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Housing and Construction ServicesOverviewReturn to top2008 2009 2010 (estimated)Total Market Size 7678.46 6910.61 6979.72Total Local Production 8591.63 7732.46 7809.79Total Exports 3542.17 3329.64 3396.23Total Imports 3928.05 3574.52 3646.02Imports from the U.S. 2847.41 2591.14 2642.96Sources: INEGI Import/Exports statistics, Mexico Central Bank Import/Export statistics, Secretary of theEconomy, BANCOMEXT, CONAVI, and interviews with CMIC officials, CNEC officials and CANADEVIrepresentatives.ConstructionIn 2009, Mexico’s government pledged to stimulate the construction sector as a way tospur economic growth. Government investment, estimated in 2009 at $100 billiondollars, has helped the construction sector’s performance not fall as drastically as itcould have with the current economic crisis. The government’s infrastructureinvestments are aimed not only at stimulating the economy but also addressing the lackof infrastructure investment projects in the past and increasing the competitiveness ofthe country. Inflation affected construction costs by nearly 8% in 2009, according to theIndex of Builder’s Prices from the Bank of Mexico, which expects an inflation rate of 6%in 2010. While the Mexican construction industry contracted 7% in 2009, official sourcespredict the industry will grow by 2.3% in 2010.The total value of the construction sector in 2009 was $44,500 million dollars. The majorportion (50%) was allocated to PEMEX investment projects, the construction of housesand multi-use buildings (18%), and highways (11%). The Mexican states that receivedthe major investments from the federal government were: Mexico City (20%), NuevoLeon (15%), Jalisco (8.0%), Veracruz (6%), and Campeche (4.7%).HousingUnder the Administration of President Calderon, housing initiatives and projectsthroughout Mexico are considered priorities. Federal, state, and municipal governmentsare working closely to strengthen the housing industry in order to solve Mexico’s 500million housing unit deficit. All housing agencies, both government and private, arepromoting projects and seeking private investment in order to counter the country’shousing deficit.For U.S. firms interested in entering Mexico’s construction industry, one of the bestoptions is to sign a joint venture agreement with a Mexican housing developer orconstruction firm that is active in the housing industry. Mexican companies’ knowledgeof the market, labor, and legal aspects involved in this industry is invaluable to U.S.firms.