BajaNomad - 30% of Baja Construction Companies Have Closed So Far in 2011

30% of Baja Construction Companies Have Closed So Far in 2011

Woooosh - 9-19-2011 at 09:30 AM

The land title frauds and real estate crooks have not only have killed the goose that laid the golden egg- they also took the few good jobs their neighbors had away from them. No wonder crime is up- people who came here for construction jobs are now stuck, hungry and desperate.

http://rosaritoenlanoticia2.blogspot.com/2011/09/cierran-30-...

Tijuana .- The president of the Mexican Chamber of Construction Industry (CMIC) in Tijuana, Mendoza Javier Correa, said that so far this 2011 at least 30 percent of companies in the industry have had to close due to lack of work.

"We are talking that there are 170 in CMIC and closed 30 per cent since the start of the year, mainly because there has been private investment," he said.

He explained that public investment is that has kept alive the construction sector, because only this year, investments were made of 2560 million pesos in Tijuana.

"We are struggling to do the work the local businesses and the economic spillover to stay here, but most local companies do "he said.

He also said that although in the past two months have seen a slight increase in work, are still waiting to see the stabilization of the dollar, as we already have developed increases in materials, as in the case of structural steel and rod.

[Edited on 9-19-2011 by Woooosh]

bajajazz - 9-19-2011 at 07:31 PM

In La Paz there are four major projects that seem to be dead in the water. The El Mogote boondoggle, for one. Also, the new condos adjacent to the La Cancha Hotel, an 18-story monstrosity in La Posada and the conversion to condos of the old Gran Baja hotel.

The Los Arcos Hotel is still shut down, dragging down that whole end of the Malecon.

On the presumed up-side, work on the two new malls is still proceeding apace and the economic health of the general economy seems to be vibrant. Problem areas seem to be confined to resort and vacation developments that were not market-driven, a problem exacerbated by the fact that air travel from the USA to La Paz is worse now than it was 25 years ago.

wessongroup - 9-19-2011 at 07:51 PM

Thanks jazz... a great thumb nails of what's going on ... your way..

EnsenadaDr - 9-20-2011 at 08:43 PM

Look at all those ghost condos just built in the past few years on the road between Ensenada and Tijuana...and they keep building them with no buyers..what's that all about???

Woooosh - 9-20-2011 at 09:54 PM

Quote:

Originally posted by EnsenadaDr
Look at all those ghost condos just built in the past few years on the road between Ensenada and Tijuana...and they keep building them with no buyers..what's that all about???

There are 70 unfinished projects in the TJ to Ensenada corridor. A few of them have private financing (Like NAOS in north Rosarito) and are still going up but progress seems to be a lot slower than in the past. They need to spend the money, but they also know there is no big rush to finish. You can figure out the rest...
:saint:

[Edited on 9-21-2011 by Woooosh]

krafty - 9-20-2011 at 10:28 PM

Wooosh, have to disagree-we have seen alot of projects pick up again this summer in the corridor, and houses being built near us but only when the $$ is there, is how this is working.

mcfez - 9-20-2011 at 10:41 PM

Not only in Baja.

Construction projects are collecting dust in the Sacramento valley. 90 % of the Contractors are idle. Material vendors are stuck with vast inventories.

JESSE - 9-20-2011 at 11:29 PM

In La Paz most projects that focus on the american buyer are paused. But the ones that focus on Mexicans are going ahead.

EnsenadaDr - 9-20-2011 at 11:46 PM

This might sound stupid, but why do they need to spend the money??

Quote:

Originally posted by Woooosh

Quote:

[Edited on 9-21-2011 by Woooosh]

CortezBlue - 9-21-2011 at 06:30 AM

Quote:

Originally posted by Woooosh
The land title frauds and real estate crooks have not only have killed the goose that laid the golden egg- they also took the few good jobs their neighbors had away from them. No wonder crime is up- people who came here for construction jobs are now stuck, hungry and desperate.

[Edited on 9-19-2011 by Woooosh]

This is not at all what the article says?

You are throwing personal spin into the mix.

Construction is down globally as money is not available from banks to invest in such projects anywhere globally.

If you do the research you will find that nationally Mexico is doing better than most conuntrys economically speaking as they do not finance construction projects the way we do in USA.

Have to disagree here...

EnsenadaDr - 9-21-2011 at 07:05 AM

If the banks are so discriminating then why are there so many unoccupied, unfinished condo high rises up and down the coast??? Just sayin'

DENNIS - 9-21-2011 at 07:57 AM

Quote:

Originally posted by CortezBlue
nationally Mexico is doing better than most conuntrys economically speaking as they do not finance construction projects the way we do in USA.

That's right. They leave that to the Cartels. They don't care that the units arn't selling. It's just a good place to stash their money.

Quote:

nationally Mexico is doing better than most conuntrys economically speaking

This is laughable. :lol:

Thanks. I needed that.

bajamigo - 9-21-2011 at 08:05 AM

Quote:

Originally posted by EnsenadaDr
If the banks are so discriminating then why are there so many unoccupied, unfinished condo high rises up and down the coast??? Just sayin'

Which banks? This is Mexico.

Woooosh - 9-21-2011 at 09:26 AM

narco-banks silly.

E.D.R.Rick - 9-21-2011 at 10:00 AM

Quote:

Originally posted by mcfez
Not only in Baja.

