Construction in Chile - Key Trends and Opportunities to 2021

Published: Dec, 2017 | Pages: 77 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)

Synopsis

In real terms, the Chilean construction industry's output grew by 2.8% in 2016, following average annual growth of 6.8% during the preceding four years. This increase was due to public and private sector investment in infrastructure, energy and residential construction projects, leading to an increase in demand for the Chilean construction industry.

Timetric expects Chile's construction industry to have suffered a contraction in output value in real terms in 2017. This reflects both weak economic activity and limited construction activities in the first half of 2017. Low commodity prices and a decrease in copper production also adversely affected investments in the mining industry and the growth of the construction industry in 2017. 

The construction industry's value is expected to improve in the latter part of the forecast period (2017-2021). Nevertheless, the pace of growth will remain slow in the latter part of the forecast period, averaging 1.9% a year in real terms during 2018-2021. 

The industry's output value in real terms is expected to record a compound annual growth rate (CAGR) of 0.88% over the forecast period, compared with 5.45% during the review period (2012-2016). 

Although the real outlook for the Chilean construction industry is expected to be weak, there will be some support from investment in residential, infrastructure and renewable energy construction projects. To develop the country's infrastructure, the government plans to invest CLP16.0 trillion (US$28.0 billion) in public and private infrastructure projects by 2021. Gradual improvements in consumer and investor confidence are also expected to drive private sector investment in construction projects in the coming years.

Summary

Timetric's Construction in Chile - Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Chilean construction industry, including:

• The Chilean construction industry's growth prospects by market, project type and construction activity

• Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Chilean construction industry

• Profiles of the leading operators in the Chilean construction industry
Scope

This report provides a comprehensive analysis of the construction industry in Chile. It provides:

• Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Chile using construction output and value-add methods

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• 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)

• Detailed profiles of the leading construction companies in Chile

Reasons To Buy

• Identify and evaluate market opportunities using Timetric's 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 strategy using Timetric's critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.
Key Highlights

• Timetric expects the residential construction market to retain its leading position over the forecast period, with a share of 35.0% of the industry's total value in 2021. The market is expected to record a forecast-period CAGR of 3.33% in nominal terms, driven by public and private sector investments in the construction of new residential buildings, in order to meet the increasing demand for housing. The growing influx of migrants is also expected to drive demand for new housing units.  

• The implementation of value added tax (VAT) on the sales of residential properties and weak economic performance affected investments in residential construction projects in 2016. In January of that year, the government imposed VAT of 19.0% on habitual sellers who sell and purchase residential properties in a span of less than a year. Consequently, the total new house sales throughout Chile declined by 34.3%, going from 81,194 units in 2015 to 53,309 in 2016, according to the central bank of Chile.

• With robust and modern infrastructure vital to economic growth and competitiveness, the government is focusing on infrastructure development. According to the Camara Chilena de la Construccion (Chilean Chamber of Construction - CChC), CLP102.2 trillion (US$151.0 billion) will be required for investment in the country's infrastructure projects by 2025, in order to support economic growth and make up for deficits in public works.

• Under the 'Energy 2050' strategy, the government aims to increase the share of renewable energy in total electricity generation from 12% in 2016 to 70.0% in 2050. However, due to anticipated improvements in energy storage and the declining cost of renewable energy, the government is planning to increase its renewable energy target to 100% of electricity generation from renewable sources by 2050.

• According to estimates by the Ministry of Public Works, with the help of the private sector, CLP3.7 trillion (US$5.3 billion) will be invested in the country's port infrastructure between 2015 and 2023. Moreover, CLP1.2 trillion (US$1.7 billion) will be invested in airport infrastructure projects during the same period.

