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Dominican Republic - Building Products

01/01/2018

The local building industry is open to foreign companies interested in selling their products in the Dominican market. 

In the last 3 years construction activity showed remarkable growth in the Dominican Republic, this reflects the substantial investment by the Dominican Government, as well as the private sector.  According to information provided by the Dominican Republic Central Bank, the construction sector has been one of the most active and dynamic with a growth rate of 10.7 percent for the last year 2016 and representing over a 9 percent of added value to the Dominican GDP.

 

2015

2016

2017( Estimated)

Total Market Size

559.8

571.2

582.2

Total Local Production

33

38.1

39.0

Total Exports

14

18

19

Total Imports

540.8

553.1

562.2



 
Unit: (Millions of U.S. Dollars)
Exchange rate: RD$45.95 – US$1
Sources: U.S. Census Bureau, Economic Indicators Division; DR General Customs Directorate
 
Dominican Government investment in public works remained similar in 2016 when compared to 2015, over $750 million.  The factors contributing to this growth are investments made by the Dominican Government in construction activity related to several mega  projects; including the several highways infrastructure systems, the elevating of several major avenues in Santo Domingo, second Metro line of Santo Domingo, the construction of 10,000 new classrooms, low-income housing projects nation-wide, and other infrastructure improvements.



There is strong competition in this sector as companies from U.S., Asia, Europe and various Central and South American countries attempt to develop export opportunities. In order of importance, the main selling points for building products are: price, quality, and time to delivery.



According to experts, building products from other countries especially those from China, Taiwan and Central/South America may not meet the same quality standards as American or European countries.  Nevertheless, imported products from China and South America have the most presence in the market.  Asian building products often have a price advantage for extremely cost-sensitive projects and are consequently widely used in government-funded projects such as hospitals, schools and low cost housing projects.



The local building industry is open to foreign companies interested in selling their products in the Dominican market.  The best way to enter the market is by finding a distributor who is familiar with the Dominican technical requirements and who can be as competitive and aggressive as the ones already working with other foreign companies.



Best prospect products include:
Heavy Construction Equipment (including used)
High-end aluminum/ wood doors and windows
Bathroom and kitchen fixtures
Wood lumber and wood products
Electrical fixtures
Lighting products
Plumbing (metal) and welding products
Roof products (sealers)
Asphalt mixtures
Steel products
Prefabricated structures
Hand tools.