Factories spend over $8.44 billion on security

The losses stemming from robbery, theft, and vandalism, coupled with insurance plans and private security costs took up over $8.44 billion from the revenues of the country's factories in 2016. The data can be found in a survey released today (Aug 15) by the National Confederation of Industry (CNI). The study further shows that one of every three factories were affected.

“Fifty three percent of companies that fell victims to violence argue that the losses caused by the crimes reached up to 0.5% of revenues. On average, the losses incurred by the companies that faced theft, robbery or vandalism account for 0.69% of revenues, or [$1.81 billion] in 2016,” the document reads.

The study surveyed 2,952 small, medium, and large factories across Brazil. According to CNI, 57% of respondents believe that the number of cases of theft, robbery, and vandalism increased where the city is based. That led to factories increasing spending with private security and insurances.

“Private security is more predominant among companies in the mining field. In this industrial segment, 64% of companies hired private security in 2016,” the survey says. In construction, this proportion was reported at 56% and manufacturing 54%. On average, firms spent 0.64% of their revenues on private security services, which corresponds to $3.28 billion in 2016.

CNI's survey also found that poor security make an impact on the companies' decision to expand or invest in new plants. Of the respondents, 35% said the lack of security affects investment decisions considerably or moderately. The percentage goes up to 47% among those who believe crime grew where their factories are based.

Translated by Fabrício Ferreira