By Calvin Biesecker
TEL AVIV–Once more reliant on the United States for the export of its aerospace and security products and services, Israeli firms today are finding more opportunities in Eastern and Central Europe and even elsewhere as the country’s businesses look to grow beyond the borders of its relatively small market, according to an official with the Israel Export & International Cooperation Institute.
Israel is “big” on homeland security because of necessity in a country facing threats from within and without but also because it finds a lot of export demand for these products, Guy Zuri, business development manager for the Institute’s Security, Safety and Homeland Security division, told reporters here. About 70 percent of revenues for the homeland security businesses come from exports, he said last week.
“Israel is a global brand,” Zuri said. Last year the country hosted four homeland security directors from 12 countries, including U.S. Homeland Security Chief Michael Chertoff, he said.
Airport security, particularly integrated projects, border security, critical infrastructure protection and municipal security represent some of the key export segments for Israeli firm, Zuri said. The country’s products for these markets run the gamut from integrated video command and control and software management solutions to surveillance and chemical, biological, radiological and nuclear detection capabilities, he said.
One of the drivers for new and emerging markets is large international events, particularly sporting competitions, Zuri said. For example, in 2010 Delhi, India, will be hosting the Commonwealth Games, and in 2012 the Ukraine and Poland are hosting the Euro Cup Soccer Championships, which will have a $16 billion budget, including over $500 million for security.
These types of events have large potential for Israeli companies in part because of their size but also because they have deadlines for when certain equipment must be purchased, Zuri said.
Zuri points to India as an emerging market for security products and services. The country already has acquired defense technologies and its growing wealth combined with the threat of terrorism there provides opportunities for security technologies, he said.
Other potential new markets include Brazil, China and Russia, Zuri said. Turkey is another country that has potential but in which Israeli security firms haven’t had success yet, he said. Most of Israel’s security companies are small and medium-sized businesses so markets such as Turkey that are closer geographically to Israel are easier on the travel budgets of these firms, he added.
Israel has 350 exporting companies in the homeland security market. These include firms like well known companies Elbit [ELST], Israel Aircraft Industries, NICE, Magal, ioimage and Orsus as well as others such as Rotem Industries, TopEyeView and See True.
The Israel Export & International Cooperation Institute is a non-profit, quasi-governmental organization that provides seminars and services to help Israeli firms learn how to export their goods. The organization also identifies business opportunities overseas. Next spring the Institute will host a conference on transportation security solutions and will have and Industry Day for Israeli companies in this space, Zuri said.