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Construction in Mexico – Key Trends and Opportunities to 2021

Construction in Mexico – Key Trends and Opportunities to 2021

Synopsis

Following a contraction in 2013 owing to economic recession and subsequent low investments, the Mexican construction industry rebounded moderately during 2014–2016, registering an average annual growth rate of 1.7% in real terms. This growth was supported by gradual recovery in economic conditions and improvements in domestic consumption.

However, Timetric expects Mexico’s construction industry to experience a slowdown during the early part of the forecast period (2017–2021) in real terms, as the economy is expected to face risks due to falling oil prices. A decline in revenues from the oil sector is expected to affect the government’s ability to invest in infrastructure development. On the back of a gloomy economic environment, the government is expected to cut down its public expenditure, which is in turn expected to restrain the flow of investments in construction projects.

However, the industry is expected to gain gradual pace in the later part of the forecast period, supported by the government’s effort to promote economic growth by focusing on the development of the country’s overall infrastructure. Accordingly, the government aims to boost the implementation of infrastructure projects through the collaboration of the public and private sectors. The industry’s output value in real terms is expected to record a compound annual growth rate (CAGR) of 2.20% over the forecast period, up from -0.24% during the review period (2012–2016).

Summary

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

  • The Mexican 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 Mexican construction industry
  • Profiles of the leading operators in the Mexican construction industry
Scope

This report provides a comprehensive analysis of the construction industry in Mexico. It provides:
  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Mexico 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 Mexico
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.
Key Highlights
  • In April 2016, the state-owned company Grupo Aeroportuario de la Ciudad de México announced plans to construct a new international airport in Mexico. With an estimated investment of MXN165.1 billion (US$9.2 billion), the first phase of the project includes the construction of three parallel runways, a new terminal building, a multi-modal transportation center, a fuel terminal and distribution network, fire and emergency stations, sanitary drainage systems and other related infrastructural facilities. The project is scheduled for completion in 2020. According to Timetric, the infrastructure construction market is expected to maintain its leading share in the industry over the forecast period, to account for 27.2% of the industry’s total value in 2021.
  • In a bid to promote economic growth, in September 2017 the government announced plans to develop three special economic zones (SEZs) in the southern states of the country. Through the creation of these SEZs, the government aims to attract investments from various sectors, including processing, agribusiness, manufacturing, technological innovation and development and logistics. Accordingly, the government has identified 95 potential projects with investments worth MXN113.5 billion (US$5.3 billion) that could be developed in these SEZs by 2020.
  • In order to achieve its target of generating 35% of its total energy from renewable sources by 2024, in September 2016 the Mexican Ministry of Energy launched the second renewable energy auction. Under the auction, the Energy Ministry issued tenders for the development of 36 solar and wind energy projects in the country, with a total installed capacity of 2.9GW. Accordingly, companies will invest MXN74.7 billion (US$4.0 billion) to develop various solar and wind energy projects in the country by 2019. According to Timetric, the energy and utilities construction market is expected to post a nominal forecast-period CAGR of 7.98%, as compared to 2.25% registered during the review period.
  • In February 2017, the government signed a contract with ALTÁN Redes for the implementation of the country’s Shared Network Broadband project. With a total investment of MXN149.9 billion (US$7.0 billion) until 2025, the project includes the development of 4G internet networks across the country.
  • Amid economic uncertainty, the government is focusing on boosting the role of the private sector in the country’s infrastructure development. In October 2016, Conagua, the national water authority, announced plans to develop six water infrastructure projects worth MXN10.0 billion (US$535.8 million) in the country through PPPs.


