Mexico's construction sector lost 2,000 companies in last six years

Nearly 2,000 Mexican construction companies, primarily small and medium-sized businesses, had to exit the market during the President Andrés Manuel López Obrador administration, although the main reason for closures was the COVID-19 pandemic in 2019-22.

Expanding on the finding, Luis Méndez Jaled, president of construction chamber CMIC, which represents around 9,000 companies, told reporters on Tuesday that “80% of the reduction of companies and jobs affiliated with our institution was caused by the pandemic, this on top of the fact that being a company owner is not easy and that 90% of companies disappear two or three years after being created.”

Méndez Jaled added that CMIC’s members expect a complicated second half, partially due to the June 2 general elections and the change of government on October 1. The current government took office in 2018.

Claudia Sheinbaum, an ally of López Obrador, is the frontrunner in the polls, followed by Xóchitl Gálvez, who represents a broad opposition coalition.

“We have hope and the idea that, if there is a democratic election and the results are respected no matter who wins, the transition can occur with political maturity,” Méndez Jaled said.

CMIC is proposing an infrastructure reform which includes debt restructuring so savings can be allocated to priority projects. 

The plan also includes facilitation of private investment in key infrastructure projects, as well as those related to clean energy generation and the construction of power plants and transmission lines. 

A fiscal reform is also part of the plan, aimed at expanding the base of contributors and collecting more funds for infrastructure.