According to the latest data published by the Association of Construction Companies and Infrastructure Concessionaires (Seopan), the public works tender in the Region of Murcia continues to be low. In the last month for which data are available (November 2020), it has been tendered in the Region of Murcia € 22.5 million, of which 38.1% correspond to the regional administration, 35.9% to the state administration and 25.9% to local corporations.
In all public administrations as a whole, the total amount tendered in the first 11 months of 2020 barely reached 138 million euros (137,909,000 euros), when in 2019, in that same period, almost 573 million had already been tendered euros (€ 572,924,000), which represents a 75.93% drop.
By bidding administration, the largest drop occurs within the General State Administration that has barely tendered 50 million euros so far this year (50,217,000 euros), compared to the 435.5 million euros that it had tendered in 2019, which represents a 88.47% decrease.
Regarding the Autonomous Administration the tender also experiences a 37.84% decrease. Thus, compared to the 39.3 million that have been tendered this year, in 2019 more than 63 million euros were tendered. And finally, in the local administration the decrease has been 34.84%. Until that date, in 2019 a total of 74.2 million euros had been tendered and this year it barely reached 48.3 million.
Even though these comparative data could be conditioned by the concurrence of electoral processes in 2019, the comparisons with previous years are also negative. Following this evolution in the month of December, 2020 could represent the year with the lowest investment in the entire historical series, when the tendency was being to the progressive increase, conditioned yes, by electoral circumstances.
The construction sector as an economic engine
Despite the economic and health crisis, and the significant decline in investment in public works and the uncertainty that is occurring in the private sector, companies in the construction sector are maintaining activity and jobs created throughout the year.
From the Regional Federation of Construction Entrepreneurs (Frecom) they continue to claim “an investment policy according to the prominence and importance of the sector as an economic engine and job creation, and due to the significant drag effect it causes in other sectors of activity.”
The construction sector represents 10% of the Gross Formation of Fixed Capital according to the National Institute of Statistics and contributes with more than 1.2 million jobs, (41,100 jobs in the Region of Murcia). The capacity of the construction industry as a generator of employment and demand for supplies from other industrial sectors is well known.
The investment in construction and infrastructures is justified by its varied business structure (large, medium-sized companies and a high proportion of SMEs and the self-employed) that generate the second highest job creation in our economy, with 10 direct and 5 indirect jobs for every million euros invested, generate the highest induced economic activity, equivalent to 1.92 euros per euro invested, generate the greatest boost to our national industry by requiring the lowest import quota of all productive sectors, of 9%, and all this with a 49% tax return for every euro invested.