Construction Economy 2023

It is no secret that after the appearance of Covid-19, several sectors were affected by this disease, one of the most afflicted was, without a doubt, the construction sector, which is struggling to get out of this critical situation.

“Fortunately, it has been achieved little by little, because in november 2022, the results of the ENEC (National Survey of Construction Companies) have shown us that the production generated by the projects grew by 2.5% compared to october of that year”

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However, hours worked decreased by 0.1% and salaries increased by 0.2%, thus leaving a production value in the works with an increase of 4.7%. The personnel employed for construction obtained a total value of 4%, while the hours worked are 3.3% and salaries are 0.7%.

Although all this data seems to show that the industry is getting back on its feet, experts on the subject are concerned, as they believe that there are still some vulnerabilities that leave construction on the edge between life and death.

Ricardo Trejo Nava, general director of the consulting firm Forecastim, mentions in June 2022 that for every percentage point that prices rise on average in the country, there is a loss in production of 0.10 points.

Another event that affected the construction industry is, according to the president of the National Chamber of the Housing Development and Promotion Industry, Luis Alberto Moreno Gómez Monroy, the conflict between Ukraine and Russia, since its impact was directly in housing construction, affecting the prices of inputs for its activity.

More opinions on this topic come from BBVA Mexico, who says that there will be a growth of 1% by 2023, regarding the slowdown in the construction sector.

With all this data we can say that, yes, the industry has many difficulties from which it must recover, but will it be able to do so in this new year? From my perspective, I believe that it will succeed, because at the end of the previous year they began to increases in production can be seen, which, although small, are still important for the performance of this industry, although the biggest problem in getting ahead is the increase in prices of materials.

Will it affect us? Of course, it will, but the important thing will be to generate an action plan so that companies adapt to this situation.

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