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Construction in Peru Key Trends and Opportunities to 2021

72 pages report Published in Feb 2017

Synopsis

The Peruvian construction industry recovered slightly in 2016, following a decline in 2015, due to the government's focus on developing the manufacturing sector and reducing its reliance on mineral and metal ore exports. The country's construction industry registered a growth of 1.8% in 2016 in real terms.

Following four years of growth, the construction industry contracted by 5.8% in 2015. This was due to a decline in the revenue generated by commodity exports in line with a weak global demand for metal and minerals, which in turn reduced government spending power for major infrastructure projects.

Over the forecast period (2017-2021), the industry will be supported by the government's focus on the development of transport infrastructure, energy and utilities facilities, and residential buildings through a robust project pipeline across transport, energy, water, residential and social infrastructure.

With the aim reducing the country's infrastructure gap, the government is increasing its investment in transport, education, healthcare, potable water and sewerage infrastructure. Accordingly, in 2015 it launched the TransPerĂș Nama plan for an investment of PEN19.7 billion (US$6.2 billion). The plan aims to develop metro and rail lines, bus fleets and cycle lanes by 2020.

In real terms, the Peruvian construction industry is expected to increase from a compound annual growth rate (CAGR) of 1.66% during the review period (2012-2016) to 2.36% over the forecast period.

Summary

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

  • The Peruvian construction industry's growth prospects by market, project type and construction activity
  • Analysis of equipment, material and service costs for each project type in Peru
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Peruvian construction industry
  • Profiles of the leading operators in the Peruvian construction industry
  • Data highlights of the largest construction projects in Peru

Scope

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

  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Peru using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, 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 Peru

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

  • The Peruvian government is focusing on the manufacturing sector, to diversify the economy and reduce its dependence on the export of metal ores and minerals. Accordingly, under Peru's National Plan for Productive Diversification (PNDP), it plans to allocate PEN159.3 billion (US$50.0 billion) to develop manufacturing-related infrastructure with the aim of attracting foreign participation by 2021.
  • Government focus on building adequate railway infrastructure will support growth in the infrastructure construction market over the forecast period. It plans to build the Lima Subway Line between Lima and Callao by 2019 for an investment of PEN16.2 billion (US$5.7 billion).
  • The government is focusing on the construction of water treatment plants, sewers and water pipelines. Accordingly, it plans to invest PEN30.0 billion (US$9.0 billion) on the construction of 170 large-scale potable water and sewerage projects by 2020. In addition, it aims to equip all residents with a water connection by 2023.
  • The government is focusing on the modernization of oil refineries with the aim of increasing capacity. Accordingly, the government plans to spend PEN11.1 billion (US$3.5 billion) on the modernization of the Talara refinery. This will increase capacity from 62,000 barrels per day in 2015 to 95,000 barrels per day by 2019.
  • In 2015, the government announced its plan to build 54 new schools in major cities at a cost of PEN1.8 billion (US$565.1 million). It will additionally spend PEN2.9 billion (US$910.4 million) on the construction of new hospitsals, and maintenance of old hospitals, by 2020.
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