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Housing cluster in Puebla

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A Housing industry analisys using Porter's models

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Housing cluster in Puebla

  1. 1. HOUSING CLUSTER IN THE METROPOLITAN AREA OF THE CITY OF PUEBLA Berenice Dominguez Berenice Meneses Sara Nolasco Miguel Angel Lezama Arturo Vieyra Jose Angel Raynal Gutiérrez
  2. 2. ABSTRACT The Housing Industry in Puebla has not been an important actor in the development of the Housing Industry in Mexico, in spite of its market size, potential, geographical location, benevolent weather and favorable resources. This essay pretends to analyze the industry, its competitiveness, and the factors that promote or stager its evolution, in order to identify the required steps to form a housing cluster in Puebla and to transform the local industry into a relevant competitor in Mexico.
  3. 3. HOUSING INDUSTRY IN LATIN AMERICA • Housing deficit in the continent is around 22.2 millions houses. • Most countries have problems with poor urban development. • There is a big deficit (17.2%) that is getting worst with population growth (8.7% projected from 2011 to 2020). Projected Population Growth Thousands of persons
  4. 4. HOUSING INDUSTRY IN LATIN AMERICA Poverty vs Households deficit % households deficit % poor households
  5. 5. HOUSING INDUSTRY IN MEXICO • Mexico has an estimated deficit of 4.1 million homes (17.3%). • 3.4 million homes require Government’s subsidies. • National Housing Commission (CONAVI) coordinates the efforts between the various financial institutions that promote housing. Not EAP 29 Total Households in millions 26.1 Potential Bank Borrower 17.3 8.1 4.1 3.4 2.9 8.8 9.2 4 0.7 Total Households EAP No Housing Fund Housing Fund Not Needs Home enough Income Enough Income Has Home Needs Gov. Help
  6. 6. HOUSING INDUSTRY IN MEXICO • National Housing Organisms (ONAVIs) INFONAVIT CONAVI SHF ABM AHM Sociedad Hipotecaria Federal Asociación Hipotecaria Mexicana Fondo de la Vivienda de los Trabajadores Afiliados al ISSSTE Asociación de Bancos de México Instituto del Fondo de la Vivienda para los Trabajadores
  7. 7. HOUSING INDUSTRY IN MEXICO • The Housing Industry is consolidating, with 10 companies owning 30.58% of the market in 2010 (compared with the 21.3% market share from the 10 biggest companies in the U.S. in 2010). • Four of this 10 companies compete in Puebla. • Puebla’s housing companies do not compete outside the state.
  8. 8. FIVE FORCES ANALYSIS - PUEBLA Potential Entrants 1. Land acquisition and financing is a barrier. 2. Market is attractive for competitors from other Rivalry regions. 3. Low start up costs. 1. Low rivalry due to deficit. 2. Prices tend to increase over time. 3. Competition is for credits and subsidies in low income houses. Suppliers 1. Land owners enforce terms and prices. 2. Construction suppliers have low bargaining power. Buyers 1. Sophistication is increasing. 2. Price sensible to credit capacity. 3. Low fidelity to marks. 4. Customization is valued. Substitutes 1. Self-construction limited by credit options. 2. Mobile houses are not accepted.
  9. 9. VALUE CHAIN ANALYSIS Marketing Design and Projects Licenses Procurement Financial Planning, HR, other Adm. Land Construction Sales Service support activities primary activities
  10. 10. VALUE CHAIN FLOW CHART Venture Capitals Land Edification and Infrastructure Sales Service Design Marketing Licenses Procurement Specialized credit institutions ONAVIs Community Administration
  11. 11. CLUSTER MAP Housing Development Companies 70 in CANADEVI 4 Large Companies from other states Land Construction Sales & Mkt Government Urban Planning Departments Infrastructure Ministers Enviromental Ministers Universities BUAP ITESM UPAEP UDLAP IBERO UVM ANAHUAC Related Clusters Contractors Cement & Concrete Producers Steel Distributors Other Materials Distributors Notaries Valuation Agents Real State Brokers Quality Control Labs Quality Supervisors Design Firms Advertising Companies Enviromental Firms Institutions for Collaboration CANADEVI Related Clusters Assoc. Equity Financing Venture Capitals Private Investors Debt Financing ONAVIs “Bridge” Credits (SHF)
  12. 12. DIAMOND ANALYSIS
