Summary
Following a decline of 17.4% in 2020, Mexico’s construction industry is now expected to rise in real terms by 8.1% in 2021, compared to the previous forecast of 9.8%. Over the remainder of the forecast period (2022-2025), growth is expected to moderate to an annual average of 2.6%. The downward revision to this year’s growth forecast can be explained by lower-than-expected activity in the infrastructure segment in Q2, as limited spending on public works and the lack of a significant relief package to offset the effects from the COVID-19 crisis for both households and businesses continue to hold back private investment in the sector.
The Monthly Indicator of Industrial Activity (IMAI) from the National Institute of Statistics and Geography (INEGI), which is closely linked to the GDP value-add construction data, showed that the construction industry rose by just 0.6% quarter on quarter (QoQ) in seasonally adjusted terms in Q2 2021, after posting growth of 3.3% in Q1 2021. The slight rise in activity in Q2 was driven by the specialized works segment, which rose by 3.6%, compared to an increase of 4.3% in Q1, while the residential and non-residential building segment posted no growth after increasing by 1.5% in the previous quarter. The infrastructure segment, by contrast, fell by 1.9% in Q2 after registering a Q-o-Q rise of 5% in Q1.
The strong growth in the specialized works segment can be attributed to the rising demand for home renovations and upgrades due to the pandemic and the significant shift to remote working. Meanwhile, the growing demand for new industrial spaces - owed to the robust economic recovery in the US, Mexico’s largest trading partner - is supporting growth for the residential and non-residential segments. However, risks arising from a third wave of the virus, which now appears underway, present a growing threat to the short-term outlook. It is likely that restrictions will be tightened in the next few months, as the majority of people in Mexico remain vulnerable to the virus, which would further weigh on activity and slow the recovery of hard-hit sectors such as retail, office, leisure and hospitality during the second half of the year.
GlobalData’s Construction in Mexico - Key Trends and Opportunities to 2025 (Q3 2021) 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 (2016-2020) and forecast (2021-2025) 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
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
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 CRI Methodology
7.4 GlobalData Construction
Contact Us
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), 2016-2025
Table 4: Mexico, Top Commercial Construction Projects by Value
Table 5: Mexico, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Mexico, Top Industrial Construction Projects by Value
Table 7: Mexico, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Mexico, Top Infrastructure Construction Projects by Value
Table 9: Mexico, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Mexico, Top Energy and Utilities Construction Projects by Value
Table 11: Mexico, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Mexico, Top Institutional Construction Projects by Value
Table 13: Mexico, Residential Construction Output by Project Type (Real % Change), 2016-2025
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 Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: South and Central America, Construction Output (Real % Change), 2020 and 2021
Figure 2: Mexico, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Mexico, COVID-19 Confirmed Cases
Figure 4: Mexico, Risk Summary
Figure 5: Mexico, Risk Regional Comparison
Figure 6: Mexico, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Mexico, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Mexico, Construction Value-Add, 2013 Prices, % Change YoY
Figure 9: Mexico, Construction Production Volume Index (2013=100), % Change YoY
Figure 10: Mexico, Construction Confidence Index, In Seasonally-Adjusted Terms
Figure 11: Mexico, Gross Fixed Investment Index (2013=100), % Change YoY
Figure 12: Mexico, Construction Projects Momentum Index
Figure 13: Latin America, Construction Projects Momentum Index
Figure 14: Mexico, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 15: Mexico, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 16: Mexico, Total International Tourist Arrivals (in Thousands), % Change YoY
Figure 17: Mexico, Manufacturing Value Add (MXN Billion, 2013 Prices), % Change YoY
Figure 18: Mexico, Value-Add of Artistic, Cultural, Sports and Other Related Activities (MXN Billion, 2013 Prices), % Change YoY
Figure 19: Mexico, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 20: Mexico, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 21: Mexico, Manufacturing Value Add (MXN Billion, 2013 Prices), % Change YoY
Figure 22: Mexico, Manufacturing Orders Indicator (IPM), In Seasonally-Adjusted Terms
Figure 23: Mexico, Manufacturing Confidence Index, In Seasonally-Adjusted Terms
Figure 24: Mexico, Industrial, Manufacturing and Mining Production Volume Indices (Unadjusted, 2013=100), % Change YoY
Figure 25: Mexico, Total Merchandise Exports (US$ Million), % Change YoY
Figure 26: Mexico, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 27: Mexico, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 28: Mexico, Value Add of Civil Engineering Activities, In 2013 Prices, In MXN Billion, % Change YoY
Figure 29: Mexico, Construction Production Volume Index for Civil Engineering Activities (2013=100), % Change YoY
Figure 30: Mexico, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 31: Mexico, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 32: Mexico, Generation, Transmission and Distribution of Electrical Energy Value Add (MXN Billion, 2013 Prices), % Change YoY
Figure 33: Mexico, Telecommunications Value Add (MXN Billion, 2013 Prices), % Change YoY
Figure 34: Mexico, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 35: Mexico, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 36: Mexico, Value Add of Education, Health and Social Care Services, 2013 Prices, % Change YoY
Figure 37: Mexico, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 38: Mexico, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 39: Mexico, Real Estate Services Value Add (MXN Billion, 2013 Prices), % Change YoY
Figure 40: Mexico, Gross Fixed Investment on Residential Buildings, 2013-100, % Change YoY
Figure 41: Mexico, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 42: Mexico, Headquarters of Key Consultants (% of Total Project Pipeline)
