In dialogue with Channel E, Jose Antonio FernandezPresident of the Confederation of Construction SMEs, explained the fragile balance between the emerging recovery of private work and the general brake on public investment.
The construction sector is showing very moderate signs of recovery, accompanied by national data showing year-on-year growth of 8%. However, e.g Fernandezthe overall picture is anything but optimistic. The chairman of the Association of Construction SMEs warns that activity continues to be divided into two parts: public work that is slowing down and private work that shows little sign of movement.
Fernandez Make it clear from the start that the reading must be clearly divided into segments. Regarding the government sector, he expressed concern about the collapse in provincial and municipal revenues. As he explained, these jurisdictions had attempted to replace national public works that had been paralyzed since the change of government, but these efforts were now no longer sustainable. “The decline in income from federal contributions creates uncertainty for 2026“, he explained.
Public works slowed down and short-term perspective
The leader stressed that the slowdown was evident: “The results are achieved, but at a slower pace of work“And he added that the low collection has a direct impact on provincial and municipal investments as local governments prioritize salaries and current expenses.”
In this context, no immediate reactivation is planned: “This reactivation is not observed in the short term and in the short termIn his opinion, public investment will return due to structural needs, as no developed country grows without infrastructure, but the return will be slow and conditioned by budget accounts.
Fernandez He also stated that in recent months the provinces have recorded drops in collections of 20% to 24%, which directly affects the continuity of the work already started. “It’s common sense“He explained and pointed out that public works, by definition, are the adjusting variable when resources decline.
Slight stimulation of private work
Private construction, on the other hand, is recording a slight upswing, driven by property developers who are focusing on medium-term development despite the lack of mortgage loans. Fernandez He describes it as a movement that is still weak but constant. He noted that the stabilization of some costs promotes the investment climate: “The square meter is still expensive, but not as expensive anymore; has adjusted to more normal values“.
The entrepreneur emphasized that, contrary to general perception, private work is the true historical driving force of the industry: “Private work was always more popular than public work.” he explained, noting that 60% of the movement in Corralones comes from small individual buyers and quiet developers who typically do not have a media presence.
Logistics, costs and future challenges
Fernandez This was accompanied by concerns about high logistics costs, which in many cases exceed the value of the product transported. He argued that the deterioration of the routes affects competitiveness and creates an urgent need for investment. Nevertheless, he assumes that the normalization of the sector will only be consolidated when financing income and public works volumes increase again.
About The Author
