© Latin Press, Inc., 2021 All rights reserved. No part of this work may be reproduced or incorporated into a computer system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the copyright holders. Infringement of such rights may constitute an intellectual property offense. Original title: TOP 100 Contractors Installers HVAC/R Industry Report 2021-2022. 3rd edition: August 2021 Research and writing: Andrea Ochoa Restrepo Editorial Direction: Duván Chaverra Layout: Jhonnatan Martínez Avalo Graphics: Jhonnatan Martínez Avalo Cover Photos: Pixabay
Table of Contents Top 100 Contractors - Installers in Latin America: How it’s done.............................. 6 Introduction........................................................................................................................................................8 Chapter 1: Key aspects of the HVAC/R industry in graphs and tables........................................ 12 Use and classification of HVAC / R technologies................................................................................................13 Segments with more projects.............................................................................................................................14 Most used brands................................................................................................................................................16 HVAC/R imports by region and companies........................................................................................................18 HVAC/R imports by country of origin.................................................................................................................20 Comparison of growth by segment....................................................................................................................21
Chapter 2: Contractor- Installer - Outlook.................................................................................... 24 Mexico.................................................................................................................................................................25 Central America and the Caribbean...................................................................................................................30 Andean Region....................................................................................................................................................34 Southern Cone....................................................................................................................................................39 Perspectives of HVAC/R Expert Consultants......................................................................................................40
Chapter 3: Ranking Top 100 Contractors - Installers 2020........................................................... 46 Mexico.................................................................................................................................................................48 Central America and the Caribbean...................................................................................................................50 Andean Region....................................................................................................................................................51 Southern Cone....................................................................................................................................................53
Chapter 4: Sectors and companies facing COVID-19: impact on the HVAC/R industry............. 56 Productive structure: external and internal gap in the region and its effects after the pandemic.....................59 Comparison between Latin America and the European Union: relative internal productivity...........................59 Proportion of production of different groups of industrial sectors according to the intensity of the expected impact of the crisis..............................................................................................................................................60 Impact of covid-19 on the different segments of HVAC/R projects in Latin America........................................61
Chapter 5: Construction sector growth in the region 2020-2021................................................ 66 Outlook...............................................................................................................................................................67 Industry growth in Latin America 2021...............................................................................................................68 Central America and the Caribbean...................................................................................................................69 Andean Region....................................................................................................................................................76 Southern Cone....................................................................................................................................................80
Chapter 6: Overview of Latin American economies (pandemic-post-pandemic)........................ 84 Financial Market Volatility Index.........................................................................................................................85 Emerging Markets Bond Index 2020..................................................................................................................86 Year-on-year rate of change in world trade volume............................................................................................88 GDP growth in Latin America.............................................................................................................................90 Expenditure growth by component in Latin America.........................................................................................90 Future outlook.....................................................................................................................................................91 Inflation expectations for 2020 and 2021...........................................................................................................93 Impact on the level of investment and capital flows in relation to the risk of financial markets within the HVAC industry................................................................................................................................................................94
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Table of Contents Solutions for a better economic scenario in the region.......................................................................................... Economic outlook for Latin American regions........................................................................................................ Infographics: Exports and trade balance Mexico and Central America 2019....................................................95 Mexico, Central America and the Caribbean ....................................................................................................96 Infographics: Exports and trade balance South America 2019........................................................................103 Andean Region..................................................................................................................................................104 Southern Cone..................................................................................................................................................108
Chapter 7: Sustainable Development and Environmental Impact on HVAC/R......................... 112 Energy consumption.........................................................................................................................................119 Index of references..........................................................................................................................................130
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TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Top 100 Contractors - Installers most recognized in Latin America: How is it done? ACR LATINOAMÉRICA, wanted to highlight again in 2021 the work of installers contractors in the region for the growth of the industry, so we took on the task of making, for the seventh time, the Top 100 Contractors - Installers with greater RECOGNITION in Latin America. The RECOGNITION ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information collected on each company and a vote, highlight some of the most important companies in the region or in the countries to which they belong. Each year we consult several sectors, including manufacturers, distributors, as well as the bulk of our readers (consultants, technicians, end users, operators, among others) throughout our Latin American region, who, in the end, were in charge of legitimizing this work and contributing to the recognition of these companies. It is therefore important to highlight the methodology implemented for this report. A complete compilation of information was made in order to consolidate a list of 100 of the most outstanding companies in Latin America, divided into four sub-regions (Mexico, Central America and the Caribbean, the Andean Region and the Southern Cone). For this point it
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took into account the nomination made by manufacturers and distributors of many of the most prestigious brands in the field of air conditioning and refrigeration, as well as a detailed monitoring by the journalistic team of ACR LATINOAMERICA, relying on consultants and experts and professionals with extensive knowledge of the industry. Subsequently, through an online survey conducted with our readers, the ranking and location of the 100 companies, divided into 30 companies in Mexico, 15 of Central America and the Caribbean, 35 of the Andean Region and 20 more of the Southern Cone. This ranking and placement also took into account differential elements such as years of experience in the industry, certifications, number of employees, headquarters and membership in associations and/ or industry associations in the region. In other words, of the total percentage published in the ranking, 40% of the value is given to the number of votes obtained and the remaining 60% to the differential elements mentioned above. The list includes information on the segments served by each company and the percentage of recognition. You can also nominate your company by writing to editorial@acrlatinoamerica.com.
METHODOLOGY 1
IDENTIFICATION AND IMPLEMENTATION OF COMPANIES
Mexico Central America Andean Region Southern Cone
2
COLLECTION OF INFORMATION FROM THE COMPANIES
3
VOTES RECOGNITION
4
RANKING AND/OR PLACEMENT OF BUSINESS INFORMATION ACCORDING TO THE ABOVE VARIABLES.
30 15 35 20
Years of the company 10% Number of employees 10% Company headquarters 10% Associations and/or certifications 10% 60% corresponde a elementos diferenciales de la empresa
40% Survey of recognition made by readers of ACR LATINOAMÉRICA
IOO
COMPANIES
60%
40%
100%
TOP 100CONTRATISTAS-INSTALADORES CONTRACTOR-INSTALLERS • REPORT 2021 - 2022 TOP IOO • INFORME 2019-2020
75
Introduction The global economic outlook continued to weaken during the last two years as a consequence of the COVID-19 pandemic, the trade tensions between the United States and China, the confusing evolution of the European Union affected by Brexit, and the slowdown of the German economy, as well as the increase in risk aversion in the financial markets, which is reflected in low levels of long-term interest rates in the bond market and the inversion of the yield curve. Thus, investment has been losing dynamism in the world despite liquidity and low interest rates. This is directly related to the current level of uncertainty. In the face of these variables that have a considerable impact on the global economy, in 2020 the rupture in the agreement to cut OPEC+ crude oil production due to the oil war between Saudi Arabia and Russia was added, which together with the decreased world demand due to the Covid-19 implied a plunge for the Brent reference, which between March 6th and 9th of that year was 24%, which led to a certain quietness in the markets. These two shocks have generated fear in the financial markets and led to changes in international capital flows and exchange rate depreciations, especially in emerging economies. In 2020, the world economy experienced its worst economic contraction since the 1930s, due to the measures put in place by governments to deal with the SARS-CoV-2 pandemic (COVID-19). According to the United Nations Department of Economic and Social Affairs (UN DESA, 2021), the world economy will contract by 4.3% in 2020, 0.9 percentage points less than the forecast of -5.2% published in September 2020 which affected the HVAC/R industry, forcing many companies in the sector to transform their services. The current scenario also presents the following challenges for the industry mainly due to the economic and social circumstances that several Latin American countries are going through. However, as
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will be seen in this report, contractors-installers have been able to sustain and move forward with their business, adapting to the new normal and facing the harsh measures imposed by governments to try to contain the pandemic, also facing market volatility, decreased demand, falling trade, capital flows, economic deficit, financial instability and investment risks because of the current situation. Additionally, some companies in the industry, in the midst of the crisis have created outstanding projects, which are taking into account sustainable development and environmental impact in response to environmental climate emergency, which generates an increase in demand for services, key global trends in the industry, which strengthens sustainability, energy efficiency and connectivity and improves competitiveness, in addition, allows the industry to weather the crisis. Thereon, the consultant and engineer Veronica Ledesma, considered that the HVAC / R market, “whether much or little, is on the rise in all countries due to the importance of life or death that has taken the indoor air quality”. To which he added: “I think those who pass the difficult streak will be the strongest in a short time.” According to the Economic Balance of Latin America and the Caribbean prepared by the UN Economic Commission for Latin America and the Caribbean (ECLAC): “In terms of economic growth, in the economies of South America, GDP fell in the first three quarters at a rate of -7.7% year-on-year, compared to a growth close to zero in the same period of the previous year. The economies of Central America went from 3.2% growth in the first three quarters of 2019 to a 5.9% contraction in the same period of 2020. If Central America and Mexico are taken into account, the drop in growth in the first three quarters of 2020 is 9.2%, a figure 9.6 percentage points lower than in the same period of 2019.” In sectoral terms, the current juncture has had a ne-
gative impact on all sectors with different intensity depending on the sector: the most affected are manufacturing, construction, commerce and transport, and the least affected are agriculture, essential services, financial services and mining. Against the backdrop of the pandemic, with global value chains disrupted and demand contracting sharply, world trade in goods and services fell sharply in the first half of 2020, with a nascent recovery in the second half. According to data provided at the beginning of 2021 by ECLAC, the volume of world trade in goods fell by around 9% in 2020, less than the plunge recorded in 2009 during the global financial crisis (-13%). This contraction caused by the arrival of COVID-19 follows a period of weakening international trade, which between 2010 and 2019 showed annual rates of expansion significantly lower than those reported
in the years prior to the 2008-2009 global financial crisis. Likewise, the exchange market has been concerned about the current account deficit caused by the decrease in exports. However, for ECLAC, the region’s current account deficit will decrease significantly (to 0.4% of GDP from 1.8% of GDP in 2019) due to the strong contraction of imports. A 14% reduction in volume terms is expected. The value of the region’s exports would contract by 13%. Export prices would fall by 7% and export volumes by 6%. In order to mitigate exchange rate volatility, the region’s central banks have adopted various exchange rate measures, including greater intervention in the markets, through the purchase or sale of foreign currency, but also through regulations to regulate
Rate of change in the volume of world trade, 2005-2020 (Percentages) 25 20
-15
-25
2020
2019 -0,5%
-10
-20
2019
2018
2016
2015
2014
2012
2011
2010
2009
2008
2007
2006
-5
2005
5 0
January 2017 to December 2018 4.1%
July 2011 to December 2016 2.0%
2013
10
2017
January 2005 to June 2007 7.6%
15
April - October 2020 -12.7%
January 2005 to June 2007 -17.2%
Note: The 2020 figures correspond to the average year-on-year change for the first 10 months. The red and green horizontal lines correspond to the average annual growth for the period. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on figures from the Netherlands Bureau of Economic Policy Analysis (CPB) [online] www.cpb.nl. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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financial flows. In countries such as Brazil, Chile, Colombia, the Dominican Republic, Guatemala, Jamaica, Mexico, Peru and the Dominican Republic, an increase in the amounts allocated to foreign exchange market interventions has been announced, as well as a broadening of the horizon of such interventions. In addition, the authorities have used various instruments to provide liquidity in foreign currency, such as forward contracts and swaps, which have a significant impact on the HVAC/R industry. Similarly, fiscal policy has become the most important tool used by countries in the region to address the social and economic effects of the pandemic. This has been reflected in tax relief, public spending and liquidity measures for the productive sector, which have influenced the behavior of public accounts during 2020. The financial instability generated by the pandemic in international markets and the uncertainty about commodity markets led to strong exchange rate corrections and, in the first three quarters of 2020, the region’s currencies experienced considerable fluctuations. For ECLAC, most of the region’s currencies depreciated against the dollar, thus maintaining the trend observed in 2019. Thus, in the first ten months
of 2020, 17 of the region’s economies recorded depreciations of their currencies against the dollar rate at the end of 2019, and the average depreciation was 16.3%.” For 2021, forecasts made by ECLAC indicate financial conditions similar to those of the second half of 2020, in which countries have continued, in general, with access to financing on favorable terms. But a worsening of the financial outlook for emerging countries involving a sudden stop to new financing or the renewal of previous financing could pose a major problem for many economies whose debt ratios have increased to cope with the pandemic. In addition, potential currency depreciations in the face of reduced risk appetite would put pressure especially on those countries with higher levels of foreign currency debt. Notably, the report Top 100 Contractors-Installers HVAC / R in Latin America 2020-2021 analyzes how this economic outlook would impact the industry, country by country, from the perspective of integrators who are part of this Top 100 made by ACR Latin America.
TARGET AUDIENCE • Entrepreneurs of the HVAC/R industry. • HVAC/R equipment manufacturers and distributors. • Market analysts and researchers. • Government and financial institutions. • Investors. • HVAC/R equipment end users.
It also addresses key industry information such as import figures made by companies in each country, the brands of equipment most used in the region, the segments with the highest investment in HVAC / R, even sales figures of several of the companies, along with detailed contact details about the companies that are part of the ranking of 2021 are also in this report.
The first chapter will focus on the business situation and large-scale responses, the production structure (external and internal productivity gaps in the region) and the differences in performance among the different segments. The chapter on construction will address the outlook and level of investment for the sector, country by country. Other key aspects of the HVAC / R industry raised from the market growth over the past year, caused by the purchase and booking of vaccines and the impact on the acquisition of refrigeration, are also developed. In relation to this, the relationship of the pharmaceutical sector with the industrial segment is detailed, based on the development of equipment with greater use during crises. In turn, in the logistics and distribution centers segment, growth is included in relation to the increase in product demand (current need for refrigeration equipment, among others).
Readers will also learn a complete overview of the HVAC / R industry in Latin America, as well as comments and recommendations on technology trends and investment opportunities. Additionally for 2021, the report addresses three new chapters “Sectors and companies facing COVID-19: Impact on industry”, “Sustainable development and environmental impact” and “Growth of the construction sector in the region 2020-2021”.
MAIN SEGMENTS OF HVAC/R PROJECTS IN LATIN AMERICA 2021
23.9%
16.3%
25.0% 16.3% 7.%
10.9%
COMMERCIAL CORPORATIVO EDUCATION AND GOVERNMENT HOSPITAL AND PHARMA INDUSTRIAL RESIDENTIAL Source: Survey conducted on an online platform among integrators of the TOP 100 Latin American Installing Contractors with a closing date until July 2, 2021.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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CHAPTER 1
HVAC/R INDUSTRY KEY ASPECTS It is particularly noticeable that all installerscontractors consulted agree that the main and most important future trend is in energy savings and efficiency, for all segments of the HVAC/R. This includes the use of EC engines, as well as the use of Inverter systems in air conditioning, CO2 refrigerants and automation. Also, entrepreneurs recognize that one of the aspects that should pay more attention at this time of climate crisis is the use of refrigerants that do not favor the greenhouse effect, so they consider that gases such as R22 and the like should be classified as obsolete and completely elimina-
12
te its use, and most claim that the future, both air conditioning and refrigeration is in the CO2 and ammonia. A recurring opinion is that the validity or obsolescence of HVAC/R technologies today is directly related to its ability to energy efficiency and environmental friendliness. In addition, many of the entrepreneurs say: “there is no obsolete technology within the segments. On the other hand, the still high cost of some of these technologies is what has possibly slowed its adoption more massively, so there are still installers who continue to work with technologies considered “traditional”.
STATUS OF HVAC/R TECHNOLOGIES IN LATIN AMERICA AIR-CONDITIONING
REFRIGERATION
Automatización
Ammonia compressors
Energy Efficiency
R22 gas and similar Energy Efficiency EC motors
Ecological refrigerants
Inverter systems
BIM technology
CO2 refrigerants
VENTILATION
HEATING
Energy Efficiency
Energy Efficiency
EC motors
EC motors
BIM technology
Traditionals
Obsolete
Innovators
Future Trends
Source: Survey conducted on an online platform among integrators of the TOP 100 Latin American Installers/Contractors until July 2, 2021. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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MAIN SEGMENTS OF HVAC/R PROJECTS IN 2020-2021
The most interesting change in market distribution in 2021, compared to 2019-2020, is in the industrial segment, especially in the Food industry. Mainly in the Andean region, which causes an impact on the development of the industry throughout Latin America. It is then that the industrial sector continues to present the largest number of projects carried out, in this segment for the year 2019 was 29.4% in Latin America, however for this year we observe a decrease of almost 3 percentage points, especially for Southern Cone where the decrease is almost 45%. The installers-contractors consulted mentioned that
14
their largest market is in the food industry, as well as in the chemical industry. It is worth noting that the Hospitals and Pharmaceutical segment also grew in all regions, as did the Education and Government segment, which showed an increase throughout Latin America. This may be due to the high demand for ventilation/air conditioning and refrigeration equipment to mitigate the spread of the virus caused by COVID19 and the purchase of vaccines that require special temperatures to be preserved. In the case of schools, air conditioning is an essential part of biosecurity protocols, which strengthens the demand and consequently increases the supply.
MAIN SEGMENTS OF HVAC/R PROJECTS IN 2020-2021 MEXICO, CENTRAL AMERICA AND THE CARIBBEAN
ANDEAN REGION
9.7% 22.6%
19.2% 27.7%
35.1%
12.9%
6.4%
27.7%
4.3%
12.9%
14.9%
6.5%
COMMERCIAL CORPORATE EDUCATION AND GOVERNMENT HOSPITAL AND PHARMA INDUSTRIAL RESIDENTIAL
ALL LATIN AMERICA
SOUTH CONE
15.8%
15.8%
15.8%
15.5%
23.7%
15.8% 10.3%
27.8% 21.1%
15.8%
7.2% 15.5%
Source: Survey conducted on an online platform among integrators of the TOP 100 Latin American Installers/ Contractors until July 2, 2021.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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TOP HVAC/R BRANDS MOST USED IN LATIN AMERICA IN 2020 AIR-CONDITIONING
CARRIER YORK DAIKIN TRANE LG SAMSUNG MIDEA LENNOX GREE MITSUBISHI ELECTRIC OTHERS* * Mitsubishi Heavy Industries, Rheem, STULZ, Tecam, Hisense y OEM Airway, ComfortStar, Toshiba, Climaveneta
11.4%
12.5%
4.6% 4.6%
17.1%
6.8% 5.7% 11.4%
5.7% 9.9%
10.2%
COMPRESSION IN INDUSTRIAL AMMONIA REFRIGERATION
19.2% MYCOM FRICK VILTER GEA BITZER
19.2%
30.7% 11.5%
AMMONIA EVAPORATION IN INDUSTRIAL REFRIGERATION
19.4% GUNTNER THERMOFIN KEVLION EVAPCO COLMAC COIL OTHERS* * Luve, Intarcon, Zanotti, Kide
27.7% 8.3% 8.3% 33.3%
16
2.7%
19.2%
TOP HVAC/R BRANDS MOST USED IN LATIN AMERICA IN 2020 CONDENSATION IN INDUSTRIAL AMMONIA REFRIGERATION
8.7%
EVAPCO BAC (BALTIMORE AIRCOIL COMPANY) HILL PHOENIX OTHERS*
13.4% 52.1% 26.0%
LUVE, Guntner*
COMPRESSION SYSTEMS IN COMMERCIAL REFRIGERATION
BITZER COPELAND HUSSMANN TECUMSEH BOHN KRACK RUSSEL FLEXCOLD BOHN
5.4% 6.7%
18.9%
4.0% 5.4%
10.8%
18.9%
4.0% 6.7%
VENTILATION 7.5% SOLER & PALAU GREENHECK SYSTEMAIR EMBPAST ZIELH-ABEGG SODECA TROX CASALS MUNTERS *OTHERS Twin City Fans,big Ass Fans, Loren Cook
6.0%
23.9%
4.5% 6.0% 10.5%
9.4% 9.0%
Source: Survey conducted on an online platform among integrators of the TOP 100 Latin American Installers/Contractors until July 2, 2021.
7.5% 6.0%
TOP 50 EMPRESASTOP DE 100 LIMPIEZA CONTRACTOR-INSTALLERS LATINOAMERICANAS •• REPORT INFORME 2021 2021 - 2022 - 2022
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HVAC/R IMPORTS BY REGION AND COMPANY HVAC/R IMPORTS - CENTRAL AMERICA COUNTRY
DATES
COMPANIES
PRINCIPAL
USD VALUE
Costa Rica
Jan-may 2021
LUCAS INGENIEROS
United States
8.778
COUNTRY
DATES
COMPANIES
PRINCIPAL
USD VALUE
LARCO COMERCIAL Y SERVICIOS
United States
7.037
CIF
JOHNSON CONTROLS
United States
5.054
CIF
SERVIPÁRAMO
United States
1.681
CIF
WESTON
Netherlands – Slovakia
5.097
CIF
INDUSTRIAS REFRIDCOL
United States
39.591
CIF
ALFRÍO
United States
12.827
CIF
GRIVAN INGENIERÍA
Costa Rica- Germany
60.394
CIF
COLD IMPORT
United States
90.904
CIF
CORPORACIÓN UEZU
Porcelain – Spain
7.106
CIF
INTEG
Porcelain
574
CIF
CIF
HVAC/R IMPORTS - ANDEAN REGION
Colombia
Peru
Jan-May 2021
Jan-May 2021
IMPORTS HVAC/R - SOUTHERN CONE COUNTRY
DATES
COMPANIES
PRINCIPAL
USD VALUE
Argentina
Jan-Jun 2017*
COSTAN EPTA
Spain
166.436
FOB
FRIO – RAF
Germany
77.107
FOB
FRIMONT
Denmark - Italy
70.358
FOB
TERMAIR
Germany
11.103
FOB
BENECH INDUSTRIAL Y COMERCIAL
Porcelain
1.776
CIF
FRYMON
Brazil
97.119
CIF
INSTAPLAN
Germany
43.027
CIF
INEMA
Brazil
29.397
CIF
Uruguay Chile
Jan-May 2021 Jan-May 2021
FOB (Free on Board) CIF (Cost, Insurance and Freight) *Most recent data available
Compared to the import figures we recorded in the 2019 edition of this report, we found that most import figures had a decrease that may be due to the measures to mitigate COVID, in some cases the economic recovery has been evidenced by the growth of imports for 2021 compared to 2020. It should be noted that these figures alone do not indicate the sales performance of each of these companies. On the other hand, it is worth noting that, although some of these companies import equipment as dis-
18
**Source: Descartes Datamyne with official information
tributors, many others choose to import only certain equipment and components for their projects, and the rest of the elements are acquired through local distributors. Note: Only import data for HVAC/R equipment, such as compressors, fans, air conditioners, refrigeration and freezers, were considered for these tables. The complete list of tariff codes analyzed for this chapter can be found in the Index of References on page 130.
For a product imported by (Mirror)Product: 8418 Refrigerators, freezers and other refrigerating or freezing equipment, refrigerating or freezing machines, electric or other; heat pumps; parts thereof (excl. air conditioning machines of heading 8415)
VALUE IMPORTED, THOUSANDS OF US
800.000
600.000
400.000
200.000
2018
2019
2020
YEARS UNITED STATES OF AMERICA
MEXICO
BRAZIL
KOREA. REPUBLIC OF
Source: International Trade Center Note: The graph explains the growth (difference) from 2018 to 2020 of imports in Latin America. The lines (colors) represent each country exporting HVAC/R products to the region.
It should be noted that exports from countries such as the United States, Mexico, Brazil and Korea have shown a decrease in the value of imports (millions of USD) during the last two years. In the case of Brazil and Korea, growth has gradually declined from 2018 to 2020, remaining below from 2018 to 2020, remaining below USD 200,000. The lines for both do not evidence a very declining trend in decreasing of imported value. For Mexico if the decrease is more noticeable, the line (orange) shows how for 2018 exports were above 400,00 USD and for 2019 the downward trend became more noticeable being below this value.
Likewise, from 2019 the decrease shows how this reaching values close to 200,000 USD. This would mean a reduction of almost 50%. For the United States, the scenario for the last year (2019- 2020) is not very different. However, it is worth noting that of the countries analyzed, it was the only one that had an increasing trend in the first year analyzed (2018-2019), exceeding values of 600,000 USD and reaching the upper limit of 800,000 USD. Despite the above , in 2019 the growth stagnated upon reaching its highest peak and began to present a decline in values by 2020. Being the country with the highest losses.
TOP 50 EMPRESASTOP DE 100 LIMPIEZA CONTRACTOR-INSTALLERS LATINOAMERICANAS •• REPORT INFORME 2021 2021 - 2022 - 2022
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ORIGIN OF HVAC/R EQUIPMENT IMPORTS IN 2020 MEXICO & CENTRAL AMERICA
CHINA UNITED STATES MEXICO TAIWAN GERMANY ITALY FREE ZONE COLÓN OTHERS
26.0%
31.1%
2.3% 2.4% 3.% 4.5% 2.8%
31.1%
ANDEAN REGION
24.0% CHINA UNITED STATES BRAZIL GERMANY MEXICO ITALY JAPAN OTHERS
37.0% 4.0% 1.7% 2.4% 4.6% 5.7%
20.7%
SOUTH CONE
22.0% CHINA UNITED STATES ITALY SPAIN BRAZIL GERMANY OTHERS
28.2% *Source: Descartes Datamyne with official information
7.4%
21.8%
16.3% 1.8% 2.3%
20
Growth and impact of the Commercial HVAC/R segment
30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0% -5.0%
2020-2021
2018-2019
The percentage of annual economic growth (decrease) during the pandemic in the commercial sector is largely due to the measures taken by governments. However, the effect can have on the acquisition of refrigeration equipment during the year presents the possibility of
Decrease / Increase
being upward, because although there was a statistically significant decrease. With the economic recovery the market tends to increase supply by the need for more innovative uses and greater energy efficiency or implementation of biosecurity protocols.
Source: Information taken from the online platform among integrators of the Top 100 Latin American Installers/Contractors 2020-2021. Own calculations and graph.
Fuente: Encuesta realizada en una plataforma online entre los empresarios del Top 50 Empresas de Limpieza de América Latina entre el 18 de febrero y el 31 de marzo de 2021.
TOP 50 EMPRESASTOP DE 100 LIMPIEZA CONTRACTOR-INSTALLERS LATINOAMERICANAS •• REPORT INFORME 2021 2021 - 2022 - 2022
21
GROWTH RATIO OF THE PHARMACEUTICAL AND INDUSTRIAL SEGMENTS 35.0% 30.0% 25.0% 20.0%
2018-2019 2020-2021 Decrease / Increase
15.0% 10.0% 5.0% 0% -5.0%
Industrial
Pharmaceutical
Source: Information taken from the online platform among integrators of the Top 100 Latin American Installers/Contractors 2020-2021. Own calculations and graph.
In the pharmaceutical sector, growth is evidenced by the need for the development of medical technologies in the region in the short term, in addition to having efficient refrigeration systems for the storage of vaccines. Therefore, the control of temperature and humidity in these spaces is key and for this the air treatment must be adjusted to the conditions and measures of the rooms creating a sweep of air that
helps the purification of the area. By means of centralized or distributed air conditioning systems, temperature and humidity are controlled to achieve a good comfort, number of necessary renewals per hour and minimum consumption. The most commonly used systems are heat pumps or heat exchangers with steam circulation, water (hot/cold) or direct expansion and humidification or dehumidification systems.