Construction projects are collecting dust in the Sacramento valley. 90 % of the Contractors are idle. Material vendors are stuck with vast inventories.

CortezBlue - 9-21-2011 at 10:19 AM

GDP growth in Mexico in 2010 is over double what the USA did in 2010 according to Global Statistics.

USA -2.5% Growth 2008
USA 2.2 - 2.5% Growth 2010

Mexico -6.0% Growth 2008
Mexico 5.3 - 5.6% Growth 2010

Mexico had a deeper recession than we did, but were able to get out of it faster due to the lack of the mortgage crisis. In fact Mexico had the hardest hit economy of all Latin American countries.

bajajazz - 9-21-2011 at 11:27 AM

Canada and Mexico did not invest in the fraudulent "securities" peddled by Wall Street -- unlike Europe and Asia -- and their banking systems are not compromised as a result.

Adding to Mexico's relative affluence is the liquidity from drug sales, which injects an estimated 20 to 40 billions of dollars into the Mexican economy every year. The graft alone is estimated to be six billions of dollars per year.

The purpose of the "War On Drugs" is not to eliminate the goose that lays the golden eggs but is, instead, designed to artificially support the high price of drugs and get their distribution into the hands of one or two drug lords who will make a deal with the government to refrain from headline-making violence in return for being allowed to conduct business-as-usual.

What's going on today is not a "War On Drugs." It is a battle for turf.

Whenever you come upon a problem or an event for which there is no seeming reason (like construction of condos no one wants to buy) look for the economic motive -- you'll usually find it.

DENNIS - 9-21-2011 at 11:40 AM

Quote:

Originally posted by bajajazz
What's going on today is not a "War On Drugs." It is a battle for turf.

Even moreso, a battle for power. The cartels went unchecked for so long that they grew like the cancer they are. More powerful than anyone ever imagined.
Now, they are supporting candidates and when their people have the reins of government, they will have the country.
I can only hope my future tense is accurate.

DENNIS - 9-21-2011 at 11:48 AM

Quote:

Originally posted by CortezBlue
GDP growth in Mexico in 2010 is over double what the USA did in 2010 according to Global Statistics.

USA -2.5% Growth 2008
USA 2.2 - 2.5% Growth 2010

Mexico -6.0% Growth 2008
Mexico 5.3 - 5.6% Growth 2010

Mexico had a deeper recession than we did, but were able to get out of it faster due to the lack of the mortgage crisis. In fact Mexico had the hardest hit economy of all Latin American countries.

And you will accept figures from a country that won't count their destitute, illegal migrants as part of their unemployed?

Woooosh - 9-21-2011 at 12:01 PM

the peso at 13.41 today is certainly not a signal of strength.

CortezBlue - 9-21-2011 at 12:37 PM

Quote:

Originally posted by DENNIS

Quote:

And you will accept figures from a country that won't count their destitute, illegal migrants as part of their unemployed?

It is hard to have a battle of wits with an unarmed army.

Why don't you do your own research and figure it out, or is it easier to sit on your duff and answer questions with weak statements?

I don't really care if you think these numbers are fact or not but have a little self respect and at least try to come back with something of substance or informative.

[Edited on 9-22-2011 by CortezBlue]

CortezBlue - 9-21-2011 at 12:42 PM

Quote:

Originally posted by Woooosh
the peso at 13.41 today is certainly not a signal of strength.

I guess it is all relative.

I remember not to long ago it was 14 to 1 so is 13 to 1 better. Maybe?

Now go compare the US$ to the Canadian dollar. The dollar is down in value as well.

However the facts are the Mexico's GDP growth has been better than the USA's in the past 12 to 18 months is what I stated.

[Edited on 9-21-2011 by CortezBlue]

wilderone - 9-22-2011 at 11:09 AM

Apples and Oranges
Percentages are there, but based on what, and what value to economic growth and stability within each country?

Largest factors affecting Mexican GDP are based on service sector, transportation, postal services, warehousing, mass media, scientific/technologic services, finance/insurance, manufacturing, utilities, agriculture, forestry, fishing.

The most significant factors affecting USA GDP don't parallel the same parameters, but based on fixed residential and non-residential investment, exports, imports (which reduces GDP), personal consumption, FEDERAL GOVT SPENDING, computer and motor vehicle output, taxes on coporate income, profits of financial corporations.

If you were to compare them side by side - say 100 categories - would be truer reflection of trend driving the country's economic health and stability, rather than a bottom-line percentage. What's more important is analyzing each country against the same data, quarter by quarter. What I read into the above data is that the USA is on shaky ground. And Mexico seems to be making strides expected of a country with great regions still trying to catch up to modern technology.

CortezBlue - 9-22-2011 at 02:11 PM

Actually a comparison of what the products that are being sold has nothing to do with it. GDP is calculated from the total output of goods and services.

That would be weighed via market segments using SIC codes.
However, just as we, the USA, have different market segments GDP is calculated by all market segments combined.

PS you forgot the 2nd largest segment, behind tourism, petroleum and let's not forget precious metals.

wessongroup - 9-22-2011 at 02:13 PM

Good post wilderone...

CortezBlue - 9-22-2011 at 06:18 PM

To simplify this

Mexico had a much deeper recession or loss of GDP for 2 or more quarters, than did the USA however, their GDP has climbed faster and greater than that of the USA in the past several months.

[Edited on 9-23-2011 by CortezBlue]