Mexico Construction Industry Report 2024: Output To Slow To 0.3% This Year Before A Projected Decline Of 6.8% In 2025 - Forecasts To 2028

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Sept. 16, 2024 (GLOBE NEWSWIRE) -- The "Mexico construction market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)" report has been added to ResearchAndMarkets.com's offering.
Following bourgeoning growth of 15.6% in real terms in 2023, Mexico's construction industry is expected to slow in 2024, registering marginal growth at 0.3%, thereafter, declining by 6.8% in 2025, owing to high base effects and high inflation, a fall in construction confidence, a nationwide drought that is spiking energy prices, and halting production of manufacturing businesses domestically.

According to the Monthly Business Opinion Survey - conducted by the National Institute of Statistics and Geography (INEGI) - the average construction confidence index declined by 2.6% YoY (year on year) in the first five months of 2024; a symptom driven by US bans on Mexico's new Liquefied Natural Gas (LNG) export terminal in January of 2024. Resultantly, oil and gas production has dramatically dropped. To-date, 9 LNG projects have been cancelled, including the Vista Pacifico Liquified Natural Gas Plant project valued at MXN34.8 billion ($2 billion). According to the INEGI, the volume index of production for oil and gas extraction fell by 3.8% YoY in the first four months of 2024, preceding annual growth of 3% in 2023.
Furthermore, Mexico's construction industry is expected to register an annual average growth of 2.3% between 2026 and 2028, supported by public-private sector investment in energy, infrastructure, and industrial construction projects. In February of 2024, Woodside - Australian oil company - reported that its oil project, located near the south of Mexico maritime border, received government approval. With an expected investment of MXN125.1 billion ($7.2 billion), the project includes the construction of a floating oil production plant by 2028.

In May of 2024, BMW commenced the construction of a battery assembly plant spanning 80,000m2 in San Luis Potosi, holding an investment of MXN13.9 billion ($800 million), and is estimated to complete by 2027. Similarly, in May, Gerdau - Brazilian steel developer - announced plans to develop a steel plant in central Mexico with an estimated investment of MXN10.4 billion ($600 million); construction is expected to commence in 2025.
Scope

• Historical (2019-2023) and forecast (2024-2028) 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 the analyst'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 the analyst's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Key Topics Covered:
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 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
For more information about this report visit

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