In the Line of Fire

May 1, 2011

Transport, tourism and housing are just some of the sectors susceptible to Mexico’s deteriorating drug violence. Security costs are becoming a concern for Mexican companies.

Keywords: Natalie Feary mexico Kroll Alonso Cervera Credit Suisse

by Natalie Feary

Despite the Mexican government’s efforts in the war on drugs and GDP growth of 5.5% in 2010, a majority of companies in a recent survey on security say Mexico is now more dangerous than a year ago. Companies say they are increasing the amount they are spending on security measures.

Kroll, a risk mitigation firm, received almost double the response to its survey on the impact of security on the private sector than it received last year, according to David Robillard, managing director of Kroll’s Mexico office. “The issue of security is definitely top of the mind as it is seen as one of the factors that contribute to investment decisions.”

Kroll’s survey, conducted together with American Chamber of Commerce of Mexico, received over 500 responses to its 2011 survey from directors of foreign and local companies in the service,...

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