Soaring Construction Costs in Guatemala

Materials and other inputs saw rises of 25 percent in 2011, with a quintal of iron having the highest price increase.

Thursday, January 12, 2012

Construction materials experienced a 25.6 percent increase last year, compared to prices in 2010. A quintal of iron was the item with the most notable rise, going from Q337.7 ($ 43) in 2010 to Q423.58 ($ 54) in 2011, reported PrensaLibre.com.

"These products were driven by the increased international price of steel, and another factor was the rise in oil prices," said Oscar Sequeira, president of the Statistical Commission of the Guatemalan Chamber of Construction.

Edgar Diaz, business manager for Cementos Progreso, told PrensaLibre.com "the causes of these changes are due to economic reasons affecting all industries. The rising cost of electricity, transportation, inflation and rising prices of the fuel we use have also had an effect." For this year, Diaz revealed that they expect another minor adjustment in the price, but did not mention the exact amount.

The construction sector accounted for 0.9% of gross domestic product in 2011.



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Rising Prices of Construction Materials

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In Panama cement prices increased between 11 and 12% from the first of January, and other materials are also rising.

Capital.com.pa reports that "With the construction boom and the arrival of the dry season, the country’s hardware stores have begun to record price increases in many of its products."

Building in Guatemala is Increasingly More Expensive

July 2011

Prices of materials such as iron rods and cement, among other things, have gone up compared to 2010.

The rise in the price of oil and other raw materials at international level is one of the main reasons for the sharp increase observed in the prices of building materials in Guatemala.

Cement and Iron Price Rises in Guatemala

August 2010

In May 2010 the local price of iron was up 9.3% and cement 8.4%, relative to May 2009.

An article by Fernando Quiñonez for Sigloxxi.com reports comments and opinions from members of the Guatemalan Construction and Industry Chambers regarding the price rises.

The increases, together with a lack of measures to stimulate the economy, has led the industrial sector to postpone factory expansion plans, comments the executive director of the Chamber of Industry (CIG), Javier Zepeda.

Construction costs rise in El Salvador

June 2008

A dramatic rise in the cost of steel and other construction materials has resulted in an increase in housing prices in El Salvador.

Iron prices have risen three times in 2008, with the result that construction activity has decreased by two percent.
"Distributors are paying more for steel ingots and the impact is passing directly to the price of houses," said Mario Rivera, president of the nation's construction chamber.

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Cementos Progreso

Organization that operates in Guatemala.
Phone: (502) 2339 1210

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