 Table of Contents

1 Executive Summary
2 Industry Outlook
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction
3 Key Issues and Developments
4 Market Data Analysis
4.1 Construction Output and Value Add
4.1.1 Construction output by project type
4.1.2 Construction output by cost type
4.1.3 Construction output by activity type
4.1.4 Construction value add by project type
4.2 Commercial Construction
4.2.1 Commercial construction output by project type
4.2.2 Commercial construction output by cost type
4.2.3 Commercial construction output by activity type
4.2.4 Commercial construction value add by project type
4.3 Industrial Construction
4.3.1 Industrial construction output by project type
4.3.2 Industrial construction output by cost type
4.3.3 Industrial construction output by activity type
4.3.4 Industrial construction value add by project type
4.4 Infrastructure Construction
4.4.1 Infrastructure construction output by project type
4.4.2 Infrastructure construction output by cost type
4.4.3 Infrastructure construction output by activity type
4.4.4 Infrastructure construction value add by project type
4.5 Energy and Utilities Construction
4.5.1 Energy and utilities construction output by project type
4.5.2 Energy and utilities construction output by cost type
4.5.3 Energy and utilities construction output by activity type
4.5.4 Energy and utilities construction value add by project type
4.6 Institutional Construction
4.6.1 Institutional construction output by project type
4.6.2 Institutional construction output by cost type
4.6.3 Institutional construction output by activity type
4.6.4 Institutional construction value add by project type
4.7 Residential Construction
4.7.1 Residential construction output by project type
4.7.2 Residential construction output by cost type
4.7.3 Residential construction output by activity type
4.7.4 Residential construction value add by project type
5 Company Profile: Sigdo Koppers SA
5.1 Sigdo Koppers SA - Company Overview
5.2 Sigdo Koppers SA - Business Description
5.3 Sigdo Koppers SA - Main Products and Services
5.4 Sigdo Koppers SA - History
5.5 Sigdo Koppers SA - Company Information
5.5.1 Sigdo Koppers SA - key competitors
5.5.2 Sigdo Koppers SA - key employees
6 Company Profile: Salfacorp SA
6.1 Salfacorp SA - Company Overview
6.2 Salfacorp SA - Business Description
6.3 Salfacorp SA - Main Products and Services
6.4 Salfacorp SA - History
6.5 Salfacorp SA - Company Information
6.5.1 Salfacorp SA - key competitors
6.5.2 Salfacorp SA - key employees
7 Company Profile: Besalco SA
7.1 Besalco SA - Company Overview
7.2 Besalco SA - Main Services
7.3 Besalco SA - History
7.4 Besalco SA - Company Information
7.4.1 Besalco SA - key competitors
7.4.2 Besalco SA - key employees
8 Company Profile: Territoria El Bosque
8.1 Territoria El Bosque - Company Overview
8.2 Territoria El Bosque - Main Services
8.3 Territoria El Bosque - History
8.4 Territoria El Bosque - Company Information
8.4.1 Territoria El Bosque - key competitors
8.4.2 Territoria El Bosque - key employees
9 Company Profile: TECSA Holding
9.1 TECSA Holding - Company Overview
9.2 TECSA Holding - Main Products and Services
9.3 TECSA Holding - History
9.4 TECSA Holding - Company Information
9.4.1 TECSA Holding - key competitors
9.4.2 TECSA Holding - key employees
10 Appendix
10.1 What is this Report About?
10.2 Definitions
10.3 Methodology
10.4 Contact Timetric
10.5 About Timetric
10.6 Timetric's Services
10.7 Disclaimer

