BMI's Executive Summary

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The Mexican construction space is buzzing with activity. The construction industry has displayed impressive growth over the last few years and the trend is expected to continue. BMI forecasts the construction industry to grow at 5.82% on average during the 2008-2012 period.

The country's national infrastructure programme (2007-2012) envisages major development on the construction front. A number of projects are currently underway, particularly in the transport infrastructure sub-sector, which will receive government investment to the tune of MXN50.1bn (US$4.54bn) in 2007. Prospects for residential construction in the country also appear bright, primarily due to rising incomes and easier availability of finance. Furthermore, 21 power-generation projects worth US$6.5bn are planned during the next 10 years. Major projects planned or currently underway include the US$5bn suburban train project in Mexico City; the US$1.4bn infrastructure development in the Chicontepec oil region and the US$1.01bn metro line in Mexico City's subway system.

On the downside, the Mexican economy is largely susceptible to US economic cycles. Strained diplomatic relations with the US may not augur well for trade with the country, which was a key growthdriver in 2006. As it is heavily dependent on steel imports, Mexico is also sensitive to steel-price fluctuations. An unimpressive legal infrastructure and prevalence of corruption are some of the other impediments to growth. Despite a vibrant economy, the financial markets are not yet fully developed.

The industry is forecast to be valued at MXN769.97bn (US$57.11bn) in 2012, contributing 5.46% of the year's gross domestic product (GDP). Activity in the transport infrastructure space (particularly the grant of a large number of road concessions) and ongoing reforms in the energy sector are expected to be significant growth drivers.

Contents

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Chapter 1 – Industry Trends And Development

Market Overview

Mexico's Economy In 2006

Mexico's Construction Industry In 2006

Major Companies

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: Mexican Major Infrastructure Projects

Chapter 3 – Business Environment

Introduction

Table: Americas Business Rankings

Business Attractiveness Rankings — Methodology

Regional Overview

Mexico: Business Environment Ranking

Economics — Long–Term Risk

Politics — Long–Term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

Mexico Infrastructure Industry SWOT

Mexico Political SWOT

Mexico Economic SWOT

Chapter 5 – Industry Forecast Scenario

Table: Mexico Infrastructure And Macroeconomic Historic Data And Forecasts

Table: Mexico Infrastructure And Macroeconomic Historic Data And Forecasts (cont)

Risks

Chapter 6 – Macroeconomic Outlook

Table: Macroeconomic Indicators

Chapter 7 – Competitive Landscape

Table: Key Players

Chapter 8 – Company Monitor

Cemex

Holcim Apasco

Empresas ICA

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Latin America Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Latin American Infrastructure Sources

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BMI's Latin American Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: