Construction in Argentina - Key Trends and Opportunities to 2018

Published: Aug, 2014 | Pages: 65 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)


Synopsis
This report provides detailed market analysis, information and insights into Argentine construction industry including:
Argentine construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within Argentina
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Argentine construction industry
Analyzing the profiles of the leading operators in Argentine construction industry.
Data highlights of the largest construction projects in Argentina 

Summary
The Argentine construction industry increased in value, at a nominal compound annual growth rate (CAGR) of 21.55% during the review period (2009-2013). However, in real terms, the CAGR was only 3.54%, as a result of high inflation in the Argentine economy. This growth was supported by public investments in residential, infrastructural and commercial construction. Increased government investment, the adoption of a build-operate-transfer (BOT) model and private sector participation through public-private partnerships (PPPs) helped to increase infrastructure construction activity. Industry growth is expected to continue over the forecast period (2014-2018) as a result of the government's focus on infrastructure and residential construction, improved investor sentiment, and an anticipated recovery in the global economy. The industry is anticipated to post a forecast-period CAGR of 22.53%. However, with high inflation in the country, the industry's output growth rate in real terms is expected to be lower over the forecast period. 
Scope
This report provides a comprehensive analysis of the construction industry in Argentina. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Argentina using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in Argentina 
Reason To Buy
 Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate business strategies using Timetric's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors 
Key Highlights
 Since late 2013, construction activity in Argentina has been fairly weak, with the industry contracting by 2.1% and 9.9% in real terms in the first quarter of 2014 compared with the first and the fourth quarters of 2013 respectively. This followed an annual average growth of 1.8% in real terms in 2013. According to the country's national statistical office, the Instituto Nacional de Estadistica y Censos (INDEC), the construction industry's output at constant prices fell from ARS37.8 billion (US$6.9 billion) in the fourth quarter of 2013 to ARS34.1 billion (US$5.3 billion) in the first quarter of 2014. With high inflation, a deteriorating business environment and depreciating domestic currency against the US dollar, the real growth rate of the construction industry's output is expected to remain weak over the forecast period. 
Under the Norte Grande III Infrastructure Program, the Inter-American Development Bank (IDB) granted an ARS1.6 billion (US$300.0 million) loan to Argentina in 2013 to enhance, improve and rehabilitate road corridors in the Norte Grande region. The tenure of the loan is 25 years, with a grace period of 5.5 years. The aim of the project is to improve the transport network, cut travel time, increase average annual traffic, and reduce transport costs and road accidents in Norte Grande. This is expected to drive growth in infrastructure construction over the forecast period. 
According to the Central Intelligence Agency (CIA), 15.7% of Argentina's population is aged 15-24 years, which has the potential to drive growth in the residential construction market. The growing young population resulted in a housing deficit of 2.5 million units in 2012. Despite a large number of housing units being built in the country since 2003, the supply is still not sufficient to meet the rising demand. Consequently, the government and private housing agencies are promoting various affordable housing projects in the country. These factors will support residential construction activity over the forecast period. 
According to the INDEC, wholesale and retail sales turnover at constant prices grew by 1.7% in 2013 and 1.0% in 2012. The rise in retail sales represents a positive signal for the retail buildings construction category. Moreover, with a population of 42.2 million, Argentina has a large consumer base and its retail industry has the potential to expand. This will drive construction activity in the retail buildings category over the forecast period. 
With the aim of promoting greater provincial and regional economic competitiveness, the Argentine government announced a total investment of ARS699.3 million (US$128.0 million) in 2013 under the Regional Highway Development Program, to improve, refurbish and expand road networks in the Jujuy and Santiago del Estero provinces. The project is co-financed by the Development Bank of Latin America, with a loan of ARS491.7 million (US$90 million). A contribution of ARS207.6 million (US$38.0 million) will be made by the Argentine government. The project involves the renovation and construction of 102.0km of roads in Jujuy and Santiago del Estero, which is expected to complete by 2015.

