In a year that has seen many surprising political shifts, the International Monetary Fund’s global outlook, released in October, shows that worldwide economic growth is expected to slow to 3.1% in 2016, then increase to 3.4% next year. While it is still too early to determine the effects of the U.S. presidential election on manufacturing construction, one U.S. construction executive speculates that projects in Mexico could be affected if the Trump administration make changes to the North American Free Trade Agreement. For now, manufacturing outside of the U.S. is still a lucrative business.
“We are seeing more new manufacturing plant opportunities abroad versus domestically,” says Donald C. Oberlies, vice president of Alberici Constructors. But capital funding decisions for projects are taking nine to 12 months longer than in past years, he notes. “Most recently, we have seen this on several projects in Canada and Mexico,” says Oberlies.