Construction Opportunities

An Expert's View about Building Construction in Mexico

Last updated: 19 Jul 2011

Construction is an important sector in the Mexican market, representing 6.8% of the country’s GDP.

Sector briefing Construction Opportunities in Mexico Why Mexico? Mexico has the second largest economy in Latin America and is expected to become the seventh largest economy in the world in the next 50 years. Construction is an important sector in the Mexican market, representing 6.8% of the country?s GDP. One of the goals of Mexico?s President Calderon is for Mexico to be among the 30 most competitive economies in the world by 2012. To achieve this, the Mexican Government has produced the National Infrastructure Programme. Between 2007 and 2012, the government plans to spend $226 ?Between now and 2012, the billion USD on infrastructure (of which, $26 billion will be devoted to highways) and an government plans to spend additional $200-250 billion USD on housing. US $226 billion on infrastructure?and an Find general information on Mexican market conditions on UKTI?s website. The Doing additional US$200-250 on Business Guide for Mexico gives an overview housing.? of Mexico?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Construction opportunities in Mexico at least $20 billion USD have been secured to Opportunities improve general infrastructure. Areas that have seen a notable rise in Retail construction activity include: Commercial and retail projects are expanding Housing to meet the needs of the growing population. Shopping centres built around an anchor With a growing population, there is currently a supermarket and large fashion malls in many shortfall of approximately 4 million homes in of the country?s main cities have become a Mexico. Much of the demand is for low income growing trend. housing with proper physical, social and commercial infrastructure, which calls for Highways qualified and experienced urban, regional and transportation planners. In the past, the Mexican Federal Government granted concessions for roads and highways to There are projects for the development of 20 private companies that had to be taken back to new satellite cities to house communities of public ownership due to poor results. It is now between 500,000 and one million. Among re-packaging and selling 12 new highway these are the developments of Valle de las concessions, expecting to receive $25 billion Palmas in Tijuana (165,000 units for 800,000 USD over the period 2007-2012. people) and Zumpango, located north of Mexico City (100,000 units for 500,000 Furthermore, the National Infrastructure people). Programme has included a highways programme with 100 strategic projects to be Sustainable construction has acquired implemented within four years. An estimated increasing importance in Mexico over the past $26 billion USD is expected to be allocated few years. The National Housing Commission towards building or improving 17,598 has named sustainability as a fundamental kilometres of highways and rural roads. issue in its agenda. The objective, by 2012, is Another objective is to increase the percentage for all new housing to include water and of the Federal highways network that is in good energy-saving devices. Thus, areas where UK condition from 72% to 90% (see table on next companies have shown their expertise, such as page). intelligent design, energy efficiency and green technology ? like photovoltaic cells ? are There is a drive to pursue Private Public growing in popularity. Partnership (PPP) schemes for projects in highways at both Federal and State levels. A Although housing is not a part of the National knowledge gap between senior management Infrastructure Programme, the Mexican (with a good understanding of contract Government plans to spend between $200-250 procedures) and staff implementing the billion USD before the end of this projects is reported to exist. Being the administration by the end of 2012 in this birthplace of PPP?s, UK companies can offer particular sector. their expertise and potentially act as technical advisers. Tourism With a wide range of projects, the construction Tourism contributes 8% to Mexico?s GDP and is sector in Mexico offers various opportunities to the third most important sector in the country. UK companies and specialists, particularly In fact, President Calderon declared 2011 consultants, project managers, urban planners, Mexico?s ?Year of Tourism?. The goal for the civil engineers, architects and suppliers of next five years is to position Mexico in the top resource-saving/green technology. 5 tourist destinations in the world. Plans have been announced to build new tourist resorts If you have any questions on the opportunities like Costa Lora in the state of Tamaulipas, or above, contact the UKTI Mexico Infrastructure expand existing ones such as Ensenada. Team contacts named in this report. Business opportunities aimed specifically at UK UK Trade & Investment Sector briefing: Construction opportunities in Mexico To further encourage this sector, Mexico needs to have adequate airports and road networks. Under the National Infrastructure Programme, If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website Find out more on UKTI?s business opportunities service on the UKTI website For highways, the top projects (representing 20% of the total budget) are: Section Length State Cost USD Period Durango Mazatlan 230 km Durango and Sinaloa $1.1 bn 2006-11 Nuevo Necaxa-Tihuatlan 85 km Puebla and Veracruz $0.8 bn 2007-12 Libramiento Norte to Mexico 222 km Mexico State, Hidalgo, $0.6 bn 2006-11 City and Tlaxcala Tuxpan-Tampico 160 km Veracruz $0.5 bn 2009-11 La Venta-Colegio Militar 22 km Federal District $0.4 bn 2010-12 Oaxaca-Salina Cruz, tramo 163 km Oaxaca $0.4 bn 2006-09 Mitla Entronque Completed 2009 Tehuantepec Atizapan-Atlacomulco 80 km Mexico State $0.4 bn 2009-11 Compostela-Puerto Vallarta 104 km Nayarit $0.4 bn TBC UK Trade & Investment Sector briefing: Construction opportunities in Mexico Major events and activities UKTI contacts World Road Congress 2011 (Mexico City) Diana Leon Contact: Justin Ward Trade & Investment Officer Email: justin.ward@ciht.org.uk British Embassy Mexico City th Date: September 26-30 2011 Tel: +52 (55) 16 70 33 02 Email: Diana.Leon@fco.gov.uk Mexico Infrastructure Seminar www.ukti.gov.uk Mexican Minister of Communications and Transport will present the most important Lourdes Huelgas transport projects in three key sectors Trade and Investment Research Officer (Airports, Ports, and Railways) with an British Embassy Mexico City important element of PPP?s/PFI Tel: +52 (55) 16 70 32 80 Location: London Email: Lourdes.Huelgas@fco.gov.uk Contact: Marcus Archer www.ukti.gov.uk Email: marcus.archer@ukti.gsi.gov.uk th Date: 5 October 2011 Expo CIHAC (Mexico City) Contact: Armando Lopez Email: armado.lopez@cihac.com.mx th nd Date: October 18 -22 2011 Find full details of all construction events in Mexico on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Construction opportunities in Mexico Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Mexican market business in the Mexican market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Mexico with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Mexican market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Construction opportunities in Mexico
Posted: 19 July 2011, last updated 19 July 2011

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