GROWTH AND IMPACT OF THE INDUSTRIAL AND CORPORATE SEGMENT IN HVAC/R 35.0% 30.0% 25.0% 20.0%
2018-2019 2020-2021 Decrease / Increase
15.0% 10.0% 5.0% 0% -5.0%
Industrial
Corporate
Source: Information taken from the online platform among integrators of the Top 100 Latin American Installers/Contractors 2020-2021. Own calculations and graph.
While the Corporate sector presented a greater decrease compared to the industrial sector generated a greater impact for contractors and installers of HVAC/R who have major projects in these segments, the relationship of these decreases can be explained to the decline in supply and demand as a result of the
22
arrival of the pandemic. However, when analyzing region by region, there is evidence of increased projects in the sub-segment (food) belonging to the industrial, as this was the sector with the highest demand during the pandemic, so it was important to preserve the cold chains and refrigerants for food preservation.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
23
CHAPTER 2
PERSPECTIVES OF CONTRACTORSINSTALLERS IN LATIN AMERICA
The various representatives of the companies in the Top 100 Latin American contractors-installers in the HVAC/R industry shared with us their perceptions of the projects and market trends they developed in the region, as well as their forecasts for the future, mainly considering the repercussions of the COVID-19 pandemic. In addition, they shared the results obtained (such as the value of sales per project completed) in 2020 and their growth and sales expectations for 2021. Also, two industry experts were asked about the perception of this business in recent years and the aspects that all players should strengthen to drive growth and economic recovery after the arrival of the pandemic.
24
Mexico
Areche Ingenieros SA de CV Carlos Arechederra S Director
• How many projects did you carry out in 2020? We carried out 4 projects. • Approximate number of sales in dollars for the projects carried out in 2020. USD 2,000,000,00. • In which cities do you have more participation? Villahermosa, Tab. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE.
Caribbean International Air Conditioning Services, Ltd Jose Luis Arenas Managing Director
• In which cities have greater participation? Bahamas has 700 islands but only 36 are actually inhabited, those are in which we work on different projects. • Tell us your prospects for growth and sales for 2021 I believe you can increase sales by 50% this year 2021. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE and SMACNA.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
De Buen y Asociados, S.A. de C.V Carlos de Buen Chief Executive Officer
• How many projects did you carry out in 2020? We carried out 30 projects. • Approximate number of sales in dollars for the projects carried out in 2020 USD 5,000,000.00. • Share with us the details of a highlight project during the previous year. HVAC for the new Tec CDMX buildings, 1600 TR. • In which cities do you have the most participation? CDMX, Acapulco, Monterrey, Guadalajara, Puebla. • Tell us about your growth and sales prospects for 2021. We expect to grow around 15%.
Grupo AIREXS karen Martin Sales Manager
• How many projects did you do in 2020? 600 for excellence, 500 for services. • Approximate dollar sales figure for projects completed in 2020. $14,399,235,89 in services and $4,551,538,87 in excellence. • Share with us the details of an outstanding project during the previous year. San Javier Hospital, initial project. • In which cities do you have the greatest participation? Jalisco. • Tell us about your growth and sales prospects for 2021. 550 MDP, expand markets such as OIL & GAS, and be the market leader. • What associations do you belong to and what certifications do you have? Any recent ones? GREAT PLACE TO WORK.
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Iacsa
Ipasa
• How many projects did you carry out in 2020? We carried out 16 projects.
• How many projects did you carry out in 2020? Large: 3 Medium and small: More than 15 projects.
José Luis Trillo Director
• Approximate sales figure in dollars for the projects carried out in 2020. USD $500,000,00. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE CDMX Chapter LEED AP Commissioning Provider.
Martin Benavides General Manager
• Approximate sales figure in dollars for projects completed in 2020. $1 Billion USD. • Share with us the details of a highlight project during the past year. Tijuana General Hospital: Equipment upgrade on 4 levels. Rheem VRF Systems with Local Centralized Control. Capacity: 250 Tons. Monterrey Courthouse: upgrade of equipment on 4 levels. Toshiba VRF Systems with Remote Access via BacNet IP. Capacity: 240 Tons. Torre Alterna - Monterrey: New building with 2 towers (between them more than 23 levels). JCI Chilled Water Systems with Belimo energy measurement system. Capacity: 700 Tons. • In which cities do you have the most participation? Monterrey, N.L. • Tell us about your growth and sales prospects for 2021. We are looking to recover the losses from the pandemic and come out debt-free in 2021, in order to recover our organic growth. • What associations do you belong to and what certifications do you have, any recent ones? Associations: ASHRAE Certifications: In VRF Systems brand: Carrier, Toshiba, JCI, LG, Mitsubishi Electric, Rheem, Hitachi, Panasonic, Sanyo... among others. Startups for some administrative and operational areas. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
Johnson Controls
Mateo Herrera LATAM Communications Specialist • How many projects will be carried out in 2020? About 50 HVAC / R projects throughout the region. • Share with us the details of a major project during the previous year. Industrial Refrigeration : A couple of years ago one of the most important malting plants in Uruguay decided to double its operation, so in January 2020 they contacted us to take care of the expansion of the plant. Thanks to the great teamwork and detail of the proposals and reports presented, not only we were in charge of the plant expansion, integrating the new system to the existing one to take better advantage of the available capacity and limiting the amount of equipment to be purchased, but we were also responsible for the renovation of the previous system. Frick RWFII 209 SS compressor units as well as vessels and condensers, Quantum HD and Quantum Unity, were supplied for the plant expansion.
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• In which cities have greater participation? In Latin America we have presence in major cities in Mexico, Puerto Rico and Caribbean, Costa Rica, Panama, Colombia, Peru, Brazil, Chile, Argentina and Uruguay. Tell us about your growth and sales prospects for 2021. We see strong growth in the HVAC/IR business in Latin America, especially in the Data Center sector. The recent acquisition of Lucas Ingenieros will not only offer a broader portfolio of products and services to our existing customers in Costa Rica, but will also enhance our operational reach in Mexico and other countries in the Central and South American regions, expanding solutions for customers through the OpenBlue digital platform. • What associations do you belong to and what certifications do you have? Any recent ones? ACAIRE, ASHRAE, SUME, Abrava, GBC, etc…
Reinmex SA de CV German Velazquez General Manager
• How many projects did you carry out in 2020? Approximately 20 projects. • Approximate sales figure in dollars for the projects carried out in 2020 USD 15,000,000. • Share with us the details of a highlight project during the previous year Alpura, dairy cooling project, supply of adiabatic condensing equipment, compressors and low ammonia load system. • In which cities do you have the most participation? Irapuato Guanajuato, Monterrey NL. • Tell us about your growth and sales prospects for 2021. 15%. • What associations do you belong to and what certifications do you have? Any recent ones? IIAR.
Tecnoclima Central de Refrigeración y Aire acondicionado Hector Terrazas General Manager
• How many projects did you carry out in 2020? We carried out 289 projects. • Approximate sales figure in dollars for projects completed in 2020. $200,000 USD. • Share with us the details of a highlight project during the previous year. Duct cleaning and air conditioning maintenance of steel pipes in Mexico. • In which cities do you have the most participation? Mexico City and the metropolitan area. • Tell us about your growth and sales prospects for 2021. 15% increase in sales.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
Central America and the Caribbean
Climatecsa SA de CV Kenny Iraheta Operations and Marketing Manager El Salvador
• How many projects did you do in 2020? Approximately 15 projects per pandemic, but annually we handle about 80 to 90 projects per year. • Approximate dollar sales figure for projects completed in 2020. Depending on the type of project, prices range from 1200 USD to 350000 USD. • Share with us the details of a highlight project during the previous year. Supply and installation of VRF equipment for the remodeling of air conditioning systems in the Pirámide building of Banco Cuscatlan. • In which cities do you have the most participation? In San Salvador, Santa Tecla, Sonsonate and Santa Ana. • Tell us about your growth and sales prospects for 2021. We already have projects of supply and installation of ventilation and air conditioning systems concreted for most of the year and we have been taken into account
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to be direct representatives of the LG brand in El Salvador and a probable store as expansion and guarantee of services in maintenance and troubleshooting to maintain the brand image. • What associations do you belong to and what certifications do you have? Any recent ones? Association of engineers ASIMEI, our permanent employees have certifications in troubleshooting, conventional equipment and VRF systems, LG, Comfortstar, Midea, Trane, Gree Installation and commissioning of conventional equipment and VRF of LG, Comfortstar, Midea, Trane, and Gree. Installation and commissioning of Compuaire precision equipment. Design and distribution of LG VRF systems. Management and installation of controls and automation systems LG, Comfortstar, Gree, Compuaire. Preventive and corrective maintenance of air conditioning systems. Design of air conditioning distribution systems. Design, installation and operation of air conditioning chiller systems.
Climatizadora
Dicoma
• Approximate sales figure in dollars for the projects carried out in 2020. USD 10,000,000
• How many projects did you carry out in 2020? We carried out 34 projects.
Carlos Rojas Commercial Manager Panama
• Tell us about your growth and sales prospects for 2021. A slight gradual recovery is expected for 2021. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE, GBC, APAFAM.
Adrian Sánchez Rodríguez General Manager Costa Rica
• Approximate sales figure in dollars for projects carried out in 2020. USD $13,000,000. • Share with us the details of an outstanding project during the previous year. Walmart San Pedro Sula. • In which cities do you have the most participation? Costa Rica. • What associations do you belong to and what certifications do you have? Any recent ones? IAR, CCC, CFIA.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
MultiFrio
Salo Ponchner CEO Costa Rica • How many projects did you do in 2020? Close to 200 main projects and all their extras. Also handling more than 400 maintenance, remote monitoring and other contracts.
• Tell us about your growth and sales prospects for 2021. You are projecting a 20% year-on-year growth in growth and market share by 2021.
• Approximate dollar sales figure for projects completed in 2020. About $20,000,000 USD in projects.
• What associations do you belong to and what certifications do you have? Any recent ones? MultiFRIO is associated with the Colegio Federado de Ingenieros y Arquitectos (CFIA) of Costa Rica, ASHRAE and CINDE (www.cinde.org; Costa Rican coalition of development initiatives), which is the promoter of international investments in Costa Rica. We are certified Carbon Neutral (Government of Costa Rica), Esencial Costa Rica (country brand), ISO 9001:2015 with Icontec (Colombia) and IQNet (Switzerland). We are certified with GEEP for waste and refrigerant management. Gender Equity and Great Place to Work certifications are in process.
• Share with us the details of a highlight project during the previous year. A highlight project is the Leumi Business Center located in La Sabana in San Jose which is the tallest building in Costa Rica. The project has a DoubleTree by Hilton hotel (chiller system with BMS control), office floors (VRF systems), apartments, commercial areas and 5 floors of subway parking with the entire ventilation and extraction system. • In which cities do you have the most participation? In San José, in the provinces of Guanacaste, Limón, Alajuela, Heredia and in the capitals of Central America.
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Refrigeración y Soluciones de Frío S.A
Natalia Bolaños Quirós Project Manager Costa Rica • How many projects did you carry out in 2020? We carried out 12 new projects. • Approximate sales figure in dollars for the projects carried out in 2020. USD 10,500,000. • Share with us the details of an outstanding project during the previous year. Piña Frut and Piña Caribe projects: replacement of R22 refrigerant with ammonia using recirculated propylene glycol as secondary refrigerant. This project was environmentally significant because the refrigerant was replaced by one with GWP=0, i.e., without potential damage to the ozone layer. This is another step forward for the country, the client, and undoubtedly for RSF as a company by continuing to promote efficient and environmentally friendly systems. Mexifrutas Project: this production plant, with an annual capacity to process 60,000 tons of bananas and up to 90,000 tons of pineapple, has the most cuttingedge food processing technology and is among the
most important in Costa Rica. This project also had a significant socioeconomic impact on the country by generating direct and indirect jobs (more than 400) in the Caribbean region of the country. • In which cities do you have the most participation? Belize - Hopkings, Dominican Republic - Santo Domingo, Nicaragua - Masaya, Condega, Rama, Costa Rica - the whole country, Guatemala - Escuintla. • Tell us about your growth and sales prospects for 2021. In 2021 our perspective has been to continue being leaders in Industrial Refrigeration in Costa Rica and the region, but also to expand and/or diversify in areas such as Air Conditioning and CO2. For this year we estimate a 15% increase in sales over the previous year. • What associations do you belong to and what certifications do you have? Any recent ones? International Institute of Ammonia Refrigeration (IIAR) Costa Rican Association of Engineers and Architects (CFIA) Costa Rican Association of Maintenance Engineering (ACIMA).
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
Andean region Grupo MPG
Cold Import S.A
• How many projects did you carry out in 2020? We carried out 300 projects.
• How many projects were completed in 2020? Only three large projects were completed due to the COVID-19 pandemic.
Andres Mera Business Director Dominican Republic
• Approximate sales figure in dollars for the projects carried out in 2020. More than USD $5,000,000. • In which cities do you have the most participation? Santo Domingo, Punta Cana, Puerto Plata, Santiago. • Tell us about your growth and sales prospects for 2021. More than 10%. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE, ASOFER, National Energy Commission.
Ernesto Sanguinetti Engineering Manager Peru
• Share with us the details of an outstanding project during the previous year. Completing the installation of a transcritical CO2 system at a supermarket and starting the installation of an Ammonia system at a Fisheries Institute. • In which cities do you have the most participation? Lima, Piura, Trujillo, Arequipe. • Tell us about your growth and sales prospects for 2021. We expect to recover during this year to triple our growth in 2020. • What associations do you belong to and what certifications do you have? Any recent ones? We belong to ASHRAE PERU CHAPTER and we have certifications since 2018 the following: ISO 9001:15 ISO 14001:2015 - OSHSAS 18001:2007.
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Grivan Ingenieria S.A
Industrias Refridcol S.A
• How many projects did you carry out in 2020? We carried out 22 projects.
• How many projects did you carry out in 2020? We carried out 35 new projects.
• Approximate sales figure in dollars for the projects carried out in 2020. USD 4,500,000.
• Approximate sales figure in dollars for projects carried out in 2020 6 billion USD in 2020.
• Share with us the details of an outstanding project during the previous year. AVANZADA S.A. Manufacture and start-up of frozen food preservation and holding rooms.
• Please share with us the details of a highlight project during the previous year. Intervention in 4 industrial plants for beef production. In 2 of them, the capacities of the ammonia system were expanded. In another, the Freon system was upgraded. In the last one, the entire system was changed and expanded from Freon to ammonia. A project that was closed in 2019 and completed in 2020 with a total amount of USD 4 million.
Diana Betancourt Marketing Coordinator Colombia
• In which cities do you have the most participation? Cali, Bogota, Barranquilla. • Tell us about your growth and sales prospects for 2021. The sales growth budget for 2021 is 2%. • What associations do you belong to and what certifications do you have? Any recent ones? ISO 9001: 2015 Certification
Héctor Torres Commercial Manager Colombia
• In which cities do you have the most participation? Bogota and Medellin. • Tell us about your growth and sales prospects for 2021. Sales of 12 million USD by 2021 with 67% compliance to date. • What associations do you belong to and what certifications do you have? Any recent ones? Associations: Acaire, IIAR, GCCA Certifications: Bureau Veritas 140001, 18001 and 9001.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
Secar Ingenieros S.A Harold Guzmán Peña Manager Colombia
• How many projects did you carry out in 2020? We carried out 30 projects.
RefriAmerica CA María Milagros Merino Fombona Marketing Manager Venezuela
• Approximate sales figure in dollars for projects carried out in 2020 USD 2,368,421.
• How many projects did you carry out in 2020? Due to the COVID-19 situation, 2020 was an atypical year of almost total paralysis. Therefore, the number of new projects was minimal, less than 10 approximately.
• Share with us the details of an outstanding project during the previous year. Thermal District Universidad Javeriana Cali 900 TR. More than 2 Km of buried piping through the Campus, Thermal District Universidad Autónoma de Cali 600 TR.
• Share with us the details of an outstanding project during the previous year. Torre Oficinas Las Mercedes Caracas, new project includes engineering project, supply, installation and start-up of the air conditioning system, 825 tons.
• In which cities do you have the most participation? Cali, Armenia, Yumbo, Manizales.
• In which cities do you have the most participation? Caracas, Maracay, Valencia, Puerto Cabello, Porlamar, Puerto Ordaz.
• Tell us about your growth and sales prospects for 2021 Increase sales by 15%. • What associations do you belong to and what certifications do you have? Any recent ones? ACAIRE and Cert ISo 9001 since 2000.
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• Tell us about your growth and sales prospects for 2021. We expect a growth of at least 50% since 2020 (COVID-19) was a stopped year that limited the labor and economic sector as a whole. • What associations do you belong to and what certifications do you have? Any recent ones? We belong to VENACOR (Venezuelan Chamber of Ventilation, Air Conditioning and Refrigeration Industries) and we have CARRIER certifications for Installation, Start-up and Preventive and Corrective Service of CARRIER Commercial and Industrial Equipment and I-vu automation systems.
Serviparamo
Sutrak S.A.S
• How many projects did you carry out in 2020?
• How many projects did you carry out in 2020?
Ivette Ramirez Commercial Coordinator Colombia We carried out 14 projects. • Approximate sales figure in dollars for the pro-
jects carried out in 2020 USD 11,298,950.
Juan Carlos Yepes Ospina General Manager Colombia We carried out 415 projects. • Approximate sales figure in dollars for the pro-
jects carried out in 2020 USD 6,300,000.
• Share with us the details of a highlight project
• Share with us the details of a highlight project
during the previous year. Serena del Mar Hospital Center, Thermal District, Alianza YDN Popayán consortium, Popayán Airport, Gran Manzana, Hilton Hotel, Universidad Rafaerl Nuñez.
during the previous year. Design, installation and commissioning of the 200 TR transcribed Co2 project for a Refrigerated Logistics Center. • In which cities do you have the most participa-
• In which cities do you have the most participa-
tion? Currently, in Cartagena. • Tell us about your growth and sales prospects
for 2021. 25%.
tion? Medellin, Bogota, the Santanderes and the Atlantic Coast. • Tell us about your growth and sales prospects
for 2021. 10% growth by 2021.
• What associations do you belong to and what
certifications do you have? Any recent ones? ACAIRE, Colombian Chamber of Infrastructure, OHSAS 18001, ISO 9001, ISO 14001, RUC (Uniform Register of Contractors).
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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PERSPECTIVES OF CONTRACTORS-INSTALLERS IN LATIN AMERICA
Aire Andino
Miguel Angel Tovar General Manager Colombia • How many projects did you carry out in 2020? We carried out 4 supply and installation projects and 12 maintenance contracts. • Approximate sales figure in dollars for projects carried out in 2020. projects carried out in 2020 USD 400,000. • Share with us the details of a project developed during the previous year. tion of a project carried out during the previous year Supply and installation of ionization devices to sanitize call centers. • In which cities do you have the greatest participation? Bogota • Tell us about your growth and salesand sales prospects for 2021. We have evidenced that the economic reactivation in the country has emerged at a slower pace than estimated in the projections. We believe that there will be no increase in sales this year compared to last year. • What associations do you belong to and what certifications do you have? Any recent ones? We belong to the PROUSTA association, graduates of the Universidad Santo Tomás.
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SAEG Engineering Group LLC Said Lopez Director
• How many projects did you carry out in 2020? We completed 58 projects. • Approximate dollar amount of sales for the projects completed in 2020 USD 60,000,000 • Please share with us the details of a highlight project during the previous year Tobacco manufacturing plant valued at USD 7.000.000. Scope includes, A/C, HVAC, air quality, electrical, fire suppression and detection. • In which cities do you have the most participation? Santo Domingo, Dominican Republic, Lima, Peru. San José, Costa Rica. • Tell us about your growth and sales prospects for 2021. Plan to increase by at least 20%.
Southern Cone
Instaplan S.A Roberto Gerlach General Manager Chile
• How many projects did you carry out in 2020? We carried out 30 projects. • Approximate sales figure in dollars for the projects carried out in 2020 USD 3,000,000. • Share with us the details of a highlight project during the previous year. Air conditioning and air purification in electrical rooms of a refinery. • In which cities do you have the most participation? Santiago de Chile. • Tell us about your growth and sales prospects for 2021. With respect to 2020, we intend to grow 20%. • What associations do you belong to and what certifications do you have? Any recent ones? Chilean Chamber of Refrigeration and Air Conditioning.
Med Termomecanica S.A Mario Zito Director Uruguay
• How many projects did you carry out in 2020? We carried out +100 projects. • Approximate sales figure in dollars for the projects carried out in 2020. In Uruguay + 17 M usd. In Paraguay + 3 M usd. • Share with us the details of a highlight project during the previous year. World Trade Center Free Zone II. • In which cities do you have the most participation? Montevideo in Uruguay. Asunción in Paraguay. • Tell us about your growth and sales prospects for 2021. We expect to grow in the order of 10% in both countries. • What associations do you belong to and what certifications do you have? Any recent ones? ASHRAE.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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EXPERT / CONSULTANT QUESTIONNAIRE
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“COUNTRIES HAVE BEEN PERMEATED BY THE DELAY IN DECISION MAKING IN THE CASE OF THE USE OF ICE WATER WHICH GENERATES MORE IMPACT”.
Carlos Grinberg
Partner at Estudio Grinberg Ingenieros Consultores • WHAT IS YOUR PERCEPTION OF THE HVAC INDUSTRY AT THE CURRENT TIME?
The biggest problem is that trade has been disabled by COVID-19 and special measures to mitigate it, as is the return to offices, which led to changes in the installation in buildings already constructed, for example. At present, outdoor air, flash out, air sweeping, particle cleaning, sanitization systems, ultraviolet lamps and carbon peroxide have been implemented. It is then that we have been working with added
products, filter changes with greater efficiency, H Alpha filters that were already being implemented before the pandemic in hospitals, pharmaceutical companies and that are expensive and require ventilation. • HOW DO YOU ANALYZE THE SECTOR OF CONTRACTORS - INSTALLERS? As far as office projects are concerned, they are more delayed by the measures, this in relation to the density per person in the residential sector. At the same time, there has been a shift to the adequacy of chilled water by the VLR - refrigerant. • HOW WOULD YOU DESCRIBE THE EVOLUTION OF THE INDUSTRY, LOOKING AT THE LAST 3 YEARS? There is growth in the industry, although currently there is slower growth due to contagion in the works: suspension of works due to internal costs and, in addition, there are fewer deadlines to carry out construction jobs. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Do you consider that customers and users of air conditioning and refrigeration equipment are increasingly better informed and more knowledgeable about new technologies in the market? How can this affect contractors and installers? Customers and users of industry equipment increasingly have more tools and means to stay informed, seminars have increased, there is more information about the products. Information has also been transformed and training has been implemented. Although, as in all sectors, there is a lot of dissemination of false news. • IN YOUR OPINION, WHICH LATIN AMERICAN COUNTRIES ARE HAVING A GOOD TIME WITH THE HVAC INDUSTRY? IN WHICH IS STAGNATING? What I have talked to entrepreneurs about
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HVAC / R is that countries have been permeated by the delay in making decisions in the case of the use of chilled water which generates more impact. In Argentina, the residential market grows high rate. This is important because the products are more expensive, and it also presents better projects for offices and commercial areas. • WHAT DO YOU THINK BUSINESSMEN NEED TO CONTINUE PROMOTING THIS INDUSTRY? Industry entrepreneurs need better policies, better economics that are associated with improved air quality and health. We also need more investors and developers of new equipment and technologies that reinforce sustainability and the environment.
HVAC/R CONSULTING EXPERTS “I SEE THE HVAC MARKET GOING UP IN ALL COUNTRIES BECAUSE OF THE LIFE-AND-DEATH IMPORTANCE THAT INDOOR AIR QUALITY HAS TAKEN ON”.
Verónica Ledesma
CEM, LEED AP BD+C, HVAC Engineer
portance of reducing the spread of SARS-CoV-2, so I would expect its growth in both technological advances and market expansion to be more pronounced in the short period of time that we are beginning to experience.
• WHAT IS YOUR PERCEPTION OF THE HVAC INDUSTRY AT THE PRESENT TIME? I believe that the HVAC industry is on the rise, especially because of the pandemic. This has made many people who had not turned to see this industry to become interested or even want to enter the market without experience or knowledge. This has made the market more competitive and forced companies with experience to show some differentiator and validate their expertise in some way.
• HOW DO YOU ANALYZE THE CONTRACTORINSTALLER SECTOR? I believe that the sector is still dominated by the same companies that have been in the market for more than 30 years, and that it is very difficult for new companies to enter. Some large corporations limit their assignments to the usual companies, making the market very closed. Without realizing it, with their direct allocations they also make it so that favored suppliers do not have to make an effort to win such projects. This limits and slows down quality, differentiators and market competition, which affects everyone in the trade, including the end customer. It’s sad, but it’s something that happens, and I’ve seen it happen.
It is definitely a topic that has been greatly enhanced by the issue of indoor air quality and the im-
• HOW WOULD YOU DESCRIBE THE EVOLUTION OF THE INDUSTRY, LOOKING BACK TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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OVER THE LAST 3 YEARS? I have noticed that there are more brands in the market that are expanding their product portfolio in response to the great demand that their direct competitors have had, for example, renowned brands expanding their product portfolio to include VRF systems as well as many new brands of mini splits. I have noticed that there have been new small companies entering the field.
is “unseen”, it will be questioned only by informed people.
Energy efficiency is starting to become more important, either genuinely or by “greenwashing”. For one reason or another, both brands and consumers are mentioning it and it is starting to become more important little by little, an issue also related to the great impact and market dominance of VRF systems.
NOTE: I was contacted by some sellers of “filters” who did not know how to qualify the equipment they were selling, did not know how to place it within the types of filtration of ASHRAE and even worse, did not know what ASHRAE was.
• DO YOU CONSIDER THAT CUSTOMERS AND USERS OF AIR CONDITIONING AND REFRIGERATION EQUIPMENT ARE INCREASINGLY BETTER INFORMED AND MORE KNOWLEDGEABLE ABOUT NEW TECHNOLOGIES ON THE MARKET? HOW CAN THIS AFFECT CONTRACTORS AND INSTALLERS? Because it is a topic somewhat out of reach or dayto-day for many people, it is difficult for people to be permeated with information. The most common thing in my experience is that people, due to their lack of knowledge and inexperience, underestimate the importance of proper design and installation, including small businesses and related contractors (architectural firms, builders, etc.). The most common thing is that they hire directly the person who will sell and install the equipment, who has a conflict of interest and does not pay special attention to the design and development of the engineering, but to the sale of the equipment. This greatly affects the trade and the end customer. Generally they are only interested in what the end customer can see at a glance, which is why already in the operation stage problems arise that are more costly and problematic to solve. Since indoor air quality is something that
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I believe that, with the pandemic issue, air quality is already an issue that is on the table, yet it is rarely attacked in the way that an HVAC engineer would. This is why there are many small start-ups taking advantage of the misinformation and selling “filters” that are almost useless.
