Why This is Important to Wisconsin: Wisconsin’s construction companies may find opportunities to contribute to significant infrastructure additions.
Major infrastructure projects are giving a significant boost to Mexico’s construction industry.
• The Mayan Train—a four-year, 1,500-kilometer rail route connecting the states of Chiapas, Tabasco, Campeche, Yucatán, and Quintana Roo—became fully operational in December 2024.
• The Interoceanic Corridor of the Isthmus of Tehuantepec is a rail-and-ports project intended to move containers between the Pacific Ocean and the Gulf of Mexico within hours. Designed to be an alternative to the Panama Canal, completion is expected in the first half of 2026.
• Pemex began operations at its $18 billion Dos Bocas refinery in 2024 and is now updating two of its older refineries, in Tula and Salina Cruz.
• In 2024, BMW began building a battery assembly plant in San Luis Potosi that is expected to cost $13.9 billion MXN ($770 million USD) and is expected to be completed by 2027.
• Brazilian steel developer Gerdau has announced plans to develop a steel plant in central Mexico with an estimated investment of $10.4 billion MXN ($580 million USD), with construction expected to start in 2025.
With projects such as those along with residential building, Mexico’s construction industry is expected to show growth of 5.5% for 2024, reaching $2 trillion MXN ($110 billion USD), according to Research and Markets.
The November 2024 report projected that despite near-term challenges in certain sectors, construction will continue to increase steadily, with a compound annual growth rate of 3.3% during 2024-2028. Mexico’s construction output is expected to reach $2.5 trillion MXN ($140 billion USD) by 2028.
Construction represented 6% of Mexico’s gross domestic product in 2024, according to a CitiBanamex report cited by Mexico Business News.
The Mexican Chamber of the Construction Industry (CMIC), in its 2024 annual report, said the sector grew by 15.6% in 2023, which was significantly higher than national economy’s overall growth rate of 3.2%, according to Mexico Business News. CMIC said technology—such as process automation and providing strategic information in real time—is one reason for the strong showing.
Wisconsin businesses involved in the construction industry could find opportunities to collaborate. Leveraging innovation, sustainability, and cultural authenticity is key to tapping into the full potential of the market and catering to the preferences of Mexican consumers.
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