Vehicle armoring is in such demand that companies expect revenue to double or triple by the end of 2023.

Ecuador concluded the first half of 2023 with 36,836 robberies, or at least such were reported to the prosecutor’s office. Violent deaths increased by almost 85%. Images of riddled cars have become recurring, all amid a wave of uncertainty that is affecting businesses in two ways: those that have to spend more and those that sell more.

The commercial sector plans to allocate 816 million dollars for security costs this year, 10% more than in 2022. While in the entire chain of the export sector, it is estimated that spending on security amounts to 1 million dollars per day. The problem generates more demand for security-focused services and products, which generates revenue in other businesses, such as vehicle armoring. In April, companies engaged in this activity predicted growth of up to 35% by the end of the year, and now they are raising expectations with the goal of doubling and even tripling revenues compared to 2022, when they have already experienced growth of up to 85%.

The commercial sector, which plans to spend $816 million on security in 2023, is joining exporters’ demand to double the deductibility of these costs.

One of those companies is Orgu Ford, a Ford dealership dedicated to armored vehicles, which saw a 50% increase in demand from January to April last year. It has climbed to 70% as of today (August) and is expected to exceed 100% in sales by the end of the year, said Daniel Yánez, the company’s head of marketing.

Orgu began promoting its new range of armored vehicles on its website this year, with the Ford F150 and Explorer, although other models are also armored, such as the Ford Expedition, Ford Ranger and Ford Escape. In addition to the North American brand, the company has included Japanese, Korean and German companies in its portfolio.

This is how the demand for armored vehicles is growing, the uncertainty is more difficult than the prices that reach up to 37,000 dollars

Regarding prices, Yánez assured that, despite the increase in demand, they remained stable. However, they differ in the case of a new vehicle, taking into account the value of the new vehicle plus the cost of the armor; and in case the vehicle is used, only the value of the armor. In addition, the value of armor depends on the type of level and the size of the vehicle. There are three alternatives: Silver Armor, which is level IIIA and costs $24,990; gold, level IIIA, $31,990; and Platinum, Level IIIA, which is $36,990.

AutoExpress, which has its business line Aex Ballistic, which is dedicated to vehicle armor in Quito, has doubled its demand this year, according to Javier Mendoza, the company’s marketing manager, who has 26 years of experience in the automotive sector. . “In Quito, the demand for car armor has doubled since last year, due to the growing insecurity in the country. There was a need to look for alternatives that guarantee the safety and tranquility of people, where the car armor is a tool for comprehensive safety, which allows a few seconds of reaction and can save lives.

The projection for this year, according to an AutoExpress spokesperson, is that demand will triple compared to 2022. To prepare, the company has increased shifts by several working days and invested in expanding its 15,000 m² bodywork factory.

And that is that the complaints received by the prosecutor’s office in the first six months of this year, out of 36,836 robberies, are led by Guayas with 34.4% (90,196 reported cases) and Pichincha with 24.1% (63,338). In addition, figures from the National Police show that in Zone 8 (Guayaquil, Durán and Samborondón) the number of violent deaths has increased by almost 85%. Quito also showed an increase of 28% during this period.

AutoExpress points out its “light armor of the latest generation (which) enables the armoring of any type of vehicle, as long as it has an engine of at least 2000 cm³”, specified Mendoza. The average price of Aex Ballistic automotive integral body armor is $20,000. There are three types:

Excess supply

However, this dizzying growth in the supply of protection companies has also introduced to the market options that do not meet the minimum quality parameters and affect the competitiveness of the sector. The company Pardo Ecuador, which had been dedicated to armored vehicles for six months, was forced to abandon that activity and focus only on security panels, alarms, led lights and audio; This was due to an excess supply of low-priced armor that did not allow it to compete, according to the company, which coped with higher costs by providing quality service to international standards.

“There are many companies today dedicated to protection without complying with regulations, recycling materials and working with unskilled labor, charging little for the service,” criticized Eduardo, his spokesman.

However, the line of business they focused on – security panels, alarms, led lights and audio – also grew in demand. Eduardo assured that in 2022 they had a peak consumption of these products of about two months, and this year — especially in the last three months — sales increased by 15%.

“Our country’s economy, in general, does not allow an important segment of our society to have the luxury of access to quality auto body armor. However, with these products, it can be alleviated and in many cases prevent unpleasant moments from happening due to the crime experienced,” he said.

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