• IN YOUR OPINION, WHICH LATIN AMERICAN COUNTRIES ARE HAVING THE HVAC INDUSTRY? IN WHICH IS STAGNATING? Personally I could speak only for Mexico, and I think it is undoubtedly growing. • WHAT DO YOU THINK YOU NEED TO ENTREPRENEURS TO CONTINUE TO PROMOTE THIS INDUSTRY? From my point of view, I believe that the future lies in the opening of information, so that everyone can access it and propose improvements. I believe that access to information on HVAC equipment is almost impossible, you have to share only the sales team of the brand you are going to specify, as well as their selection software. I think if they made all this more accessible to everyone, more small businesses would venture into the HVAC and even more people would specify their equipment “X” brand. They don’t realize that the fact that access to their information is rather limited prevents their equipment from being specified on new projects and the market from expanding. • WHAT RECOMMENDATIONS WOULD YOU GIVE TO ENTREPRENEURS WHO ARE GOING THROUGH DIFFICULT TIMES, AS IN ARGENTINA OR VENEZUELA?
HVAC/R CONSULTING EXPERTS I believe that the HVAC market, whether much or little, is going up in all countries because of the importance of life or death that has taken indoor air quality. I think those who pass the difficult streak, will be the strongest in a short time. • HOW IS THE LEVEL OF INVESTMENT IMPACTING THE LEVEL OF CAPITAL FLOWS IN RELATION TO THE RISK THAT FINANCIAL MARKETS HAVE WITHIN THE INDUSTRY? As such, in the construction industry, the market has moved at a much slower pace, however, it has continued to move forward, which has not happened in other sectors. I believe that investors have tried to move in a safer way because of the risk involved in the pandemic issue, taking the speed of construction to a minimum. It has started to reactivate in the last few months, but it has not even reached half of what it was before SARS-CoV-2. • WHAT WOULD BE A BETTER SCENARIO: A SCENARIO THAT TAKES FEARS OF RECESSION AWAY AND FOCUSES ATTENTION ON PRODUCTIVITY ISSUES FOR THE SECTOR? I see a good outlook for HVAC, especially in ventilation and filtration. I have been told directly that the sale of equipment has been somewhat slow (even shortly before the pandemic began), however, it would be good to focus attention on the truth, which is the great importance of indoor air quality, properly sized ventilation and properly designed engineering. It would be important to focus efforts so that this reaches the end customers, so that they are the ones who care about it and demand it, instead of trying to impose it.
that the stage of facilities practically paused until further notice. The market became more closed, leaving only the same companies that already dominated the market and had the capital to survive the difficult stage. The impact is reflected in companies not taking the risk of having equipment in inventory (now more limited than before), meaning that you have to pay for equipment in advance and wait months for it to arrive. • WHAT GLOBAL TRENDS ARE BEING KEY IN THE INDUSTRY OF REFRIGERATION AND AIR BASED ON SUSTAINABILITY, ENERGY EFFICIENCY AND CONNECTIVITY? The trend is undoubtedly filtration. In reference to sustainability and energy efficiency, a theme that is on the rise either by genuine interest in saving energy, fashion or to project an image that attracts certain types of consumers (greenwashing), has led to an excellent position VRF system, which is key for HVAC companies. • AND IN GENERAL, WHAT MESSAGE OR ADVICE WOULD YOU LIKE TO GIVE TO HVAC CONTRACTORS AND INSTALLERS FOR 2020-2021? That they genuinely care about energy efficiency and if necessary, invest the time it takes to design, trying to get to the optimum for each project. What they save on that installation, will have an impact on consumption 15 to 20 years for the user / customer, so it is sad to see how they pay attention only to the sale of equipment and, as always, finish as quickly as possible, taking the concept of energy efficiency still as a luxury, when it should be a must.
• IN THE COMMERCIAL SEGMENT, HOW HAS THE ANNUAL ECONOMIC DECLINE DURING THE PANDEMIC AFFECTED THE SECTOR? WHAT HAS BEEN THE IMPACT ON THE ACQUISITION OF REFRIGERATION? In my experience, construction slowed its speed (if before they cast 4 concrete slabs per month, in pandemic stage none or one), which meant TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
45
46
CHAPTER 3
RANKING BY REGION
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
47
Mexico No.
COMPANY
SEGMENT
1
RCR REFRIGERACIÓN
Refrigeration
2
JOHNSON CONTROLS MÉXICO
Air Conditioning
3
CALEFACCIÓN Y VENTILACIÓN (CYVSA)
Air Conditioning
4
ABE REFRIGERACIÓN
Refrigeration
5
GRUPO IPASA
Air Conditioning
6
HUMICLIMA MÉXICO
Air Conditioning
7
CLIMAS
Air Conditioning
8
WATCO REFRIGERACIÓN
Refrigeration
9
EOLIS AMÉRICA LATINA
Refrigeration
10
AIRE ACONDICIONADO ÁRTICO
Air Conditioning
11
IACSA – INGENIERÍA, AIRE Y CONTROL
Air Conditioning
12
REINMEX (REFRIGERACIÓN INDUSTRIAL MÉXICO)
Refrigeration
13
URIBE INGENIEROS
14
ARECHE INGENIEROS
Air Conditioning
15
FLUTEC
Air Conditioning
48
Air Conditioning
REPRESENTATIVE
Luis Ballesteros
lballesteros@rcr.com.mx
+52 (66) 22 51 06 92
www.rcr.com.mx
Sarai Natividad
sarainatividad.arana.ruiz@jci.com
+52 55 54888 5132
www.johnsoncontrols.com/es_mx
Víctor Saul
sjimenez@cyvsa.com
+52 (99) 8884 6748
www.cyvsa.com
Manuel Alarcón
abecursos@abe-ref.com
+52 55 5683 6288
www.abe-ref.com
Martín Benavides
mbenavides@climasipasa.com
+52 81 8989 6797
www.climasipasa.com
Ignacio Blasco
iblasco@humiclima.com
+52 98 4879 4989
www.humiclima.com/mexico
Nefris Andrea Rosales
nrosales@climas.com
+52 614 439 3999
www.climas.com
Thomas Watson
contacto@watco.com.mx
+52 (33) 3812 0556
www.watco.com.mx
Ignacio Hernández
ignacio.hernandez@eolis.com.mx
+52 (55) 3640 1404
www.eolis.com.mx
Miguel Linares Quintero
refri_artico@hotmail.com
+52 (45) 3534 7888
www.articoaire.com
José Luis Trillo
josel.trillo@iacsa.net
+52 55 5399 3203
www.iacsaasociados.com
Germán Velásquez
gvelazquez@reinmex.net
+52 33 3699 2217
www.reinmex.net
“Raul Leonel Uribe
t.uribe@uiasa.mx t.uribe@uiasa.mx
+52 (55) 56528049 +52 55 5568 4149
www.uiasa.mx
Carlos Arechederra
carlos.arechederra@areche.com.mx
+52 99 3312 3322
https://arecheingenieros.com
Miriam Fernández
myriam.fernandez@flutec.com
+52 9993041003
https://www.flutec.com/
%* 12,35% 12,32%
7,17%
5,09% 4,68% 4,36% 4,15% 3,57% 3,45%
3,39%
3,36%
3,19%
3,16%
2,93% 2,93%
Mexico No.
COMPANY
SEGMENT
16
MITSUCLIMATIZACIÓN
Air Conditioning
17
ABA DEPOT (ANTES ABA CONFORT)
Air Conditioning
18
REFRIMART DE MÉXICO
Air Conditioning
19
GRUPO AIREXS
Air Conditioning
20
TECNOCLIMA
Air Conditioning
21
DE BUEN Y ASOCIADOS
Air Conditioning
22
AC PROYECTOS
Air Conditioning
23
HUBARD AND BOURLON
Air Conditioning
24
ABEASA
Air Conditioning
25
COLD CHAIN & ENGINEERING – CCMX
Air Conditioning and Refrigeration
26
IERI - INGENIERÍA ESPECIALIZADA EN REFRIGERACIÓN INDUSTRIAL
Refrigeration
27
GRUPO AISLACON
Air Conditioning
28
INTERCLIMAS DE MÉXICO AIRE ACONDICIONADO
Air Conditioning
29
TERMO TÉCNICA QUIN
Air Conditioning
30
ECMSA – EQUIPOS Y CLIMAS DE MÉXICO
Air Conditioning
REPRESENTATIVE
Adrián Salcedo
adrian@mitsuclimatizacion.com.mx
+52 55 5640 6552
www.mitsuclimatizacion.com.mx
Adolfo Barba
adolfo.barba@abaconfort.com
+52 33 3647 5858
www.abadepot.com
Jorge Aguilar
jorgem.aguilar@refrimartmexico.com
+52 99 9290 8220
www.refrimartmexico.com
Karen Martin
gerencia.ventas@airexs.com.mx.
+52 33 3612 7815
https://airexs.com.mx
Héctor Terrazas
tecnoclimamx@gmail.com
+52 55 5532 3812
https://tecnoclima.com.mx
Carlos de Buen
cdebuen@debuenyasociados.com
+52 55 5277 1523
http://debuenyasociados.com
Aurelio Castillo
info@acproyectos.com
+52 81 8333 3394
www.acproyectos.com
José Méndez
jose.140171@gmail.com
+55 5277 1544
https://hubardybourlon.com.mx/
Ana Lilia Pérez
abeasa@abeasa.com
+52 55 5339 3777
www.abeasa.com.mx
Edgar Hernández
edgar.hernandez@cce.com.mx
+52 55 4444 2580
www.ccemx.com
Juan Manuel Castillom
jmcasti@ieri.com.mx
52 36502470
https://ieri.com.mx
Elias Luis de Jesús
eluis@grupoaislacon.com.mx
+52 5525150577
www.grupoaislacon.com.mx
Víctor Beltrán
interclimas.mexico@gmail.com
+52 55 6354 8943
www.climasencuernavaca.com
Eduardo Quintanilla
equintanilla@ttq.com.mx
+52 81 8359 8660
www.ttq.com.mx
Enrique Zárate
ecmsa100@msn.com
+52 55 5341 1018
https://equiposyclimasdemexico.mx
%* 2,90% 2,78% 2,46% 2,31% 2,22% 1,73% 1,70% 1,38% 1,23%
1,05%
1,05% 0,94%
0,88%
0,70% 0,59%
* Percentage of recognition and trajectory of the Contractors / Installers companies in Mexico.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
49
Central America No.
COMPANY
SEGMENT
1
MULTIFRIO
Air Conditioning
2
GRUPO CLIMA
Air Conditioning
3
ECOAIRE
Air Conditioning
4
SAEG ENGINEERING GROUP
Air Conditioning
5
COMPAÑÍA CLIMATIZADORA
Air Conditioning
6
AIRE SISTEMAS
Air Conditioning
7
RSF – REFRIGERACIÓN Y SOLUCIONES DE FRÍO
Refrigeration
8
MPG & ASOCIADOS
Air Conditioning
9
INELEC
Air Conditioning
10
LUCAS INGENIEROS
Air Conditioning
11
PROTEC
Air Conditioning
12
DICOMA
REPRESENTATIVE
Salo Ponchner
sponchner@multifrio.com
+506 2455 1700
www.multifrio.com
Chris Elizondo Salazar
celizondo@grupoclima.com
+506 2299 5353
www.grupoclima.com
David Rodríguez Villalobos
drodriguez@ecoaire.net
+506 (00) 934154
https://ecoaire.net/
Said López
said.lopez@daikinapplied.com
+1 305 716-8631
https://saeg.com/
Carlos Rojas
crojas@climatizadora.com.pa
+507 300 9356
www.climatizadora.com
Agustín Vergara
agustin.vergara@airesistemas.com
+507 271 7900
www.airesistemas.com
Natalia Bolaños
nbolanos@rsfcr.com
+506 2441 8162
https://rsfcr.com/
Miguel Paiewonsky
gerencia@grupompg.com
+1 809 531 6666
www.grupompg.com
Javier Dávila
jedavilar@inelechn.net
+504 2213 4961
www.inelechn.net
Luis Prendas
lprendas@lucasingenieros.com
+506 2239 5922-105
https://www.lucasingenieros.com/
Patrick Noguera
pnogera@protecaruba.com
+297 582 0787
www.protecaruba.com
Adrián Sánchez
asanchez@dicomacr.com
+506 71039963
https://www.dicoma.com/
Karina Capace
karinacapace29@gmail.com
+507 387 5107
http://instalfrio.net
Ramsés Cajar
ramsesc@copanac.net
+507 233 9900
www.copanac.net
Jorge Arteaga
jpineda@airqualityhn.com
+504 574 93 52
www.airqualityhn.com
Air Conditioning
13
INSTALFRÍO
Air Conditioning
14
COPANAC
Air Conditioning
15
AIR QUALITY
Air Conditioning
COUNTRY
%*
Costa Rica
15,80%
Costa Rica
14,24%
Costa Rica
9,08%
Dominican Republic / Costa Rica / Panama
8,43%
Panama
7,29%
Panama
5,43%
Costa Rica
5,28%
Dominican Republic
5,09%
Honduras
4,98%
Costa Rica
4,67%
Aruba
4,63%
Costa Rica / Nicaragua / Panama/ Honduras / Guatemala
4,10%
Panama
4,10%
Panama
3,76%
Honduras
3,11% 100%
* Percentage of recognition and trajectory of the Contractors / Installers companies in Central America.
50
Andean Region No.
COMPANY
SEGMENT
1
LARCO COMERCIAL Y SERVICIOS
Air Conditioning
2
SERVIPARAMO
Air Conditioning
3
COLD IMPORT
Refrigeration
4
JOHNSON CONTROLS
Air Conditioning and Refrigeration
5
SECAR INGENIEROS
Air Conditioning
6
THERMOANDINA
Air Conditioning
7
AIRECARIBE
Air Conditioning
8
GRIVAN INGENIERÍA
Refrigeración
9
CARVEL
Air Conditioning
10
SAEG
Air Conditioning
11
INDUSTRIAS REFRIDCOL
Refrigeration
12
REFRIAMERICA
Air Conditioning
13
GRUPO UNICLIMA
Air Conditioning
14
AIRE AMBIENTE
Air Conditioning
15
AAIC PROYECTOS
Air Conditioning
16
FEIBO
Air Conditioning
17
OMEGA
Air Conditioning
18
FRÍO AIRE
Air Conditioning and Refrigeration
REPRESENTATIVE
Natalia Arango
narango@cslsa.com
+57 3603600
www.cslsa.com
Ivette Ramírez
comercial@serviparamo.com.co
+57 3160889-1027
https://www.serviparamo.com.co/
Ernesto Sanguinetti
esanguinetti@coldimport.com.pe
+51 1 242 9100
www.coldimport.com.pe
Mateo Herrera
mateo.herrera@jci.com
+57 1 655 3600
www.johnsoncontrols.com/es_latinamerica
Said Hatty
Gerencia@secarsa.com
+57 (2) 680 3388
https://www.secarsa.com/
Santiago López
santiago.lopez@thermoandina.com
+57 1 415 9809
www.thermoandina.com
Pilar Silva
ingenieria@airecaribe.com
+57 (1) 615 4582
www.airecaribe.com
Diana Betancourt
mercadeo@grivaningenieria.com
+57 2 387 7570
www.grivaningenieria.com
Álvaro Payán
apservicios@carvel.com.co
+57 2 446 4333
www.carvel.com.co
Edith Acosta
eacosta@saeg.com
+57 3203336143
www.saeg.com
Héctor Torres
hector.torres@refridcol.com
+57 2 690 4440
https://refridcol.com
María Milagros Merino
maria.merino@refriamerica.com
+58 (212) 2850180
www.refriamerica.com
Benjamin
benjamin@uniclima.net
+1 954 2513134
www.uniclima.net
Camilo Gómez
camilo.gomez@aireambiente.com
+57 (5) 3681850
www.aireambiente.com
Rodolfo Alejandro Albarracin
presupuestos@aaicingenieria.com
+57 345 7167
https://www.aaicingenieria.com/
Yennifer Gómez
ygomez@feibo.com.ve
+58 (241) 838 82 42
www.feibo.com.ve
Andrés Felipe Hurtado
andres_hurtado11@hotmail.com
+57 (1) 6517272
www.omegaingenieros.com
Manuel Gómez
proyectos.frioaire@gmail.com
+57 4 3176611962
http://frioaire.com.co
COUNTRY
%*
Colombia
6,14%
Colombia
5,03%
Perú
4,85%
Región Andina
4,78%
Colombia
4,59%
Colombia
4,39%
Colombia
3,80%
Colombia
3,60%
Colombia
3,52%
Colombia/ Peru
3,45%
Colombia
3,17%
Venezuela
3,12%
Venezuela
3,08%
Colombia
2,86%
Colombia
2,71%
Venezuela
2,69%
Colombia
2,67%
Colombia
2,62%
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
51
Andean Region No.
COMPANY
SEGMENT
19
ELGA DE VENEZUELA
Air Conditioning
20
REFRINORTE
Air Conditioning
21
GRUPO TODOCLIMA
Air Conditioning
22
CORPORACIÓN UEZU
Air Conditioning
23
CS AIRE
Air Conditioning
24
WME CONTRATA
Air Conditioning
25
AVILAIRE
Air Conditioning
26
ALFRÍO
Refrigeration
27
SUTRAK
Refrigeration
28
PROYECTOS Y SERVICIOS
Air Conditioning
29
CONSULCAD INGENIERÍA
Air Conditioning
30
DISMEC
Air Conditioning
31
Weston
Refrigeration
32
Enfriar Servicios
Air Conditioning
33
Integ
Air Conditioning
34
Ecoaire
Air Conditioning
35
JE Refrigeración
Refrigeration
REPRESENTATIVE
Eduardo Ferrer
eferrer@elgadevenezuela.com
+58 261 721 2366
www.elgadevenezuela.com
yajaira Castillo
director12@confortfresh.com
+57 (5) 318 5750
www.refrinorte.com
Álvaro Luis Hernández
alvarohp@grupotodoclima.com
+51 968 143 490
https://www.grupotodoclima.com/
Manuel Uezu
manueluezu@uezuperu.com
+51 (14) 217913
www.uezuperu.com
Edgar Bowers
gerencia@csayre.com.co
+57 2 439 6973
www.csayre.com.co
Alberto Cuadros
a.cuadros@wmecontrata.com
+51 1 273 3509
www.wmecontrata.com
Luis Viejo
luis_15_92@hotmail.com
+58 212 232-8756
www.avilaire.com
Raúl Perea
rperea@alfrio.com
57 (1) 2113834
www.alfrio.com
Juan Carlos Yepes
jyepes@sutraksa.com
+57 4 444 8735
www.sutraksa.com
Nelson Cruz
gerencia@proyectosyservicios.net
+57 7 6348821
https://www.proyectosyservicios.net/
Miguel Vargas
consulcadsrl@consulcadsrl.com
+591 344 6373
www.consulcadsrl.com
Cristian Camilo Rodríguez
crodriguez@dismecsa.com
+57 (1) 6133388
http://dismecsa.com/
Richard Osma
rosma@weston.com.co
+57 1 290 7700
www.weston.com.co
María Elisa Zúñiga
gerenciaser@enfriarservicios.com.co
+57 2 666 1814
www.enfriarservicios.com.co
Rubén Carrillo
ruben.carrillo@integ-sac.com
+51 (12) 251 113
www.integ.com.pe
Pablo Rosero
gerencia@ecoaire.ec
593 2259369
www.ecoaire.ec
Raúl Quispe
proyectos@jerefrigeracion.org
+51 (00) 3767526
www.jerefrigeracion.org
COUNTRY
%*
Venezuela
2,47%
Colombia
2,40%
Peru / Venezuela
2,32%
Peru
2,25%
Colombia
2,23%
Peru
2,23%
Venezuela
2,21%
Colombia
2,16%
Colombia
2,16%
Colombia
2,05%
Bolivia
1,94%
Colombia
1,86%
Colombia
1,86%
Colombia
1,70%
Peru
1,33%
Ecuador
1,31%
Peru
0,44% 100,00%
* Percentage of recognition and trajectory of the Contractors / Installers companies in Andean Region
52
Southern Cone No.
COMPANY
SEGMENT
1
TERMOFRÍO
Air Conditioning
2
LOS BUENOS AIRES
Air Conditioning
3
REFRICENTRO
Refrigeración
4
VENTILACIÓN TEVA
Air Conditioning
5
COSTAN (EPTA GROUP)
Refrigeration
6
FRYMON
Refrigeration
7
ABC REFRIGERACIÓN INDUSTRIAL
Refrigeration
8
CLIMA AIRE
Air Conditioning
9
INSTAPLAN
Air Conditioning
CHILE CLIMA
Air Conditioning
10
REPRESENTATIVE
Juan Pablo Ottesen
jottesen@termofrio.cl
+56 979685796
www.termofrio.cl
Santiago Costaguta
lba.aireacondicionado@gmail.com
+54 11 4750 9206
https://lba-losbuenosaires.com.ar
Claudio Concha
cconcha@refricentro.cl
+56 2 2411 2900
www.refricentro.cl
Mariano Clement
mclement@ventilacion-teva.com.ar
+54 11 4760 6274
http://ventilacionteva.com.ar
Fernando Galante
fernando.galante@epta-argentina.com
+54 34 1461 5000
www.eptalatam.com
Gustavo Peláez
gustavo@frymon.com.uy
228080
www.frymon.com
Guillermo Murillo
info@abcrefrigeracion.com.ar
+54 11 5238 3762
http://abcrefrigeracion.com.ar
Margarita Salamanca
contactoclimaaire@gmail.com
+56 4 1279 0811
www.climaaire.cl
Roberto Gerlach
rgerlach@instaplan.cl
+56 2 2792 7000
www.instaplan.cl
Jorge Bravo
mschwartz@chileclima.cl
+56 2 2555 4589
www.chileclimaspa.cl
COUNTRY
%
Chile
12,08%
Argentina
10,31%
Chile
6,45%
Argentina
6,35%
Argentina
6,09%
Uruguay
5,88%
Argentina
5,52%
Chile
5,41%
Chile
5,36%
Chile
4,48%
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
53
Southern Cone No.
COMPANY
SEGMENT
11
FRICON
Air Conditioning
12
INEMA
Refrigeration
13
BENECH INDUSTRIAL Y COMERCIAL (BICSA)
Air Conditioning and Refrigeration
14
ACONDICIONAR
Air Conditioning
15
CLIMATIKA
Air Conditioning
16
ECOREF CHILE
Refrigeration
17
RL CLIMATIZACIÓN
Air Conditioning
18
CLIMATIZACIÓN EL AIRE
Air Conditioning
19
INGECLIMA
Air Conditioning
20
TERMAIR
Air Conditioning
REPRESENTATIVE
Gabriel Cruz
gcruz@fricon.com.ar
+54 11 4301 0422
www.fricon.com.ar
David Gómez Bernal
dgomez@inema.cl
+56 (02) 24823600
www.inema.cl
Roberto Benech
info@bicsa.com.uy
+5982 916 2307
www.bicsa.com.uy
Eric Yamil Amrein
info@acondicionarsrl.com.ar
+54 4457992
www.enfriarservicios.com.co/
Claudio Matus
cmatus@climatika.cl
+56 2 2880 6038
http://climatika.cl
Elia Carla Romero
ventas@ecorefchile.cl
+56 5 7233 9813
http://ecorefchile.cl
Leonardo Paronsini
administracion@rlclimatizacion.com
+54 22 1351 6886
www.rlclimatizacion.com
Leonardo Aguilera
laguilera@climatizacion.cl
+56 2 3224 9417
www.climatizacion.cl
Marcelo Luit
termomecanica@ingeclima.com.ar
+54 11 4741 5507
https://ingeclima.com.ar
Harry Pablo Assorati
hassorati@termair.com
+54 11 4545 5559
http://termair.com
COUNTRY
%
Argentina
4,22%
Chile
4,16%
Uruguay
4,11%
Argentina
3,70%
Chile
3,12%
Chile
3,02%
Argentina
2,92%
Chile
2,60%
Argentina
2,13%
Argentina
2,08% 100,00%
* Percentage of recognition and trajectory of the Contractors / Installers companies in the Southern Cone.
54
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
55
CHAPTER 4 56
SECTORS AND COMPANIES FACING COVID-19: IMPACT ON THE HVAC/R INDUSTRY
After the COVID-19 pandemic caused severe shocks to health, the economy and a much deeper social crisis, some countries are beginning to reduce confinement measures after months of lockdown, social distancing and other measures taken to mitigate the spread of the virus. According to statistics consul-
ted in regional agencies, local media and in Oxford Coronavirus Government Response Tracker, Reuters daily contagion figures by June 2021 in Latin America and the Caribbean have evidenced that there have been at least 36,166,000 documented contagions and1,239,000 documented deaths due to the virus.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
57
Faced with the above scenario, companies engaged in the installation and modernization of air conditioning equipment and refrigeration have felt the slowdown in the construction industry in housing and shopping centers. However, with the revival of the commercial sectors, opportunities for the industry grow.
followed by the Italian Association of Refrigeration (Assofrigoristi) and commented that it is in the phase of resuming the routines of movement and meeting, and to meet this challenge, it is important to talk about the role and effectiveness of heating systems, ventilation and air conditioning of the places that people frequent.
It should be noted that with the arrival of COVID-19, demand contracted in all sectors of the economy, although a significant reactivation is already being seen in the health sector, airports, and the education sector. In relation to this, the air conditioning equipment sector foresees an increase in the installation of air conditioning systems due to heat waves that may occur during the year, being this a sales opportunity that will allow recovery from the economic consequences experienced in 2020, when the residential market was affected by mobility restrictions.
As noted by the UNDP expert, there are two criteria or axes of risk applicable to the area of heating, ventilation, air conditioning and refrigeration (HVAC/R). One is the risk type PLC (Presence in Contaminated Places), which is associated with the place, ie, how risky is the place where you work or where you need to go to work, for example, hospitals, laboratories and senior centers. The second is known as OPV risk (Operations with Potential Virus Presence) and defines how risky is the operation or equipment where the technician has to work, for example, changes or cleaning filters, maintenance and cleaning of air evaporators, evaporative air tunnels, among others.
Similarly, in relation to the economic crisis, the law of supply and demand has also been interrupted due to the increase in the prices of raw materials and electronic components. Metallic raw materials (aluminum, steel, copper) have increased their prices exponentially compared to 2020. At that time, there have been increases of at least 40% and, in some cases, they are reaching up to 80%. The market, due to expectations of lower demand, reduced its production to avoid incurring losses. However, the scenario is much more encouraging, as demand has stabilized and even increased to prepandemic levels. In comparison, raw material production still cannot keep up with demand. As part of the return to economic activity, there is a need for the refrigeration and air conditioning sector to operate in a safe way and following protocols that help safeguard the health of technicians and thus the rest of the people. This was mentioned by Pier Zecchetto, an expert from the United Nations Development Programme (UNDP) in a webinar organized by that organization on the implications of COVID-19 in the sector. Also, Zecchetto, presented the guidelines being
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For the expert “there must be suitable environments to enter the return phase in a sustainable manner. For that to happen, the equipment must have adequate filter material, maintained and in optimal operating conditions, made by trained personnel and using safety conditions that prevent the spread of this infection. For this to be complied with, he adds, “it is necessary to widely disseminate the implications in the sector; that these protocols are understood in all the companies and entities involved and assigned the importance it has; and that there is a regulation that allows control and traceability so that this is maintained over time”. He also shared with the audience that the NASA analysis indicates that EPA filters, added to the diffusion phenomenon generated, can trap particles with diameters of less than 10 nanometers, so these filters are adequate to remove up to 99% of COVID-19 from the air. It should then be noted that, when maintained, heating, ventilation and air conditioning (HVAC) systems can reduce the spread of viruses if they have optimal operating conditions. These critical building systems
not only provide thermal comfort but, according to the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), can also improve resistance to infection. In conclusion, the HVAC industry is due for a transformation in the coming years. In the case of construction, for example, there are vertical markets that have slowed their activity waiting for the reconfiguration is better defined as the case of office space; hospitality and business events, restaurants, largescale shopping centers, entertainment spaces, and so on. In addition to this, there are other markets that have accelerated. Among them, the leisure hospitality sector will have to adapt to changing habits, offering travelers experiences that reduce contact with large numbers of people. E-commerce has also accelerated its activity. These changes in people’s habits have driven the demand for new services that facilitate the shopping experience, thus creating business opportunities such as new distribution centers. On the other hand, the massive and sudden adoption of telecommuting has led to the demand for HVAC technologies for their facilities. It is then that the new conditions are restructuring the air conditioning market.
