Mexican Construction Market

1
MEXICAN CONSTRUCTION MARKET 2001 - 2002 REVISION
Adrián Orta, Commercial Assistant US Commercial
Service US Embassy - Mexico City
August 14, 2003
2
SIZE AND IMPORTANCE OF THE MEXICAN CONSTRUCTION
INDUSTRY

• NATIONAL GDP 606,158.7 MD

• CONSTRUCTION INDUSTRY GDP 22,261.7 MD

• AS PERCENTAGE OF GDP 3.6

• AVERAGE GROWTH 1999-2002 3.1

• TOTAL EMPLOYMENT 2 MILLION

• AS PERCENTAGE OF WORKFORCE 5.3

• TOTAL NATIONAL INVESTMENT 110,700 MD

• INVESTMENT IN CONSTRUCTION 43,024 MD

• AS PERCENTAGE OF TOTAL INVESTMENT 38.8

3
FIXED GROSS CAPITAL FORMATION, 2002 (Annual
variation)
JAN
FEB
MAR
APR
MAY
JUN
JUL
TOTAL EQUIPMENT-MACHINERY NATIONAL
IMPORT CONSTRUCTION
0.5 1.7 2.9 1.0 -1.0
-0.5 3.1 0.2 4.9 -5.0
1.4 6.5 -6.1 14.7 -5.1
-1.6 2.3 -8.5 8.9 -6.2
-5.8 -4.2 -8.2 -2.0 -7.8
-8.5 -10.0 -12.1 -8.8 -6.6
-4.8 -6.6 -6.2 -6.8 -2.7
4
SHARE BY TYPE OF PROJECT JAN-SEP
MIDDLE LEVEL HOUSES
SOCIAL INTEREST HOUSES
TOURISM
INDUSTRY
INSTITUTIONAL .5
.5
35
2
4

36
10
4
8
HIGH LEVEL HOUSES
EDUCATION .5
COMMERCE
INFRAESTRUCTURE
HEALTH .3
8,770
1,207
19,335
7,010
69,798
1,595
533
3,984
71,308
16,445
The investment jan-sep. Is 20,000000,000
dollars
Ind
Infr
Source Hired
works report by CMIC
5
SOCIAL INTEREST HOUSES CONSTRUCTION JAN-AUG 2002
57,003
47,775
43,946
45,753
43,774
35,183
36,109
28,853
Jan-Sep project houses construction is 338,396
Source Hired works report by CMIC
6
FINANCING TO CONSTRUCTION THROUGH COMMERCIAL AND
DEVELOPMENT BANKS ( ANNUAL VARIATION)
/ As of May, 2002
7
DIRECT FOREIGN INVESTMENT BY ECONOMIC
SECTOR(PERCENT STRUCTURE 1994-2000)
Manufacturing
Mining
Commerce
Rest
Other Services
Financial Services
Agricultural, Electricity, Construction,Transpor
tation
8
ECONOMIC POLICY SCENARIO 2001-2002
I. Monetary
II. Fiscal
III. Other

• Promotion of DFI
• Lobbying for fiscal and electric reforms

9
ANNUAL INVESTMENT REQUIRED IN INFRASTRUCTURE
ASSIGNED 2002 (MILLION DOLLARS)
MILLION DOLLARS / YEAR
BASIC INFRASTRUCTURE Oil Electricity Telecommunica
tions Roads Water Environment protection Natural
gas Other Subtotal SOCIAL INFRASTRUCTURE Housing
, education, health and tourism
7,956 6,217 2,427 1,272 3,858 493 5,994 4,000 32,
217 22,024
3,200 1,965 135 1,062 500 N.A. 368 5,344 12,573
7,011
/ Includes ports, airports, railroads. /
Housing represents 72 of total social
infrastructure requirements. SOURCE Public
Sector and CMIC estimates.
10
S E C T O R S
ROADS Kms.per square Km2 of territory
NATURAL GAS Annual growth rate, 2000-2009
GERMANY (8)
U.K. (12)
UNITED STATES (25)
BRAZIL (34)
MEXICO (39)
INTERNATIONAL RANKING
11
S E C T O R S
ELECTRICITY
WATER ( of population without service)
12
S E C T O R S
ROADS Kms.per square Km2 of territory
NATURAL GAS Annual growth rate, 2000-2009
GERMANY (8)
U.K. (12)
UNITED STATES (25)
BRAZIL (34)
MEXICO (39)
INTERNATIONAL RANKING
13
Sources Import / Exports Statistics

• Secretariat of Economy
• National Institute of Statistics and Geographic
  Information (INEGI)
• BANCOMEXT (National Bank for Foreign Investment)
• INFONAVIT (Instituto del Fondo Nacional de la
  Vivienda para los Trabajadores-Institute of
  National Housing Fund for Workers)
• FOVISSSTE (Fondo para la Vivienda del Instituto
  de Seguridad y Servicios Sociales de los
  Trabajadores del Estado-Housing Fund for State
  Employees of the Institute of Safety and Social
  Services)
• SHF (Sociedad Hipotecaria Federal Federal
  Mortgage Society)
• Meetings with manufacturers, distributors, and
  officials from the Mexican Chamber of the
  Construction Industry and the Mexican Chamber of
  Consulting Industries.
• Companies interested in obtaining further
  information should contact
• Adrián Orta
• Commercial Assistant
• US Commercial Service
• US Embassy Mexico City
• Tel [phone]
• Fax [phone]
• E-Mail adrian.orta_at_mail.doc.gov