In 2017, the construction industry, due to a reduction in government spending, increases in gasoline prices, and high-interest rates, will cut over 20,000 jobs, said Mexican Construction Chamber (CMIC) president Gustavo Arballo Luján.
He indicated that it is urgent to stimulate public-private investment and make use of resources from international funds through the Development Bank in order to offset the financial shortcomings in the months to come.
“Today the issue is not just the adjustment for inflation, it is also a price adjustment. The increase in gasoline prices, which we cannot predict, will force us to raise the price of many other things, like steel and cement. Ultimately it is the consumer who will be paying,” Arballo Luján said in an interview. He also said that he believes that the next year can present opportunities for public policies and infrastructure.
“The predicted spending has been made clear. However, the places in which spending will have to be reduced have not been made clear and I believe that this is where the problem for construction lies. Unfortunately, if we do not begin using different tools, we will suffer the consequences in the coming years,” he said.
Arballo Luján added that in terms of employment, the rate of job creation will be returning to 2009 levels, and 50,000-60,000 jobs are expected to be created, which is much less than expected.
He indicated that by the end of 2016, the cost of projects will increase by between 6 and 8 percent and will undoubtedly impact works such as the International Airport of Mexico City.