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Construction Chamber says builders likely to get stuck with material price increases

Chetumal, Q.R. — The Chamber of the Construction Industry says builders will likely get stuck with the increase in material prices being felt already this year. Diego Cortés Arzola, president of the Mexican Chamber of the Construction Industry in Quintana Roo, says that when costs increase, fewer public projects are built.

He said that companies who already have public work tenders will have to absorb these increases, sacrificing their profits. He says that most construction materials across the state have seen increases of between 10 and 16 percent.

The head of the Chamber said it was in October when projects for the following year were planned. Of the 280 companies registered for public work projects, 80 of them have already started.

He says that while the increase in materials will hit them all, the ones who have already begun construction are the ones already seeing the increase in operating costs. To compensate, he says as an example, instead of building 100 meters of street, only 80 meters will be constructed.

“At the time of construction, you don’t make adjustments to your spreadsheet, but the problem comes later. That is when you should cut back, which of course, will affect job creation because the sector is coming off two very difficult years and no one has the means to continue their payroll with out-of-pocket money.”

He says he has urged government agencies to put more public projects out to tender, in addition to encouraging private initiatives to carry out construction.