Posts Tagged infrastructure

Mexico construction industry outlook for 2013

Construction 01The pace of growth of Mexico’s construction industry may have dived in the fourth quarter lat year, but the Mexican Construction Industry Chamber (CMIC) is feeling guardedly optimistic about the sector’s prospects going forward.

Mexico’s construction industry is among the country’s largest industries by value, contributing close to 7% of national GDP through mid-2012.   With an estimated value of US$83 billion in 2011, the sector is the sixth largest by contribution to GDP.   The industry was hit hard by the 2008-2009 recession and did not fully return to growth until late 2010.  After a period of fairly robust growth through 2011 and into early 2012, the pace of expansion slowed in the second half. Read the rest of this entry »

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Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Retail: USA-based apparel marketer Warnaco revealed plans to open approximately 30 new stores in Mexico over the next two years.  Mexico sales were up by 39% through the first half of 2011 for the marketer of brands such as Calvin Klein and Speedo. (Reforma, August 25, 2011)
  • Logistics: Mexican cargo terminal operator Ferrovalle Intermodal announced a US$10 million expansion to its rail cargo handling facilities in Mexico City to be carried out this year.  The addition of 25 developed acres to the terminal will increase annual handling capacity to over 550,000 containers and speed last-mile deliveries. (Reforma, August 1, 2011)
  • Entertainment: Mexico City’s largest film studio, Estudios Churubusco, will expand with the construction of a new post-production building.  The investment of approximately US$20 million will include over 30,000 square feet of digital laboratory space, production warehousing and offices. (Reforma, September 6, 2011)
  • Infrastructure: Spanish infrastructure developer OHL Group, through its environmental subsidiary Inima, will build and operate a large-scale desalination plant in the northern Mexican state of Baja California.  The US$41 million facility is planned to produce 275 million cubic feet of potable water annually. (Reforma, September 7, 2011)
  • Energy: Spanish renewable energy developer Siliken will invest US$20 million initially to build and launch a 100 MW solar power plant in the northern state of Durango.  The project is planned to include a research and development center in addition to generating electricity. (Milenio, September 8, 2011)
  • Autoparts: Japanese industrial automation manufacturer Omron Corporation will invest US$30 million to build a new production plant in the central Mexican state of Guanajuato.   The facility will join recently announced new factories to be built by Honda and Mazda in Guanajuato’s growing automotive industry. (El Sol de Irapuato, August 27, 2011)
  • Biotechnology: Mexican agricultural biotechnology laboratory Biosustenta inaugurated a new plant to produce biofertilizers in the western state of Michoacán.  The US$1.3 million facility will use mycorrhizal fungi and other bacterias to produce the fertilizers.  Biosustenta currently exports product to the United States, Canada and Europe. (El Financiero, August 30, 2011) Read the rest of this entry »

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Recent and upcoming investment

  • Agribusiness: Mexican agricultural services provider Phytosan inaugurated a new phytosanitary radiation plant in the northeastern state of San Luis Potosi following investment of US$12 million.  The facility, the only one of its kind in Mexico, will be used to treat fruits and vegetables for export to the United States.
  • Automotive: Japanese automaker Honda plans to invest US$800 million to build a new manufacturing plant in the central state of Guanajuato.  The new factory, planned to begin production by 2014, will produce energy-efficient subcompact autos. Honda currently operates an automobile factory in the western state of Jalisco.
  • Hospitality: U.S.-based hotelier La Quinta Inns & Suites announced plans to invest US$60 million to expand operations in Mexico over the next three years.  Projects are expected to include new hotels in business hubs such as Mexico City, Ciudad Juarez, Reynosa and San Luís Potosí, among other locations.
  • Automotive: Japanese automaker Honda will reactive investment plans at its manufacturing plant in the western state of Jalisco.  US$60 million in resources are earmarked to install equipment and technology needed to produce the company’s next model CR-V recreational vehicle.
  • Automotive: U.S. auto parts maker TRW Automotive announced it will invest US$50 million to install a new manufacturing plant in the central Mexican state of Queretaro.  The new facility reportedly will produce anti-lock braking systems to supply Volkswagen Brazil.
  • Mining: Mexican corporate group GFM has formed a joint venture between its heavy equipment subsidiary GFM Maquinaria and Singapore-based Singapore Technologies Kinetics to market mining equipment under the brand TRXBUILD.  The association plans to build a factory to produce equipment such as backhoes, tractors and off-road trucks in Mexico within five years through projected investment of US$20 million. Read the rest of this entry »

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Construction industry looks to boost growth in second half

Let's get busy

Let's get busy

Mexico’s construction industry is currently in a growth period, but the past three years have been difficult for the sector.  By August of 2010 the industry had posted 24 straight months of contraction.  As the U.S. economy rebounded in 2010 and investment plans in Mexico were gradually reactivated, construction returned to growth in August 2010 and registered robust expansion through December, balancing out at en even 0.0% growth for the year.  After a strong January, the rate of growth has slipped through the first half, most recently posting a tepid but nonetheless somewhat improved 2.4% annual rate in May.  The National Statistics Institute (INEGI), however, reported overall growth of 4.6% in June 2011 with respect to the previous year, resulting in increased demand for inputs such as electrical materials, paints and coatings, cement, metallic structures, sand and gravel, asphalt, concrete and other steel and iron materials. Read the rest of this entry »

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