Panama - Building ProductsPanama - Building Products
Unit: USD Millions
Note: The above statistics are unofficial estimates.
The construction sector in Panama grew in recent years as a result of ambitious infrastructure projects, including the Canal expansion, airport and hospital construction, as well as residential and commercial construction. However, this growth is expected to slow after 2015, as a result of the reduced government expenditure on infrastructure projects, to help balance the budget. However, certain government-funded projects are still projected to be carried out, namely, a multimillion dollar renovation of the downtown area of the City of Colón, Panama’s second largest city. Additionally, the construction of the Line 2 of the metro system will begin shortly. In addition, the private sector is expected to continue investing in new commercial and residential developments. The majority of construction in recent years was in middle to high-income apartments and commercial buildings, but, much of the newer construction is focused on low-cost housing and high-end suburban housing. A growing demand exists for after-construction building products used for improving, decorating, or modifying existing buildings. Local production is limited and it is basically concentrated on cement, aggregated products, and basic lumber products.
U.S. building products are well received because of their perceived quality and competitive price. U.S. products in this sector enjoy a market share of over 60%. Major competitors are Taiwan, Italy, and Spain. There are no significant restrictions on imported products. Import duties on the vast majority of U.S.-made building products have been eliminated as a result of the Trade Promotion Agreement between the United States and Panama.
Sub-Sector Best Prospects
The demand is especially strong for gypsum board, lighting, and roofing/flooring products. The Canal project requires massive amounts of cement, aggregate products, and steel, though competition amongst suppliers is particularly intense.
Housing projects, the renovation of the City of Colón, completion of new hospitals and other infrastructure projects will continue to generate a strong demand for building materials.
- American Chamber of Commerce in Panama: http://www.panamcham.com
- Business Panama: http://www.businesspanama.com
- Panama Chamber of Commerce: http://www.panacamara.com
- Expocomer (Commercial Trade Show): http://www.expocomer.com
- Panamanian Construction Chamber: http://www.capac.org
- Ministry of Housing and Urban Development: http://www.mivi.gob.pa/
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Paraguay Design and Construction Trade Development and Promotion