Construction in Mexico – Key Trends and Opportunities to 2016

Synopsis

This report provides detailed market analysis, information and insights into the Mexico construction market, including:
• The Mexico construction market’s growth prospects by sector, project type and type of construction activity
• Analysis of equipment, material and service costs across each project type within Mexico
• Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the Mexico construction market
• Assessment of the competitive forces facing the construction industry in Mexico and profiles of the leading players
• Profiles of the ten largest construction projects in Mexico

Summary

The Mexican construction industry increased in value at a compound annual growth rate (CAGR) of 3.62% during the review period (2007–2011). This was supported by significant private and public investments in Mexican infrastructural, residential, commercial and industrial construction projects. Infrastructure was the largest construction market in Mexico during the review period. The market accounted for a share of 39.6% of the construction industry‘s value in 2011, after increasing in value at a significant CAGR of 9.38% during the review period. This growth can be attributed to significant investments made by the government in infrastructure developments. The Mexican government launched a five-year National Infrastructure Plan (NIP) to improve Mexico‘s infrastructure in 2007. The program identified a number of roads and highways, water, power generation, telecommunications and energy infrastructure development projects, requiring an investment of MXN2.9 trillion (US$234 billion), that will be financed by both public and private organizations.

Scope

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

• Historical (2007-2011) and forecast (2012-2016) valuations of the construction market in Mexico using the 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
• Assessment of the competitive environment using Porter’s Five Forces
• Detailed profiles of the leading construction companies in Mexico
• Profiles of the top ten construction mega-projects in Mexico by value

Reasons To Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level via 600+ time series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies by leveraging our critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

In 2011, infrastructure and residential construction were the two largest markets in the Mexican construction industry, which accounted for a cumulative share of 69.8% of the total industry’s value.

The Mexican government announced several fiscal and monetary measures to stimulate the economy in 2009, including tax breaks for corporations, increased public infrastructure spending, relaxation of policy rates and reforms in healthcare and education industries. The Mexican government is focused on infrastructure development over the forecast period, as it is expected to provide employment opportunities during adverse economic conditions.

To increase private investment in infrastructure projects, the government of Mexico passed a public-private partnership (PPP) law in January 2012, which provides private investors with better guarantees and better legal protection.

The Mexican government announced a National Infrastructure Plan (NIP) that provided an investment of MXN2.9 trillion (US$234 billion) in infrastructure development projects during 2007–2012. The NIP’s focus was to improve the country’s road and rail network, ports, airports, water, power generation, transportation, energy, and oil and gas infrastructure.

Mexico has a large housing deficit and, to reduce this deficit, government agencies such as INFONAVIT started to provide more housing loans.