Summary
Chile’s construction industry is estimated to have contracted by 18.8% in 2020, reflecting the sharp decline in activity during COVID-19 restrictions and the slow progress in the start of new projects, as well as the reactivation of those already underway before the pandemic. The decline in building permits and high unemployment levels are also expected to continue to hold back the recovery of the industry in the last three months of 2020.
According to Chile’s Chamber of Construction (CChC), 235 housing projects were still paralyzed across the country as of October 3rd, as they were in areas which remained under quarantine. The CChC said that the affected projects comprise a total of 23,955 homes, employing over 83,880 people, and that the delays in restarting works would cost the industry more than US$11.26 million per week. In August 2020, the government launched a pilot program to restart construction activities at communes in the Metropolitan Regionhich, which have entered the “Transition” phase to get workers who reside in areas that remain in quarantine to return to construction sites. In terms of infrastructure, the CChC said that there were 11 private works affected nationwide by the pandemic, with a total investment of US$2.2 billion, and which directly employ about 1,400 people. Some of the works include projects which were ready to start and projects which were already underway. With regards to public infrastructure works, the CChC said that there were 95 projects in progress with problems for their execution, with a total investment of US$713 million.
GlobalData expects Chile’s construction industry to rebound to 14.7% in 2021, as containment measures become more flexible and construction activities gradually resume. Over the remainder of the forecast period, the sector is expected to grow at an annual average rate of 4.5%. The government’s stimulus measures, along with the recently launched infrastructure plans to revive the economy and news that a vaccine is on the horizon, present optimism for the outlook over the short term. Furthermore, an improving external environment, due to the increased in demand from China - which has prompted a recovery of the price of copper, Chile’s main export - is expected to provide a boost to exports and business confidence. Nonetheless, risks from possible further waves of COVID-19 or that violent protests could return on the streets as more restrictions are lifted could result in lower investment in the sector, and undermine the government’s efforts to revive the economy and stimulate growth. In October 2020, Chileans voted overwhelmingly for a new constitution - a key demand of social protests, raising concern among investors of possible disruptive changes which could cloud investment.
This report provides detailed market analysis, information, and insights into Chile’s construction industry, including -
- Chile’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 Chile’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 Chile. It provides -
- Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Chile, 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: Chile, Key Economic Indicators
Table 3: Chile, Commercial Construction Output by Project Type (real % change), 2015-2024
Table 4: Chile, Top Commercial Construction Projects by Value
Table 5: Chile, Industrial Construction Output by Project Type (real % change), 2015-2024
Table 6: Chile, Top Industrial Construction Projects by Value
Table 7: Chile, Infrastructure Construction Output by Project Type (real % change), 2015-2024
Table 8: Chile, Top Infrastructure Construction Projects by Value
Table 9: Chile, Energy and Utilities Construction Output by Project Type (real % change), 2015-2024
Table 10: Chile, Top Energy and Utilities Construction Projects by Value
Table 11: Chile, Institutional Construction Output by Project Type (real % change), 2015-2024
Table 12: Chile, Top Institutional Construction Projects by Value
Table 13: Chile, Residential Construction Output by Project Type (real % change), 2015-2024
Table 14: Chile, Top Residential Construction Projects by Value
Table 15: Chile, Key Contractors
Table 16: Chile, Key Consultants
Table 17: Chile, Construction Output Value (Real, US$ Million)
Table 18: Chile, Construction Output Value (Nominal, CLP Billion)
Table 19: GlobalData Construction Market Definitions
List of Figures
Figure 1: Latin America, Construction Output (real % change), 2020
Figure 2: Chile, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Chile, COVID-19 Confirmed Cases
Figure 4: Chile, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2015-2024
Figure 5: Chile, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: Chile, Construction Value-add, Constant 2013 Prices (CLP billion, % change YoY)
Figure 7: Chile, Gross Fixed Capital Formation, Constant 2013 Prices, % Change YoY
Figure 8: Chile, Number of Workers in the Construction Sector (In Thousands, % Change YoY)
Figure 9: Chile, Total Area of New Building Permits Issued, % change YoY
Figure 10: Chile, IMACEC Economic Activity Index (2013=100, % change YoY)
Figure 11: Chile, Construction Projects Momentum Index
Figure 12: Chile, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 13: Chile, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 14: Chile, Foreign Tourist Arrivals (In Thousands)
Figure 15: Chile, IMACEC Economic Activity Index in the Restaurants and Hotels Sector (2013=100, % Change YoY)
Figure 16: Chile, Retail Trade Activity Index (2014=100)
Figure 17: Chile, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 18: Chile, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 19: Chile, Industrial and Manufacturing Production Indices (2014=100, % change YoY)
Figure 20: Chile, Mining Production Indices (2014=100, % change YoY)
Figure 21: Chile, Copper Production (In Thousand Tons, % change YoY)
Figure 22: Chile, Exports, % change YoY
Figure 23: Chile, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 24: Chile, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 25: Chile, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 26: Chile, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: Chile, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 28: Chile, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Chile, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 30: Chile, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Chile, Residential Building Permits, % change YoY
Figure 32: Chile, Housing sales, % change YoY
Figure 33: Chile, Real Housing Price Index, 2004=100, % change YoY
Figure 34: Chile, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 35: Chile, Headquarters of Key Consultants (% of Total Project Pipeline)
