Construction in Uruguay - Key Trends and Opportunities (H2 2021)

Construction activities in Uruguay held up well in the first three quarters of 2021, amid improvement in manufacturing and export activities, coupled with construction activity in the transport infrastructure sector. According to the Central Bank of Uruguay (BCU), the construction industry grew by 5.6% year on year (YoY) in real terms in the first three quarters of 2021. The analyst expects the construction industry in Uruguay to expand by 4.4% in real terms in 2021 - up from its previous forecast of 3.2% growth in 2021. This upward revision is attributed to the decline in Coronavirus (COVID-19) cases since mid-June 2021, coupled with the relaxation of restrictions in the country.

The industry is expected to record an annual growth of 2.9% in 2022, before stabilizing to an annual average growth of 2.1% between 2023-2025. Growth over the forecast period will be supported by the government’s investment in the development of transport infrastructure and energy and utilities construction projects, coupled with improvements in consumer and investor confidence and positive developments in regional economic conditions.

The industry’s output over the forecast period will be supported by the government’s plan to increase infrastructure investment to reactivate the country’s economy. The Ministry of Transport and Public Works has a spending plan of UYU23.4 billion (US$532 million) in 2022, UYU14.4 billion (US$329 million) in 2023 and UYU11.4 billion (US$260 million) in 2024. Of the total, nearly 20% of this amount will be spent on the development and improvement of transport infrastructure. The industry’s output will also be supported by financial assistance provided by multilateral development banks. In March 2021, for instance, the Development Bank of Latin America (CAF) approved funding of UYU13.2 billion (US$300 million) for Uruguay’s National Administration of Power Plants and Electric Transmissions (UTE). The funding will be used to maintain the country’s power grid, reduce power outages, increase power transfer capacity to neighbouring countries, and contribute to decompressing the transmission network.

This report provides detailed market analysis, information, and insights into Uruguay’s construction industry, including:

• Uruguay’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Uruguay’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

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

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Uruguay, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using the analyst'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 the analyst's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.