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Colombian Companies Investor
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      • Processed food
      • Cocoa and its derivatives
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      • Fashion industry
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  3. MANUFACTURING
  4. BUILDING MATERIALS

Purpura '> BUILDING MATERIALS

The building materials sector comprises all activities related to the manufacturing of materials and supplies necessary for the construction of buildings and civil works, such as cement, tools, metal supplies, ceramics, plastics and rubbers, products for the final finishing of construction, among many others. It is a key sector for the building of the Colombian Government's new vision for the country.

Nuevo hospital de bosa Bogotá, Colombia
Bosa Hospital, Bogotá, Colombia

MANUFACTURING

  • Aeronautical
  • Automotive
  • Building materials
  • Naval

The building materials sector comprises all activities related to the manufacture of materials and inputs necessary for the construction of buildings and civil works, such as cement, tools, metal inputs, ceramics, plastics and rubber, products for the final finishing of construction, among many others. It is a key sector for the construction of the Government's new vision of the country.

EXPORTS OF CONSTRUCTION MATERIALS, USD MILLION

Imagen
Building materials infographic

Exports of construction materials reached their maximum historical value in 2022

News of BUILDING MATERIALS

CONSTRUCCION
Worker, Bosa Hospital, Bogotá, Colombia

ATTRACTIVE LOCAL MARKET WITH POTENTIAL FOR THE DEVELOPMENT OF BUILDING MATERIALS

  • The building materials industry is one of the largest in Latin America, with a trade value of over USD 14.855 billion in 2021.
  • It contributes to the country's economic development, representing 5.2% of the GDP in 2021, according to Fitch and DANE.
  • In 2019, the country approved 21 million m2 for construction, of which 81% was allocated for housing, 6.6% for commercial use, 1.8% for warehouses, and 10.4% for other types of constructions, according to DANE.
  • In 2021, housing sales grew by 21%, with 248,843 units sold.
  • The residential and non-residential construction sector has a growth potential, and it is expected to grow at an average rate of 9% between 2021 and 2025.
Data Center Etix Cali DC S.A.S, Valle del Cauca
Data Center Etix Cali, Valle del Cauca 

COLOMBIA HAS A STRATEGIC LOCATION FOR THE DEVELOPMENT OF OPERATIONS WITH REGIONAL AND GLOBAL REACH

  • Colombia has positioned itself as an important hub for passenger and cargo transportation.
  • From Colombia, the growing demand for building materials in Latin America can be met, especially for finishing materials, a market that reached US$10.344 billion in 2021.
  • Building materials exports have increased and reached their highest value in the last 5 years in 2021, with USD 518 million, representing a 36% growth compared to the previous year, according to DANE.
  • More than 370 companies exported products for over USD 10 million to about 60 countries.
  • There is a network of commercial agreements that allow for duty-free entry into important markets in Europe, North and South America.
Yara Colombia, Valle de cauca
Yara Colombia, Valle de cauca 

COMPETITIVE FACTORS IN THE CONSTRUCTION MATERIALS INDUSTRY

  • There are more than 7,000 companies associated with the manufacture of building materials, especially those that produce metal products for structural use, wooden parts and pieces, concrete, cement, gypsum, and clay materials, according to DANE.
  • There are over 92,000 companies in the construction sector, particularly in the construction of other civil engineering works and the construction of residential buildings.
  • The country offers a diversified and recognized supply of building materials, including iron and steel inputs, cement, metal products, glass, ceramics, and wood.
  • The local market has facilities for exporting products thanks to trade agreements that grant access to international markets with 0% tariffs. Additionally, companies can import raw materials and capital goods that are not produced in Colombia with 0% tariffs.
  • Between 2015 and 2020, more than 452,000 graduates were registered in engineering programs to meet the labor needs of the sector.
Data Center Etix Cali DC S.A.S,Valle del Cauca
Data Center Etix Cali, Valle del Cauca 

FAVORABLE BUSINESS ENVIRONMENT IN COLOMBIA FOR THE BUILDING MATERIALS INDUSTRY

  • The IMF projected Colombia's GDP growth for 2022 at 7.6%, which represented greater dynamism than major economies such as Argentina (4%), Brazil (2.8%), Peru (2.7%), Mexico (2.1%), and Chile (2%).
  • Between 2010 and 2021, foreign direct investment in the building industry in Colombia reached USD 5.861 billion, with 2019 being the highest year in the country's history, with USD 881 million, according to the Bank of the Republic.
  • From 2011 to 2020, the country has received 21 investment projects in this sector worth USD 2.656 billion, according to FDI Markets.
  • Companies such as Mexichem, Cemex, and Saint-Gobain have chosen Colombia as an investment destination.
Data Center Etix Cali, Valle del Cauca 
Data Center Etix Cali, Valle del Cauca 

INVESTMENT OPPORTUNITIES IN COLOMBIA

Manufacturing companies of building materials can increase the level of sophistication or industrialization of the country by forming joint ventures or partnerships with Colombian companies to meet local demand with an export focus.

Manufacture of prefabricated house structures using sustainable raw materials and manufacturing processes to serve the local and regional demand in North and South America, Central America, or the Caribbean.

Yara Colombia, Valle de cauca
Yara Colombia, Valle de cauca 
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