Construction in Mexico - Key Trends and Opportunities to 2024

GlobalData
49 Pages - GLDAT70630
$1,495.00

Summary

GlobalData has further cut its forecast for Mexico’s construction industry to -17.9% in 2020, and by -4.6% in 2021, compared to the previously projected contractions of 15.2% and 3.4%, respectively. Over the remainder of the forecast period, the sector is expected to recover to a modest pace of 2%, assuming that economic activity gradually rebounds and both public and private sector investment accelerates as a vaccine becomes available next year.

The latest data from the National Institute of Statistics and Geography (INEGI) showed that construction activity in Mexico continued to fall sharply in August, albeit at a much slower rate than the previous four months, posting a year-on-year (Y-o-Y) decline of 13.7%, compared to a drop of 23.7% in July. This follows contractions of -32.4% in Q2 2020 and -8.2% in Q1 2020, bringing the sector’s decline to -20.3% over the first eight months of the year. The government’s measures to slow the spread of the Coronavirus (COVID-19) outbreak resulted in the suspension of all formal construction activities during April and May 2020, causing the sector to register the sharpest contraction since Q2 1995 in Q2 2020, and lose about 60,000 formal construction jobs in two months.

Even though all construction activities have been allowed to resume work since June 1st, construction companies (the majority of which are micro-, small and medium-sized enterprises) continue to face difficulties in reviving their operations amid the depressed economic environment and the government’s delayed and ineffective response to contain the virus.

Throughout the pandemic, President Andrés Manuel López Obrador (also known as AMLO) has been heavily criticized for mishandling the health crisis and failing to take drastic actions early to prevent the spread of the disease. He has also been criticized for not providing sufficient financial support to households and businesses.

Mexico’s construction sector was already struggling before the emergence of the Coronavirus outbreak, largely due to lower public and private sector investment especially in infrastructure works. In 2019, the sector fell by 4.9%, following an increase of just 0.4% in 2018. Although lower interest rates and the government’s recently-launched infrastructure investment plans should provide a boost to the sector and the broader economy, limited public spending, together with uncertainty surrounding the economy and the duration of the virus, as well as security issues and concerns over government policies, will continue to undermine business confidence and restrain private investment in the sector.

This report provides detailed market analysis, information, and insights into Mexico’s construction industry, including -
- Mexico’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Mexico’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Mexico. It provides -
- Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Mexico, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

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

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Table of Contents
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Covid-19 Status
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 GlobalData Construction

List of Tables
Table 1: Construction Industry Key Data
Table 2: Mexico, Key Economic Indicators
Table 3: Mexico, Commercial Construction Output by Project Type (Real % Change), 2015-2024
Table 4: Mexico, Top Commercial Construction Projects by Value
Table 5: Mexico, Industrial Construction Output by Project Type (real % change), 2015-2024
Table 6: Mexico, Top Industrial Construction Projects by Value
Table 7: Mexico, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024
Table 8: Mexico, Top Infrastructure Construction Projects by Value
Table 9: Mexico, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024
Table 10: Mexico, Top Energy and Utilities Construction Projects by Value
Table 11: Mexico, Institutional Construction Output by Project Type (Real % Change), 2015-2024
Table 12: Mexico, Top Institutional Construction Projects by Value
Table 13: Mexico, Residential Construction Output by Project Type (Real % Change), 2015-2024
Table 14: Mexico, Top Residential Construction Projects by Value
Table 15: Mexico, Key Contractors
Table 16: Mexico, Key Consultants
Table 17: Mexico, Construction Output Value (Real, US$ Million)
Table 18: Mexico, Construction Output Value (Nominal, MXN Million)
Table 19: GlobalData Construction Market DefinitionsList of Figures
Figure 1: South and Central America, Construction Output (Real % Change), 2020
Figure 2: Mexico, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Mexico, COVID-19 Confirmed Cases
Figure 4: Mexico, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024
Figure 5: Mexico, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: Mexico, Construction Value-Add (MXN Million, 2013 Prices)
Figure 7: Mexico, Gross Fixed Investment (2013=100)
Figure 8: Mexico, Construction Production Volume Index (2013=100)
Figure 9: Mexico, Construction Projects Momentum Index
Figure 10: Mexico, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 11: Mexico, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 12: Mexico, Wholesale and Retail Trade Value-Add (MXN Billion, 2013 Prices)
Figure 13: Mexico, Total International Tourist Arrivals (in Thousands)
Figure 14: Mexico, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 15: Mexico, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 16: Mexico, Production Volume Index (Unadjusted, 2013=100)
Figure 17: Mexico, Manufacturing Value-Add (MXN Million, 2013 Prices)
Figure 18: Mexico, Total Merchandise Export (US$ Million)
Figure 19: Mexico, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 20: Mexico, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 21: Mexico, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 22: Mexico, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: Mexico, Generation, Transmission and Distribution of Electrical Energy Value-Add (MXN Million, 2013 Prices)
Figure 24: Mexico, Telecommunications Value-Add (MXN Million, 2013 Prices)
Figure 25: Mexico, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 26: Mexico, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: Mexico, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 28: Mexico, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Mexico, Real Estate Services Value-Add (MXN Billion, 2013 Prices)
Figure 30: Mexico, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 31: Mexico, Headquarters of Key Consultants (% of Total Project Pipeline)

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