List of Tables

Table 1: Chilean Construction Output by Project Type (CLP Billion), 2012-2016
Table 2: Chilean Construction Output by Project Type (CLP Billion), 2016-2021
Table 3: Chilean Construction Output by Cost Type (CLP Billion), 2012-2016
Table 4: Chilean Construction Output by Cost Type (CLP Billion), 2016-2021
Table 5: Chilean Construction Output by Activity Type (CLP Billion), 2012-2016
Table 6: Chilean Construction Output by Activity Type (CLP Billion), 2016-2021
Table 7: Chilean Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 8: Chilean Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 9: Chilean Commercial Construction Output by Project Type (CLP Billion), 2012-2016
Table 10: Chilean Commercial Construction Output by Project Type (CLP Billion), 2016-2021
Table 11: Chilean Commercial Construction Output by Cost Type (CLP Billion), 2012-2016
Table 12: Chilean Commercial Construction Output by Cost Type (CLP Billion), 2016-2021
Table 13: Chilean Commercial Construction Output by Activity Type (CLP Billion), 2012-2016
Table 14: Chilean Commercial Construction Output by Activity Type (CLP Billion), 2016-2021
Table 15: Chilean Commercial Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 16: Chilean Commercial Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 17: Chilean Industrial Construction Output by Project Type (CLP Billion), 2012-2016
Table 18: Chilean Industrial Construction Output by Project Type (CLP Billion), 2016-2021
Table 19: Chilean Industrial Construction Output by Cost Type (CLP Billion), 2012-2016
Table 20: Chilean Industrial Construction Output by Cost Type (CLP Billion), 2016-2021
Table 21: Chilean Industrial Construction Output by Activity Type (CLP Billion), 2012-2016
Table 22: Chilean Industrial Construction Output by Activity Type (CLP Billion), 2016-2021
Table 23: Chilean Industrial Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 24: Chilean Industrial Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 25: Chilean Infrastructure Construction Output by Project Type (CLP Billion), 2012-2016
Table 26: Chilean Infrastructure Construction Output by Project Type (CLP Billion), 2016-2021
Table 27: Chilean Infrastructure Construction Output by Cost Type (CLP Billion), 2012-2016
Table 28: Chilean Infrastructure Construction Output by Cost Type (CLP Billion), 2016-2021
Table 29: Chilean Infrastructure Construction Output by Activity Type (CLP Billion), 2012-2016
Table 30: Chilean Infrastructure Construction Output by Activity Type (CLP Billion), 2016-2021
Table 31: Chilean Infrastructure Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 32: Chilean Infrastructure Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 33: Chilean Energy and Utilities Construction Output by Project Type (CLP Billion), 2012-2016
Table 34: Chilean Energy and Utilities Construction Output by Project Type (CLP Billion), 2016-2021
Table 35: Chilean Energy and Utilities Construction Output by Cost Type (CLP Billion), 2012-2016
Table 36: Chilean Energy and Utilities Construction Output by Cost Type (CLP Billion), 2016-2021
Table 37: Chilean Energy and Utilities Construction Output by Activity Type (CLP Billion), 2012-2016
Table 38: Chilean Energy and Utilities Construction Output by Activity Type (CLP Billion), 2016-2021
Table 39: Chilean Energy and Utilities Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 40: Chilean Energy and Utilities Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 41: Chilean Institutional Construction Output by Project Type (CLP Billion), 2012-2016
Table 42: Chilean Institutional Construction Output by Project Type (CLP Billion), 2016-2021
Table 43: Chilean Institutional Construction Output by Cost Type (CLP Billion), 2012-2016
Table 44: Chilean Institutional Construction Output by Cost Type (CLP Billion), 2016-2021
Table 45: Chilean Institutional Construction Output by Activity Type (CLP Billion), 2012-2016
Table 46: Chilean Institutional Construction Output by Activity Type (CLP Billion), 2016-2021
Table 47: Chilean Institutional Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 48: Chilean Institutional Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 49: Chilean Residential Construction Output by Project Type (CLP Billion), 2012-2016
Table 50: Chilean Residential Construction Output by Project Type (CLP Billion), 2016-2021
Table 51: Chilean Residential Construction Output by Cost Type (CLP Billion), 2012-2016
Table 52: Chilean Residential Construction Output by Cost Type (CLP Billion), 2016-2021
Table 53: Chilean Residential Construction Output by Activity Type (CLP Billion), 2012-2016
Table 54: Chilean Residential Construction Output by Activity Type (CLP Billion), 2016-2021
Table 55: Chilean Residential Construction Value Add by Project Type (CLP Billion), 2012-2016
Table 56: Chilean Residential Construction Value Add by Project Type (CLP Billion), 2016-2021
Table 57: Sigdo Koppers SA, Key Facts
Table 58: Sigdo Koppers SA, Main Products and Services
Table 59: Sigdo Koppers SA, History
Table 60: Sigdo Koppers SA, Key Employees
Table 61: Salfacorp SA, Key Facts
Table 62: Salfacorp SA, Main Products and Services
Table 63: Salfacorp SA, History
Table 64: Salfacorp SA, Key Employees
Table 65: Besalco SA, Key Facts
Table 66: Besalco SA, Main Services
Table 67: Besalco SA, History
Table 68: Besalco SA, Key Employees
Table 69: Territoria El Bosque, Key Facts
Table 70: Territoria El Bosque, Main Services
Table 71: Territoria El Bosque, History
Table 72: Territoria El Bosque, Key Employees
Table 73: TECSA Holding, Key Facts
Table 74: TECSA Holding, Main Products and Services
Table 75: TECSA Holding, History
Table 76: TECSA Holding, Key Employees
Table 77: Timetric Construction Market Definitions