Construction Companies Close in Baja California

At least 40% of small and medium-sized construction companies in Baja California had to close down amid the coronavirus pandemic because of the impossibility of maintaining their payroll and operating expenses, according to Víctor Manuel Escobar, President of the Mexican Association of Construction Engineers in Baja California (AMICBC).

The engineer said even though some construction projects and activities are now allowed to resume operations, the outlook for the construction industry is discouraging.

Escobar said even before the pandemic began in Baja California in March, the construction sector was struggling because of a lack of government investment in public works projects.

The federal government has recently cancelled contracts and public works projects that were making progress across the state, according to Escobar, who estimated the industry in Baja California was operating at about 60% of its full capacity before the coronavirus.

The final blow was delivered for small and mediumsize companies run by construction entrepreneurs when all business activities were suspended March 17 through June 1.

“For two and a half months, construction entrepreneurs only worked with 10 to 30% of state companies, and the rest were forced to adhere to the health contingency plan,” said Escobar.

Source: Border Now August 2020