Productive structure: the region’s external and internal gap and its effects after the pandemic The economic crisis generated by COVID-19 has had a major impact on the countries of Latin America and the Caribbean and has hit the productive and business structure, further highlighting the region’s weaknesses. The region’s productive structure is highly heterogeneous among sectors and companies. According to the Economic Commission for Latin America and the Caribbean (ECLAC), “few natural resource production and processing activities, some capital-intensive services (electricity, telecommunications and banking) and a few large companies have high levels of value added per worker, while the others have very low levels of productivity. It is important to note that the production structure is the basis for the region’s external and internal productivity gaps. The first measures the difference between labor productivity in Latin America and that of the United States, which is adopted as a reference for the international technological frontier. The second registers the difference that exists within each country between the labor productivity of micro,
COMPARISON BETWEEN LATIN AMERICA AND THE EUROPEAN UNION: RELATIVE DOMESTIC PRODUCTIVITY 2016 80 70 60 Latin America
50
European union
40 30 20 10 0
Microcompanies
Small companies
Medium-size companies
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official information. (Latest available productivity data through 2016). Note: Relative domestic productivity is measured by the quotient between the value of labor productivity of each segment of MSMEs and the value of labor productivity of large companies in a given country or region. “Latest available data on productivity until 2016”
LATIN AMERICA (5 COUNTRIES): SHARE OF OUTPUT OF THE DIFFERENT GROUPS OF INDUSTRIAL SECTORS ACCORDING TOTOP THE OF THE EXPECTED 100INTENSITY CONTRACTOR-INSTALLERS • REPORT 2021 IMPACT - 2022 59 OF THE CRISIS (PERCENTAGES)
COMPARISON BETWEEN LATIN AMERICA AND THE EUROPEAN UNION: RELATIVE DOMESTIC PRODUCTIVITY 2016 80
small and medium-sized enterprises (MSMEs) and 70 that of large companies. 60 50
In401980, the external labor productivity gap in Latin America was 36.6% of that of the United States. Af30 ter a sharp fall in that decade and, to a lesser extent, 20 in the 1990s, relative productivity in the region rea10 ched barely one-fifth that of the United States bet0 Microcompanies companies ween 1999 and 2018. In absolute terms, Small the region’s labor productivity grew by 0.6% per year between 2008 and 2018.
European Union. For example, in the European Union, the productivity of medium-sized enterprises was less Latin America than double that of microenterprises (as a proportion of the productivity of large enterprises,European 76% and 42%, union respectively), while in Latin America it was more than seven times higher (46% compared to 6%).
The interruption of many productive activities has Medium-size companies also generated problems in the supply of domestic and imported inputs for those companies that have continued to operate. On the demand side, reduced consumer incomes and uncertainty have resulted in LATIN AMERICA (5 COUNTRIES): SHARE OF OUTPUT OF THE DIFFERENT GROUPS As for the internal gap, heterogeneity among firms is a drop in consumption and a change in consumption OFhigh INDUSTRIAL SECTORS TO THE INTENSITY OF THE very in Latin America. In 2016,ACCORDING the labor producpatterns. The pandemic willEXPECTED have caused IMPACT the closure OFless THE CRISIS tivity of a medium-sized firm was, on average, of 2.7 million Latin American companies, or 19% of (PERCENTAGES) than half of that corresponding to a large company. the total number of companies. 60 In small enterprises, labor productivity reached only 23% businesses, and According to ECLAC, “this has occurred in seg50 of the productivity 53.5%of a large 52.6% COMPARISON BETWEEN LATIN AMERICA THE EUROPEAN UNION: micro firms had labor productivity equivalent to only mentsAND of durable consumer goods (automobiles, 43.2% 40 42.0% 2016 RELATIVE DOMESTIC PRODUCTIVITY 6% of that39.4% of large companies. furniture, household appliances, housing, clothing Technology-intensive 37.3% 30 and footwear, for example), while theresource impact has 80 Natural intensive Moreover, before COVID-19 arrived in Latin America, been minor or even positive for sales of other ty70 20 Labor-intensive performance differences between the different seg- pes of goods and services (cleaning products and 60 14.9% 10 America and ments of MSMEs were already more marked and 9.3% pro- disinfectants, durable food, Internet Latin television 50 8.0% European union ductive structures were less heterogeneous, as in the telecommunications)”. 400 Strong impact
Significant impact
Moderate impact
30 20 10 0
Microcompanies
Small companies
Medium-size companies
LATIN AMERICA (5 COUNTRIES): SHARE OF OUTPUT OF THE DIFFERENT GROUPS OF INDUSTRIAL SECTORS ACCORDING TO THE INTENSITY OF THE EXPECTED IMPACT OF THE CRISIS (PERCENTAGES)
60 50 40
53.5%
52.6% 43.2%
39.4%
42.0%
37.3%
30
Natural resource intensive Labor-intensive
20 10 0
14.9% Strong impact
9.3% Significant impact
8.0% Moderate impact
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official information. Note: The 5 countries analyzed correspond to Mexico, Brazil, Argentina, Colombia, Peru.
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Technology-intensive
Impact of covid-19 on the different segments of HVAC/R projects in Latin America Tourism, culture, commerce, transportation and construction have been the most affected sectors. These account for 24.6% of GDP and 34.2% of employment. In contrast, the activities that have been least affected have been agriculture, livestock and fishing, food production, medical products and telecommunications. These activities account for 14.1% of GDP and 18.2% of employment.
Commercial The COVID-19 pandemic has intensified several trends that were already emerging in world trade, including trade and technological tensions between the United States and China; growing economic nationalism and conflict in trade relations; the weakening of multilateral cooperation; the digitalization of production and trade; and the trend toward regionalization of production through nearshoring (location of suppliers in countries closer to the target market) and reshoring (relocation of strategic productive and technological processes to the country of origin). The value of Latin America’s exports grew 8.9 percent in the first quarter of 2021 compared to the same period last year, consolidating a change in trend after the contraction caused by the COVID-19 pandemic, according to a report by the Inter-Ameri-
can Development Bank (IDB). The drop in the value of external sales in 2020 was 9.0 percent. For Paolo Giordano, Chief Economist of the Integration and Trade Sector of the IDB and coordinator of the study “Estimates of Trade Trends: Latin America and the Caribbean - 2021 Q1 Edition”, the pandemic will continue to impact domestic markets in the coming months. He added: “Importing growth from the rest of the world through international trade will be fundamental to overcome the worst economic crisis of the last century”. The recovery responded to the improvement in export prices, while real flows continued to decline. The volume of Latin America’s external shipments recorded an estimated 2.2 percent year-on-year drop in the first quarter of 2021, after declining 7.8 percent in the previous year. However, some rebound has been observed in several countries in the region since March. Exports from Latin America to China increased by 34.7 percent year-on-year in the first quarter. Exports to the United States and the European Union also increased, although at a slower pace, by 3.9% and 4.0%, respectively. Intra-regional purchases from Latin America rebounded by 11.6 percent.
IMPACT OF THE PANDEMIC ON FOREIGN TRADE Change in the total value of exports in Latin America and the Caribbean in 2020* -17.6%
South America -13.9%
Latin America and the Caribbean -14.8%
Caribbean -10.3%
-15.1% -11.6% Source: ECLAC Note: 2020 forecasts* for selected countries and regions.
Central America
Brazil Mexico
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Education For low- and lower-middle-income countries, for example, that shortfall has reached a staggering US$148 billion per year, a sum that could now increase by as much as one-third.
The disruption to education has had considerable effects in areas other than education. Closures of educational institutions hinder the delivery of essential services to children and communities, such as access to nutritious food, affect the ability of many parents to work, and increase the risks of violence against women and girls. As fiscal pressure grows and development assistance comes under strain, education financing could also face significant challenges, adding to the massive education financing gaps that existed prior to COVID-19.
As argued by the United Nations on the current economic turmoil, “the situation is likely to contribute to widening income gaps, which will increase gender inequality. In addition, several studies estimate that the loss of working hours will account for up to 400 million full-time jobs”.
FUNDING GAP BEFORE COVID-19 TO ACHIEVE THE SUSTAINABLE DEVELOPMENT GOAL (IN MILLIONS OF DOLLARS) 6000
+18% 5,039
5000
Progress is slower than expected
3,559
More students than expected Higher unit cost of education
4000 3,400
Increased availability of data
3,010
Less time to achieve goals
3000
29%
2000
1,480
11%
1000
390 0 Total funding required
Education budget
Funding shortfall
Determination of education spending in 2015
Total funding required
Education budget
Funding shortfall
Determination of education spending in 2020, before the pandemic.
Source: UNESCO, Global Education Monitoring Report (2020). New realities for education affected by COVID Cost predictions.
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Government Prior to the pandemic, the region’s development model was already facing serious structural constraints: high levels of inequality, balance of payments constraints and exports concentrated in low-tech sectors, which manifested itself in recurrent exchange rate and debt crises, low growth, high levels of informality and poverty, vulnerability to climate change and natural disasters, and loss of biodiversity. Negative social indicators were compounded by extremely high rates of homicide and gender-based violence, including femicide. In some countries, governments extended for longer or provided more resources, in which transfers were a crucial factor. Not only as an economic policy, but also as a public health policy. Faced with the short (health) and medium-term (economic) crises, regional presidents have shown a wide repertoire of measures to deal with them. From the health point of view, they can be divided into drastic (eight countries have declared general quarantine), intermediate (mainly curfews) and partial. This disruption has accentuated the presidentialist characteristics of Latin America and has radically changed public agendas. In turn, for the government sector, the impact caused by Covid has highlighted
the social tensions in the region, with political consequences: greater ungovernability, as a result of social unrest and economic paralysis. Likewise, petty political interests, the lack of coherence and the tactics of some presidents can have great consequences in a crisis situation like the current one, with a high political cost. On the other hand, the sector must face one of the main challenges for the mobilization of domestic resources to finance the implementation of the SDGs in Latin America and the Caribbean, in the meantime dealing with tax evasion. Estimates of tax evasion, aggressive tax planning by multinational companies and high net worth individuals, and illicit financial flows indicate that the resources lost are high. In the economic sphere, the challenge is to recover robust growth by promoting structural reforms capable of adapting the regional productive matrix to the demands of the fourth industrial-digital revolution. The goal is to make Latin American nations more productive and competitive through investment in physical and human capital in order to achieve sustainable and inclusive development based on innovation, value-added exports and linkages to international value chains.
LATIN AMERICA (16 COUNTRIES): TOTAL CENTRAL GOVERNMENT REVENUES, BY COMPONENT, 2010-2019 (AS PERCENTAGES OF GDP)
18.4
18.4
18.3
18.1
18.1
18.0
18.1
18.1
3.6
3.4
3.2
3.1
2.9
2.6
2.6
2.6
2.6
2.8
14.5
14.9
15.2
15.3
15.4
15.5
15.5
15.4
15.5
15.3
18.0
18.2
Other income 2019
2018
2017
2016
2015
2014
2013
2012
2011
Tax revenues 2010
20 18 16 14 12 10 8 6 4 2 0
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official figures. Note: Simple averages. In the cases of Argentina, Mexico and Peru, the figures correspond to the national public administration, the federal public sector and the general government, respectively. Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru and Uruguay. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Hospital and Pharmaceutical Although stock market theory suggests that the large pharmaceutical industries and the health sector cannot be affected by an eventual crisis, given that demand always exists, especially in a pandemic such as COVID-19, where millions in losses are evident, the harmful effect of the coronavirus on the world economy has also permeated the price of laboratories worldwide, and has slowed down mergers with other pharmaceutical companies. As a result, more than 600 (of the largest) laboratories lost 452,000 million dollars in stock market volume in the first quarter of the year, according to data extracted from the consulting firm Evaluate Pharma. The combined capitalization of these companies is $3.8 trillion. Part of the problem is that although there are many health systems in Latin America that have universal coverage as a declared objective, in practice numerous barriers persist, such as the very high proportion of out-of-pocket expenses as a percentage of total health spending that is observed in most Latin American countries. On the other hand, there are the out-of-pocket payments made to access services not included in the coverage plans of the different types of insurance, or to compensate for the lack of quality, comprehensiveness or timeliness of those offered by public health care, impeding or delaying care, as well as making it more costly for individuals and the system.
Industrial In terms of the impact on industry, it can be said that the crisis has hit the potentially more technologically dynamic industrial sectors the hardest and, therefore, will deepen the structural problems of the region’s economies. This means that, if adequate policies are not implemented to strengthen these productive branches, there is a high probability of generating a regressive structural change that would lead to the reprimarization of the region’s economies.
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The impact on the industrial structure can be observed in some countries, when analyzing the performance of the first four months of 2020 compared to the same period of 2019. Technology-intensive sectors included the production of automobiles and auto parts, other transportation equipment, electronics (final products and components), industrial machinery, medical and scientific instruments, and pharmaceuticals. Natural resource-intensive sectors include metal smelting, wood, pulp and paper, chemicals, construction materials, food, beverages and tobacco. Finally, laborintensive sectors include the production of textiles, clothing, leather, footwear, plastic products and cleaning products.
Logistics and distribution Global value chains were the main channel for transmitting the effects of COVID-19 to world trade. In Latin America, the disruption of supply chains, starting with Chinese suppliers and then with European and U.S. production, mainly affected the manufacturing sectors of Mexico, Argentina and Brazil. On the other hand, in the transportation sector, with the pandemic, the global shipping industry restructured to cope with a decrease in global freight traffic. Now, with the reestablishment of markets and the rapid increase in demand for ships and containers to transport goods, shipping companies are unable to increase their fleets at this new speed and, again, there is greater demand than supply. The adoption of the essential crisis response measures has also had a major impact on aggregate demand in the region, resulting in a sharp reduction in activity in several economic sectors. In maritime transport, projections of variations in the main items of international trade, for 2020, vary among products. Iron ore traffic would end 2020 with a growth of 1%, coal -8%, and dry bulk +5%. The variation in containers would be -7%. The drops in container traffic were marked in the months of
April and May, after it was observed that in January and February the activity was still on the rise. In the accumulated period from January to June 2020, the drop in containerized maritime trade worldwide was 7%, and in Latin America almost 8%.
gentina, Brazil and Chile), the declines were 91.1% and 18.1%, respectively. Likewise, the Economic Commission stated in the report “Post-Pandemic International Logistics” that the maritime industry reacted quickly to the circumstances created by the COVID-19 outbreak, protecting itself with tools it had already practiced in the previous major crisis of 2008-2009. “Even so, several of the world’s major shipping lines have received or are about to receive support from their governments. The possible evolution of the pandemic and the measures that will have to be implemented to resume full air services, coupled with the precarious financial conditions of many companies prior to the pandemic, have led the airline industry into the worst crisis in its history.”
According to ECLAC, “in the case of aviation, the drop in activity puts the industry and its workers at risk and may reduce the region’s air connectivity. The severe travel restrictions adopted worldwide have made the aviation industry one of the economic sectors most affected by the pandemic”. At the end of June 2020, air passenger traffic (RPK) and air cargo (FTK) indicators showed year-on-year1 declines of 94.2% and 40.2% respectively, while for the South American countries with updated data (Ar-
FREIGHT VS. CARGO MOVED ON DIFFERENT ROUTES FROM LATIN AMERICA (PERCENTAGE)
10.0% 8.0%
7.0%
5.0% 2.3%
2.2%
0.0%
-5.0%
1.5% 0.2%
0.2%
-3.5%
-2.5%
1.0%
-2.3%
-6.0% -10.0%
1.5%
-6.0%
-9.80%
-9.9% -11.8%
-15.0% -16.2% -18.9%
-20.0% Europe Variation in exports
Asia Variation in exported freight
North America Variation in imports
Middle East - India
Intra Latin America
Variation imported freight
Comex
Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on information from Drewry. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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CHAPTER 5 66
CONSTRUCTION SECTOR GROWTH IN THE REGION 2020-2021
The paralysis of the construction industry due to COVID-19 is reflected in high levels of unemployment. The construction sector in Latin America and the Caribbean represents an important part of public investment spending and a significant source of jobs. According to the Inter-American Development Bank (IDB), “on average, Latin American countries invest 28% of total spending in public transportation infrastructure, including land, rail, air and other transportation; and 19.7% in housing construction and community services such as public water supply networks and electric lighting”. On the other hand, the International Labor Organization (ILO), in Latin America and the Caribbean, argued that as of 2018 the construction sector directly employed 7.5% of the Economically Active Population (EAP).
CONSTRUCTION PRODUCTION 2020 CONSTRUCTION OUTPUT TO CONTRACT BY MORE THAN 17% IN 2020 (REAL % Y-O-Y)
Fourth Quarter 2020 Update Third Quarter 2020 Update 2.0 -0.0 -2.0 -4.0 -6.0 -8.0 -10.0 -12.0 -14.0 -16.0 -18.0
In the case of investment in construction, this has a multiplier effect on the economy, as it generates indirect employment and stimulates other industries that are part of the production chain. Likewise, this sector employs a high proportion of the unskilled and socioeconomically vulnerable population that depends on daily income.
Perspectives It is then that with the arrival of the pandemic, the sector suffered strong shocks due to the contraction it presented in 2020, in relation to this the office that performs study´s , GlobalData, reduced its forecast for this year for Latin America, the figures delivered showed a contraction of 6.8%, which was previously estimated at 11.4%. These changes in the forecast are due to the rebound in economic activity, which was slower than expected in the second half of the year. For the largest countries in the region, Peru’s construction output was expected to contract at -24%, followed by Argentina (-23.5%), Mexico (-15.2%), Colombia (-13.2%) and Chile (-8.2%). In addition,
-20.0
2019
2020
2021
Source: GlobalData
production in Brazil is expected to fall by 4.8%. This reduction will be less than the previously estimated -6%, since the continuity of almost all construction activities since the beginning of the pandemic helped to avoid a much worse result in the second quarter of 2020. As stated by Dariana Tani, economist at GlobalData “progress in reactivating projects and starting new ones in some countries has been affected by the continued rise in the number of covid-19 cases and the increased uncertainty around the economy. In 2021, GlobalData expects the industry to remain weak, increasing by just 0.2% before recovering to 3.1% over the remaining forecast period (2022-2024)”. Additionally for 2021, Peru, Chile and Colombia are expected to have the best performance with construction rebounding by 16.8%, 6.8% and 4.8%, respectively. Meanwhile, activity in Argentina, Mexico and Brazil is expected to continue to fall, albeit at much weaker rates of 5.4%, 3.4% and 1.6%, respectively. TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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INDUSTRY GROWTH IN LATIN AMERICA 2021 In 2021, the construction industry in Latin America will grow by only 0.7% (real year-on-year variation)
2019
Bolivia
2020
1.9
-33.2
22.9 -7.2
-31.5
Argentina
Colombia
-2.8 -2.0
-23.7
Peru
1.0 1.6
-22.9
Chile
19.2 4.1
-18.8
Mexico
7.4 -4.9
-17.9
Dominican Republic
-4.6
-5.2 -3.0 1.6
-7.1
Uruguay
-6.4
0.7 -0.4 -2.0 0.1
-42.5
-50.0
68
3.8 -8.5
Brazil
Source: GlobalData
10.3
12.8
Ecuador
Panama
2021
6.0 -40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
Mexico, Central America and the Caribbean Mexico The construction industry is one of the main sectors of the Mexican economy and the most important in terms of market value in all of Latin America. Attracting a large amount of public and private investment, infrastructure construction projects are responsible for job creation. With the demand for inputs from other industries, construction also promotes economic activity in related sectors. Such is the case that, in 2020, the construction industry contributed around 6.3% of Mexico’s GDP. For 2021, the National Institute of Statistics and Geography (INEGI) reported the main results of the National Survey of Construction Companies (ENEC). “During the fourth month of this year, the value of production generated by construction companies decreased 1.8% in real terms with respect to the immediately preceding month, based on seasonally adjusted figures. In annual comparison, the real value of the production of construction companies showed a 1.2% increase, total employed personnel rose 4.2%, hours worked increased 12.8% and real average remunerations 0.9%, in April of this year compared to the month of April of 2020. During April 2021, total employed personnel in the construction industry grew 0.2% with respect to the immediately preceding month, with seasonally adjusted data. By type of hiring, personnel not dependent on the business name increased 1.8% and personnel dependent on the business name increased 0.3% at a monthly rate, this is due to the fact that the number of workers remained unchanged and both employees and the group of others -which includes owners, family members and other unpaid workersincreased 0.9%.
Construction GDP Forecast 2020- 2021 (ANNUAL % VARIATION)
20 10 0 -10 -20 -30 -40
2T19 3T19 4T19 1T20 2T20 3T20 4T20 1T21 2T21 Construction
Building
Civil Works
Specialized
Source: BBVA- National Institute of Statistics and Geography (INEGI)
According to the ‘Mexico Real Estate Situation’ report, corresponding to the first half of 2021, prepared by BBVA Mexico, a growth of up to 2.7% is estimated for the construction sector this 2021. However, for Gabriel Casillas, president of the economic studies committee of the Mexican Institute of Finance Executives (IME), “the construction sector could grow between 4% and 5% this year, which is more or less above what we believe the whole country will grow”. Regarding investment for the sector, Casillas emphasized: “Unfortunately, public investment is still very small. Of all investment, which is more or less 17.7% of GDP, 15.1% is private investment and 2.6% is public investment” he explained.
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Costa Rica
On the private sector side, the construction of buildings depends on the behavior of the prices of the inputs used, interest rates, as well as access to credit, among others. On the public infrastructure side, it depends both on the level of government revenues and on the decision to invest in new buildings. For 2019, the economic activity of construction showed a strong decrease in its economic activity, decreasing -8.3%. This behavior was due to a lower dynamism in private construction activities (due to the lack of confidence of investors and consumers), on the other hand, there was also a strong decrease in the construction of public works due to a lower than programmed execution in spending on water and sanitation projects, road and hospital infrastructure. Last October 2020, the Central Bank of Costa Rica (BCCR) projected that the construction GDP would close 2020 with a 9.6% decrease (after decreasing 10.7% in 2019). Likewise, by 2021, a growth of 1.8% would be seen. In relation, statistics show that the Monthly Index of Economic Activity (IMAE) of the construction sector registers decreasing inter-annual variation rates since December 2018, accumulating 24 consecutive months of fall, due to the reduction in the economic activity of the sector both at public and private level. The IMAE Construction showed a 19.7% drop as of November 2020, the latest data published. Regarding the employment level, according to the
70
GDP of construction 2016-2020
NIVELES EN MILLONES DE DOLARES Y TASA DE VARIACIÓN ANUAL (CONSTANT PRICES) 1 839 898,46
10%
8,0% -0,9%**
1 936,74
-2,8%** 5%
1 613,95 0%
1 291,16 968,37
-5%
645,58
Rate of change
The construction sector is strategic for the growth of the country’s economy, since it generates the basis for the development of various economic sectors (manufacturing, commerce, real estate activities, among others). It plays a fundamental role in the processes of national growth and development, generating physical infrastructure (ports, airports, highways, housing, hospitals, schools), as well as direct employment.
-10%
322,79 0
-15%
2016
2017
2018
Construction
2019
2020
2021
Rate of change
Source: based on data from the Central Bank of Costa Rica (B.C.C.R.). Note: Figures for 2019 are preliminary and figures for 2020 and 2021 are projected by the Central Bank of Costa Rica according to the Macroeconomic Program 20202021.
most recent publication of the National Institute of Statistics and Census, if we compare the number of employed people that the sector had in the quarter from May to July 2019, we can notice that the sector has lost about 45,361 jobs in just over a year (26.3% drop). For 2020, the construction sector showed a decrease of -10.5%. This result was due to a drop in the execution of projects in both the private and public sectors, mainly due to the effects of Covid 19 on the national economy, both at the level of families and companies, stopping investments in the sector. In 2021, a growth of 2.1% is expected for construction. This would be due to the recovery of growth in public works (mainly road improvement works and aqueducts and sewers), as well as a recovery in private investment as investors regain confidence in the national economy. In turn, a 4.4% growth is projected for 2022, due to the impulse that public investment would give, as well as the increase in the dynamism of private investment.
El Salvador According to the Volume Index of Economic Activity (IVAE) as of August 2020, the construction sector has registered the greatest dynamism in the midst of the COVID-19 pandemic, followed by commerce, transportation, lodging and food services, as well as manufacturing industry. However, the year-over-year IVAE as of August 2020 was -9.4%, which indicates a drop for all economic sectors.
QUARTERLY EVOLUTION OF GDP IN RELATION TO THE CONSTRUCTION SECTOR 2019 3.0
2.5
2.0 1.5
It is worth noting that construction currently contributes between 40% and 43% of national investment, making it a key sector of the Salvadoran economy, generating around 100 thousand jobs, both direct and indirect, and contributes, together with the real estate sector, 12.5% to the national Gross Domestic Product (GDP).
0.0
2019
2.7%
2.7%
According to information from the Central Reserve Bank of El Salvador, construction has been the main engine of economic recovery, given its multiplier effect on other productive activities”, this sector alone grew by 27.8% in August.
On the other hand, the Salvadoran Chamber of Construction (CASALCO) had warned that the confinement due to the pandemic that lasted for almost five months “caused the loss of approximately 52,000 jobs and slowed down the execution of projects”. With this, in addition, the expectation of growth has declined, which for this year was expected to close at a cumulative 11.5%, but the figure fell to at least 8%, a lower figure than in 2019 when it ended with 9%.
3.0%
2.3%
2.2%
2018 2.2%
1.9%
1.0
0.5
Source: Central Reserve Bank (BCR)
After the impact of the pandemic the sector is optimistic and expects to improve its results in 2021, according to CASALCO forecasts it is expected that growth for construction will be at least 4%. For Luis Dada, representative of the Chamber, they have remained productive and proactive. CASALCO is promoting around $1,000 million in projects, only in private investment, which are in different approval processes, with the purpose, among other things, of generating direct and indirect employment. In relation to this, the Government announced a series of projects that would invigorate the sector this year, with about $600 million, of which it is expected that at least 75% can be executed.
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Guatemala In 2020, after a sustained growth for several years, the country registered a drop of -6% due to the general contraction of the economy. However, according to official figures from the Chamber of Construction (CGC), by the last quarter of last year there was already a recovery in the main indicators.
res the perception of the current economic situation and the environment for doing business, this study indicated that 92.6% of the surveyed businessmen consider that the environment will improve in 2021.
For 2021, the outlook of the Bank of Guatemala (Banguat) argues that growth could be up to 7%, although some developers are more moderate and consider that it could reach between 3% or 4%.
