State of the industry

As infrastructure is the foundation of development, it is vital that Mexico invests in it, and thereby increase its competitiveness in order to secure a leading position in the global value chain. After years of underinvestment and lack of interest from the public sector, the last few years have seen a rising interest on infrastructure in Mexico. With the announcement of a new National Infrastructure Plan (NIP) for 2014-2018, the President Peña Nieto administration plans to invest MX$7.75 trillion (approximately US$596 billion) on 743 key infrastructure projects.

A number of factors will come into play to make this investment a reality. PPPs will likely gain significant momentum during President Peña Nieto’s term, while the Energy Reform is expected to provide an important medium-term boost to the construction sector, as Mexico’s energy industry opens up to private players. The manufacturing sector is also bound to drive industrial construction and demand more from the country’s electricity capacity and transport infrastructure. In order to successfully reach its objectives, Mexico will have to overcome several challenges such as the eroding investor confidence, exposure to the volatility of the US market, as well as high levels of corruption and security issues.

This chapter contains observations on the state of the Mexican infrastructure industry by experts who have repeatedly succeeded in developing infrastructural projects with a lasting impact. Furthermore, it exposes the main infrastructural trends and discusses the impact of the 2014-2018 NIP. Lastly, it offers insights into the main opportunities and challenges that this sector faces, from the perspective of main government regulators and private sector leaders.

 

HIGHLIGHTS OF CHAPTER 1

  • National Infrastructure Program (NIP) 2014-18
  • State of the infrastructure industry in 2016
  • Priorities and challenges in infrastructure development
  • Industry trends and highlights
  • FDI and competitiveness