Mexico - Country Commercial Guide
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The construction sector —including building materials and specialized expertise such as sustainable building technologies and seismic stabilization— is a best prospect industry sector for Mexico. In 2022 Mexico’s construction industry continued to recover from the impacts of the COVID-19 pandemic, driven by an improving economic outlook and public investment in priority infrastructure projects. The Mexican construction industry is expected to grow in 2023 and 2024 due to important public infrastructure investment and growing industrial investment tied to nearshoring that will boost construction activity.


Mexico’s USD 1.3 trillion economy makes it the second-largest economy in Latin America and the 15th-largest in the world. Its infrastructure plans are an important consideration for any U.S. engineering or construction supply firm.

According to Business Monitor International (BMI), Mexico’s construction industry is expected to continue its recovery after a significant decline of 17.6 percent in 2020. BMI estimates the construction industry will grow by 0.4 percent in 2022 and 1.1 percent in 2023, with average annual growth reaching 2.8 percent between 2023 and 2032. This expected growth will be offset by weak investor sentiment, limited public investment, and changes in public policies that could affect the economic recovery.

The following table indicates the value of the Mexican construction and infrastructure industries. These figures were estimated by BMI based on data provided by the Mexican National Institute of Statistics and Geography (Instituto Nacional de Estadística y Geografía or INEGI).

Table 1: Construction and Infrastructure Industry Data
(Figures in USD Billions)




2022 (Est.)

2023 (Forecast)

Construction Industry Value





Construction Industry Value, Real Growth, % y-o-y





Infrastructure Industry Value





Infrastructure Industry Value, Real Growth, % y-o-y





Exchange Rates





Sources: Secretariat of Finance and Public Credit (SHCP), National Institute for Statistics and Geography (INEGI), Fitch Solutions Business Monitor International (BMI)

Macroeconomic conditions in Mexico will improve over the next several years as consumption recovers and key economic sectors return to normal levels of activity post COVID-19. The construction of new manufacturing and industrial plants will be a crucial driver of investment and Mexico will benefit from the implementation of the United States-Mexico-Canada Agreement (USMCA) and nearshoring, which may shift supply chains to the region from countries in Asia and elsewhere. Nearshoring represents an important opportunity of investment in the industrial sector that could lead to business opportunities within the construction sector in Mexico.

Analysts and industry experts point to certain elements that could affect investment during the upcoming years, preventing a significant recovery of the Mexican construction industry. This adverse environment would be exacerbated by a combination of project cancellations and abrupt changes to key policies under the current López Obrador administration. In addition, the current administration ends in 2024, which limits the number of new public construction projects the Government of Mexico will undertake prior to elections.

Mexico ranks second among top markets for U.S. building product exporters due to its proximity, established transport links, and duty-free status under USMCA. For 2023, there will continue to be limited opportunities related to major government infrastructure projects under the National Development Plan (Plan Nacional de Desarrollo or PND), including work on specific highways and roads, railways, airports, ports, oil and gas-related infrastructure, telecommunications, and housing projects. Please see the Transportation Infrastructure Equipment and Services, Information and Communication Technologies, and Oil and Gas sections of this guide for more information.

In the private sector, we continue to see opportunities in mixed-use buildings (retail, corporate, and housing), corporate offices, logistic and manufacturing hubs, shopping malls, retail stores, and other small projects. The large private projects will be developed and executed by local and foreign investors. Most public projects will be developed and executed by local investors and a minority by foreign investors. As previously mentioned, interested companies should cautiously follow the development of these projects given possible changes in public policies related to investment as a result of the upcoming elections and change of federal administration in 2024.

Leading Sub-Sectors

We see three leading sub-sectors in the construction industry: general construction, housing, and green building.

