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Construction in Mexico: Key Trends and Opportunities to 2018, New Report Launched

Market Research Reports, Inc. has announced the addition of “Construction in Mexico - Key Trends and Opportunities to 2018” research report to their website


Lewes, DE -- (SBWIRE) -- 08/22/2014 -- The Mexican construction industry registered a compound annual growth rate (CAGR) of 4.64% during the review period (2009?2013). Growth was largely driven by a change in Public Works Law, new industry and economic policies, and a National Infrastructure Plan (NIP). The industry is anticipated to expand at a CAGR of 4.84% over the forecast period (2014?2018), driven by growth in the infrastructure market in line with government measures to enhance transport infrastructure. Industry expansion will also be driven by an increase in population, government initiatives to support the growth of high value-add industries, and an expected revival in consumer confidence.

This report provides detailed market analysis, information and insights into the Mexican construction industry including:
- Mexican construction industry's growth prospects by market, project type and type of construction activity
- Analysis of equipment, material and service costs across each project type in Mexico
- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Mexican construction industry
- Profiles of the leading operators in Mexican construction industry.
- Data highlights of the largest construction projects in Mexico

This report provides a comprehensive analysis of the construction industry in Mexico. It provides:
- Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Mexico using construction output and value-add methods
- Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
- Analysis of key construction industry issues, including regulation, cost management, funding and pricing
- Detailed profiles of the leading construction companies in Mexico

Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using Timetric's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors

Key Highlights
- After recovering from the financial crisis, the Mexican construction industry recorded a slowdown of 1.8% in 2013. During the review period, the gross value-added growth in construction peaked at an annual rate of 10.6% (in nominal terms) in 2011, but activity slowed in 2013, and a contraction of 1.7% was registered in 2013. The outlook is different for 2014 as the industry is anticipated to register a value-added growth of 3.9% (in nominal terms) generating 300,000 jobs. The industry is set to grow further, both in 2014 and over the forecast period, due to improved economic conditions, low interest rates and increased investment. With government commitment and investment picking up, the industry is showing signs of positive growth. The industry’s value add is projected to reach MXN1.5 trillion (US$94.8 billion) in 2018, representative of a forecast-period CAGR of 3.24%.

- Under Mexico’s NIP 2014?2018, a series of infrastructure projects will be launched to improve bridges, ports, roads, highways, airports, railways and power supplies, which will ultimately lead to the modernization of the country’s infrastructure. Public-private partnerships (PPPs) will be a major source of investment. Mexico’s National Infrastructure Fund (Fondo Nacional de Infraestructura) and the National Bank of Public Works and Services (Banco Nacional de Obras y Servicios Públicos) will also act as financial providers to the plan. The government intends to spend MXN7.8 trillion (US$619.1 billion), of which MXN1.3 trillion (US$102.1 billion) is expected to be spent on transport and communication. According to the Secretariat of Communications and Transport (SCT), investment in roads under the plan is 36.0%, higher than the investment made under the previous government.

- In a bid to support the residential construction market and develop affordable properties for low-income demographics, a co-operation agreement was signed between the International Finance Corporation (IFC), a member of the World Bank Group and the Mexican homebuilder Urbi Desarrollos Urbanos in 2012. In partnership with this agreement, financial assistance of up to MXN1.4 billion (US$105.0 million) will be granted to build energy-efficient housing units for low income demographics. Under this agreement, nearly 36,000 housing units must be constructed annually until 2017, to overcome a housing deficit of 9 million units. This will generate 4,500 jobs every year. The IFC will be providing assistance in the form of MXN658.8 million (US$50.0 million) to Urbi, while Canada will make a contribution of MXN263.5 million (US$20.0 million) through the IFC-Canada Climate Change Program. In addition, an amount of MXN461.1 million (US$35.0 million) will also be provided through a syndicated loan from international commercial banks. Consequently, government-led affordable housing projects are expected to encourage expansion in the category over the forecast period.

- To increase the annual inflow of tourists, it is important that the Mexican government makes efforts to ensure safety. According to the World Economic Forum’s Travel and Tourism Competitiveness Index 2013, Mexico ranked 121st position out of 140 countries in terms of safety and security. The drug war and associated violence, kidnappings and mass murders have adversely affected the country’s image as a safe destination. The growth in tourism can be attributed only to the country’s improving economic conditions and a rise in industrial activity, which improved employment opportunities, and led to a rise in income and expenditure. This will further support the growth of the leisure and hospitality buildings category over the forecast period.

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Spanning over 74 pages, “Construction in Mexico - Key Trends and Opportunities to 2018” report covering the Executive Summary, Market Overview, Commercial Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, Residential Construction, Company Profile: Empresas ICA, S.A.B. de C.V., Company Profile: Desarrolladora Homex, S.A.B. De C.V., Company Profile: Impulsora del Desarrollo y el Empleo en America Latina S.A.B. de C.V., Company Profile: Grupo Carso, S.A. de C.V., Company Profile: Consorcio ARA, S.A.B. de C.V., Market Data Analysis, Appendix. The report covered companies are - Empresas ICA, SAB de CV, Desarrolladora Homex, SAB de CV, Impulsora del Desarrollo y el Empleo en America Latina SAB de CV, Grupo Carso, SA de CV, Consorcio ARA, SAB de CV.

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