The USMCA and its effect on the Mexican Construction Industry - Oradel
Supply chain disruptions and lessons in the wake of Covid-19
25 June, 2020
E-commerce drives industrial warehouse leasing
26 June, 2020

The USMCA and its effect on the Mexican Construction Industry

The construction industry will be one of the sectors that will benefit from the trade agreement between Mexico, the United States and Canada, as this would promote the arrival of new investments.

This is due to the fact that the new trade agreement brings certainty to investors, as well as stability in financial markets, essential elements to encourage economic growth.

In this context and given the conditions of uncertainty that prevailed before the ratification of the T-MEC by the congresses of the three countries, a better picture will be generated for the national economy, as well as for the construction industry.

The commercial relationship between Mexico, the United States and Canada is one of full integration and interdependence in the supply chain, since a large percentage of manufacturing exports are classified as intermediate goods.

From January to November 2019, for the first time in history, Mexico was the main trading partner of the United States, because the accumulated value of exports and imports between the two countries amounted to 567 thousand 813 million dollars, followed by the United States trade with Canada and China, with 563 thousand and 516 billion dollars, respectively.

Therefore, it is foreseeable that in the short term the free flow of goods and investments between Mexico and the United States will continue and bring with it greater benefits, boost Mexico’s economic growth and productive activity.

Benefits of T-MEC for the construction industry

-Increase in foreign investment flows in the Mexican industrial sector, mainly in the manufacturing market, which translates into significant growth in the construction of factories, warehouses, industrial parks, industrial infrastructure, generating sources of employment.

-Higher consumption for this industry, which means that a greater demand for housing will be generated by encouraging the construction of shopping centers and services.

-Stability in the exchange rate, which will give greater certainty in the preparation of construction construction budgets.

-Control of inflation and gradual reduction of interest rates, which will reduce the financial cost of construction.

-Consolidation and growth of investments already established in Mexico generated by security in the opening of the US and Mexican markets, mainly in the automotive and manufacturing sector.

-Availability of supplies and materials for the construction of quality technologies, at internationally competitive prices.

The importance of the T-MEC for Oradel Industrial Center

For 20 years, Oradel has contributed to the growth of the various industrial sectors of the country, providing competitive advantages to companies that have operations within the industrial park since it is located on the “NAFTA highway” and 10 minutes from the International Bridge. III with the United States.

Open chat