General Construction

Construction techniques in Mexico differ from those in the United States. Most of the houses, commercial and public buildings, industrial facilities (industrial manufacturing plants and logistical and distribution centers), and mixed-use buildings in Mexico are built with bricks and concrete, which are the traditional building materials in Mexico. Demand for cement, steel bars, glass, and air conditioning systems are growing and are not always met by local suppliers. This presents a market opportunity for U.S. firms, especially in industrial areas along the U.S.-Mexico border where most facilities are being built with raw materials from both countries. Nonetheless, state-of-the-art panel systems for mixed-use buildings and facilities are gaining market share due to trends toward flexible spaces and areas in offices, distribution centers, as well as in luxury apartments.

There is also a high demand for plywood. Potential niche markets exist in the furniture manufacturing sector, the construction sector (which consumes large quantities of wood for concrete forming purposes), and the interior decoration sector, particularly in flooring, paneling, and molding.


Unfortunately, housing has been one of the most affected sub-sectors in the recent economic downturn. INEGI data show that, for 2019 and 2020, a significant number of housing investment projects were postponed or canceled in several cities, but mainly in the metropolitan areas of Mexico City, Guadalajara, and Monterrey, which are the main engines of real estate development in the country.

Uncertainty over public policies accentuated housing project declines. For 2023 we expect to see continued weakness in housing development, especially in the middle, residential, and residential-plus segments. Potential buyers have postponed purchasing decisions and will do so as long as they continue to perceive uncertainty. The weakening of residential building activity in Mexico has also been affected by a combination of factors, including the tightening of monetary policy to control inflation which has led to high interest rates, elevated construction materials prices, and an uncertain economic backdrop.

In addition, the Federal Law on the Remuneration of Public Servants reduced the income of federal government workers, further depressing home sales. The National Housing Registry (Registro Único de Vivienda) is a good source for information on housing inventories. It shows that units remain below the initial plans from housing developers and the federal government. The residual effects of the COVID-19 pandemic will continue affecting the recovery of the housing sub-sector, including a significant increase in the cost of construction supplies, a shortage of land in an adequate price range to build more housing, an increase in interest rates and, finally, homebuilders’ difficulty in obtaining bridge credit lines in the financial system to continue their projects.

Mexico’s housing sector is dominated and funded by large, independent government and parastatal agencies. These include the National Housing Commission (Comisión Nacional de Vivienda or CONAVI), INFONAVIT (Instituto del Fondo Nacional para la Vivienda para los Trabajadores, the largest housing fund for private workers in Mexico), FOVISSSTE (Fondo de la Vivienda del Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, the largest housing fund for state workers in Mexico), FONHAPO (Fideicomiso Fondo Nacional de Habitaciones Populares, a government fund for creating low-income housing options), CFE (Comisión Federal de Electricidad, the government owned electric utility company), Pemex (Petróleos Mexicanos, the state-owned oil company), some state government housing agencies, and large private banks and other financial institutions. Government institutions provide almost 60 percent of the funds for the Mexican housing sector. The other 40 percent is covered by private banks and other financial institutions.

There are no major barriers for importing housing building materials. Certain regulated products will need to comply with local standards testing (e.g., wires, switches, back-up power batteries, etc.), so it is necessary to check the requirements for your particular product.

For U.S. firms interested in entering Mexico’s housing industry, one of the best options is to partner with a Mexican housing developer or construction firm that is active in the housing industry. Mexican companies’ knowledge of the market and labor and legal aspects is invaluable to U.S. firms. Despite the government’s focus on subsidized housing, there are outstanding business opportunities in providing housing for the mid and high-income segments of the housing industry.

Building materials suppliers that have successfully entered the Mexican market typically have hired a representative to sell to the major distributors and construction companies in the country. In addition, it is important that manufacturers register as building materials suppliers with INFONAVIT, FOVISSSTE, FONHAPO, Pemex, CFE, and state housing institutes.

Green Building

Like other emerging economies, Mexico is moving rapidly towards green and more environmentally friendly construction activities. The construction industry has embraced the green building movement. Mexico joined the World Green Building Council (WGBC) and is learning best practices from Europe, Canada, and the United States to lower costs and enjoy health benefits derived from green and sustainable buildings. The Mexican construction industry also aims to demonstrate to other countries how to use simple, moderate-cost strategies acquired through its own longstanding building practices to achieve green building advantages.