  • Executive Summary
  • Industry Outlook
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities Construction
    • Institutional Construction
    • Residential Construction
  • Key Issues and Developments
  • Market Data Analysis
    • Construction Output and Value Add
      • Construction output by project type
        • Table Mexican Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Construction Output by Project Type (MXN Million), 2016-2021
      • Construction output by cost type
        • Table Mexican Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Construction Output by Cost Type (MXN Million), 2016-2021
      • Construction output by activity type
        • Table Mexican Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Construction Output by Activity Type (MXN Million), 2016-2021
      • Construction value add by project type
        • Table Mexican Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Construction Value Add by Project Type (MXN Million), 2016-2021
    • Commercial Construction
      • Commercial construction output by project type
        • Table Mexican Commercial Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Commercial Construction Output by Project Type (MXN Million), 2016-2021
      • Commercial construction output by cost type
        • Table Mexican Commercial Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Commercial Construction Output by Cost Type (MXN Million), 2016-2021
      • Commercial construction output by activity type
        • Table Mexican Commercial Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Commercial Construction Output by Activity Type (MXN Million), 2016-2021
      • Commercial construction value add by project type
        • Table Mexican Commercial Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Commercial Construction Value Add by Project Type (MXN Million), 2016-2021
    • Industrial Construction
      • Industrial construction output by project type
        • Table Mexican Industrial Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Industrial Construction Output by Project Type (MXN Million), 2016-2021
      • Industrial construction output by cost type
        • Table Mexican Industrial Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Industrial Construction Output by Cost Type (MXN Million), 2016-2021
      • Industrial construction output by activity type
        • Table Mexican Industrial Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Industrial Construction Output by Activity Type (MXN Million), 2016-2021
      • Industrial construction value add by project type
        • Table Mexican Industrial Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Industrial Construction Value Add by Project Type (MXN Million), 2016-2021
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table Mexican Infrastructure Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Infrastructure Construction Output by Project Type (MXN Million), 2016-2021
      • Infrastructure construction output by cost type
        • Table Mexican Infrastructure Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Infrastructure Construction Output by Cost Type (MXN Million), 2016-2021
      • Infrastructure construction output by activity type
        • Table Mexican Infrastructure Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Infrastructure Construction Output by Activity Type (MXN Million), 2016-2021
      • Infrastructure construction value add by project type
        • Table Mexican Infrastructure Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Infrastructure Construction Value Add by Project Type (MXN Million), 2016-2021
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table Mexican Energy and Utilities Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Energy and Utilities Construction Output by Project Type (MXN Million), 2016-2021
      • Energy and utilities construction output by cost type
        • Table Mexican Energy and Utilities Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Energy and Utilities Construction Output by Cost Type (MXN Million), 2016-2021
      • Energy and utilities construction output by activity type
        • Table Mexican Energy and Utilities Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Energy and Utilities Construction Output by Activity Type (MXN Million), 2016-2021
      • Energy and utilities construction value add by project type
        • Table Mexican Energy and Utilities Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Energy and Utilities Construction Value Add by Project Type (MXN Million), 2016-2021
    • Institutional Construction
      • Institutional construction output by project type
        • Table Mexican Institutional Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Institutional Construction Output by Project Type (MXN Million), 2016-2021
      • Institutional construction output by cost type
        • Table Mexican Institutional Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Institutional Construction Output by Cost Type (MXN Million), 2016-2021
