"The formation of this new subsidiary is critical to our success in Mexico," stated Mark Taggatz, President and CEO of Aquentium "The Mexican subsidiary will enable us to be more effective in managing our operations in the country, including the identification and entry into the low-cost and prefabricated housing market and any other new and exciting development opportunities in the country."
The Aquentium SIP housing system is designed to produce low cost housing for Mexico. The building system is unique in design and method of manufacture being strong enough to meet he highest world standards and simple in design so as it produces substantial savings of time and in building construction costs.
Low-cost and prefabricated housing initiatives and projects are a priority for the 32 Mexican States, as well as for the Mexican Federal government. State governments promote low cost and pre-fabricated housing projects, generally seeking private investment in order to accomplish their goals.
CONAPO (National Council for Population) estimates that Mexico will require 30.2 million dwellings by the year 2010. According to information provided by the Official Housing Agencies, Mexico had a stock of 25 million houses at the end of 2005. This means the need for an additional 5.2 million dwellings in the coming years.
The housing construction industry in Mexico has experienced a constant growth over the last 5 years; growing at an average pace of 4.5% per year. Housing has been the banner for the current government under President Felipe Calderon by generating employment and stimulating the economy.
Currently, the market is expected to continue to grow at an average rate of 4.5% percent during the next three years.
“The Aquentium building method is ideal for Mexico which has been searching for new and rapid construction techniques and new materials (high quality, low prices, easy to use and install),” stated Taggatz.
With a market in the pre-fabricated and low-income housing sub-sectors for years 2006 to 2008 of over 1.4 billion dollars per year and growth projections at around 3.3% per year until 2010, the housing industry promises to be one of the most attractive sectors in which to invest for companies. Normally pre-fabricated houses are located in rural areas and in the border areas, and low-income homes are located in small to medium size cities with no more than 50,000 inhabitants.
In addition to the private sector investment, the federal and state governments receive from international housing organizations and funds. For example the Jimmy Carter Foundation has been working very closely with the Mexican government on several projects in rural or poor areas.
This housing sector is focused on those individuals or families with a monthly wage lower than US$399.00. The major problem in this sector is that construction companies are driven out of the sector because of the low profit they gain by building these houses.
“Most companies turn to other types of construction to generate higher revenue. Our mission at Aquentium is to allow individuals around the world to live in dignity and as a public company make money for our shareholders,”
“We believe this is a good time to take advantage of the market because many restrictions on investment and construction in Mexico have been abolished thanks to Constitutional reforms passed over the last few years. The market is open for investors and contractors who want to take advantage of the booming construction industry in Mexico,” commented Taggatz.