According to Antonio Malouf, Minister of Economy, “this year, with the support in the progress of the files, to date 41 projects have been finalized, representing approximately 764 thousand square meters of construction that could generate more than 70 thousand direct and indirect jobs”.
However, challenges persist, since among the factors that most influence growth are the construction procedures. On the other hand, there is the effect of the pandemic and the political uncertainty in the country that may generate investment risk. Despite the uncertainty in the market, the members and directors of the sector are also positive about the possible results. This is indicated by the Construction Activity Confidence Index study, which measu-
*Chart not included due to lack of information.
In the case of indicators such as the construction surface authorized for works, it is evident that 553 thousand square meters were presented in the first 9 months and an estimate of 691 thousand square meters at the end of the year, together with the increase in cement production and imports of lime and gypsum, which reflect how the sector has been recovering and points to expansion.
CONSTRUCTION ACTIVITY CONFIDENCE INDEX (IN PERCENTAGE POINTS) 120 110 100 90 80 70
80
78
60
64 55.71
50
34.48
55.76
52.27
54.29
oct-20
nov-20
51.54
40 38.84
30
34.75
36.25
38.52
may-20
jun-20
jul-20
20 10 0 jan-20
feb-20
mar-20
apr-20
Source: Guatemalan Chamber of Construction
72
aug-20
sep-20
dic-20
jan-21
Panama Construction is one of the most important sectors of the Panamanian economy, mainly because of its multiplier factor, which is expressed in the generation of jobs, consumption of materials, increased credit, transportation and heavy equipment, and many opportunities for micro and small enterprises, among other activities that converge around it.
CONSTRUCTION SECTOR GDP TO 2021 IN MILLIONS OF DOLLARS 7,539
5,763
6,228
6,743
6,960
6,800
2017
2018
2019
7,905
5,061
According to figures from the Office of the Comptroller General of the Republic (CGR), in 2014 and 2015, the Gross Domestic Product (GDP) of construction stood at 13.9%, but by 2018 it grew only 3.2%, while as of the first half of 2019 it was at 3.8%. Against this backdrop, the fall of the construction sector has had a direct impact on the country’s economic slowdown and the increase in unemployment, which as of August 2019 stood at 7.1%, as it is one of the main engines of the Panamanian economy and one of the main contributors to the country’s GDP. It should be noted, then, that the industry in this country depends on many factors such as: the availability of bank credit, purchasing power of potential buyers of homes or commercial premises, and the conditions of social and economic stability in Panama. On the other hand, the sector began to be affected with the arrival of Covid-19 as it happened in most Latin American countries, according to the report of the General Comptroller of the Republic, it is specified that between the first quarter of 2020 and the same period of 2021, the total cost of construction went from $273 million to $138 million, which is
2014
2015
2016
2020
2021
Source: Office of the Comptroller General of the Republic- CAPAC
equivalent to a 50% drop. In the first three months of the year Panama was the province that registered the highest cost of new constructions, additions and repairs reported, with a total of $91 million. It was followed by Arraiján and Colón, with $11 million and $2 million, respectively. In the case of Panamanian construction, investment in infrastructure will be “key” for the recovery of the economy. According to data provided by Moody’s rating agency, “in 2021 it will grow between 8% and 10%. Moody’s indicated that Panama’s economy would return to its 2019 level by 2023, in a context in which “investment will continue to drive this growth”.
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Honduras The contraction in construction was due to the paralyzation of the execution of residential and nonresidential works, as an effect of the confinement measures in the first months of the pandemic. In addition, the last quarter of the year was affected by the passage of tropical storms Eta and Lota, which paralyzed construction during November and resulted in a low execution in December at the national level, but with greater impact in municipalities such as La Lima, Choloma, El Progreso and La Ceiba. The construction industry in the country generates more than 250 thousand direct jobs and twice as many indirect jobs. Annual investments in projects exceed L3 billion (almost Q1 billion). It is worth noting that in recent years the industry has experienced significant growth. However, in the face of the health and economic crisis, it has registered heavy losses.
Arnoldo Martínez, president of the northwestern chapter of the Honduran Chamber of Construction (Chico) estimated that losses in the construction industry could reach L55 million (Q17.1 million) per day. “Of 250 thousand workers, about 75 thousand are working, the rest are inactive”. By 2021, the forecasts of the Central Bank of Honduras indicate that the construction sector is fundamental for the recovery of economic activity in the country. Thus, the figures point to a growth between 12.7% and 14.7%. It is worth noting that for the year 2020 there was a 25.4% contraction. In the case of public investment spending, according to the entity, it may grow between 46.2% and 48.2%, driven by the construction of bridges and roads. In 2021 the budget for public investment is approximately 24,02 billion lempiras.
RELATIVE VARIATIONS BY QUARTER OVER THE TOTAL BUILT-UP AREA 2019- 2020 Built-up area per meter Total
1,787.1
31.7%
Industrial
35.6%
1,219.8 Services
Commercial
Residential
2019
2020P/
P/ Preliminary figures, subject to revision.
Source: Quarterly Construction Survey- BCH Note: Relative variations were estimated on total built-up area during 2019 and 2020.
74
-100.0%
56.8%
-42.7%
-26.1%
-50.0%
0.0%
Relative Variation
50.0%
Dominican Republic The construction sector had the greatest impact on the growth of the economy in 2019 with an average share of 11.8% in the national GDP and a year-onyear expansion in terms of value added equivalent to 10.5%.
GDP growth VS GDP construction 2020 2019
5.6%
4.5%
2020
4.6%
4.8%
8.9%
8.8%
10.4%
T2
T3
T4
0.1%
For 2020, a scenario was proposed in which the construction sector could experience a reduction of 3.17% with respect to 2019, which would mainly affect housing construction, a group that accounts for 90.3% of construction investment in the Dominican Republic. It is then worth highlighting that the construction sector demands 8.8% of Dominican imports, occupying the second place in the distribution and surpassed only by the final demand which are, essentially, households. According to the Central Bank, the construction sector was driven by the development of public and private investment projects aimed at low and medium cost housing, the execution of works for tourism, commercial and energy development, as well as the construction and remodeling of infrastructure for land transportation and access roads in rural areas. The dynamism of the sector is also reflected in the sales of the main inputs, such as metallic structures and cement, which grew 9.9% and 7.2%, respectively. The Dominican Republic experienced in March of
13.5%
T1
-4.0% T1
CONSTRUCTION GDP
(NOMINAL, RD$ MM, RELATIVE VAR.) 2019 $132,960
$132,379
7.2%
-0.4%
T2
T3
2020 $155,867
$115,709
17.7% T4
-25.8% T1
Source: World Economic Outlook (WEO)- Central Bank of the Dominican Republic (BCRD).
this year, an annual growth of 10.6% in its economy compared to March 2020, according to the report presented by the Governor of the Central Bank, Héctor Valdez Albizu, data obtained from the Monthly Indicator of Economic Activity (IMAE). It is then that construction in that month presented an inter-annual increase rate of 56.8% compared to March 2020, which led the construction sector to lead the nation’s growth between January and March of this year, where it registered an average growth of 24.2%.
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Andean Region Bolivia According to data provided by the National Statistics Institute (INE), Bolivia’s construction sector suffered a contraction of 11.11 % in the second quarter of 2020 due to the effects related to the health emergency caused by the coronavirus pandemic.
On the other hand, the General State Budget (PGE) 2021, public investment will amount to 4,01 billion dollars, of which 1,4 billion will be destined to infrastructure works, this then, will boost the construction sector, in addition to the trade involved in it.
On the other hand, the Bolivian Chamber of Construction (Caboco) estimated figures at the end of 2020, where up to that date only 28% of companies had updated their registration, 250 thousand jobs had been lost and there were still more than 2 billion bolivianos owed by the State to construction companies from previous administrations and those that accumulated with the transition government.
By 2021, construction is expected to grow by 1.62%, the prospects for this year are associated with the fulfillment of the General State Budget forecasts of a 4.8 % growth of the national economy and the public investment budget of US$ 4,01 billion is executed at 100%.
In this period, construction reported a negative variation of 8.17% due to the low execution of public investment, according to data from the Bolivian Chamber of Construction.
For the Government, public investment will be a dynamic element. Regarding the public investment budgeted for 2021, 41.3% of the resources are destined to finance only 29 projects, most of which are already being executed and do not involve new contracts or bids.
According to the Statistical Summary of the Construction Sector 2020, published by Caboco, this activity ranks second in credit consumption, with 21,1 billion bolivianos, equivalent to 25 percent of the total productive portfolio delivered by the banks to the country’s productive sectors.
In this regard, it should be noted that public investment is fundamental for construction, since 72% of the activity is linked to project contracts with public financing.
CONSTRUCTION GDP VS. GDP GROWTH OF THE ECONOMY 2010 -2019 (II QUARTER) (P) (PERCENTAGE) 10.6
7.5
7.8
8
8
5.4
6.8 5.1
5.2
5.5
4.1
2010
2011
2012
2013
7.8
2014
4.9
2015
5 4.3
2016
4.2
2017
4.2
3.38
3.5
3.53
2018
2019
Source: National Institute of Statistics (INE) - Bolivian Chamber of Construction (CABOCO). Note: The difference between construction GDP and the economy’s GDP growth is made on data for the second half of each year (from 2010 to 2019). The dark blue line represents the economy’s GDP during those years and that period (second quarter). The light line is the construction GDP.
76
Colombia The bet on construction as an engine for economic reactivation, after the shock experienced last year, was not reflected in the figures. The year 2020 closed with several negative indicators for the sector, whose GDP decreased 27.7%. In fact, in the fourth quarter, together with trade and mining, it contributed 4.4 percentage points to the decline of that period. The Dane reported that the construction sector GDP contracted -0.1% in the fourth quarter of 2019 (vs. 2.3% a year earlier). This performance is explained by the drop observed in buildings (-7.1% vs. -0.9%), which was not offset by the favorable growth of civil works (8.3% vs. 6.7%). During that year, the contraction of buildings was due to the lower area caused (-8.5% YoY in the fourth quarter of 2019 vs. -4.5% a year earlier), which could not be offset by the recovery of licenses granted (6% vs. -6.4%). Within the area caused, there were drops in both the area completed (-28.3%) and in the areas in process (-1.9%), while the paralyzed area increased (5.1%). In the first quarter of 2021 (January - March), GDP at constant prices increased 1.1 % compared to the same quarter of 2020. When analyzing the result of the value added by large branches of activity, a decrease of -6.0% of the value added of the construction sector is observed. This result is mainly ex-
plained by the negative annual variation presented in the added value of buildings (-2.2%), the added value of specialized activities (-5.3%) and the added value of civil works (-12.8%). In March 2021, 1,748,737 (m2) were licensed, which meant a 73.8% growth of the total area approved with respect to March 2020. The area approved for housing presented a growth of 90.2%, going from 807,688 m2 in March 2020 to 1,536,405 m2 in March 2021; this result contributed 72.4 percentage points to the total variation of the approved area (73.8%). It should be recalled that in the most recent Dane’s Business Pulse, which measures expectations about the country’s business and economic situation, revealed that the percentage of companies in the construction sector operating normally in December was 73.1%, while the total average of companies amounted to 88.5%. On the other hand, Corficolombiana’s Director of Economic Studies, José Ignacio López, assured that the outlook for the next months is optimistic and that the construction sector will be one of those that will have a greater impulse. “Subsidies, savings and personal preferences have been the factors that have most boosted housing sales, so it is important that incentives are maintained. For this year we expect investment in roads and the GDP of buildings to grow at a rate close to 7%”.
ANNUAL CHANGE IN TOTAL GDP, CONSTRUCTION VALUE ADDED AND SUBSECTORS (AT CONSTANT PRICES) 2017 - 2021 PR (Q1) Annual change (%) GDP Construction value added Value-added buildings* Value-added civil works** Value-added specialized activities**
1.1 0.6 -6.0 -14.6 -2.2 -16.1 -12.8 -11.4 -5.3 -15.0
2017-I
Annual percentage changes (Constant prices) 2021-I min.
max.
1,0
1.1
-15.7
3.6
-4,0
-6.0
-36.7
2.0
-5,9
-2.2
-30.8
4.4
-0,7
-12.8
-46.8
34.6
-4,9
-5.3
-35.6
2.1
2021 (I Quarter) 2020 (I Trimestre) Source: DANE, Quarterly accounts. Pr: provisional figures Nota: The difference between construction GDP and GDP growth of the economy is made on data for the second half of each year (from 2010 to 2019). TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
77
Ecuador The construction sector is one of the five most important for the country. In 2019 it accounted for 8.17% of the national real GDP ($ 5,8 billion). It also generated 6.1% of total employment and attracted $69 million in Foreign Direct Investment. In addition, construction annually demands more than $1.9 trillion from both the public and private financial system. For 2020, the Association of Real Estate Developers of Ecuador (APIVE) estimated a decrease of -45.5% in the first four months of the year compared to 2019. The impact mainly hit Quito, where it contracted by -51.6% and Guayaquil (-42%). This led to greater volatility in the allocation of credit for the sector which, despite experiencing in the first half of 2020 a significant drop of 26% compared to
2019, rebounded by 39% during the second half, a situation associated with the reactivation of the economy and a scenario of uncertainty that boosted the processes of refinancing and restructuring of credits. According to Central Bank figures, the construction industry presented a 14.2% drop in the third quarter of 2020.A study by the National Federation of Chambers of Commerce estimated losses in the construction sector at USD 1,6 billion since March 2020, as a result of the Covid-19 pandemic. In turn, APIVE estimated that in the construction sector in the first quarter of the year around 8,318 jobs were lost. This translates into approximately $ 67 million less in salaries. According to the forecast of the Central Bank of Ecuador for 2021, construction will represent more than 7% of the country’s GDP.
CONSTRUCTION GDP 2019 ECUADOR: GROSS DOMESTIC PRODUCT OF THE CONSTRUCTION SECTOR (FIGURES IN MILLIONS OF DOLLARS; VARIATION IN REAL TERMS) 20%
16.500 11.691 11.500
15% 10%
6.500 5% 0,3%
1.500
0% 2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
-3.500
-5% -5,2% -10%
-8.500 GDP Construction
Source: Central Bank of Ecuador.
78
%GDP Construction
Non-oil GDP
Peru The construction sector, apart from mining and agribusiness, is one of the most important sectors for boosting domestic demand and employment in the country. After being impacted by the restrictive measures to combat the covid-19 pandemic in 2020, it registered strong growth rates in the first months of 2021. After growing 1.9% in 2019, due to the effects of the covid-19 pandemic it fell back 13.9% in 2020, but for this 2021 the outlook looks favorable. According to the latest inflation report of the Central Reserve Bank (BCR), it is expected to achieve an expansion of 17.4% and by 2022 it will be around 3.8%. In 2020, informal construction presented a greater dynamic and represented 49% of the sales of construction materials, 11 percentage points more than before the pandemic. Domestic cement consumption grew 11.3% in No-
vember this year and public investment reached an execution of 3,8 billon 402,336 soles in that same month, registering a nominal growth of 28.41%, according to the Ministry of Economy and Finance (MEF). The BCR highlighted that cement consumption registered positive growth rates in the last three months, linked to the impulse of private works and self-construction. Up to February 2021, the construction sector reached a growth of 14.32%, thus achieving a positive rate for six consecutive months, highlighted by the National Institute of Statistics and Informatics (INEI) in its latest Technical Report on National Production. Meanwhile, public investment in construction decreased 29.3 %, due to the lower progress of works in the National (-31.68%), Local (-33.47%) and Regional (-19.32%) Government spheres.
CONSTRUCTION PRODUCTION INDEX 2020 YEAR BASE YEAR 2007 INDEX AND YEAR-ON-YEAR CHANGES JANUARY 2018-APRIL 2020
350
Índice
Var %
300
20 0
250
-20
200 -40 150 -60
100
-80
50 0
-89.72 E F 2018
M
A
M
J
J
A
S
O
N
D
Year-on-year % change
E F 2019
M
A
M
J
J
A
S
O
N
D
E F 2020
M
A
-100
Construction Production Index
Source: National Institute of Statistics and Informatics TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Southern Cone Argentina Construction activity fell 19.5% in 2020, despite showing strong year-on-year growth of 27.4% last December, the highest in three years, reported the National Institute of Statistics and Census of the Republic of Argentina (INDEC). Up to December 2020, the Synthetic Indicator of Construction Activity (ISAC) registered an increase of 4.3% compared to November, the fourth positive monthly variation. The 27.4% increase is the second consecutive year-on-year rise after 26 months of decline. At the same time, the commercialization of inputs during last year recorded year-on-year decreases of 55.1% in concrete, 54.7% in asphalt, 41.8% in mosaics, 38.0% in taps, steel pipes and glass, 33.2% in plaster, 19.6 % in iron and steel, 11.5% in cement, 11.1% in sanitary ware, 3.2% in floors and coatings and 2.3% in paints.
* No graph is included due to lack of available data.
80
For 2021, in the first three months of the year, the construction sector had the best performance of all GDP components, registering a growth of 21.3%. According to the National Institute of Statistics and Census (Indec), the synthetic indicator of construction activity (ISAC) showed an increase of 97.6% compared to the previous month. In the first twomonth period of the year, it accumulated an increase of 42.4% with respect to the same period of 2020. In this sense, it pointed out that 59.2% of the companies that carry out private works foresee that the level of activity in the sector will remain the same during the next three months, while 24.1% estimated that it will increase and 16.7% that it will decrease. The companies that estimate an increase in the level of activity during the next three months attribute it mainly to new public works plans (34.7%), to the restart of public works (29.5%) and to the growth of economic activity (17.9%).
Chile One of the sectors hardest hit by the economic downturn caused by the Covid-19 pandemic has been the construction industry. There, both quarantines and sanitary cordons in the different communes of the country have led to the closure or postponement of a large number of construction projects. In 2020, total or partial travel restrictions will have interrupted the development of more than 117 thousand housing units in the country, affecting 377 thousand workers and their families. In turn, infrastructure works were reduced, as well as the number of workers. Approximately 153 works have been halted in the country, affecting more than 20,000 workers. Investment indicators were also affected, which showed drops. This resulted in the underutilization of the installed capacity in the construction industry and other works, and finally, it ended up having an
Year
GDP Pre- crisis
impact on the deterioration of the labor market because the demand for labor fell. In investment, Gross Fixed Capital Formation (GFCF) showed a drop of 11.5%, driven by construction and other works and, to a lesser extent, by machinery and equipment. Against this, it was evidenced that during 2020 there was “a de-accumulation of inventories, which contributed negatively to the investment result. Regarding forecasts for 2021, the Chilean Chamber of Construction (CchC) estimated that total investment in construction will increase by 8.1%. Likewise, the growth projections for infrastructure investment focus on productive infrastructure: 11.8% and public infrastructure: 5.1%. This projection is based on 80% of the public infrastructure works for this year being approved.
Construction investment
Post- Crisis A
B
Pre- crisis
Post- Crisis A
B
Total investment Pre- crisis
Post- Crisis A
B
2018
4%
-
-
2.7 %
-
-
4.6 %
-
-
2019
2.5 %
2%
2%
4%
3.4 %
3.3 %
4%
3.5 %
3.4 %
2020
3%
2.6 %
1.9 %
4%
1.9 %
1.3 %
3.9 %
2.1 %
1.5 %
2021
3.3 %
3%
2.9 %
3.5 %
3.1 %
2.6 %
3.9 %
3.5 %
3%
Source: Chilean Chamber of Construction (CChC) - Central Bank of Chile (BCCh).
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Paraguay The construction sector in Paraguay has been one of the engines that has cushioned the economic slowdown resulting from the global health pandemic. According to data provided by the Central Bank of Paraguay (BCP), this sector grew by over 10% during 2020 and the forecasts of this same institution for 2021 are positive, with growth of over 5%. It is worth noting that in the last 10 years, the construction sector in Paraguay grew at an average of 5.2%, that is, each year it made an average contribution of Gs. 11 billion to the Gross Domestic Product (GDP), totaling Gs. 110.1 billion in the last 10 years. The construction sector plays an important role in this country because public works employ a large number of workers. In addition, it does not depend directly on commercial activity and generates a mul-
tiplier effect on GDP. It is worth noting that in the last 3 years this sector has employed an average of 7.5% of the country’s total employed population per year, i.e., more than 249 thousand people. However, the development of the works also depends on the amount of available inputs, considering that demand requires at least 80 thousand bags of cement per day. Surveyed data show that last year, the National Cement Industry (INC) produced 37,223 bags of cement and 15,673 bags were imported. For 2021, the sector is expected to rebound by 5% according to figures provided by the Central Bank of Paraguay. The entity also emphasized that this is explained by the execution of public works, especially road works.
EVOLUTION OF THE CONSTRUCTION SECTOR GDP 2020 14
14%
12
12%
10
10%
8
8%
6
6%
4
3.5%
2
2%
0
0% 2010
2011
2012
2013
2014
GDP Construction
Source: Central Bank of Paraguay (BCP).
82
4%
2015
2016
2017
Var% year-on-year
2018
2019
2020*
Uruguay The sector represents almost 10% of the country’s Gross Domestic Product (GDP), it also contributes 8% of employment, according to data from the National Institute of Statistics, and concentrates around 70% of the investment of the entire Uruguayan economy. On the other hand, the sale of new residential real estate developments under US$ 200 thousand grew by 10%, but the sale of used properties fell by 14%, in 2020. At the same time, the government of Luis Lacalle Pou extended the tax exemptions of the Promotional Regime of Investments for works over US$ 2 million, when previously these benefits were granted to investments over US$ 6.4 million. These tax exemptions include discounts on the Economic Activity Income Tax (IRAE), Wealth Tax and VAT refund. It should be noted that 70% of the investment in the construction sector comes from the private sector
and 30% from the public sector. Therefore, it is expected that the latter will not increase this year, but an increase in the activity of the private sector is expected, driven by the new regulations that stimulate investment, which could lead to a general recovery of the activity during 2021, starting to revert the process of fall registered during the last years. It is worth noting that in 2020 Uruguay stood out as a very attractive destination for investment, both for its positive numbers in the face of the pandemic and for its economic and legal stability, which aroused the interest not only of Argentineans, but also of investors from other countries such as the United States, Canada and European countries. In addition, by 2021, it is expected that there will be an increase in the development of Housing Developed buildings, which will include the maximum number of one-bedrooms allowed, which will open a door to invest in units with a lower ticket, with a higher profitability and tax benefits.
* No graph is included due to lack of available data.
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83
CHAPTER 6 84
OUTLOOK FOR LATIN AMERICAN ECONOMIES (PANDEMICPOST-PANDEMIC)
Volatility in financial markets
By 2020, the world’s GDP is expected to shrink the most in comparison to 1946, as a result of a generalized fall in economic activity in both developed and emerging economies. Similarly, the crisis has triggered a contraction in international trade, which in turn has led to sharp fluctuations in high prices as a result of volatility in the financial markets, resulting in lower profitability and greater risk aversion.
The economic instability generated by the pandemic in international financial markets and the uncertainty in commodity markets led to strong exchange rate corrections, which gave way to considerable fluctuations in the region’s currencies during the first three quarters of 2020. Most Latin American and Caribbean currencies depreciated against the dollar. Thus, in the first ten months of 2020, 17 of the region’s economies recorded currency depreciations, with an average depreciation of 16.3%.
In addition, pandemic containment measures adopted in the vast majority of the world’s countries have had a significant impact on tourism and commercial aviation, restaurant and hotel service activities. However, the measures adopted by some of the governments of Latin American countries to deal with the effects of the pandemic have helped to mitigate the economic impact on the social and business fabric of the region. The case of the fiscal monetary packages, for amounts close to 12 trillion dollars in fiscal actions and 7.5 trillion dollars in monetary actions announcements have cushioned the fall in economic activity, but this has also caused high levels of liquidity, which has had repercussions in the increase of indebtedness at a global level.
In relation to the above, it should be noted that the variation in the nominal exchange rate against the U.S. dollar was divergent in the countries of the subregion. For example, the annual average for 2020, with respect to 2019, reports the largest depreciation in the Dominican Republic (10.2%), followed by Nicaragua (3.7%), while in Costa Rica, Guatemala and Honduras the average variation was close to zero (between 0.2% and 0.3%).
FINANCIAL MARKET VOLATILITY INDEX (JANUARY 2018 - OCTOBER 2020) 90 80 70 60 50 40 30 20
2019
Oct
Sep
Aug
Jul
Jun
May
Apr
Feb
Mar
Jan
Dic
Nov
Oct
Sep
Aug
Jul
Jun
Apr
May
Feb
Mar
Dic
Jan
Nov
Oct
Sep
Jul
2018
Aug
Jun
Apr
May
Mar
Jan
0
Feb
10
2020
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Bloomberg Note: The VIX index, prepared by the Chicago Board Options Exchange (CBOE), measures expected volatility for the next 30 days and is obtained from the prices of call and put options on the S&P 500 index.
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Thus, if risk perception were to change and risk aversion were to increase, this would have negative effects on emerging economies in general and on Latin America and the Caribbean in particular. Emerging economies would be more vulnerable to changes in financial market access conditions, given the sharp increase in debt ratios.
EMERGING MARKETS BOND INDEX 2020 Venezuela Argentina Ecuador
219,7%
Variation vs. 28/2/20 +79 -36
14,6%
-30
10,2%
Mexico Dominican Republic
4,7%
+26
4,5%
+12
Brazil
3,1%
+22
Colombia
2,4%
+14
Source: Central Bank of the Dominican Republic. Note: “Spread” of the Emerging Markets Bond Index, known as “country risk”, in a selection of Latin American countries according to data from October 27, 2020.
According to the Institute of International Finance (IIF), the debt of governments and companies in developed countries reached 432% of GDP in the third quarter of this year, surpassing the record level of 380% of GDP recorded in 2019, while in emerging countries it reached 250%. The increase in debt was accompanied by a greater acceptance of risk by in-
7,7 % DROP IN LATIN AMERICAN GDP IN 2020, ACCORDING TO ECLAC.
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vestors seeking higher yields. Much of the debt accumulation from the global financial crisis had been in the non-financial corporate sector, for which the disruption of supply chains and reduced global growth imply less optimal results and evidence of greater difficulty in repaying debt.
External shocks and new growth challenges for the region Thus, the magnitude of the effects of the crisis at the global and Latin American level has also been determined by structural factors such as their degree of integration in international trade and global value chains, their productive structure, demographic aspects and the level of formalization of labor markets. The region’s historical structural weaknesses and gaps, limited fiscal space, low coverage and access to social protection, high labor informality, productive heterogeneity and low productivity are central to understanding the scope of the pandemic’s effects on the region’s economies, its difficulties in implementing policies to mitigate these effects and the challenges in undertaking a sustainable and inclusive economic recovery. According to the Economic Commission for Latin America and the Caribbean (ECLAC): “ The health
A GROWTH RATE OF 5.2 % OF THE WORLD ECONOMY IS EXPECTED IN 2021, ACCORDING TO ECLAC.
emergency materialized in the worst economic, social and productive crisis that the region has experienced in the last 120 years, and in a 7.7% drop in regional GDP”. Against this backdrop, ECLAC stated: “In the global arena, despite a slight upward revision of the projections made in mid-year, in 2020 the world economy was expected to suffer a 4.4% drop and a generalized recession in countries and regions. The growth dynamics reflect, in part, a better-than-expected second quarter for some of the major economies, thanks to the boost from fiscal packages and the rebound enabled by reopenings during the third quarter.” In 2021, the said commission mentions that a rebound in the growth rate of the world economy of around 5.2% is expected. In developed economies, a growth rate of 3.9% is projected for 2021, which implies that, on average, these economies will not reach pre-crisis GDP levels next year. Similarly, and with a similar forecast, the International Monetary Fund (IMF) projects world economic growth of 5.5% in 2021 and 4.2% in 2022.