Mexico has a tradition of architecture that favors environmentally sensitive, small footprint building practices and designs. Nonetheless, policy efforts to promote green buildings are relatively new and generally focused on the housing sector. The top organizations documenting and implementing green practices and working to define criteria for green buildings and homes include CONAVI, INFONAVIT, the Mexican Chamber for the Construction Industry (Cámara Mexicana de la Industria de la Construcción or CMIC), the National Chamber for Consulting Firms (Cámara Nacional de Empresas de Consultoría or CNEC), the National College for Architects (Colegio Nacional de Arquitectos de la Ciudad de México), the Mexican Council for Sustainable Construction (Consejo Mexicano para la Edificación Sustentable), Sustainability for Mexico (Sustentabilidad para México or SUME), and the Association of Firms for the Saving of Energy on Construction and Buildings. Additionally, INFONAVIT has created a “green mortgage” program supported by mandatory employer and employee contributions.


The U.S. Commercial Service in Mexico is ready to assist you in exploring construction sector opportunities. Residential U.S. building and construction products are generally well-received in Mexico by local construction companies seeking to offer their clients houses with better features and qualities. When home construction recovers, Mexican buyers will once again seek affordable homes with more green products. Housing developers and construction companies located in border states have greater access to the latest trends in design, products, and accessories. Nonetheless, developers and construction companies in central Mexico are also interested in U.S. products that can improve the quality of their final product.

To the extent private sector construction continues, there are opportunities for U.S. suppliers in both residential and non-residential construction/building. These include wooden windows, doors, flooring, and frames from sustainable woods; ecological paints, coverings and coatings; ecological concrete pipes for potable water and sewage; energy saving light bulbs; ecological pipes and fixtures for electrical applications; skylights; green-certified electrical devices and home appliances; permeable concrete; and green roof systems and equipment. There is also demand for high-efficiency air conditioning systems and equipment; high-efficiency HVAC equipment for commercial buildings and hospitals; ecological water purification systems and devices; ecological indoor and outdoor furniture; natural insulation materials; ecological blocks and bricks; insulation; acoustics; and fire-retardant thermal protection materials. Business opportunities in engineering, design, architectural, electrical, plumbing, foundation, landscape, and other green services and technologies are also significant.

Demand for IT tools, communication platforms, and software to facilitate construction processes, design, and materials management has increased during the last year and will continue growing in the near future. Industry experts have noted increasing interest by the Mexican construction industry in Building Information Modeling (BIM) tools, which are steadily becoming a major asset of the construction industry as it evolves and creates opportunities for owners, architects, and contractors.

The following table provides additional details on specific opportunities.

Table 2: Best Prospects in Mexico for U.S. Manufacturers of Building Materials
(% of U.S. Market Share in Mexico’s Construction Industry)


HS Code

U.S. Market Share

Filtering or purifying machinery and apparatus for gases, others



Tubes and pipes —copper



Aluminum doors, windows, and frames



Bulbs for incandescent lamps



Air conditioning machines, incorporating a refrigerating unit, other



Steel doors, windows, and frames



Source: Global Trade Atlas


National Chamber for Housing Development (CANADEVI)


National Housing Commission (CONAVI)


Mexican Chamber for the Construction Industry (CMIC)


National Chamber for Consulting Firms (CNEC)


Construction and Housing Development Center (CIHAC)


National Institute for Statistics and Geography (INEGI)


National Workers Housing Fund Institute (INFONAVIT)


Secretariat of Infrastructure, Communications and Transportation (SICT)



Expo Ferretera, September 7-9, 2023. Guadalajara, Jalisco
Expo CIHAC, October 11-13, 2023. Mexico City


For more information on the construction sector in Mexico, please contact:

Juan Carlos Ruiz

Commercial Specialist

U.S. Commercial Service —Mexico City

Tel.: +52 (55) 5080-2000 ext. 5223