Post on 14-Jan-2017
INVESTMENT IN BUILDING MATERIALS
Libertad y Orden
CONSTRUCTIONONE OF THE MOST DYNAMIC INDUSTRIES
CONSTRUCTION GDP IN LATIN AMERICAUSD THOUSAND OF MILLION
130.3
153.8
92.5
127.5
35.4
52.1
33.7
9.9
27.433.9
2014
2020
19.830.2
13.1 18.210.7 16.5
3.0 3.5
Brazil Mexico Colombia Venezuela Argentina Chile Peru Ecuador Panama
largest in Latin America after Brazil and Mexico.
Source: Business Monitor
According to Business Monitor, between 2015 and 2020 the value of the construction industry will almost double to US $ 52 billion (compound annual growth rate of 12%).
average in Latin America. It is estimated that by 2020 the per capita cement consump-tion in Colombia will reach 329 kg and Latin America to 389 kg. (Business Monitor)
segment has been marked by Government policies that have the goal of constructing
through road concession programs (4G), within which it is expected to build about 7,000 kilometers of roads.
In the last 5 years, the construction sector grew by an average of 8%, becoming one of the main sectors that drive the growth in the country.
According to Asogravas, it is estimated that all 4G infrastructure projects will require 74 million tons additional of aggregates (sand, gravel, stone, etc.).
DYNAMICS OF THE CONSTRUCTION INDUSTRY IN COLOMBIA
CONSUMPTION OF BUILDING MATERIALS (MILLIONS USD)
THE COUNTRY MAINTAINS A CONSTANT DEMAND FOR BUILDING MATERIALS
PROJECTED GROWTH OF THE CONSTRUCTION INDUSTRYIN COLOMBIA (USD MILLIONS)
30.120 30.320 34.790
Source: Business Monitor
Source: DANE - National Accounts, Annual Manufacturing Survey.e= estimates based on CAMACOL
39.66045.780
52.060
In 2013, demand for materials by the construction sector was US $ 31 billion, registering an upward trend between 2009 and 2013 with an 8% compound growth.
and services necessary for the development
concentrated in 3 groups:
Non-metallic mineral products: glassware, not structural ceramics, brick, cement, plaster, concrete products, marble, and cobblestones.
Basic metal products: rolled products of iron or steel, and structural metal products.
Non-metallic minerals: materials used in construction as common stone, marble, granite, river sand and gravel.
Estimates of consumption of building materials in the coming years are positive, with growth projections of 7.7% for the consumption of cement, concrete and clay products; 4.5% for non-metallic minerals and 4.2% for metal products for structural use.
Articles of concrete, cement and plaster
Cement. lime and plaster
Metal products for structural use
Non-metallic minerals
Clay minerals PVC pipe
3.568
5.170
4.0
90
5.8
68
1.666
2.0
47
1.857
2.3
14
1.237
1.793
279
308
2013
2015e
2018e
ALUMINUM PRODUCTS, CERAMIC AND PORCELAIN ARE THE MAIN EXPORT PRODUCTS
EXPORTS OF BUILDING MATERIALSUSD MILLION
COLOMBIA AS AN EXPORT PLATFORM
With more than 13 trade agreements in force, Colombia has preferential access to close to 1.5 billion consumers in markets such as the United States, the European Union,
addition to its privileged geographic location, makes the country an ideal export platform for the region.
In 2015, exports of building materials were US $ 475 million.
7 products account for 60% of exports of building materials, highlighting the aluminum doors and windows and ceramic and porcelain products.
Due to the free trade agreements signed by Colombia, the
building material products exported.
Colombia also enjoys a strategic location both by sea and air, making it ideal for projects that seek access to a wider market in the Americas.
Source:DANE
In 2015, �ve countries account for over 70% of exports: United States, Panama, Venezuela, Peru and Ecuador. Exports of building materials to the United States grew 32%.
2010
436506
589
496 469
2011 2012 2013 2014
475
2015
OTHER FACTORS TOINVEST IN THE SECTOR
Incentives such as Free Trade Zones, a Stimulus Plan for productivity and employment, and incentives for job creation that reduce production costs for companies present in Colombia and that serve the domestic market and export from Colombia.
will increase the demand for building materials.
households, which translates into a higher demand for houses.
Wages in the industrial sector in Colombia are the second lowest in Latin America (IMD World Competitiveness Yearbook, 2015). Wages are 24% lower than the Latin American average and 71% lower than those on the continent.
Colombia has more than 192,000 graduates in areas related to the sector, such as mechanical engineering, mining engineering, civil and industrial engineering, and architecture.
$
LARGE FOREIGN COMPANIES HAVE CHOSEN COLOMBIA AS A PLACE TO INVEST
SAINT GOBAIN, (FRANCE): investment amounted to USD 200 and will generate approximately
of glass for supplying the national market and exporting to countries in the Andean region.
MEXICHEM (MEXICO): expansion of the production plant for agricultural piping, accessories, sewage systems and water storage tanks, with pipes
million and will generate 130 jobs.
CEMEX (MEXICO): construction of cement production plant in Bolivar with
for the milling process in order to exercise environmental control and maintain high quality standards.