 1 Executive Summary
2 Market Overview
2.1 Key Trends and Issues
2.2 Benchmarking by Market Size and Growth
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Alto Palermo SA
8.1 Alto Palermo SA - Company Overview
8.2 Alto Palermo SA - Main Services
8.3 Alto Palermo SA - Company Information
8.3.1 Alto Palermo SA - key competitors
8.3.2 Alto Palermo SA - key employees
9 Company Profile: Dycasa SA
9.1 Dycasa SA - Company Overview
9.2 Dycasa SA - Main Services
9.3 Dycasa SA - Company Information
9.3.1 Dycasa SA - key competitors
9.3.2 Dycasa SA - key employee
10 Company Profile: Consular Consultores Argentinos Asociados SA
10.1 Consular Consultores Argentinos Asociados SA - Company Overview
10.2 Consular Consultores Argentinos Asociados SA - Main Services
10.3 Consular Consultores Argentinos Asociados SA - Company Information
10.3.1 Consular Consultores Argentinos Asociados SA - key competitors
10.3.2 Consular Consultores Argentinos Asociados SA - key employee
11 Company Profile: Iecsa SA
11.1 Iecsa SA - Company Overview
11.2 Iecsa SA - Main Services
11.3 Iecsa SA - Company Information
11.3.1 Iecsa SA - key competitors
11.3.2 Iecsa SA - key employee
12 Company Profile: Jose Cartellone Construcciones Civiles SA
12.1 Jose Cartellone Construcciones Civiles SA - Company Overview
12.2 Jose Cartellone Construcciones Civiles SA - Main Services
12.3 Jose Cartellone Construcciones Civiles SA - Company Information
12.3.1 Jose Cartellone Construcciones Civiles SA - key competitors
12.3.2 Jose Cartellone Construcciones Civiles SA - key employee
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is This Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 - GTSA - Las Heras Hotel Development - Mendoza
Table 3: Commercial Construction Project 2 - MoE - Escobar Industrial Park Development - Buenos Aires
Table 4: Commercial Construction Project 3 - KM60EI - Pilar Caesar Park Hotel - Buenos Aires
Table 5: Industrial Construction Project 1 - TDFEyQ - Rio Grande Agro Chemical Plant - Tierra del Fuego
Table 6: Industrial Construction Project 2 - TA - Zarate Manufacturing Plant Expansion - Buenos Aires
Table 7: Industrial Construction Project 3 - LAC - Cauchuri Lithium Carbote Plant - Jujuy
Table 8: Infrastructure Construction Project 1 - DNV - Para-Concordia Highway Development - Entre Rios
Table 9: Infrastructure Construction Project 2 - SBASE - Buenos Aires Metro Line H - Argenti
Table 10: Infrastructure Construction Project 3 - SBASE - Metro System Expansion Line F - Buenos Aires
Table 11: Institutiol Construction Project 1 - MOJ - Almafuerte Model Prison Complex - Misiones
Table 12: Institutiol Construction Project 2 - PGCh - Comodoro Rivadavia Hospital Development - Chubut
Table 13: Institutiol Construction Project 3 - MoPH - Posadas New Materl Neotal Hospital - Misiones
Table 14: Residential Construction Project 1 - DoPW - Housing Development Plan - Chubut
Table 15: Residential Construction Project 2 - Vizora/Ferndez Prieto - Puerto Madero Link Towers Residential Tower - Buenos Aires
Table 16: Residential Construction Project 3 - Urbano/Fortese/Leandro Ducret/Blackstone - Baradero Mixed Use Development: Urbano Barrancas - Buenos Aires
Table 17: Alto Palermo SA, Key Facts
Table 18: Alto Palermo SA, Main Services
Table 19: Alto Palermo SA, Key Employees
Table 20: Dycasa SA, Key Facts
Table 21: Dycasa SA, Main Services
Table 22: Dycasa SA, Key Employee
Table 23: Consular Consultores Argentinos Asociados SA, Key Facts
Table 24: Consular Consultores Argentinos Asociados SA, Main Services
Table 25: Consular Consultores Argentinos Asociados SA, Key Employee
Table 26: Iecsa SA, Key Facts
Table 27: Iecsa SA, Main Services
Table 28: Iecsa SA, Key Employee
Table 29: Jose Cartellone Construcciones Civiles SA, Key Facts
Table 30: Jose Cartellone Construcciones Civiles SA, Main Services
Table 31: Jose Cartellone Construcciones Civiles SA, Key Employee
Table 32: Argentine Construction Output by Project Type (ARS Million), 2009-2013
Table 33: Argentine Construction Output by Project Type (ARS Million), 2013-2018
Table 34: Argentine Construction Output by Cost Type (ARS Million), 2009-2013