      • Institutional construction output by activity type
        • Table Mexican Institutional Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Institutional Construction Output by Activity Type (MXN Million), 2016-2021
      • Institutional construction value add by project type
        • Table Mexican Institutional Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Institutional Construction Value Add by Project Type (MXN Million), 2016-2021
    • Residential Construction
      • Residential construction output by project type
        • Table Mexican Residential Construction Output by Project Type (MXN Million), 2012-2016
        • Table Mexican Residential Construction Output by Project Type (MXN Million), 2016-2021
      • Residential construction output by cost type
        • Table Mexican Residential Construction Output by Cost Type (MXN Million), 2012-2016
        • Table Mexican Residential Construction Output by Cost Type (MXN Million), 2016-2021
      • Residential construction output by activity type
        • Table Mexican Residential Construction Output by Activity Type (MXN Million), 2012-2016
        • Table Mexican Residential Construction Output by Activity Type (MXN Million), 2016-2021
      • Residential construction value add by project type
        • Table Mexican Residential Construction Value Add by Project Type (MXN Million), 2012-2016
        • Table Mexican Residential Construction Value Add by Project Type (MXN Million), 2016-2021
  • Company Profile: Empresas ICA SAB de CV
    • Empresas ICA SAB de CV - Company Overview
      • Table Empresas ICA SAB de CV, Key Facts
    • Empresas ICA SAB de CV - Business Description
    • Empresas ICA SAB de CV - Main Services
      • Table Empresas ICA SAB de CV, Main Services
    • Empresas ICA SAB de CV - History
      • Table Empresas ICA SAB de CV, History
    • Empresas ICA SAB de CV - Company Information
      • Empresas ICA SAB de CV - key competitors
      • Empresas ICA SAB de CV - key employees
        • Table Empresas ICA SAB de CV, Key Employees
  • Company Profile: Carso Infraestructura y Construccion SA de CV
    • Carso Infraestructura y Construccion SA de CV - Company Overview
      • Table Carso Infraestructura y Construccion SA de CV, Key Facts
    • Carso Infraestructura y Construccion SA de CV - Business Description
    • Carso Infraestructura y Construccion SA de CV - Main Services
      • Table Carso Infraestructura y Construccion SA de CV, Main Services
    • Carso Infraestructura y Construccion SA de CV - History
      • Table Carso Infraestructura y Construccion SA de CV, History
    • Carso Infraestructura y Construccion SA de CV - Company Information
      • Carso Infraestructura y Construccion SA de CV - key competitors
      • Carso Infraestructura y Construccion SA de CV - key employees
        • Table Carso Infraestructura y Construccion SA de CV, Key Employees
  • Company Profile: Promotora y Operadora de Infraestructura, SAB de CV
    • Promotora y Operadora de Infraestructura, SAB de CV - Company Overview
      • Table Promotora y Operadora de Infraestructura, SAB de CV, Key Facts
    • Promotora y Operadora de Infraestructura, SAB de CV - Business Description
    • Promotora y Operadora de Infraestructura, SAB de CV - Main Products and Services
      • Table Promotora y Operadora de Infraestructura, SAB de CV, Main Products and Services
    • Promotora y Operadora de Infraestructura, SAB de CV - History
      • Table Promotora y Operadora de Infraestructura, SAB de CV, History
    • Promotora y Operadora de Infraestructura, SAB de CV - Company Information
      • Promotora y Operadora de Infraestructura, SAB de CV - key competitors
      • Promotora y Operadora de Infraestructura, SAB de CV - key employees
        • Table Promotora y Operadora de Infraestructura, SAB de CV, Key Employees
  • Company Profile: OHL Mexico, SAB de CV
    • OHL Mexico, SAB de CV - Company Overview
      • Table OHL Mexico, SAB de CV, Key Facts
    • OHL Mexico, SAB de CV - Main Services
      • Table OHL Mexico, SAB de CV, Main Services
    • OHL Mexico, SAB de CV - Company Information
      • OHL Mexico, SAB de CV - key competitors
      • OHL Mexico, SAB de CV - key employees
        • Table OHL Mexico, SAB de CV, Key Employees
  • Company Profile: Consorcio ARA SAB de CV
    • Consorcio ARA SAB de CV - Company Overview
      • Table Consorcio ARA SAB de CV, Key Facts
    • Consorcio ARA SAB de CV - Business Description
    • Consorcio ARA SAB de CV - Main Products and Services
      • Table Consorcio ARA SAB de CV, Main Products and Services
    • Consorcio ARA SAB de CV - History
      • Table Consorcio ARA SAB de CV, History
    • Consorcio ARA SAB de CV - Company Information
      • Consorcio ARA SAB de CV - key competitors
      • Consorcio ARA SAB de CV - key employees
        • Table Consorcio ARA SAB de CV, Key Employees
  • Appendix
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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