  13. 13. DIAMOND ANALYSIS – F.C. • Fourth biggest Metropoli (2.5 million people) • Known as the “Gate to the Southeast” • State’s GNI is 3.6% of Mexico’s GNI and ranks 7th among states, but GNI per capita ranks 25th. • 31.1% of the population is below 14 years old. • Ranks among the worst in water and sewage services. • Has an ancient tradition of construction workers and enough university level professionals.
  14. 14. DIAMOND ANALYSIS – F.S.R. • Puebla has its own chapter in the National Chamber of Housing Developers (CANADEVI) with 70 members. • CANADEVI represents the industry with the ONAVIs and the Goverment, most of its agenda is about defending the industry interests and promoting the sustainable development of urban areas. • Four of the Six biggest housing companies have operations in Puebla (Geo, Ara, Homex and Sadasi).
  15. 15. DIAMOND ANALYSIS – D.C. • The demand in the area of Puebla is estimated in 150,000 houses among private workers (INFONAVIT), and around 300,000 including bureaucrats and independent workers. • Less than 10% of this demand is covered each year. INFONAVIT is the main ONAVI financing house sales. • This demand grows at a rate of 4.5% each year. 30,000 25,000 20,000 15,000 10,000 5,000 0 Potential demand by income > 2 vsm 2 a 2.6 vsm (only Infonavit) 2011 2.6 a 4 vsm 4 a 7 vsm 7 a 11 vsm > 11 vsm Puebla Cuautlancingo San Andrés Cholula San Pedro Cholula Amozoc
  16. 16. DIAMOND ANALYSIS – D.C. 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Credits Number of credits for New Houses in Puebla 1990-2011 INFONAVIT FOVISSSTE SOFOLES BANCA SHF SHF PROSAVI CONAVI OTROS
  17. 17. DIAMOND ANALYSIS – D.C. 12 10 8 6 4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Number of credits for 1,000 inhabitants Credits for New Houses per capita (only Infonavit) 1990-2011 BAJA CALIFORNIA CHIHUAHUA PUEBLA QUERETARO SINALOA TAMAULIPAS
  18. 18. DIAMOND ANALYSIS – R.S.I. • Strong suppliers chain that compete fiercely. • Puebla has chapters in most professionals associations. • Lacks from an Institute for Urban Development Planning (IMPLAN).
  19. 19. DIAMOND ANALYSIS – G • The metropolitan area expands in 38 municipalities from Puebla and Tlaxcala with no coordination among them. • Land development is sometimes limited by water and sewage infrastructure. • Land property is fragmented, most owners are “ejidatarios”, with lots below 3 acres.
  20. 20. DIAMOND ANALYSIS – CH • Safer city. • The 2nd best public university and seven well recognized private universities. • Has all the ammenities of a big city. • Good weather, no heating or air conditioning systems required. • Growing investments in the automotive industry. Drug-related murders
  21. 21. REFERENCES ORGANISMOS NACIONALES QUE DEFINEN LA INDUSTRIA DE LA VIVIENDA Comisión Nacional de Vivienda www.conavi.gob.mx Instituto del Fondo Nacional de la Vivienda de los Trabajadores www.infonavit.gob.mx Fondo de Vivienda de los Trabajadores del ISSSTE www.fovissste.gob.mx Fondo Nacional de Habitaciones Populares (Fonhapo) http://fonhapo.gob.mx/ BANCOS E HIPOTECARIAS Sociedad Hipotecaria Nacional www.shf.gob.mx Asociación de Hipotecarias de México www.ahm.org.mx Asociación de Bancos de México www.abm.org.mx CAMARAS CANADEVI. www.canadevi.org, www.canadevipuebla.com.mx DESARROLLADOR SOCIAL DE VIVIENDA Hábitat para la Humanidad México, A.C., www.habitatmexico.org/ INSTITUCIONES PARA LA COLABORACIÓN - IFC´s Consejo Nacional de Evaluación de la Política de Desarrollo Social http://web.coneval.gob.mx/Paginas/principal.aspx#.UHcnecWR-So Organismos en gobiernos estatales. http://solucionesdevivienda.conavi.gob.mx/guiageneral/orevis Banco Mundial. www.obrasweb.mx/vivienda/2012/10/04/el-banco-mundial-respalda-viviendas-ecologicas-de- urbi Consejo Nacional de Organismos Estatales de Vivienda, A.C.,www.conorevi.org.mx/default.aspx Fideicomiso privado constituido por empresarios mexicanos.www.provivah.org/ Fundación HOGARES, www.fundacionhogares.org/quienes_somos/misionvision/ Provive, www.provive.mx/index.html Compartamos Banco, www.compartamos.com/wps/portal/Compartamos CONAVI concentra información del sector vivienda en su página: http://sniiv1.conavi.gob.mx/sniiv/cgi-bin/ sniiv/sniiv2.html
  22. 22. GRACIAS…

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