Researchmoz added Most up-to-date research on "Construction in Argentina - Key Trends and Opportunities to 2021" to its huge collection of research reports.

Albany, NY -- (SBWire) -- 01/10/2018 --Construction activity in Argentina was weak in 2016, following the economic recession which resulted in a deteriorating business environment. In addition, poor investor confidence coupled with high inflation and currency devaluation attributed to this decline. Consequently, the country's construction industry contracted by 12.0% in real terms that year. This was preceded by an annual increase of 2.5% in 2015, but an annual average contraction of 2.7% during 2012–2014.

The industry's value is expected to pick up over the forecast period (2017–2021), with investments in public infrastructure, energy, commercial and industrial projects, and improvement in consumer and investor confidence. Programs such as the Línea Solución Casa Propia program, RenovAr program and Road Infrastructure with a Traffic Safety and Capacity Enhancement program are expected to support the forecast-period growth of the industry.

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In real terms, the industry's output value is forecast to rise at a compound annual growth rate (CAGR) of 8.18% over the forecast period – up from -3.47% during the review period (2012–2016).

There are risks associated with the Argentine construction industry outlook. The ambiguity surrounding the liberalization of the economy, high inflation and currency devaluation are expected to have a negative impact on fixed capital investments. The industry is expected to perform better in the long-term, supported by the government's efforts to bring down high inflation rates and reduce the widening budget deficit.

Summary

Timetric's Construction in Argentina – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Argentine construction industry, including:

- The Argentine construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Argentine construction industry
- Profiles of the leading operators in the Argentine construction industry

Scope

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

- Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Argentina using construction output and value-add methods
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- 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)
- Detailed profiles of the leading construction companies in Argentina

Reasons To Buy

- Identify and evaluate market opportunities using Timetric's 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 strategy using Timetric's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.

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Key Highlights

- Timetric expects residential construction market output to record a forecast-period CAGR of 29.72% in nominal terms, driven by government support for middle- and low-income citizens though housing programs, coupled with rising residential building permits in the country. However, real growth is expected to be low mainly due to currency devaluation and high inflation.
- The government is focusing on the development of freight and passenger railway lines, with an aim to increase the trade activity and mobility of the country. Under the Comprehensive Plan of Works for the Metropolitan Rail Network, the government plans to invest ARS209.6 billion (US$14.2 billion) to build the Regional Express Rail (RER) network, with an aim to triple the capacity of urban rail in Buenos Aires by 2025.
- The government is focusing on renewable energy infrastructure in order to reduce carbon emissions in the country, which in turn is expected to drive the growth of the energy and utility construction market over the forecast period. The government aims to increase the share of renewable energy in the total electricity generation capacity from 7.5% in 2016 to 20% by 2025.
- In 2016, the government announced plans to invest ARS22.2 billion (US$1.5 billion) to upgrade the infrastructure of 19 airports across the country by 2019. This investment is also part of the government's move to improve the commercial capacity of airports located in the country's remote areas, so as to enhance exports of domestic products such as cherries and blueberries.
- The government is focusing on the development of the auto manufacturing industry, with an aim of increasing exports from the country, as well as create employment. The government aims to increase the country's annual vehicles production capacity from 472,776 units annually in 2016 to 750,000 units by 2019, and 1.0 million by 2030. Accordingly, the government launched the 'One Million Plan' in March 2017, with an aim to produce 30,000 jobs by 2030.