(MENAFNEditorial)
We expect the recovery in Mexico's construction sector to continue to gain traction in 2015 with growth of 4.1% forecast. The industry posted positive growth in Q3 2014 in line with our expectation for growth to return from H2 2014 following six consecutive quarters of contraction. Residential and non-residential building will continue to be the immediate driving force behind the recovery with infrastructure investment providing support to the sector over a five year horizon.
We expect a slow recovery in net output real growth in 2014 and leading indicators continue to support our outlook. In line with this view industrial production data for construction posted the first month of expansion in June 2014 (and has continue in positive territory) following 19 months of contractions. This follows the first expansion in construction spending (on buildings) in May 2014 following 17 months of contractions for this indicator. These developments support our view and our estimate for a 2% expansion in construction sector growth in 2014. Growth is expected to accelerate from 2015 with annual average real growth of 3.6% between 2015 and 2018. There is additional upside to this figure from the National Infrastructure Plan and Energy sector reform.
Full Report Details at
- http://www.fastmr.com/prod/951117_mexico_infrastructure_report_q1_2015.aspx?afid=101
Infrastructure High On The Presidential Agenda
In April 2014 President Enrique Peña Nieto outlined a significantly expanded version of his National Infrastructure Plan setting the new investment target at MXN7.7trn between 2014 and 2018.
However we remain concerned about institutional capacity and Mexico's ability to implement the programme given the poor precedent that was set during the execution of the previous plan. Indeed the failed tender for the Mexico City-Queretaro High Speed Railway is an illustration of our concerns. As such we believe 2014 will be crucial in assessing the timeframe over which the NIP will revitalise the country's depressed construction industry and will thus refrain from...
The Mexico Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Mexico Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Mexican infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Mexico to test other views - a key input for successful budgetary and planning in the Mexican infrastructure market.
* Target business opportunities and risks in the Mexican infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Mexico.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into Construction (social commercial and residential) Transport (roads railways ports airports etc) and Energy & Utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The Reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Indices provide investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provides indices of highest to lowest appeal to investors with each position explained.
Market Overview
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
Company Profiles*
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