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Mexico Construction Market Forecast to 2019 - Latest Market Survey, Analysis, Insights, Research & Outlook: ResearchMoz

ResearchMoz added Latest Research Report titled " Mexican Construction Trends and Opportunities to 2019: Industry Research, Analysis, Shares, Size, Trends, Growth, Survey, Forecast " to it's Large Report database.


Albany, NY -- (SBWIRE) -- 11/20/2015 -- Mexico's construction industry is expected to continue to expand over the forecast period (2015–2019), due to government investment in energy, residential and infrastructure construction. The government's main areas of focus are: addressing the country's housing shortage, developing sources of renewable energy and improving transport and tourism infrastructure.

Over the forecast period, growth will be driven by an increase in public and private sector investments, disposable income, population growth and urbanization. In real terms, growth in the industry's output value is anticipated to accelerate from a compound annual growth rate (CAGR) of 0.70% during the review period (2010–2014), to a forecast-period CAGR of 3.65%.

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This report provides a comprehensive analysis of the construction industry in Mexico It provides:

Historical (2010-2014) and forecast (2015-2019) valuations of the construction industry in Mexican using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, 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

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In terms of its contribution to GDP and employment, the travel and tourism industry is one of the most important contributors to the Mexican economy. According to the WTTC, the travel and tourism sector's direct contribution to GDP measured 6.8% in 2014, while its total contribution to GDP was 14.8%. In terms of employment, the industry's direct contribution stood at 7.4% in 2014, while its total contribution was 15.7%. The Mexican travel and tourism sector's total contribution to GDP is expected to increase by 4.2% annually, from 2014 to 2025. The industry is also expected to attract capital investments by 2025. This will support growth in the leisure and hospitality buildings category over the forecast period.
The commercial construction market will be supported by a number of office buildings construction projects, due to an increase in the take-up of office space transactions. More than 530,000m2 of office space is expected to be added to the market by 2018, with eight office building projects under construction and four in the planning stage, along Reforma, Mexico city's central avenue. The government is making efforts to encourage this development by providing concessions on building permits and waiving property taxes. The resultant initiatives are anticipated to support the expansion of the commercial construction market over the forecast period.
The government's aim to develop road infrastructure has been supported by public and private sector investments during the past decade. To further modernize the country's road infrastructure by 2018, the Mexico's Secretariat of Communications and Transportation (SCT) allocated MXN380.0 billion (US$28.5 billion) in 2014 for the widening of highways to four lanes. Investment will focus on 15 road projects connecting 33 ports, responsible for the transit of 99.0% of the country's twenty-foot equivalent unit cargo containers.
Under its NIP 2014–2018, the government announced plans to construct a portfolio of 262 energy projects in April 2014. The plan focuses on the extension and development of the country's existing energy infrastructure facilities, which include the construction of generation, transmission and distribution facilities. Initiatives will support the growth of the energy and communications infrastructure category over the forecast period.
According to the United Nations Department of Economic and Social Affairs (UNDESA), the total population is expected to increase from 118.6 million in 2010 to 134.8 million by 2020, and 141.9 million by 2025. Furthermore, the urban population in particular is expected to increase from 91.8 million in 2010 to 106.3 million by 2020, and 119.0 million by 2030. This is expected to increase the demand for new houses, and create demand for residential construction.

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