Companies dedicated to this sector had a year-on-year variation of 4.8% in the second quarter, in a context in which insecurity is the main topic of debate.
The security services are going through a period of great growth, in contrast to the general services sectorwhose sales experienced a year-on-year drop of 1.7% in real terms. In this sense, the data of a 4.8% increase in sales of security companies during the second quarter of 2024, compared to the same period last year, takes on greater significance in a context in which the insecurity It is the main topic of debate in most areas in Uruguay.
The Chamber of Commerce and Services of Uruguay (CCSUy) disclosed his Quarterly Activity Survey together with the consultant Teams, which registered a general drop in sales of 1.7% year-on-year; as well as a reduction in sales expectations by entrepreneurs in most sectors with respect to the performance of the third quarter, giving an account of a deceleration in the sector.
However, the sector of security services was one of those that stood out for its exceptionally positive results, contrary to the general context in Trade and Services. Thus, based on the responses of the seven companies consulted, a actual sales variation of 4.8% year-on-year. This figure is even more consistent considering that in the first quarter this figure fell by 2.2%.
Along the same lines, the diffusion index —which refers to the total number of companies that reported that their sales increased— rose from 33% in the first quarter to 71% in the second.
The context of citizen concern, key to understanding the data
Although the data itself is striking, it is necessary to take into account the context in which, despite the general decline in the Trade and Services sector, the security services had an important boost: the insecurity It is the main concern of Uruguayans and a central issue in the electoral debate ahead of the October elections.
In this scenario, there is also the insistence of Open Town Hall to declare the national security emergency for 120 days and the campaign for the plebiscite that seeks to enable the night raidsBoth initiatives are based on the argument of fighting drug trafficking and organized crime, which has increased the level of violence in crime, to the point that the government itself acknowledged having a problem with the homicide figures in the country.
In this way, and with a growing concern on the part of citizens that is also reflected in the presence of the issue in the campaign, a greater number of people acquired services to security companieswhich directly impacted its significant increase in billing from one quarter to the next; as well as an improvement in its profitability expectations For this year, 71% of companies expect better revenues and 67% expect better profitability.
Source: Ambito