Impact on trade and value chains On the other hand, with respect to world trade, according to the World Trade Organization (WTO), a
9.2% drop was forecast for 2020 and a 7.2% recovery in 2021. The 2020 drop would be the deepest since the 2009 global economic and financial crisis, when it was almost 13%. “Between January and September 2020, the volume of trade fell by 7.2% compared to the same period of the previous year, although since June there had been a recovery.” It should be noted that Brazil and Uruguay recorded smaller declines in imports than the rest of the South American economies during the first half of 2020, while imports from Costa Rica, Guatemala and Nicaragua fell less than the Central American average. It is also worth noting that in the first months of 2020 there was a sharp decline in commodity prices, from May onwards this was reversing and, with the exception of energy commodities, by October prices were already above pre-pandemic levels: 5% above the December 2019 level. The IMF’s October projections point, on average, to a 9% increase in commodity prices: 4% in agri-food products, 3% in base metals and 16% in energy products. In the context of Latin America and the Caribbean, the decline in commodity prices translated into lower export prices, especially in hydrocarbon exporting countries (-19%); agro-industrial and mining exporters faced a milder decline (-3%). Export volumes contracted in all subgroups, as the international crisis reduced external demand.
WORLD GDP WILL GROW BY
4,2 %
THE WTO REPORTS THAT IMPORTS OF ALL LATIN AMERICAN COUNTRIES FELL BY DOUBLE DIGITS (-26.6%) IN MOST OF THEM IN 2020.
IN 2022, ACCORDING TO THE IMF.
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YEAR-ON-YEAR RATE OF CHANGE IN WORLD TRADE VOLUME (PERCENTAGES, BASED ON A SEASONALLY ADJUSTED INDEX) A.World 20 Projection WTO 2020: -9,2 2021: +7,2
13.9
15 8.9
10 7.1
6.0
4.7
5
4.9 1.4
0.8
2.3
2.8
1.9
3.5
1.0
0 -0.5 -5 -7.2
-10
Jan a sep 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
-12,8 2005
-15
B. Selected regions and countries 15 10 5 0 -5 -10 -15 -20 -25 -30 -35
Ene
Feb
Mar
Abr
May
Jun
Jul
Ago
Eastern Europe and the Commonwealth of Independent States Africa and the Middle East Eurozone World United States Japan Latin America Emerging economies of Asia (excluding China) China
2020
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Netherlands Bureau of Economic Policy Analysis (CPB), World Trade Monitor [online database] https://www.cpb.nl/en/worldtrademonitor. - World Trade Organization (WTO), https://www.wto.org/spanish/news_s/pres20_s/pr862_s.htm.
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As for the Central American and Caribbean countries, excluding Trinidad and Tobago, the terms of trade would improve (by 5% and 3.4%, respectively) as a result of the large weight of energy in their import basket. Remittances, which are a key component of the balance of transfers, have had a heterogeneous behavior among the countries. In Mexico, the main remittancereceiving economy (accounting for more than a third of the total flows received), remittances grew by 9% up to August 2020 compared to the same period of the previous year. They have also increased in Jamaica (18%), the Dominican Republic (11%), Nicaragua (9%), Guatemala (4%) and El Salvador (1%). On the contrary, in other countries remittances have decreased so far this year: this is the case of Bolivia (-2 %), Peru (-22%), Paraguay (-16%), Costa Rica (-10%), Ecuador (-10%), Honduras (-2%) and Colombia (-1%). In the meantime, according to Balance of the Economy of Latin America and the Caribbean developed by ECLAC in 2020 it is argued, “Despite the fall in exports, the region’s current account deficit will decrease significantly (to 0.4% of GDP from 1.8% of GDP in 2019) due to the strong contraction of imports. These present the worst performance since the global financial crisis: a 14% reduction in volume terms is expected. The value of the region’s exports would contract by 13%: export prices would fall by 7% and export volumes by 6%”.
sovereign risk has tended to decrease and stabilize thanks to the strong improvements registered in September in Argentina and Ecuador. As measured by the Emerging Markets Bond Index Global (EMBIG), it reached 467 basis points at the end of October, well below the 702 basis points it closed at in April, but still above the 346 basis points it recorded at the close of 2019. Debt issuance in international markets during the first ten months of 2020 was 19% higher than in the same period last year. Sovereign bonds accounted for 40% of the total issued through October, followed by the private corporate sector (27% of the total) and quasi-sovereign bonds (20%).
BOND YIELDS IN SOUTHERN COUNTRIES Argentina 7Y 46,144 (0,000 (0,00%)) 43.300 - 43.300
50000
Chile 10Y 4,380 (+0,000 (+0,00%)) 116.323 - 116.323 Colombia 10Y 6,990 (+0,000 (+0,00%)) 104.525 - 105.005
40000 30000 20000 10000 0 -10000
Expiration date
Annual variation
Mexico 10Y 6,994 (+0,179 (+2,64%)) 107.287 - 107.401 Peru 10Y 5,407 (+0,000 (+0,00%)) 111.680 - 111.871
Source: Data taken from Investing. Own graph.
Financial flows to the region Another important aspect in the Latin American economy is the dynamics of financial flows to the region, which has been influenced by increases in global liquidity. The leading indicator of financial flows prepared by ECLAC shows that, in the third quarter of 2020, financial flows to the region continued on their recovery path, which coincides with the evolution of bond issues of the region’s countries in international markets. It is estimated that the average financial flows received by the region during that year allowed both to cover the current account deficit and to accumulate reserves. On the other hand, after the increase experienced at the beginning of the COVID-19 crisis, the region’s
GDP evolution in Latin America It is then that economic growth, in the economies of South America, fell in the first three quarters to a rate of -7.7% of GDP year-on-year, compared to close to zero growth in the same period of the previous year.
The economies of Central America went from 3.2% GROWTH RATE growthLATIN in the AMERICA: first three quarters of 2019 to aAND 5.9%LEVEL O (IN PERCENTAG contraction in the same period of 2020. In the case of Central America and Mexico, the drop in growth in the first three quarters of 2020 was 9.2%, 9.6 percen4 tage points lower than in the same period of 2019. 2 0 -2 TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022 -4 -6
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The contraction of regional GDP is explained both by the significant decline in domestic demand in each of its components and by lower external demand. In terms of aggregate demand, there were sharp declines in all of its components: consumption, investment and exports. In sectoral terms, ECLAC states that although the
current economic situation has had a negative impact on all sectors, it has done so with varying intensity depending on the sector: the most affected were manufacturing, construction, commerce and transportation, and the least affected were agriculture, essential services, financial services and mining.
LATIN AMERICA: GROWTH RATE AND LEVEL OF GDP, 2018-2020 GROWTH RATE (IN PERCENTAGES) 4 2 0 -2 -4 -6 -8 -10
Mexico and Central America Latin America South America
-12 -14 -16 -18 -20
Trim 1
Trim 2
Trim 3
Trim 4
Trim 1
2018
Trim 2
Trim 3
Trim 4
Trim 1
2019
Trim 2
2020
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official figures.
GROWTH BY EXPENDITURE COMPONENTS IN LATIN AMERICA Countries
Private consumption
Capital formation
Total exports 2020
Total imports 2020
(% change)
(2019) % GDP
(Millions of dollars)
(Millions of dollars)
Mexico
-0.7
19.40
416.999
382.985
Argentina
-0.7
14.54
54.884
37.081
Colombia
7
21.53
31.056
41.185
Chile
4
22.44
5.694
59.032
Peru
3
21.16
46.948
36.285
Venezuela
-24.8
21.62
5.020
6.550
Costa Rica
-4.13
17.66
12.173
14.941
Bolivia
3.7
19.87
973
7.080
Ecuador
-0.6
24.94
20.226
17.959
Paraguay
3.9
18.49
11.505
7.294
Uruguay
0.5
17.18
8.076
7.564
Dominican Republic
5.3
26
4.511
17.087
Honduras
3.1
22.29
4.150
9.871
Panama
2.3
40.41
10.356
15.358
Guatemala
4.3
14.51
11.513
18.206
El Salvador
1.7
19.1
5.030
1.001
Source: based on official information. Own calculations and graph.
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Future outlook From another perspective, growth projections for Latin American and Caribbean economies in 2021 are positive (subject to change due to the current situation). A regional average growth rate of 3.7% is estimated. Indeed, 3.1 points of the projected growth rate for the region in 2021 corresponds to statistical carryover, which means that 3.7% would make it possible to recover 44% of the GDP loss recorded in 2020.
The analysis presented by ECLAC at the country level indicates that Chile and Brazil are the most indebted economies in the region (263% and 229% of GDP for the third quarter of 2020, respectively). This is why liquidity expansion policies have managed to lower the cost of financing for the non-financial corporate sector. The interest rate differential for the corporate sector has narrowed substantially since the onset of the pandemic for high yield and investment grade bonds.
In the Economic Survey of Latin America and the Caribbean, 2020, ECLAC projects a scenario in which the region rebounds in 2021 and then returns to its average growth trajectory of the last decade of 1.8%. In this scenario, recovery to the 2019 GDP level would be achieved in 2024.
Similarly, the World Bank’s Global Economic Prospects report argues for a more optimistic scenario: “Regional economic activity is expected to grow by 3.7% in 2021, as pandemic mitigation”.
ANNUAL RATES OF CHANGE AT CONSTANT PRICES (2010) TOTAL GDP GDP PER CAPITA 10
5
Rate of change GDP
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
-5
1990
0
Per capita variation rate
Source: Economic Commission for Latin America and the Caribbean (ECLAC).
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GDP GROWTH RATE (2020) AND PROJECTIONS (2021-2022) December 2020
2021 projections %
2022 projections %
Growth Difference (2020-2021)
Growth Difference (2021-2022)
Brazil
-1.2
3.7
6.5
132.4
43,07
Mexico
3.1
5
2.5
38
-100
Argentina
-9.9
5.8
2.5
270.68
-132
Colombia
6.1
5.1
3
-19.6
-70
Chile
3.2
6.2
3
48.38
-106.6
Peru
0.51
8.5
3.9
94
-117.9
Venezuela
-30
-10
-5
-400
-300
Costa Rica
-4.5
2.9
4
-55.17
27.5
Bolivia
-6.2
4.4
3.5
-40.9
-25.71
Ecuador
-7.8
8.8
1.3
11.36
-576.9
Paraguay
-0.6
4
4
-85
100
Uruguay
-5.9
2.7
3.1
318.51
12.9
Dominican Republic
-6.7
4.8
4.5
239.583
-6.66
Honduras
-9
4.5
5.2
300
13.46
-17.9
2.6
7.8
788.4
66.66
Guatemala
3.6
3.1
3.4
-16.12
8.82
El Salvador
-7
5
4.4
240
-13.63
Countries
Panama
Source: based on official information from the region’s central banks. Own calculations and graph. Note: The difference in growth expressed in percentage units is obtained by estimating the current GDP (projection with the previous GDP).
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9 8
Inflation
7
Growth
6 5 4 3 2 1
ECLAC estimated in 2020 that year-on-year (December-December) average inflation in CARD (Central America and Dominican Republic) countries stood at 2.3%, 0.4 percentage points below that recorded in 2019 (2.7%). This slowdown was the result of a significant contraction in domestic demand, which offset the supply effects related to the temporary closure of economic activities.
ua y ru g
ru U
Pe
y ra gu a
o
Pa
ex ic
al
a M
Co
te m
bi
az Br
Expectations for inflation in 2020 and 2021
a
0
il
The region’s current account deficit narrowed sharply in 2020, driven by an increase in the current account surplus, by the increase in the goods surplus as a result of a sharp contraction in imports, its decline outpacing that of exports, so the goods account surplus increased in 2020.
INFLATION EXPECTATIONS 2021
G ua
ECLAC estimates that the economies of the CARD countries will have an average growth of 4.2% in 2021, to the extent that global economic activity recovers and the internal dynamics of consumption and investment are reestablished.
m
In terms of trade, for 2021, the WTO expects a rebound in trade volume with a growth of 7.2 %, in line with the expected rebound in global economic activity. In this regard, there is the possibility of a somewhat better performance than predicted in the event that vaccines or treatments for COVID-19 could be distributed more quickly.
In the case of expectations for 2021, the August 2020 surveys indicate that the simple average of growth expectations increased 0.1 percentage points from 3.8% to 3.9% and the simple average of inflation decreased 0.1 percentage points from 3.8% to 3.7% with respect to the July surveys. The countries where growth expectations for 2021 increased were Brazil, Mexico, Paraguay and Peru. In the case of inflation, Brazil, Paraguay and Uruguay recorded a drop in inflation expectations.
lo
In Central America, growth is expected to recover to 3.6% this year, supported by higher remittance inflows and stronger export demand, as well as reconstruction after two hurricanes. In the Caribbean, growth is expected to rebound to 4.5%, driven by a partial recovery in tourism.
The August 2020 expectations surveys conducted by the region’s Central Banks indicate that the simple average of growth expectations for 2020 decreased 0.1 percentage points from -5.9% to -6.0% and the simple average of inflation expectations increased 0.1 percentage points from 3.1% to 3.2% with respect to the July surveys. Changes in both inflation and growth expectations are heterogeneous among the countries analyzed.
Ch ile
Projected investment confidence and trade recovery
Source: Base information - Report “Disclosure of Expectations in Latin America” of the Inter-American Development Bank (IDB). Own calculations and graph.
In the case of expectations for 2021, this year’s May surveys indicate that the simple average of growth expectations increased by 0.2 percentage points, from 3.4% to 3.6%, and the simple average of inflation expectations increased by 0.1 percentage points, from 4.0% to 4.1%, with respect to the April surveys. The only country where growth expectations decreased was Uruguay.
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Impact on the level of investment within the HVAC industry Impact on the level of investment and capital flows in relation to the risk of financial markets within the HVAC industry
the sector, the engineer emphasized that there is a good outlook for HVAC, especially on issues of ventilation and filtration.
In 2020, the construction industry recorded a 15% drop in GDP and the loss of 140 thousand jobs. However, the arrival of the COVID-19 vaccine driving the economic recovery and the package of investment projects announced by governments may improve the outlook for the sector.
Due to the challenges today, the industry will require more effective controls to generate a competitive advantage in the new way of working, interacting and producing, so having tools focused on increasing productivity will be important for the operation of the industry.
For Verónica Ledesma, expert consulted by Latin Press INC; “in the construction industry, the market has advanced at a much slower speed, however, it has continued to advance, something that did not happen in other sectors”.
In terms of capital flows, according to data revealed by the Institute of International Finance, during the month of October 2020 Latin America had a net inflow of foreign portfolio investment inflows that reached US$4 billion, a figure that shows a progressive improvement compared to the US$3 billion that arrived in September, and the US$2 billion that arrived in the month of August.
To which she added: “I believe that investors have tried to move in a safer way because of the risk involved in the pandemic issue, taking the speed of construction to a minimum. It has started to reactivate in the last few months, but it has not even reached half of what it was before SARS-CoV-2”. Faced with a better outlook away from fears of recession and focus attention on productivity issues for
94
In addition, the figures show another interesting trend, and that is that while in previous months fixed income was the great engine of attraction of foreign resources to Latin America, October also saw an improvement in equity investments, as both items recorded an inflow of capital of US$2 billion.
EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2019 % EXPORT GROWTH 2019*
2,4%
-0,7%
3,2%
4,5%
-4,5%
Fuente: Cepal
TRADE BALANCE 2019* Mexico -7.790
Costa Rica 1.845
Guatemala -8.234
Honduras -4.388
Nicaragua -964
Panama -3.256
Dominican Republic -3.400
In US Dollars. *Estimate by ECLAC * Note: latest available data (2019). TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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Mexico, Central America and the Caribbean
Mexico
MEXICO: GDP AND UNEMPLOYMENT, 2018-2020
The Mexican economy will plummet by -10.2% in 2020, according to the results of the survey conducted in August 2020 by the Bank of Mexico among 36 specialists from the private and foreign sectors, coinciding with ECLAC’s estimates of a -9.0% decrease, the largest contraction of the country’s economic activity since 1932.
IMP HVA 6
4 2
5
0 -2
4
-4 -6
3
-8 -10
2
-12 -14
ECLAC estimated that inflation in 2020 would be 3.5%, due to the increase in the price of agricultural products, medical supplies, medicines, gasoline and public services, as well as the exchange rate depreciation. For its part, the unemployment rate would be at 5.1%, with a loss, between January and October 2020, of 518,609 formal jobs registered in the Mexican Social Security Institute (IMSS), compared to 2019. From January to October 2020, the values of total merchandise exports and imports fell 12.6% and 18.8%, respectively, although the Organization for Economic Cooperation and Development (OECD) notes that exports have revived, driven by the reMEXICO: GDP AND bound in the US.
UNEMPLOYMENT, 2018-2020
1
-16 -18 -20
T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
INFLATION, VARIATION RATE OVER 12 MONTHS.
18
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
T1
T2 T3 2019
T4
T1
T2 2020
IMPORTS OF HVAC/R EQUIPMENT
T3
In the case of investment, Mexico’s attraction to caGDP, VARIATION RATE OVER 4 QUARTERS. pital flows has been maintained, with US$11.864 trillionINFLATION, in net FDIVARIATION inflows in RATE the first quarter of 2021, an OVER 12 MONTHS. increase of 14.8% and the highest amount a first UNEMPLOYMENT, VARIATION RATE OVER 12for MONTHS. quarter. Source: ECLAC, based on official data
96
29,5% USA
6,1% ITALY
21,2% GERMANY
4,8% JAPAN
18,6% CHINA BY MAY 2021
Source: Descartes Datamyne - Inegi
BY MA
Source: D
4 -4 The Bank of Mexico made the projection for 2022, -6 from 3.3% to 3%. Regarding consumer confidence, -8 3 according to seasonally adjusted figures from the -10 -12 National Institute of Statistics and Geography 2(Ine-14 gi), the Consumer Confidence Indicator (ICC) advan-16 1 ced 11.5 points in its annual comparison, reaching a -18 level of 42.7 points. -20 0 T4
29
21
-2
T2 T3 2018
0
GDP, VARIATION RATE OVER 4 QUARTERS.
ECLAC forecasts a 3.8% growth in Mexico’s GDP for 4 6 2021. For its part, the OECD forecasts GDP growth 2 0 3.6%. 5 at
T1
T3
19,9% OTHERS
Costa Rica By 2020, the Costa Rican economy had a contraction of -4.8% of GDP due to the imposition of physical distancing measures and mobility restrictions due to the pandemic, and the fall in international trade of goods and services, according to ECLAC. This drop was the second largest contraction in economic activity since 1950, after the -7.3% decline recorded in 1982.
5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10
In this regard, the OECD notes that employment in the country is beginning to recover and the unemployment rate has fallen slightly from 24.4% in July to 23.2% in August. Labor-intensive service sectors, such as hospitality, retail, transportation services, domestic services and construction, are the most affected by the pandemic.
T1
T2
T3
T4
2018
T1
T2
T3
T4
T1
2019
T2
T3
24 22 20 18 16 14 12 10 8 4 4 2 0
35
2020
3
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
The agency forecasts a GDP recovery of 2% by 2021 and a stronger recovery (3.8%) by 2022. For its part, ECLAC estimates a 3.0% growth in 2021. On the other hand, the Central Bank of Costa Rica (BCCR) highlights an improvement in the macroecoCOSTA RICA: GDP, INFLATION nomic scenario that is reflected in various indicators AND UNEMPLOYMENT, for the end of the year and for 2022 forecasts. It also 2018-2020 emphasizes that the evolution of the main indicators of 5the external sector would be conditioned by the 24 4 recovery of the local economic activity and of22the 3 2 20 main commercial partners. 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10
IMP HVA
COSTA RICA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
Source:
IMPORTS OF HVAC/R EQUIPMENT
18 16 Consumer confidence was severely affected. Howe14 12 ver, for 2021, the Central Bank projects a gradual recovery of domestic demand, mainly driven by10the 8 vaccination campaign and the possibility of a return 4 to normality. Domestic demand is expected to4 re2 cover, with a growth of 2.4%, on average, for 20210
2022.T1
T2
T3
2018
T4
T1
T2
T3
2019
T4
T1
T2
T3
35,2% USA
2020
34,0% CHINA
GDP, VARIATION RATE OVER 4 QUARTERS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
6,9% COSTA RICA 14,2% OTHERS
9,7% BÉLGIUM
INFLATION, VARIATION RATE OVER 12 MONTHS.
BY MA
BY MAY 2021
Source: Descartes Datamyne – National Customs Service
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El Salvador
IM HV
EL SALVADOR: GDP AND INFLATION, 2018-2020
In 2020, El Salvador’s GDP contracted by -8.6% (versus a 2.4% expansion in 2019), due to the temporary cessation of economic activity due to the COVID-19 pandemic, according to ECLAC. This would be the third steepest decline in output since 1950, after -11.8% in 1980 and -10.5% in 1981, the years of the beginning of the civil war. The Central Reserve Bank of El Salvador indicated in September 2020 that during the first six months of the year “a contraction of -9.3% of the GDP is reflected, which did not have a greater dimension thanks to the implementation of policies aimed at supporting the income and consumption of households through cash transfers and food packages”. The country also presented a strong increase in unemployment, with the loss of some 60,000 jobs, according to data from the Ministry of Economy, raising to 8.24% the unemployment rate which had been at 6.3%.
EL SALVADOR: GDP AND As for international trade, between January and INFLATION, 2018-2020 October 2020, exports amounted to 4.087 billion
3
4 2
2
0 -2
1
-4 -6 -8
0
-10 -12 -14
-1 -2
-16 -18 -20
T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
IMPORTS OF HVAC/R EQUIPMENT
1
expects the Salvadoran economy to recover 0 by 3.5 % in 2021, driven by an increase in public and -10 -1 ex-12 private investment, private consumption and the -14 ternal sector. Inflation will be close to 1%. -2
-16 -18
According to Ipsos, a global market research-3com-20 T1 T2 T4 T1 T2 T3 T4 T1 T2 T3 pany, on theT3 Consumer Confidence Index (ICC), “El 2018 2019 2020
Salvador registered an important improvement of +18.0 points, reaching 57.3. GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.
Source: ECLAC, based on official data
98
BY
Sourc Bank
dollars, with a contraction of 18.8% year-on-year, 3 4 while accumulated imports amounted to 8.514 bi2 llion dollars, representing a year-on-year reduction 2 0 of 15.7%. -2 -4 -6 ECLAC -8
-3
35,4% USA
6,9% ITALY
14,0% CHINA
3,6% GUATEMALA
7,6% MEXICO BY DECEMBER 2020
Source: International Trade Centre (ITC) - Central Reserve Bank of El Salvador.
Guatemala
IM H
GUATEMALA: GDP AND INFLATION, 2018-2020
ECLAC estimates that in 2020 Guatemala’s GDP will have contracted -2.5%, compared to the 3.8% growth presented in 2019, caused by the confinement measures to face the pandemic, although it estimates a 3.5% rebound by 2021. Significant efforts by the Guatemalan government to offer fiscal stimuli to companies, the creation or increase of social programs aimed at families and the reduction of tax revenues led the country to end 2020 with a deficit of 5.3% of GDP, but an external debt of 31.6%, the lowest in the region. However, inflation stood at 5.46%, almost five tenths above the upper limit of the central bank’s target range (between 3% and 5%). From January to October 2020, the value of total exports of goods decreased at a year-on-year rate of 0.1%, while that of imports fell by 11.1%. Imports of consumer goods decreased by 8% during the first eight months of the yearGDP and those of capital goods GUATEMALA: AND byINFLATION, 7.2%. 2018-2020
6
6 5
5
4
4
3
3
2
2
1 0
1 T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
0
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
Sou Gu
IMPORTS OF HVAC/R EQUIPMENT
On the other hand, regarding the consumer confi6 dence index, for this 2021 Guatemala registered an 6 improvement of +7.6 points, reaching 43.9. 5 5
4
In the Investment Index, an improvement of 4+3.9 points was registered, which allows it to remain in 3 3 the top third together with El Salvador (61.6), the 2 2 United States (50.2) and Puerto Rico (49.2). 1 0
1 T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
0
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
36,6% USA
5,5% GERMANY
13,8% CHINA
3,6% BRAZIL
7,8% MEXICO
B
32,7% OTHERS
BY DECEMBER 2020.
Source: International Trade Centre (ITC) – Central Bank of Guatemala.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
99
Panama
PANAMA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 3
IMP HVA
5
Despite the fact that the World Bank highlighted in 2019 that “Panama has been one of the fastest growing economies worldwide”, with an average of 5% in the last five years, the pandemic collapsed the positive outlook and ECLAC estimates a contraction of -11.0% for 2020, which represents the setback of a decade for the Panamanian economy. ECLAC estimates that inflation would again be in negative territory, with a decrease of 1.0% in 2020 and 0.1% in 2019), due to weak demand, while the unemployment rate would exceed 10% at the end of the year compared to 5.8% in 2019. In terms of international trade, between January and August 2020, the value of total exports of goods fell by 23.7% compared to 2019, while imports of goods into the country (excluding the Colon Free Zone) fell by 41.2%. The largest contraction corresponds to imports of PANAMA: GDP,although INFLATION AND capital goods (52.7%), imports of consumer goods and intermediate 2018-2020 goods also recorded UNEMPLOYMENT, 3 5 significant drops in the period (39.1% and 32.4%, 0 respectively). The same agency projects that the 2 Panamanian economy will recover 5.5% in 2021. -5
0
2
-5 1
-10 -15
0
-20 -1
-25 -30
-2
-35 -40
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
3
GDP, VARIATION RATE OVER 4 QUARTERS.
2
INFLATION, VARIATION RATE OVER 12 MONTHS.
1
2019
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
IMPORTS OF HVAC/R EQUIPMENT
-3 32,1% USA
11,8% TAIWAN
GDP, VARIATION RATE OVER 4 QUARTERS.
23,3% CHINA
17,0% OTHERS
INFLATION, VARIATION RATE OVER 12 MONTHS.
15,8% TRADE ZONE
2018
2019
2020
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
100
BY M
Source:
The Panamanian Consumer Confidence Index (ICCP), -15 0 in charge of the pollster The Marketing Group, ac-20 cording to last May’s measurement, reached 105 -1 -25 points, 5 units higher than the previous one, of -30 March 2021, informed the Chamber of Commerce, -2 -35 Industries and Agriculture of Panama (CCIAP). -40
-3
2020
2018
1
-10
T3
BY MAY 2021
Source: Descartes Datamyne – National Customs Authority.
Honduras
HONDURAS: GDP E INFLATION 2018-2020
The COVID-19 pandemic significantly affected the economy of Honduras. The country’s GDP was expected to contract by 9 % in 2020 due to the pandemic and the two successive hurricanes. Some 45 % of households, according to World Bank surveys, reported income losses in August.
