Overview of the Construction Industry’s Difficulties in Querétaro
The construction industry in Querétaro, Mexico, has faced significant challenges in 2025 due to low activity in the sector, reduced public works investment, and job losses.
Public Works Investment Decline
According to Álvaro Ugalde Chaparro, the president of the Mexican Construction Industry Chamber (CMIC) in Querétaro, there has been a notable decrease in public works investment this year. He mentioned that state investments are expected to fall below the 2024 levels.
“This year has been very difficult, with very little investment in public works… We have approximately 700 million pesos in executed public works this year at the state level. Last year, it was surely over 2,000 million pesos, so there has been a reduction of around 50% in state public works compared to 2024,” Ugalde Chaparro explained.
Hope for Improvement in 2026
Ugalde Chaparro expressed optimism about 2026, stating that they have been in contact with the Secretariat of Public Works and Urban Development (Sduop) regarding potential improvements in the upcoming year’s budget.
“We are hopeful that the coming year will be excellent for public works in the state. We have been in contact with the secretary of public works, and they are about to present the state’s 2026 budget. We expect a better public works budget for the upcoming year, allowing Querétaro’s construction companies to participate in these projects,” he said.
Stability in the Metropolitan Area
Within the Metropolitan Area, the municipalities of Querétaro and El Marqués have maintained their public works investment levels, despite state-level cuts.
“Querétaro and El Marqués, the two most active municipalities in public works within the metropolitan area, have managed to reach around 1,000 million pesos in public works, which has been the standard for about a decade. However, due to state and federal budget cuts, there has been a significant reduction in executed state public works this year,” Ugalde Chaparro pointed out.
Federal Projects and Local Construction Companies
The construction sector anticipates growth through federal projects, including the Mexico City-Querétaro train and road infrastructure projects by the Secretariat of Infrastructure, Communications, and Transportation (SICT) and Caminos y Puentes Federales (Capufe).
“Local construction companies are actively participating in discussions for potential involvement in machinery rental and terminal construction for the Mexico City-Querétaro train,” Ugalde Chaparro mentioned.
Impact on the Construction Industry
The low activity in the sector has forced construction companies to cut their workforce by nearly 18% and improve administrative efficiency. They hope to regain jobs in the early months of the next year.
In response to these challenges, companies have relied on private works, primarily the development of industrial zones. Local firms are also focusing on strengthening their competencies to counter competition from out-of-state builders.
Economic Indicators
In July, Querétaro’s construction industry experienced a 10.4% annual decline, placing it 16th among Mexico’s 32 federal entities and in the red zone of the state construction industry semaphore, according to CMIC data from the National Institute of Statistics and Geography.
Nationally, the reduction was 17.1%. The state’s decline was primarily due to electric and building works, while public works grew by 4% annually, and private works fell by 11.5%. Public works contributed 8% to the activity, while private works accounted for 92%.
Key Questions and Answers
- What challenges is Querétaro’s construction industry facing in 2025? The industry is dealing with low activity, reduced public works investment, and job losses.
- How has public works investment changed in 2025 compared to 2024? Public works investment has decreased significantly, with state investments expected to fall below 2024 levels.
- What is the outlook for 2026 regarding public works in Querétaro? CMIC’s president, Álvaro Ugalde Chaparro, is optimistic about 2026 and expects improvements in the state’s public works budget.
- How have Querétaro’s municipalities within the Metropolitan Area fared in public works investments? Despite state-level cuts, Querétaro and El Marqués have maintained their public works investment levels.
- What federal projects are expected to boost Querétaro’s construction industry? The Mexico City-Querétaro train and road infrastructure projects by SICT and Capufe are anticipated to drive growth.
- How has the construction industry in Querétaro been affected by low activity? Companies have reduced their workforce and improved administrative efficiency, hoping to regain jobs in the next year.
- What are the economic indicators for Querétaro’s construction industry in July 2025? The state experienced a 10.4% annual decline, placing it 16th among Mexico’s federal entities, with a 17.1% national reduction.
