The current state of construction in Mexico from 2014 to 2024
Construction is a human activity that involves the creation, modification, or demolition of buildings, infrastructure, or civil engineering works using various materials, techniques, and tools. Construction has great economic, social, and environmental importance because it generates employment, investment, and development, but it also consumes resources, produces waste and emissions, and modifies landscapes and habitats. Therefore, construction must be carried out responsibly, efficiently, and sustainably, seeking to meet the present and future needs of the population without compromising ecological balance or quality of life. This article analyzes the current state of construction in Mexico from 2014 to 2024, mentioning the main projects and completed works at the national level, as well as future prospects and challenges. For this purpose, information available from academic, journalistic, and official sources is reviewed. The objective is to provide a general and critical overview of the construction sector in Mexico, identifying its strengths, weaknesses, opportunities, and threats, as well as its trends and demands. Over the past ten years, the construction industry in Mexico has experienced significant growth. During this period, various infrastructure projects have been carried out that have contributed to the country’s development. Some of the main projects and completed works nationwide include the construction of roads, bridges, hospitals, schools, and housing. These projects have been essential for improving the quality of life of Mexicans and promoting economic development. However, despite these achievements, the construction industry in Mexico has had to face a number of obstacles. The lack of government investment in infrastructure is one of the main problems. Although some efforts have been made to encourage the development of construction projects, investment remains insufficient to meet the country’s needs. The lack of clear and effective regulations in the sector has caused quality problems in some projects. Cases of defective construction and even structural collapses have been reported, threatening worker safety and contributing to a lack of confidence in the sector. Construction in Mexico reached its highest level in 2014, when the market value of the sector was USD 175.9 billion. That year was characterized by substantial public and private investment in infrastructure projects, particularly in the energy sector, following the constitutional reform that opened the market to the participation of foreign companies. Some of the most relevant projects of that year were the Los Ramones gas pipeline, the Empalme I combined-cycle power plant, and the Ventika wind farm. However, beginning in 2015, the construction industry in Mexico entered a crisis that continued until 2021. This crisis was caused by several factors, including falling oil prices, the depreciation of the peso against the dollar, political uncertainty, corruption, violence, the COVID-19 pandemic, and the cancellation or delay of major projects such as the New Mexico International Airport (NAIM) and the Mexico–Toluca Interurban Train.
These factors caused a decline in both public and private investment and a contraction in the gross domestic product (GDP) of the construction sector, which fell by as much as 17.2% in 2020. These projects represent important opportunities for the country’s economic growth and are expected to have a significant impact in various areas. The Maya Train, for example, is a transportation and tourism initiative aimed at improving connectivity in southeastern Mexico. This project involves the construction of more than 1,500 kilometers of railway across five states, promoting economic and tourism development in the region. The Felipe Ángeles International Airport, located at the Santa Lucía military air base, seeks to reduce congestion at the current Mexico City International Airport. With a projected capacity of up to 20 million passengers per year, the new airport is expected to boost tourism and strengthen the country’s air connectivity. The Dos Bocas refinery, meanwhile, is a large-scale project intended to increase Mexico’s oil refining capacity. It is estimated that the new refinery will be able to process up to 340,000 barrels of oil per day, helping to reduce dependence on fuel imports. The Interoceanic Corridor of the Isthmus of Tehuantepec is an infrastructure project designed to improve connectivity between the Gulf of Mexico and the Pacific Ocean. Through the modernization of ports, railways, and highways, it is expected to promote foreign trade and facilitate the transportation of goods between the two oceans. Construction in Mexico has experienced a notable recovery thanks to public investment in priority projects. These flagship projects represent a major commitment to the country’s infrastructure development, creating employment opportunities, attracting investment, and promoting long-term economic growth. These projects have generated greater demand for materials, machinery, labor, and construction-related services, as well as stronger coordination among the different levels of government and the public and private sectors. According to the Mexican Chamber of the Construction Industry (CMIC), the construction industry grew by 6% in 2023, and it was expected to grow between 3% and 5% in 2024. In addition, construction in Mexico has benefited from the nearshoring phenomenon, which involves the relocation of companies from Asia, particularly China, to countries closer to the United States, such as Mexico. This has generated growth in the industrial and commercial sectors through the construction of industrial parks, warehouses, offices, and shopping centers. Construction in Mexico has great potential to continue growing and contributing to the country’s development, but it also faces several challenges that must be overcome. These challenges include the lack of legal and regulatory certainty, which affects investor confidence and project continuity. One example is the controversy generated by the electricity reform promoted by the government, which has been challenged by the Federal Economic Competition Commission (COFECE) and private companies on the grounds that it violates the Constitution and international treaties and negatively affects competition and investment in the energy sector. Another challenge is the shortage of financial resources, which limits the investment capacity of both the government and private companies. This is due to low tax revenue, rising public debt, inflation, exchange rate fluctuations, and limited access to credit. Therefore, greater efficiency in public spending, increased transparency and accountability, and stronger participation by the private sector through public-private partnerships (PPPs) or foreign direct investment (FDI) are required. Another issue is the lack of innovation and technology, which reduces productivity and competitiveness in the sector. This results from low investment in research and development, insufficient staff training and professional updating, and resistance to change. Therefore, greater adoption of advanced technologies is needed, including artificial intelligence, the Internet of Things, 3D printing, drones, sensors, big data, and virtual reality, which can optimize processes, reduce costs, improve quality and safety, and generate added value. Construction in Mexico is a key sector for the country’s economy and development. It has experienced both growth and decline in recent years but is currently in a stage of recovery and expansion. However, to consolidate this growth and take advantage of market opportunities, the sector must address and overcome challenges such as the lack of legal certainty, limited financial resources, and insufficient innovation and technology. Achieving this requires greater collaboration among the stakeholders involved, increased public and private investment, stronger transparency and accountability, and wider adoption of advanced technologies. Future investment trends in construction include digitalization and automation. The use of technology in construction has become increasingly necessary and beneficial because it makes it possible to optimize processes, reduce costs, improve quality and safety, and generate added value. Technologies currently being implemented or expected to be adopted in the construction sector include project management software, artificial intelligence, the Internet of Things, 3D printing, drones, sensors, big data, and virtual reality. These technologies support greater efficiency, innovation, and competitiveness in the construction sector. Sustainability and resilience are also becoming priorities in construction because they seek to minimize the environmental and social impact of projects while adapting to the changes and challenges posed by the current context. Practices currently being adopted or expected to be implemented include the use of environmentally friendly, recycled, or biodegradable materials, bioclimatic design, renewable energy generation, efficient water management, the reduction of waste and emissions, and the integration of nature and local communities. These practices enable greater responsibility, sustainability, and profitability in the construction sector. Collaboration and participation have also become increasingly relevant and necessary because they involve greater coordination, communication, and cooperation among the different stakeholders in the construction sector, including government, the private sector, academia, civil society, and end users. Approaches currently being used or expected to be adopted include public-private partnerships (PPPs), foreign direct investment (FDI), public consultation and citizen participation, co-creation, and co-management. These approaches contribute to greater transparency, trust, and quality in the construction sector.
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