the Honduran National Congress to regulate the informal market and bring these unlicensed operators to comply with a national regulatory standard for the industry. Current statistics place the ratio of private security guards to national police officers at 10-1.

Professional companies operating in Honduras provide mainly prevention, monitoring, and secure transport services, as well as distribute surveillance and general safety equipment. Personal security is a growing industry subset and currently, the need for highly trained personnel as well as equipment is expanding. Major exporters of security equipment to Honduras are Israel, Colombia, Mexico, Brazil, and the United States.

The state owned company “LA ARMERIA” is currently the only licensed distributor of commercial firearms in Honduras. A small number of retailers in Tegucigalpa and San Pedro Sula distribute tactical gear, personal defense products, and accessories.

 

 

2016

2017

2018 *Jan-Sep

2019 (Estimated)

Total Local Production

NA

NA

NA

NA

Total Exports

0.9

0.9

1.1

1.3

Total Imports

229.6

271.2

206.3

235.7

Imports from the US

83.1

142.8

109.7

111.8

Total Market Size

228.7

270.3

205.2

234.4

Exchange Rates

23.05

23.46

23.90

24.00

   USD value represented in millions. * Source:  Central American Economic Integration Secretariat - SIECA


Leading Sub-Sectors

  • CCTV Cameras

  • Metal detectors

  • Uniforms & tactical gear

  • Biometric products, equipment & software

  • Access control systems

  • Commercial personal defense products

  • Alarms

  • GPS and RFID technology

  • Cargo & container scanning equipment

  • Speed measurement radars and LIDAR

  • Commercial & Military Firearms and accessories

  • Military firearm optics

 

Opportunities

  • Close proximity to the United States

  • Containerized cargo from gateway cities can be transported to Honduras in two to three days

  • Importers strongly prefer U.S. equipment because of its high-quality and reliability

 

Web Resources


The US Commercial Service under the International Buyer Program provides assistance, information, and registration for the following Trade Shows:

  • Global Security Expo: Sun, Sep 8, 2019 – Fri, Sep 13, 2019– Las Vegas Convention Center, Las Vegas, NV- https://www.gsx.org  

  • SHOT SHOW 2019: January 21–24, 2020 - Las Vegas, NV – www.shotshow.org