The total market for building materials for Mexico’s housing industry in 2005 is estimated at $6.2 billion, with U.S. imports around $1.7 billion, representing 70 percent of total imports. This market was expected to grow 4.5 percent per year from 2003 to 2005 reaching $6.77 billion at the end of 2005.

      According to the Chamber of the Construction Industry (CMIC), in 2002 Mexico had 9,000 building materials manufacturers that exported a total of $2.2 billion of housing building materials. The market for housing building materials has become more competitive during the last five years, especially with new entrants from Italy, Spain, Korea, Taiwan, Japan, Canada, and China.

      The multiplier effect of the construction and building industry impacts the Mexican economy as follows: of every 100 pesos invested in construction, 56 are used to buy services and materials from other 37 of the 72 sectors of the economy. This means that when the construction and building industry grows it affects half of all productive activities.

      Federal, state and municipal programs offer opportunities to proactive firms. Industry generates investment not only on materials; it also supports the machinery and equipment manufacturing. Most imports and rentals are from U.S. companies located near the border.

The construction and building industry is one of the most important employers, with over 3.5 million persons, which means 11 percent...

...Continued in the pages of Twin Plant News, Subscribe Today!