5
6
4 2 2
5
-2
IMP HVA
4
-4 -6
3
-8 -10
2
-12 -14
Projections suggest that the proportion of people living below the $5.50 a day poverty line could rise to 55.4 percent in 2020, resulting in more than 700,000 new poor, while inequality increases slightly. From another angle, Honduras’ economy is expected to rebound in 2021 to 4.5 percent growth, amid the revival of domestic economic activity and the recovery of investment and external demand. Around trade from January to September 2020, exports of Honduran companies amounted to $3,262 million, an amount that exceeds by 0.3% what was reported in the same period of 2019, a rise that is HONDURAS: GDP E INFLATION recorded after several drops in sales, which were ge2018-2020 nerated by the health and economic crisis. 5
1
-16 -18 -20
T1
T2
T3
2018
T4
T1
T2
T3
T4
T1
2019
T2
T3
0
2020
49
19
GDP, VARIATION RATE OVER 4 QUARTERS.
BY MA
INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
Source: of Hond
IMPORTS OF HVAC/R EQUIPMENT
6
4 2 2
During the third quarter of 2020, Honduras received 5 323.5 million dollars of Foreign Direct Investment -2 4 (FDI),-4 75.9 percent higher than the same period of -6 For this 2021, growth is associated with the 2019. 3 -8 maquila, agriculture, and construction sectors. -10 2
-12 -14
1
-16 -18 -20
T1
T2
T3
2018
T4
T1
T2
T3
2019
T4
T1
T2
T3
0
2020 49,1% CHINA
17,3% USA
19,4% TAIWAN
14,2% OTHERS
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
BY MAY 2021
Source: Descartes Datamyne - National Institute of Statistics (INE) of Honduras.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
101
Dominican Republic
DOMINICAN REP: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
After a negative year-end of -6.7% of its gross domestic product (GDP) in 2020, the economy of the Dominican Republic will reach a growth of 4.8% in 2021 and 4.5% in 2022, well above the projected growth for the region of 3.7% for this year and of most Latin American countries. Until the end of September, the Dominican economy had fallen by around 8%, especially due to the collapse of tourism, the country’s main economic sector. The rest of the sectors have been returning to economic recovery.
10 8 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20
8 7 6 5 4 3 2 1 T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
0
2020
31
GDP, VARIATION RATE OVER 4 QUARTERS.
29
2018
2019
INFLATION, VARIATION RATE OVER 12 MONTHS.
In the case of foreign trade, total exports of goods as of March 2021 reached some US 2,89 billion, which represented a growth of 7.5% with respect to January-March 2020, or an additional US$203.1 million. For 2021 imports show a marked inter-annual growth of 27.4% in the month of March, highlighting DOMINICAN REP: GDP, INFLATION non-oil imports with an increase of 19.4%, which is UNEMPLOYMENT, 2018-2020 in line AND with the reactivation of economic activity. In 10 8 the January-March quarter, total imports grew 9.9% 8 7 compared to the same period of the previous year. 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
IMPORTS OF HVAC/R EQUIPMENT
6
0
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
102
5
BY DE
Internat Dominic
Likewise, foreign investment grew by 4% up to Sep5 tember, totaling US 2,066 billion for the year, and 4 remittances grew by 34%. However, inflation, which 3 accumulated an increase of 3.74%, will maintain the target set by the Central Bank of 4% with a range2of one point of oscillation in both directions. 1 T1 the T2 consumer T3 T4 T1 confidence T2 T3 T4 index, T1 T2 the T3 DoRegarding 2018 2019 2020 minican Republic registered an improvement of +1.5 GDP, VARIATION RATE OVER 4 QUARTERS. points, reaching 35.1. The investment index showed INFLATION, RATE OVER 12 MONTHS. an improvement of VARIATION +1.2 points.
IMP HVA
31,41% USA
3,67% ITALY
29,48% CHINA
3,87% MEXICO
5,76% SPAIN BY DECEMBER 2020
International Trade Center (ITC)- National Statistics Office, Dominican Republic.
EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2019 % EXPORT GROWTH 2019* TRADE BALANCE 2019*
-3,3%
-33,3%
Colombia
Venezuela
2,1%
Ecuador Brazil -4,8%
-7%
Peru
-2,7%
-61,4%
Paraguay
Bolivia -0,8%
-6,6%
4,1%
Uruguay
Argentina
Bolivia -2.461 Colombia -12.983 Ecuador -2.586 Peru 2.493 Venezuela ND Brazil 3.128 Argentina 10.057 Chile -1.767 Paraguay 272 Uruguay 3.870 In US Dollars *Estimation by ECLAC
Chile Source: IADB and ECLAC
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
103
Andean Region
Bolivia
BOLIVIA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
Health measures to contain COVID-19 infections led to an economic crisis that caused the Bolivian economy to contract by -8.0% in 2020, with a significant increase in the unemployment rate and moderate inflation of 1.5%, ECLAC revealed. In addition to tax deferrals (representing 1.5% of GDP), measures to address the economic crisis include transfers to different segments of the population (1.7% of GDP), credit to companies and support for employment (1.2% of GDP), as well as discounts on basic services (0.3% of GDP). The outlook for ECLAC shows that “extreme poverty will reach 16.8% this year, with a greater increase in unemployment, causing a significant deterioration in the levels of poverty and inequality”, warned Alicia Bárcena, Executive Secretary of the organization, at the end of 2020. The National Statistics Institute (INE) reported that, at the BOLIVIA: end of the third quarter of 2020, theAND unemGDP, INFLATION ployment rate was 10.76%, and although it dropped UNEMPLOYMENT, 2018-2020 to 8.39% in the fourth quarter, by January 2021 it would have risen again to 9.67%. However, ECLAC 6 6 is also optimistic for 2021, forecasting a slight recovery of 2economic activity, with growth of around5 3%, indicating that it will be limited by the “weakness -2 4 of external demand”. -6
6
6
5
2 -2
4
-6
3
-10
2 -14
1
-18 -20
T1
T2 T3 2018
T4
T1
T2
T3 2019
T4
T1
T3 T2 2020
INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
IMPORTS OF HVAC/R EQUIPMENT
In the first four months of 2021, imports this 2year -14 reached a value of 2,643 million dollars, an increase 1 of 361-18million (16%) over the same period of 2020. T2 T3 2018
T4
T1
T2
T3 2019
T4
T1
T3 T2 2020
0
GDP, VARIATION RATE OVER 4 QUARTERS.
17,6% BRAZIL
INFLATION, VARIATION RATE OVER 12 MONTHS.
13,4% EEUU
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
104
23,12% CHINA
BY 20
Source:
3
T1
0
GDP, VARIATION RATE OVER 4 QUARTERS.
-10
-20
IMP HVA
5,0% JAPAN 4,5% GERMANY
BY 2020
Source: International Trade Center (ITC) - Pro-Bolivia.
Colombia
COLOMBIA: GDP, INFLATION AND IMP HVA UNEMPLOYMENT, 2018-2020
The Colombian GDP will have decreased -7.0% in 2020, according to ECLAC, added to the strong increase in unemployment and sovereign debt, reaching historic highs, which according to the Ministry of Finance, even reached 65.7% of the GDP, in order to meet the needs due to the coronavirus emergency, leaving Colombia among the “most indebted” countries in the region.
4
20
2
18
0
16
-2
14
-4
12
-6
10
-8
8
-10
However, according to export information processed by DANE and DIAN, in April 2021 the country’s external sales were US$2,914.7 billion FOB and presented an increase of 56.3 % in relation to April 2020; this result was mainly due to the 63.4% growth in external sales of the group of fuels and products of extractive industries.
-12
6
-14
4
-16
2
-18
T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
0
39
23
GDP, VARIATION RATE OVER 4 QUARTERS.
9
INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
In the case of imports registered before the DIAN in March 2021, imports were US$4,934.8 million CIF and presented an increase of 37.5% in relation to the same month of 2020. According to the April results the Consumer OpiCOLOMBIA: GDP,ofINFLATION AND nion Survey (EOC), the Consumer Confidence Index UNEMPLOYMENT, 2018-2020 registered a balance of -34.3%.
Source:
IMPORTS OF HVAC/R EQUIPMENT
20
4
Foreign investment in Colombia grew 66% in18the 2 0 first quarter of 2021. According to the entity, 16bet-2 14 ween January and March 2021, Colombia received -4 12 33 new projects with estimated business for 1,595 -6 10 million -8 dollars, while last year in the same period it 8 -10 was 960 million dollars. -12
6
-14
4
Both-16the IMF and ECLAC are optimistic about2 the recovery for 2021, expecting GDP to rebound -18 0 to T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 3.7% and 5.0% respectively. 2018 2019 2020
39,7% CHINA 23,2% USA
GDP, VARIATION RATE OVER 4 QUARTERS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
7,2% GERMANY 20,5% OTHERS
9,4% MEXICO
INFLATION, VARIATION RATE OVER 12 MONTHS.
BY MA
BY MAY 2021
Source: Descartes Datamyne – DIAN.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
105
Ecuador
ECUADOR: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
ECLAC estimates a sharp contraction of the Ecuadorian GDP of -9.0% in 2020, in an economy that had already been showing weak growth in 2019, of only 0.1%, partly as a consequence of the social uprising of October of that year, which left losses of USD 2.8 billion according to the unions, although the Central Bank of Ecuador indicated that this figure would be around USD 821 million. The Central Bank of Ecuador estimates that by 2021 the economy will recover and grow 3.1%, equivalent to a Gross Domestic Product (GDP) of US$ 67,539 billion in constant values. Regarding foreign trade, for 2021, non-oil exports are projected to grow between 4% and 5 %. On the other hand, imports of goods and services would grow by 3.2% compared to 2020, a percentage that corresponds to USD 936.6 million. Regarding the ICC, the outlook is not so encouraging,ECUADOR: since it worsened compared to the same GDP, INFLATION AND month of 2020: it went from 37.10 points to 31.19 UNEMPLOYMENT, 2018-2020 points. On the other hand, the labor market continued to5 deteriorate between September 20195 and September 2020, with an increase of 28% in unem3 4 1 ployment and 11.6 % in underemployment in 2020. 3 Among-1 Latin American countries, ECLAC maintains -3 a very moderate growth forecast for 2021, only21%. -5
-9
3
4
1
3
-1 -3
2
-5
1
-7 -9
0
-11
-1
-13 -15
T1
T2
T3
T4
2018
T1
T2
T3
T4
2019
T1
T2
T3
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
T1
T2
T3
2018
T4
T1
T2
T3
T4
2019
T1
T2
T3
IMPORTS OF HVAC/R EQUIPMENT
-2
2020
GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
36,4% CHINA 28,4% USA 6,9% ITALY
36
28
6
BY MA
Source:
-1
-13
-2
2020
0
-11
106
5
1
-7
-15
5
IMP HVA
6,1% CANADA 6,0% JAPAN 17,0% OHERS
BY MAY 2021
Source: Descartes Datamyne - National Customs Service.
Peru
PERU: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
With a GDP contraction of 12.9%, the Peruvian economy is one of the hardest hit in the world by COVID-19, with a severe production shutdown that led to strict confinement, which lasted several months.
IMP HVA 10
4 1
8
-2 -5 -8
6
-11
The reason for this sharp drop is due to “the abrupt economic slowdown in the United States and China, which has disrupted supply chains in Mexico and Brazil, leading to a sharp drop in exports from commodity-producing economies such as Chile and Peru,” the World Bank stressed in a statement at the end of 2020.
-14
4
-17 -20 -23
2
-26 -29 -32
T1
T2
T3
T4
2018
T1
T2
T3
T4
T1
2019
T2
T3
0
48
2020
17
GDP, VARIATION RATE OVER 4 QUARTERS.
6
INFLATION, VARIATION RATE OVER 12 MONTHS.
Peru would be one of the Latin American countries that would be “worst off” after the pandemic, suffering a sharp increase in poverty (9.3%), along with Argentina, Ecuador and Panama. Inflation, meanwhile, remained under control at 2.1%, within the target, despite the depreciation of the sol throughout the year.
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
On the other hand, credit toAND companies PERU: GDP,although INFLATION strengthened, mainly for payments to suppliers, UNEMPLOYMENT, 2018-2020 employees and other debts, consumer credit contracted, hit by the marked deterioration of the labor 10 4 market, which reached 17.1% in the third quarter of 1 8 the year. -2
Source:
IMPORTS OF HVAC/R EQUIPMENT
-5 -8
6 ECLAC -11 estimates a rebound of 9.0% of GDP by 2021, -14 although it emphasizes that “this dynamism will be 4 -17 insufficient to recover pre-crisis GDP and production -20 levels” -23 and recovery will take even more time. 2 -26 -29 -32
T1
T2
T3
2018
T4
T1
T2
T3
2019
T4
T1
T2
T3
0 48,8% CHINA
2020
17,9% USA
GDP, VARIATION RATE OVER 4 QUARTERS.
6,8% GERMANY
INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
BY MA
5,1% BRAZIL 5,0% JAPAN 16,4% OTHERS
BY MAY 2021
Source: Descartes Datamyne – Sunat.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
107
Southern Cone
Argentina The Argentine economy had been in recession since before the arrival of COVID-19, with a fall in GDP of -3%, aggravated by the pandemic, leading to a contraction of -11.8% by 2020, according to ECLAC, and although both this organization and the OECD anticipate a moderate recovery of between 3.7% and 4.9% between 2021 and 2022. Despite the above, there were negative effects on private consumption (-14.5%), exports (-8.7%) and public consumption (-5.5%), although this dynamic was also offset by the -23% drop in imports. For 2021, the Consumer Confidence Index at national level increased 0.3% with respect to April’s record and accumulated a contraction of 7.8% in the inter-annual comparison. On the other hand, inflation reached 43.5% yearon-year in the accumulated to October, compared to the 2019 average (53.5%), associated with the ARGENTINA: GDP, prices. INFLATION freezing of regulated product Unemployment rose to 13.1% in the second quarter AND UNEMPLOYMENT, of 2020, although ECLAC expects this indicator to improve 2018-2020 in 2021.6 55 4 2
55
4 2
50 40 35
-4 -6 -8
30 25
-10 -12 -14
20 15 10 5
-16 -18 -20
T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
IMPORTS OF HVAC/R EQUIPMENT
30 25 20 15 10 5
-16 -18 T1
T2 T3 2018
T4
T1
T2 T3 2019
T4
T1
T2 2020
T3
0
GDP, VARIATION RATE OVER 4 QUARTERS.
29,6% USA
21,9% BRAZIL
INFLATION, VARIATION RATE OVER 12 MONTHS.
27,4% CHINA
21,1% OTHERS
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
BY DE
Source: Statistic
35
-14
0
GDP, VARIATION RATE OVER 4 QUARTERS.
40
-10 -12
IMP HVA
45
0 -2
45
-4 -6 -8
108
6
50
0 -2
-20
ARGENTINA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
BY DECEMBER 2020
Source: International Trade Center (ITC) - National Institute of Statistics and Census.
Chile
IMP HVA
CHILE: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
In 2020, Chile faced one of the worst economic crises in its history since 1982, with a contraction of the economy of -6.0%, which began with the social crisis experienced in the country in the last quarter of 2019 and which worsened due to border closures, quarantines and the suspension of many economic activities to control the advance of COVID-19, leading to a fall in domestic demand, a lower level of production and increased unemployment.
7 5 3 1
-1 -3 -5 -7 -9 -11 -13
Although initially agencies such as the IMF and ECLAC estimated contractions of -7.9%, as of the fourth quarter an incipient recovery of activity is observed due to the gradual withdrawal of sanitary measures and as an effect of economic measures, allowing a slight recovery at the end of the year, and ECLAC and OECD now estimate a GDP recovery of between 4.2% and 5% for 2021.
-15
T2
T3
T4
2018
T1
T2
T3
T4
2019
T1
T2
T3
3
2020
GDP, VARIATION RATE OVER 4 QUARTERS.
1
INFLATION, VARIATION RATE OVER 12 MONTHS.
1
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
According to figures from the Foreign Trade Report prepared by the Studies Department of the National Customs Service, between January and April 2021 CHILE: GDP, INFLATION thereAND were again encouraging figures for foreign UNEMPLOYMENT, trade, with Chile’s trade exchange with the world 2018-2020 growing by 25.6% to USD 51,2 billion. 7 14 5
T1
14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
Source:
IMPORTS OF HVAC/R EQUIPMENT
13
12 3 same period, the country’s exports reached For this 11 1 USD 28,7 billion, with an increase of 21.4% in10rela9 -1 tion to the same period of 2020. Imports, meanwhi8 -3 7 le, totaled USD 24,3 billion, an increase of 32.1%. -5
6 5 The Faculty of Economics and Business of the4 Uni-9 versidad del Desarrollo (UDD) together with32 AM-11 -13 presented the second version of the Foreign CHAM, 1 -15 0 -7
Direct Investment Confidence with T3 T1 T2 T3 T4 T1 T2 T3 Index T4 T1 inT2Chile, 2018 2019 2020 the participation of 190 companies from different countriesGDP, of origin and economic sectors, equivalent VARIATION RATE OVER 4 QUARTERS. to 55% of the foreign directRATE investment that arrives INFLATION, VARIATION OVER 12 MONTHS. in the country. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
32,4% CHINA 18,1% GERMANY 17,5% USA
BY MA
6,2% BELGIUM 5,7% NON PRE DESTINATION 20,1% OTHERS
BY MAY 2021
Source: Descartes Datamyne - National Customs Service.
TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
109
Paraguay The Paraguayan economy will end 2020 with a contraction of -1.6%, thanks to a decisive fiscal policy response to contain the COVID-19 pandemic, although this will result in a deterioration of the central administration’s fiscal deficit of 6.5% of GDP, ECLAC indicated. The Central Bank of Paraguay (BCP) indicated that the GDP contraction was only 0.6%. Economic activity contracted by -0.9 % during the first half of 2020, due to the impact of the sanitary measures to face the crisis. This dynamism leads ECLAC to estimate a 3.5% growth in Paraguay’s GDP for 2021, which will result in a slight rise in inflation, which will remain within the government’s target range. In the same year, foreign trade operations recorded positive data, according to the Central Bank of Paraguay (BCP). Total exports as of April 2021 reached a valuePARAGUAY: of US $4,2 billion, 16.4%INFLATION higher than the US GDP, $3,6 billion as of April 2020.
AND UNEMPLOYMENT, On the2018-2020 side of imports up to February 2021 they had
IMP HVA
PARAGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 10
9
8
8
6
7
4
6
2
5
0
4
-2
3
-4
2
-6
1 0
-8 T1
T2
T3
2018
T4
T1
T2
T3
T4
2019
T1
T2
T3
2020
GDP, VARIATION RATE OVER 4 QUARTERS.
2
INFLATION, VARIATION RATE OVER 12 MONTHS.
1
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
7
4
6
IMPORTS OF HVAC/R EQUIPMENT
According to the Central Bank of Paraguay, Foreign 2 5 Direct Investment (FDI) grew by 8.9% during 2020, a 4 0 positive-2 figure considering the context of the global 3 health -4 crisis and the consequent economic and com2 mercial-6stagnation generated at international level. 1 0
-8 T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
29,4% BRAZIL
4,2% ARGENTINA
GDP, VARIATION RATE OVER 4 QUARTERS.
26,9% USA
3,7% GERMANY
INFLATION, VARIATION RATE OVER 12 MONTHS.
17,8% CHINA
2018
2019
2020
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
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BY DE
Source:
9 10 US $1,697.8 million, 12.7% lower compared reached 8 8 to the same period of the previous year. 6
2
BY DECEMBER 2020
Source: International Trade Center (ITC) - Central Bank of Paraguay.
Uruguay
URUGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020
Although the Uruguayan country did not have a contraction in its GDP as strongly as other countries in the region, ECLAC estimated that there was a decrease of -4.5% in 2020 and projects a recovery of 4.3% for 2021.
4
IMP HVA 12
2 0
8
-2 -4
Foreign trade was one of the main factors driving the recovery of the Uruguayan economy during the last quarter of 2020, a trend that would continue in the first quarter of 2021, added to the fact that during the second quarter of 2020 the construction of the country’s third pulp mill began, “so it is possible that private investment, very depressed in the last six years, will become active again”, ECLAC predicted.
-6
-10 -12
T1
T2
T3 2018
T4
T1
T2
T3
T4
T1
2019
T2
T3
0
2020
3
GDP, VARIATION RATE OVER 4 QUARTERS.
1
INFLATION, VARIATION RATE OVER 12 MONTHS.
1
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
However, the unemployment indicator had been increasing since the months prior to the pandemic, and as of September it stood at 11%, two points higher than in the same month of 2019. In theURUGUAY: first quarter of GDP, 2021, exports totaled US $2,1 INFLATION billion, which implies an increase of 19.3% over what AND UNEMPLOYMENT, was exported in the first quarter of 2020.
2018-2020
4
-8
Source:
IMPORTS OF HVAC/R EQUIPMENT
12
4
The Consumer Confidence Index (CCI) for the month 2 of May 2021, prepared based on surveys in Uruguay, 0 shows an increase of 1.6 points. With a score of 849.7 -2 in May, although the index still remains at the mo-4 derate pessimism level, it is very close to the limit of -6 4 to moderate optimism (from 50 points). Compared -8 May 2020, the index is 4.1 points higher. -10 -12
T1
T2
T3 2018
T4
T1
T2
T3 2019
T4
T1
T2
T3
0
2020
35,2% CHINA
9,2% SPAIN
GDP, VARIATION RATE OVER 4 QUARTERS.
13,9% BRAZIL
7,9% GERMANY
INFLATION, VARIATION RATE OVER 12 MONTHS.
13,2% USA
7,1% ITALY
UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data
BY MAY 2021
BY MA
13,5% OTHERS
Source: Descartes Datamyne - National Customs Service.
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CHAPTER 7 112
SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL IMPACT IN HVAC/R
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Latin America and the Caribbean is an environmentally privileged region due to its great natural heritage, biodiversity and possibilities for providing environmental services. Nevertheless, it continues to accumulate pressures derived from old patterns of production and territorial occupation, which have worsened as a result of the predominant development model, despite the implementation of specific strategies and policies. The challenge of environmental sustainability in Latin America and the Caribbean has contributed to reversing some of the deterioration processes and to promoting systems and technologies that mitigate environmental impact. As evidenced by the Economic Commission for Latin America and the Caribbean (ECLAC) in the study “The Challenge of Environmental Sustainability in Latin America and the Caribbean”, “in the region, as in the rest of the world, the regulatory approach has been dominant in addressing environmental sustainability issues and dealing with the unsustainability of production and consumption patterns. Responsibilities have been relegated to the realm of environmental institutions and law enforcement. However, little progress has been made in crystallizing in the region the integral approach proposed in the declarations and programs of successive conferences on sustainable development”. To which the organization added: “little progress has been made in terms of a decisive public policy that gives the market signals that clearly reflect the
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real social cost of environmental deterioration. Since 20th century policy in the region was eminently normative, 21st century policy must necessarily and more decisively add economic instruments to effectively achieve the desired changes in both producers and consumers and thus move towards more egalitarian and sustainable patterns. In this framework, the central message of the United Nations Conference on Sustainable Development (Rio+20) was the need to integrate the environmental dimension fully into development approaches.” It is then that the picture of environmental sustainability is essential for the refrigeration industry, which is now part of the main consumer chains and becomes an important line of the Latin American economy. Thus arises the establishment of the CRRR-EC as an alternative to reduce the release of refrigerant gases into the atmosphere but also to meet the demand for refrigerants R134a and R-22 when the supply in the market is low and also to reduce the consumption of virgin refrigerant, making regeneration an economical and effective tool. In relation to the above, it is necessary to evaluate the positive and negative environmental impacts that may be generated from the establishment and operation of the CRRR-EC. This then consists of characterizing each of the activities and processes carried out, identifying, analyzing and quantifying the environmental aspects and impacts present in order to subsequently propose environmental management measures to
prevent and mitigate the negative consequences as well as to follow up and monitor the positive actions in order to maximize their benefit. The refrigeration sector has had different approaches and have been found for a long time with divergent concepts about good practices, although they are studied, recommended and known, not always met what continues to favor the greenhouse effect causing global warming and depletion of the ozone layer, because this release of these gases move to the stratosphere, causing a reduction of it and increasing ultraviolet radiation reaching the earth’s surface, which causes consequences on human health and ecosystems. Since the adoption of the Vienna Convention (1981) to protect the ozone layer, the Montreal Protocol (1989) related to the elimination of ozone depleting substances (ODS) for the recovery and regeneration of HCFC and HFC refrigerant gases; this sector of refrigerant gases is currently in full evolution due to the application of these, whose main objective is to reduce the use of halogenated greenhouse gases. It should be noted that for many years and currently refrigerant gases such as HCFC R-22 (Hydrochlorofluorocarbons) and HFC R-134a (Hydrofluorocarbons) have caused multiple environmental impacts, as they are derived from hydrocarbons and have persistence in the atmosphere. According to the study “EVALUATION OF THE ENVI-
RONMENTAL IMPACTS GENERATED FROM THE ESTABLISHMENT AND OPERATION OF THE CENTER OF RECOVERY AND REGENERATION OF REFRIGERANT GASES OF THE EJE CAFETERO IN THE MUNICIPALITY OF DOSQUEBRADAS RISARALDA” the refrigeration equipment of domestic and commercial range of small size, may present failures in its operation due to different factors, which may be of electrical origin or may be caused by inadequate refrigerant charge to the system or by the presence of foreign elements such as: non-condensable gases, moisture, or foreign particles, metal filings and so on. To which the research adds that “the direct effect of the concentration of CFCs in the stratosphere causes an increase in ultraviolet radiation reaching the earth’s surface which causes consequences on health and ecosystems; besides this substitute compounds such as HCFCs and HFCs are considered greenhouse gases that generate global warming. The refrigerant gas recovery and regeneration center since its establishment and operation has aimed to minimize or mitigate the environmental impact generated by the manufacture, consumption and improper handling of virgin refrigerant gases, carrying out different processes such as: recovery, regeneration and quality testing of refrigerant gases HCFC R-22 and HFC R-134a”. On the other hand, the role of the refrigeration industry is more important to achieve the Sustainable Development Goals, according to the International Institute of Refrigeration (IIR) “the food security of TOP 100 CONTRACTOR-INSTALLERS • REPORT 2021 - 2022
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each country depends largely on food losses along the chain of food production and marketing. These losses are especially important during food storage and transportation in the case of developing countries”. The institute emphasized: “According to the latest available data, these losses are three times greater in these countries than in developed countries and represent 20 % of the amount of food available than in developed countries and represent 20 % of the amount of food available. These figures when compared with those of the refrigeration capacity of warehouses, transport and domestic, it is obtained that is 10 times lower in developing countries. In addition, keeping food or health products (medicines, vaccines) at a temperature is an absolute necessity for human health, as it prevents bacterial diseases and deaths. Another point worth noting is that in the case of developing countries that do not have refrigeration equipment, it is a major source of health problems. Refrigeration is also increasingly used in surgery (cryosurgery), diagnostics (scanners), transplantation and analysis (tissue banks, gametes). In addition, air conditioning is a necessity to maintain health, or even survival, in hot climates during heat waves. Faced with the need to provide greater environmental sustainability, Carlos Grinberg, HVAC/R expert, consulted by Latin Press, INC for this report.
