Donald Trump plans on building a wall along the entire Mexican border if he is elected as the President of America as an attempt to hinder the migration of illegal immigrants making their way into the country. Interestingly some of the beneficiaries of this project would be Mexican concrete companies such as Cemex and Grupo Cementos de Chihuahua SAB.
With the potential cost of the project being estimated at $15 billion dollars (or more!), suppliers of building materials along the border region are in a position for great profitability. This wall which was proposed by the controversial Republican presidential nominee would likely emulate the design of the wall which separated Isreal from the West Bank – most of which was built using precast concrete panels.
“As ludicrous as The Trump Wall project sounds (to us as least), it represents a huge opportunity for those companies involved in its construction” , Analyst Phil Roseberg stated in his report. “Despite arguments concerning which government will pay for construction, the large quantities of materials may necessitate procurement from both sides of the border”.
Construction Challenges
Roseberg explained that the wall project will be a challenging feat as it would require roads to be built just to gain access to areas where the international boundary passes through desert and mountain terrain.
“It is not economically feasible to transport heavy building materials over large distances”, Roseberg’s team stated. “As such, it is the companies with production facilities closest to the border that stands to gain the most as supplies to The Trump Wall project”.
Requiring approximately 7 million cubic meters of concrete, this alone could cost more than $700 million. This is based on the assumption that the wall would extend 1,000 miles, rise 40 feet and reach seven feet underground.
Source: http://www.bloomberg.com/news/articles/2016-07-15/if-trump-builds-a-wall-a-mexican-cement-maker-would-profit-most
