Building materials sector 2016

1. INVESTMENT IN
BUILDING MATERIALS
Libertad y Orden

2. CONSTRUCTION
ONE OF THE MOST DYNAMIC INDUSTRIES
CONSTRUCTION GDP IN LATIN AMERICA
USD THOUSAND OF MILLION
130.3
153.8
92.5
127.5
35.4
52.1
33.7
9.9
27.4
33.9
2014
2020
19.8
30.2
13.1 18.2
10.7
16.5
3.0
3.5
Brazil Mexico Colombia Venezuela Argentina Chile Peru Ecuador Panama
largest in Latin America after Brazil and Mexico.
Source: Business Monitor
AccordingtoBusinessMonitor,between2015and2020thevalueoftheconstruction
industry will almost double to US $ 52 billion (compound annual growth rate of 12%).
averageinLatinAmerica.Itisestimatedthatby2020thepercapitacementconsump-
tion in Colombia will reach 329 kg and Latin America to 389 kg. (Business Monitor)
segment has been marked by Government policies that have the goal of constructing
through road concession programs (4G), within which it is expected to build about
7,000 kilometers of roads.
In the last 5 years, the construction sector grew by an average of 8%,
becoming one of the main sectors that drive the growth in the country.
According to Asogravas, it is estimated that all 4G infrastructure projects will
require 74 million tons additional of aggregates (sand, gravel, stone, etc.).

3. DYNAMICS OF THE CONSTRUCTION
INDUSTRY IN COLOMBIA
CONSUMPTION OF BUILDING MATERIALS (MILLIONS USD)
THE COUNTRY MAINTAINS
A CONSTANT DEMAND FOR
BUILDING MATERIALS
PROJECTED GROWTH OF THE CONSTRUCTION INDUSTRY
IN COLOMBIA (USD MILLIONS)
30.120 30.320 34.790
Source: Business Monitor
Source: DANE - National Accounts, Annual Manufacturing Survey.
e= estimates based on CAMACOL
39.660
45.780
52.060
In 2013, demand for materials by the
construction sector was US $ 31 billion,
registering an upward trend between 2009
and 2013 with an 8% compound growth.
and services necessary for the development
concentrated in 3 groups:
Non-metallic mineral products:glassware,
not structural ceramics, brick, cement,
plaster, concrete products, marble, and
cobblestones.
Basic metal products: rolled products of
iron or steel, and structural metal products.
Non-metallic minerals: materials used
in construction as common stone, marble,
granite, river sand and gravel.
Estimates of consumption of building
materials in the coming years are positive,
with growth projections of 7.7% for the
consumption of cement, concrete and clay
products;4.5%fornon-metallicmineralsand
4.2% for metal products for structural use.
Articles of concrete,
cement and plaster
Cement. lime
and plaster
Metal products
for structural use
Non-metallic
minerals
Clay minerals PVC pipe
3.568
5.170
4.090
5.868
1.666
2.047
1.857
2.314
1.237
1.793
279
308
2013
2015e
2018e

4. ALUMINUM PRODUCTS, CERAMIC
AND PORCELAIN ARE THE MAIN
EXPORT PRODUCTS
EXPORTS OF BUILDING MATERIALS
USD MILLION
COLOMBIA AS AN
EXPORT PLATFORM
With more than 13 trade agreements in force, Colombia
has preferential access to close to 1.5 billion consumers in
markets such as the United States, the European Union,
addition to its privileged geographic location, makes the
country an ideal export platform for the region.
In 2015, exports of building materials were US $ 475
million.
7 products account for 60% of exports of building
materials, highlighting the aluminum doors and
windows and ceramic and porcelain products.
Due to the free trade agreements signed by Colombia, the
building material products exported.
Colombia also enjoys a strategic location both by sea and
air, making it ideal for projects that seek access to a wider
market in the Americas.
Source:DANE
In 2015, five countries account for over 70% of
exports: United States, Panama, Venezuela, Peru
and Ecuador. Exports of building materials to the
United States grew 32%.
2010
436
506
589
496 469
2011 2012 2013 2014
475
2015

5. OTHER FACTORS TO
INVEST IN THE SECTOR
Incentives such as Free Trade Zones, a Stimulus Plan for productivity
and employment, and incentives for job creation that reduce production
costs for companies present in Colombia and that serve the domestic
market and export from Colombia.
will increase the demand for building materials.
households, which translates into a higher demand for houses.
Wages in the industrial sector in Colombia are the second lowest in
Latin America (IMD World Competitiveness Yearbook, 2015). Wages
are 24% lower than the Latin American average and 71% lower than
those on the continent.
Colombia has more than 192,000 graduates in areas related to the
sector, such as mechanical engineering, mining engineering, civil and
industrial engineering, and architecture.
$

6. LARGE FOREIGN COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
SAINT GOBAIN,(FRANCE):
investment amounted to USD 200 and will generate approximately
of glass for supplying the national market and exporting to countries
in the Andean region.
MEXICHEM(MEXICO): expansion of the production plant for agricultural
piping, accessories, sewage systems and water storage tanks, with pipes
million and will generate 130 jobs.
CEMEX (MEXICO): constructionofcementproductionplantinBolivarwith
for the milling process in order to exercise environmental control and
maintain high quality standards.