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Carlos Grinberg HVAC / R expert, consulted by Latin Press, INC for this report and who has extensive experience in projects, either within the areas of HVAC, electrical and sanitary, as within the area of sustainability and wellness certifications, said that the trend for the industry are new equipment and technologies aimed at sustainability and sustainability. “These are strong changes that require certifications but are important for energy efficiency.” This then marks guidelines in consumption, more central and that have greater effect because of COVID-19 in the framework of quality especially in indoor air. The expert also argued that there are more latent needs in the market, in the public of the industry and are reflected in the increased demand for these products and services, often “more present for cultural changes, evolutionary issues for the sector and trends. Similarly there are several challenges to address the growing demand for energy through space cooling and how to overcome environmental problems through public policies and collaboration with industry and academia. Therefore, it is important to know the benefits of energy efficiency technologies such as Inverter and refrigerants lower global warming potential (GWP) through projects. Additionally, the prospect of efficiency programs and building certification have a greater impact on markets, which have become “servitization” in the HVACR industry.
Energy consumption To talk about consumption it is necessary to mention the cooling technologies that are increasingly used to produce energy. Heat pumps are refrigeration devices designed to use the heat produced or, when reversible, to produce both heat and cold for air conditioning. They consume electricity but can convert it into energy with a coefficient of performance greater than 3 and, in this case, can be considered a renewable energy. For this reason, their use is constantly growing. Natural gas is the cleanest fossil fuel and its use is expected to continue to grow in the coming decades. Liquefying the gas allows it to be transported more flexibly than through a pipeline. LNG already accounts for more than 10 % of gas consumption and is expected to account for almost 90 % of the growth in long-distance gas trade by 2040. According to IIR, “liquefied hydrogen is presented as an energy of the future and major national plans are underway to develop it. Renewable energies can also provide cooling: solar cooling, evaporative cooling, although these technologies are still underutilized. However, solar cooling, which today is mainly produced from photovoltaic panels, can be developed quickly and very rapidly and very significantly in hot countries. Refrigeration accounts for 7.8% of global greenhouse gas emissions, of which 63% is due to direct emissions (leakage) of fluorocarbons (CFCs, HCFCs and HFCs) used as fuels emissions due to direct emissions (leakage) of fluorocarbons (CFCs, HCFCs
and HFCs) used as refrigerants, and 37% due to the production of electrical energy required to operate the facilities. These emissions are increasing due to growing refrigeration needs. In relation to the costs that may involve the consumption of air conditioning, it is important to consider the power data of the different air systems. In the case of a split system of 4,719 W, we can know how much you can consume per month if we know your energy efficiency label and hours of operation.
IF IT IS AN APPLIANCE WITH ENERGY EFFICIENCY TYPE A (SEER 5.2), ITS CONSUMPTION WOULD BE 4,719 W /5.2 = 907 W/H = 0.907 KWH. IF THE DAILY USE IS 6 HOURS, THE MONTHLY CONSUMPTION WOULD AMOUNT TO 0.907 KWH * 6 HOURS * 30 DAYS = 163.350 KWH/MONTH. IF WE USE THE PRICE OF THE REGULATED ELECTRICITY TARIFF (PVPC), WHOSE AVERAGE IN 2020 WAS 0.17 USD/KWH. THE MONTHLY COST OF THIS AIR CONDITIONER WOULD BE 163,350 KWH/MONTH * 0.17 USD/KWH = 27.76 USD/MONTH.
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Technological alternatives to reduce the environmental impact
According to the engineer Carlos C. Obella “there are three key global trends to which the commercial refrigeration industry and air conditioning should give immediate response: Sustainability, Energy Efficiency and Connectivity”.
0. Moving away from R22 to R404A in commercial refrigeration installations with high gas loads and high risks of leakage, means moving in the opposite direction, in terms of environmental impact, under current and future regulations.
It can be said that these three trends are closely linked to each other. “A sustainable refrigeration or air conditioning system, with less total environmental impact, must be energy efficient. In turn, it must have electronic control devices that allow it to operate sustainably and efficiently”.
The refrigeration industry is looking for intermediate alternatives, with GWP order 1500, while continuing the evolution of the rules, standards, and codes that will govern the application of slightly flammable or flammable refrigerants, such as propane, for example”.
The impact on the environment is related to regulations that attempt to reduce emissions that affect the ozone layer or impact on the so-called “Greenhouse Effect”, “Global Warming”, or “Climate Change”. R410A, for example, poses an option with ODP=0 versus R22 for residential and commercial air conditioning and heat pump applications. But it’s GWP value (~1800) is somewhat higher than that of R22 (~1700), so its direct impact is greater than that of the latter. Although its operating pressure is higher, and its thermodynamic and heat transfer properties are better than those of R22. “This means that with R410A it is possible to design systems with more efficient heat exchangers, using a lower gas load, with a lower risk of leaks and a lower direct and indirect environmental impact than with R22. There are extreme cases such as R404A whose GWP is in the order of ~3900, although its ODP is
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IN CONCLUSION, THE IMPACT OF SPACE COOLING IN TERMS OF TOTAL CO2 EMISSIONS INCREASES IN ALMOST ALL COUNTRIES. THE GLOBAL INCREASE GROWS FROM 3% TO 5% IN 2050. AS PART OF THE INCREASE IN GLOBAL EMISSIONS, COOLING IS RESPONSIBLE FOR ABOUT 18%.
ENERGY CONSUMPTION MEXICO Mexico, Central America and the Caribbean Mexico According to the data published in the Electronic Bulletin of Dissemination of Energy Efficiency Actions carried out by the Secretary of Energy of this country, it states that up to 2018 the average consumption per day of the on-off technology was 6.49 kWh and that of the In- verter technology is 2.02 kWh; the total accumulated consumption of the equipment with con- ventional on-off technology consumed in total 71.69 kWh and that of Inverter technology 24.23 kWh. The information from the study highlights that with these results, on average the on-off technology equipment consumes 2.95 times more active energy than the Inverter technology equipment. The Inverter technology operated on average with 33% of the energy in kWh consumed by the equipment with conventional on-off technology. In relation to the above, it is worth remembering that in 2016, 16 million air conditioning units (ACs) were installed in Mexico, and in that same year the
sales volume was 2 million units. It is estimated that space cooling at the national level represents approximately 9.8% of total energy use in buildings. In 2016 this represented the consumption of 37 TWh which is more than double the consumption in 2000 (16 TWh) and five times more than in 1990 (7 TWh). On the other hand, the efficiency of air conditioning equipment has a major impact on this effect, one analysis suggests that a 30% improvement in global AC performance by 2030 would reduce peak load by an equivalent of 710 medium-sized power plants. In Mexico, refrigeration accounts for more than 25% of the increase in total CO2 emissions, the largest share of any country, reflecting the strong growth in demand for refrigeration relative to other end uses. As of 2019, the use of air conditioners ranks second in electrical energy consumption in Mexico, after lighting, which translates into 75 billion pesos annually.
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Costa Rica Costa Rica is a country internationally known for using renewable energy sources to meet almost all of its domestic electricity demand, however, the consumption of petroleum products has represented about 60% of all energy consumed. According to data from the Costa Rican Electricity Institute (ICE), an average family of four members can pay a monthly bill of between ¢14,000 and ¢27,000, which represents an energy consumption of 200 to 300 Kw/h. In the country, the air conditioning system represents 50% of electricity consumption in the hotel sector, specifically. According to the “Guide for the efficient use of electrical energy applied to small hotels, companies and
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other SMEs” the investment for the acquisition of a high efficiency air conditioning system is recovered in a period of 3 years, this varies depending on the state of the hotel. Electricity represents 18% of the total energy consumed in the industrial sector, which opens the debate on the importance of the cost of electricity tariffs for the competitiveness of the industrial sector. The VII National Energy Plan 2015-2030 raises energy efficiency in terms of production, distribution and consumption as the reduction of technical losses in the supply chain, the promotion in the acquisition of efficient equipment, the promotion of a culture of energy efficiency or adoption of the ISO 50001 Energy Management standard for macro energy consumers.
El Salvador The Comptroller General of the Republic highlights that as a result of the changes in the population’s habits caused by the pandemic, in the country during the first quarter of the year the demand for electricity in the residential sector amounted to 815 million kwh, an amount that is 3% higher than that reported in the same period of 2020. The National Energy Policy 2010-2024 then became a key tool in the implementation of renewable energies, especially in the electricity sector. In fact, since 2013, no new electricity generators from fossil fuels have been added. By 2019, renewables, including hydropower, biomass, solar photovoltaic (PV) and geothermal, reached 64.3% of the country’s total installed capacity, bringing it to a total of 2.2 gigawatts (GW). Since 2015, the installed capacity of solar PV has increased almost tenfold, reaching 273 megawatts (MW) in 2019.
According to the study “EVALUATION OF THE READINESS STATUS OF RENEWABLE ENERGIES “ conducted by the International Renewable Energy Agency (IRENA) “in 2019, the total energy supply in El Salvador reached around 156 600 TJ. That year, the renewable energy source with the highest share as part of primary energy supply was bioenergy (19.6%), followed by hydropower (3.5%), geothermal energy (3.4%) and solar energy (1.1%).” On the energy consumption side, the transportation sector accounts for the largest share, followed by the industrial and residential sectors. Final energy consumption in the transportation sector increased from 43 126 TJ in 2010 to 60 710 TJ in 2019, and the overall share of the sector increased from 42% to 45% over the same period. Between 2010 and 2019, the share of the residential and commercial sectors fell, reaching 21% and 6%, respectively, in 2019.
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Guatemala According to information from the Economic Commission for Latin America (ECLAC) and the Central Bank, “The energy demand of the industrial sector depends strongly on two parameters: the economic growth capacity of a country, and the energy efficiency of each company’s own machinery. Due to the Guatemalan historical records, a constant growth for the GDP of 3% in its macro value is defined. However, the values of energy intensities of each industry subsector are directly related to the proportion of GDP that belongs to each one”. On the other hand, in 2020, energy demand in the SNI was 10,579.84 GWh, with a drop of -0.90% compared to 2019. The department of Guatemala accounted for 41.75% of the national demand, with a drop of 3.32% compared to the previous year. Over the last five years, national demand has grown at a rate of 2.42%, so the drop in 2020 was due to the containment measures following the COVID-19 pandemic. Additionally, a decrease in energy demand has been observed since previous years, is attributed to the contribution of DRGs in the distribution system and energy savings from new electrical appliances and household appliances.
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Guatemala, as a member country of SICA, is working on its regulations and implementing various energy efficiency programs, such as the creation of multidisciplinary energy efficiency groups in all offices of the Executive Branch. It is estimated that after energy efficiency audits conducted jointly by the Ministry of Mines and Energy (MEM) and students from the University of San Carlos de Guatemala (USAC), 30% of public sector institutions will use energy efficiently. The aim is that by 2030, international cooperation can be increased to facilitate access to research and clean energy technologies, including renewable energy sources, energy efficiency, advanced fossil fuel technologies, and to promote investment in energy infrastructure and clean energy technologies. It should be noted that the four aspects on which work is being done at the regional level on technical regulations for energy efficiency are: lighting, which currently operates in some cases with obsolete and inefficient technologies. The purchase and use of electric motors focused on industry. Household, industrial and commercial refrigeration equipment. And, air-conditioning for residential, industrial and commercial use.
Panama In Panama, the air conditioning and refrigeration sector is responsible for most of the electricity consumption by the population, and with a high demand to meet the needs of people in commerce, tourism, health, food, education, among others, as well as household consumption. Therefore, it is expected that the demand for RAC in Panama will increase, as part of the economic growth and development of the country, so it is necessary to establish guidelines and a guide of concrete actions with defined times that allow better planning and adequacy in accordance with the Sustainable Development Goal of sustainable communities and cities and the Sustainable Development Goal of sustainable production and consumption. Thus, the Panama Cooling Plan proposes three main objectives: establish synergies between the cooling plan and other programs and initiatives related to the environment and climate change.
Relate energy efficiency and the transition to low global warming potential (GWP) refrigerants under a holistic view of policy interventions aligned with economic growth and establish a roadmap with concrete actions to accelerate the transformation of the RAC sector, integrating energy efficiency, the use of environmentally friendly refrigerants and climate protection, as well as people’s health. On the other hand, in 2020 as a result of changes in the population’s habits, in Panama during the first ten months of the year, household electricity demand amounted to 2,7 billion kwh, an amount 7% higher than that reported in the same period of 2019. With the changes in lifestyle that arose due to the outbreak of covid19 and in this context the electricity consumption of residences increased by 7%, going from 2,5 billion kwh reported from January to October 2019 to 2,739 billion kwh recorded in the same period of this year.
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Honduras During 2019, energy consumption in the country increased by approximately 3% compared to the previous year. Of this total, less than 40% is generated from direct use of renewable sources, which, although in relative terms, remained constant compared to 2018. However, the share of these sources in electricity generation did decrease by 8% compared to the previous year. According to the report made by the Government of the country “The National Energy Balance” regarding greenhouse gas emissions from the energy sector, there is an increase of more than 10% of these emissions compared to what was reported during 2018. This situation is partially explained by the increase in the consumption of fossil fuels to compensate for the
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availability of water resources during this year. For this year, the sector with the highest demand is the residential sector representing 51% of consumption and the second is the industrial sector representing 28% of consumption. Currently, according to the country’s productive activities, consumption is grouped into six sectors: Transportation, Commerce and Services, Industry, Residential, Construction and Agriculture and Livestock. Together, these six sectors consumed a total of 30456 KBEP. Of this total, approximately 38% comes from renewable sources, 47 % is obtained through petroleum derivatives, while approximately 15% of this consumption is electricity, which, as mentioned above, is generated from various sources.
Andean Region Bolivia The industrial sector represents 9% of the users of electricity consumption, however they are responsible for about 90% of electricity consumption in the country. In the regions with tropical climates and mainly in the department of Santa Cruz, the Bolivarian Chamber of Electricity recommended through the report “Saving electricity, a necessary measure against the economic effect of COVID-19” that it should be taken into account that the “new normality” imposed by COVID-19 that has changed the habits of life and consequently the habits of electricity consumption, the effect of high temperatures that cause a more intensive use of air conditioning equipment and higher consumption of refrigeration equipment should be added, because the maximum temperatures that are already beginning to be recorded in Santa Cruz as of August are above 30º C, which will cause even greater consumption of electricity due to the high penetration of air conditioning equipment”.
Santa Cruz has a seasonal electricity consumption, i.e., in the months of low temperatures, energy consumption is lower and in the months of high temperatures energy consumption is much higher. The report shows that in Santa Cruz, air conditioning is the main responsible for electricity consumption in homes, as well as in other sectors such as commercial, for example, if an air conditioner Split type of 18,000 BTU which is equivalent to a power of 5279 W or a equipment of 12. 000 BTU which is equivalent to a power of 3519 W, which are the equipment with greater presence in homes, would have the following consumption per hour and what it represents in payment in an approximate way for a consumer of the domiciliary category in the department of Santa Cruz: (estimation made considering the average tariff of the domiciliary category applied by CRE R.L.).
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Colombia The operator of the National Interconnected System, XM, reported that in December 2020 energy demand in Colombia was 6,113 GWh, which meant a drop of 1.59% compared to the same month of 2019, when it was 6,213 GWh. In addition, comparing the whole year 2020 versus the immediate previous year the drop was 2.6%, going from 71,925 GWh in 2019 to 70,178 gigawatt hours in 2020. Likewise, the operator showed that by sector consumption was given as follows: residential, commercial and small industry consumption, in the regulated market, grew 0.4%, while, energy consumption in medium and large industry the increase was 5.9%, in the unregulated market. According to “Plan Energético Nacional 2020-2050, La transformación energética que habilita el desarrollo sostenible” made by the Colombian Government, it is stated that “April 2020 was the period in which there was a greater reduction in the energy demand of residential consumption and small businesses (regulated market) and industry and commerce consumption (non-regulated market), with -4.38% and -24.49% respectively, mainly due to the confinement decreed to minimize the contagion of Covid-19”.
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In the case of the manufacturing industry, which has a participation in the unregulated market close to 45%, we found that the month in which it presented the greatest decrease in energy demand was April 2020 with -34.78%. The main energy consumer in Colombia is the transportation sector. The energy consumption of this line of the economy corresponds to 40% of the total in 2018. The mode of transportation with the highest contribution is road (88%) counting passengers and cargo, followed by air (10%). The residential sector accounts for 20% of final energy consumption in the country and the activities with the most intensive uses are cooking with 68 % and refrigeration with 15%, followed by other activities such as television, lighting, air conditioning, washing machines and water heating . Finally, the tertiary sector demands 5% of Colombia’s energy. The main end uses in this sector are thermal (heating and cooling), lighting and electronics. The main energy used in the sector is electricity, which represents 73% of the total, followed by natural gas with 23% and LPG in a smaller proportion with 5%.
Ecuador
Peru
According to the National Energy Balance 2019, electricity consumption per person between 2009 and 2019 showed an increase of 39.4%, from 1,088 kWh per inhabitant to 1,517 kWh per inhabitant. In this document prepared by the Ministry of Energy and Non-Renewable Natural Resources (MERNNNR) and the Geological and Energy Research Institute (IIGE), it can be seen that electricity consumption per inhabitant increased by 2% between 2018 and 2019, from 1,488 kWh per inhabitant to 1,517 kWh per inhabitant.
Electricity consumption in Peru during 2021 would grow in double digits after this year’s drop due to the COVID-19 pandemic. According to grid coordinator COES, next year’s demand would grow 12.5% to 55,992GWh versus an estimated 7% drop in 2020 to 49,778GWh.
Electricity demand in April 2020 reached 1,777 GWh, or 14% less compared to March, when it reached 2,072 GWh. Compared to April 2019, consumption fell 16%.
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Southern Cone Argentina It is significantly accumulated in January of this 2020. While the country’s energy demand in the Argentine Interconnection System (SADI) was 11964.3 GWh, 956.3 GWh were generated from operational renewable energy plants. According to official information, the 2200 F/C air conditioner with an average power in watts of 1350 has an hourly consumption of 1013 wh, the 3500 F/C air conditioner has an average power of 2150 with an hourly consumption of 1613 and the 4500 F/C air conditioner of 2800 F/C consumes 2153. In the case of the air conditioner of 2200 frigories F/C - Inverter with average power of 877.5 has a consumption of 658, the air conditioner of 3500 frigories F/C - Inverter of 1397.5 consumes 1048.
Chile By 2020, it was predicted that air conditioning consumption would increase by 85%. Faced with this scenario, researchers at the Technological Center Kipus, University of Talca concluded that “if heat waves continue to occur during the summer, with temperatures exceeding 37 ° C, cooling energy consumption will increase by an average of 85% over consumption in a typical year, causing an increase in energy costs exceeding $ 20 thousand in homes during the hottest months “. In figures, if in a normal year the air conditioner spends 52.6 kilowatt hours, in a heat wave period this consumption rises to 97.7 kilowatt hours. On the other hand, according to the latest annual projection of the National Energy Commission (CNE), demand should reach 111,174GWh by 2040, an increase of 56% over the 71,253GWh in 2020. At the same time, it is estimated that the demand of regulated customers, reported by distributors, would increase from the current 27,056 GWh to 30,743 GWh in 2025, to reach 47,086 GWh in 2040, while the aggregate demand projection of free customers in the local electricity system, supplied by generating companies, would grow from 37,977 GWh to 48,567 GWh in 2025, to end up at 53,109 GWh in 2040.
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Paraguay According to the National Energy Balance (VMMEMOPC, 2017), Paraguay’s energy supply is predominantly renewable, considering the weight of hydropower in the total (47% of its energy supply). In second place is biomass (33%), mostly exploited in an unsustainable way, and, finally, hydrocarbons (20%), imported in their entirety. From the perspective of energy demand, the main energy source is biomass (44%), followed by hydrocarbons (40%) and, in third place, electricity (16%).
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Index of references Sources cited: International Renewable Energy Agency (IRENA), “RENEWABLE ENERGY READINESS ASSESSMENT”, 2020. Inter-American Development Bank (IDB), “Disclosure of Expectations in Latin America” ,June 2020. Inter-American Development Bank (IDB), “Latin America overcomes commercial impact of pandemic” , Press publication, June 3, 2021. Inter-American Development Bank (IDB), “The Impact of the Coronavirus Crisis on the Public Construction Sector”, Press publication, May 29, 2020. World Bank (WB), “World Economic Outlook: Latin America and the Caribbean” ,January 2021. World Bank (WB), “Confinement and Electric Power: Changing Consumption Patterns” ,May 15, 2020. BBVA, “Situación Inmobiliaria México Primer semestre 2021”, March 12, 2021. Cámara Costarricense de la Construcción (CCC), “Urge la intervención del Gobierno para acelerar crecimiento del sector construcción”, Press publication, January 21, 2021. Cámara Bolivariana de Electricidad (CBE), “Ahorro de energía eléctrica, medida necesaria contra el efecto económico del COVID-19”, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “The effects of COVID-19 on international trade and logistics,” August 6, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Latin America and the Caribbean Faced with the COVID-19 Pandemic Economic and Social Effects” ,April 3, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Preliminary Overview of the Economies of Latin America and the Caribbean, 2020” (LC/PUB.2020/17-P/Rev.1), Santiago, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Central America and the Caribbean, 2020, Santiago, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Central America and the Dominican Republic in 2020 and Prospects for 2021 de las economías de Centroamérica y la República Dominicana en 2020 y perspectivas para 2021: febrero de 2021 (LC/MEX/ TS.2021/2), Mexico City, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Sectores y empresas frente al COVID-19: emergencia y reactivación”, July 2, 2020.
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Economic Commission for Latin America and the Caribbean (ECLAC), “Sectors and companies facing COVID-19: emergency and reactivation”, July 2, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), R. Sánchez and F. Weikert, “Logística internacional pospandemia: análisis de las industrias aéreas y de transporte marítimo de contenedores”, Comercio Internacional series, No. 162 (LC/TS.2020/190), Santiago. Economic Commission for Latin America and the Caribbean (ECLAC), “The challenge of environmental sustainability in Latin America and the Caribbean”, 2014. National Administrative Department of Statistics (DANE), “En el primer trimestre del 2021 pr el Producto Interno Bruto de Colombia crece 1,1%” , Press publication, May 14, 2021. Diario de Centroamérica, “Sector construcción apunta al crecimiento”, Press publication, October 30, 2020. El Economista, “Al cierre del 2020 la deuda global sumará 277 bdd: IIF”, Press publication, November 19, 2020. Elsalvador.com, “Sector construcción es el que más se recupera desde la reactivación de la economía, según el BCR”, Press publication, October 26, 2020. International Monetary Fund (IMF), “WORLD ECONOMIC OUTLOOK: MANAGING DIVERGING RECOVERIES” , April 2021. Government of Argentina, “Consumo básico de electrodomésticos”. Government of Costa Rica, “National Energy Plan 2015-2030”. Government of Honduras, “El Balance Energético Nacional”, report. Government of Mexico, “Boletín de Difusión de Acciones de Eficiencia Energética”, Press Publication, 2018. GlobalData, “Outlook for construction in Latin America” ,December 10, 2020. National Government of Panama, “Panama adopts new tool to combat climate change, promote energy efficiency” , Press publication. International Institute of Refrigeration (IIR), “IIR 2020 Activity Report”, December 2020. La Nación, “Anoche, la Ande registró récord de consumo de energía eléctrica”, Press publication, February 23, 2021. La Tercera, “Prevén que el consumo de aire acondicionado aumentará un 85%”, Press publication, January 31, 2020. La República, “Demanda de energía cayó 2,6% en 2020 frente a 2019, solo en diciembre se redujo 1,5%”, Press publication, 12 January 2021.
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Organization for Economic Co-operation and Development (OECD), “Tax Statistics in Latin America and the Caribbean 2021” ,OECD Publishing, Paris, 2021. Organisation for Economic Co-operation and Development (OECD), “Jobs must be at the heart of recovery to avoid serious fallout in the economy and society, says OECD” ,Press publication, July 7, 2021. World Trade Organization (WTO), “Trade plummets as COVID-19 pandemic disrupts global economy” , Press publication, April 8, 2020. World Trade Organization (WTO), “Trade shows signs of reviving after COVID-19 effects, but recovery remains uncertain”, Press publication, October 6, 2020. United Nations, “Policy Report: Education during COVID-19 and beyond” , August 2020. Portafolio, “Flujos de capital siguen regresando a la región”, Press publication, November 5, 2020. Revista Especificar, “Consumo eléctrico en México aumenta 30 % en verano por aire acondicionado, señala estudio de USAID”, Press publication. The San Diego Union-Tribune, “Warmer weather, more demand for cooling”, Press publication , August 22, 2020. Semana, “Colombia’s energy demand down 2.60% in 2020”, Press release, January 12, 2021. Universidad Tecnológica de Pereira, “EVALUATION OF THE ENVIRONMENTAL IMPACTS GENERATED FROM THE ESTABLISHMENT AND OPERATION OF THE CENTER FOR RECOVERY AND REGENERATION OF REFRIGERANT GASES FROM THE CAFETERO EJE IN THE MUNICIPALITY OF DOSQUEBRADAS RISARALDA”, Degree project submitted as a requirement to opt for the undergraduate degree of: ENVIRONMENTAL ADMINISTRATION, 2016. Unidad de Planeación Minero-Energética (UPME), “Plan Energético Nacional 2020-2050, La transformación energética que habilita el desarrollo sostenible”. Data sheet International Trade Centre (ITC). With information from UN Comtrade (United Nations Trade Statistics Database) and official sources: • Argentina: UN Comtrade. • El Salvador: Central Reserve Bank. • Guatemala: Central Bank of Guatemala. • Dominican Rep.: UN Comtrade. Descartes Datamyne. With information from official sources and partner countries: • Chile: National Customs Service. • Colombia: Dirección de Impuestos y Aduanas Nacionales (Dian). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Honduras: General Directorate of Customs Franchise Control.
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• Mexico: National Institute of Statistics and Geography of Mexico (Inegi). • Panama: National Customs Authority. • Peru: National Superintendence of Customs and Tax Administration (Sunat). • Uruguay: General Directorate of Customs. • Venezuela: Countries of origin.
Analyzed Harmonized System Codes (HS-codes)*: HS-Code Description 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan whether or not fitted with filters. 8414.30 Compressors; of a kind used in refrigerating equipment. 8414.51 Fans; table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125 W. 8414.59 Fans; n.e.c. in item no. 8414.51. 8415 Air conditioning machines; comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated. 8415.10 Air conditioning machines; comprising a motor-driven fan and elements for changing the temperature and humidity, of a kind designed to be fixed to a window, wall, ceiling or floor, selfcontained or “split-system”. 8415.81 Air conditioning machines; containing a motor driven fan, other than window or wall types, incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps). 8415.82 Air conditioning machines; containing a motor driven fan, other than window or wall types, incorporating a refrigerating unit. 8415.83 Air conditioning machines; containing a motor driven fan, other than window or wall types, not incorporating a refrigerating unit. 8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading no. 8415. 8418.69 Refrigerating or freezing equipment; n.e.c. in heading no. 8418. * For the tables and graphs of imports by companies and equipment of Chapter 1, only the tariff classification codes of products related to HVAC/R equipment were taken, for transactions carried out until May 2021. Technical Data Sheet “TOP BRANDS IN LATIN AMERICA” Survey. Data collection dates: Until July 2, 2021. Data collection technique: Online survey on the Encuestadatos.com platform. Method: six multiple choice questions. Subjects addressed: Selection of one or more of the HVAC/R equipment brands most commonly used by integrators. Target group: Exclusively the companies of the Top 100 Latin American Contractors Installers 2020- 2021. Survey developed by Latin Press, Inc.
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