Table 35: Argentine Construction Output by Cost Type (ARS Million), 2013-2018
Table 36: Argentine Construction Output by Activity Type (ARS Million), 2009-2013
Table 37: Argentine Construction Output by Activity Type (ARS Million), 2013-2018
Table 38: Argentine Construction Value Add by Project Type (ARS Million), 2009-2013
Table 39: Argentine Construction Value Add by Project Type (ARS Million), 2013-2018
Table 40: Argentine Commercial Construction Output by Project Type (ARS Million), 2009-2013
Table 41: Argentine Commercial Construction Output by Project Type (ARS Million), 2013-2018
Table 42: Argentine Commercial Construction Output by Cost Type (ARS Million), 2009-2013
Table 43: Argentine Commercial Construction Output by Cost Type (ARS Million), 2013-2018
Table 44: Argentine Commercial Construction Output by Activity Type (ARS Million), 2009-2013
Table 45: Argentine Commercial Construction Output by Activity Type (ARS Million), 2013-2018
Table 46: Argentine Commercial Construction Value Add by Project Type (ARS Million), 2009-2013
Table 47: Argentine Commercial Construction Value Add by Project Type (ARS Million), 2013-2018
Table 48: Argentine Industrial Construction Output by Project Type (ARS Million), 2009-2013
Table 49: Argentine Industrial Construction Output by Project Type (ARS Million), 2013-2018
Table 50: Argentine Industrial Construction Output by Cost Type (ARS Million), 2009-2013
Table 51: Argentine Industrial Construction Output by Cost Type (ARS Million), 2013-2018
Table 52: Argentine Industrial Construction Output by Activity Type (ARS Million), 2009-2013
Table 53: Argentine Industrial Construction Output by Activity Type (ARS Million), 2013-2018
Table 54: Argentine Industrial Construction Value Add by Project Type (ARS Million), 2009-2013
Table 55: Argentine Industrial Construction Value Add by Project Type (ARS Million), 2013-2018
Table 56: Argentine Infrastructure Construction Output by Project Type (ARS Million), 2009-2013
Table 57: Argentine Infrastructure Construction Output by Project Type (ARS Million), 2013-2018
Table 58: Argentine Infrastructure Construction Output by Cost Type (ARS Million), 2009-2013
Table 59: Argentine Infrastructure Construction Output by Cost Type (ARS Million), 2013-2018
Table 60: Argentine Infrastructure Construction Output by Activity Type (ARS Million), 2009-2013
Table 61: Argentine Infrastructure Construction Output by Activity Type (ARS Million), 2013-2018
Table 62: Argentine Infrastructure Construction Value Add by Project Type (ARS Million), 2009-2013
Table 63: Argentine Infrastructure Construction Value Add by Project Type (ARS Million), 2013-2018
Table 64: Argentine Institutiol Construction Output by Project Type (ARS Million), 2009-2013
Table 65: Argentine Institutiol Construction Output by Project Type (ARS Million), 2013-2018
Table 66: Argentine Institutiol Construction Output by Cost Type (ARS Million), 2009-2013
Table 67: Argentine Institutiol Construction Output by Cost Type (ARS Million), 2013-2018
Table 68: Argentine Institutiol Construction Output by Activity Type (ARS Million), 2009-2013
Table 69: Argentine Institutiol Construction Output by Activity Type (ARS Million), 2013-2018
Table 70: Argentine Institutiol Construction Value Add by Project Type (ARS Million), 2009-2013
Table 71: Argentine Institutiol Construction Value Add by Project Type (ARS Million), 2013-2018
Table 72: Argentine Residential Construction Output by Project Type (ARS Million), 2009-2013
Table 73: Argentine Residential Construction Output by Project Type (ARS Million), 2013-2018
Table 74: Argentine Residential Construction Output by Cost Type (ARS Million), 2009-2013
Table 75: Argentine Residential Construction Output by Cost Type (ARS Million), 2013-2018
Table 76: Argentine Residential Construction Output by Activity Type (ARS Million), 2009-2013
Table 77: Argentine Residential Construction Output by Activity Type (ARS Million), 2013-2018
Table 78: Argentine Residential Construction Value Add by Project Type (ARS Million), 2009-2013
Table 79: Argentine Residential Construction Value Add by Project Type (ARS Million), 2013-2018
Table 80: Timetric Construction Market Definitions