Dominican Republic Construction Industry Poised for Rebound: Opportunities for U.S. Companies

The Dominican Republic’s construction industry enjoyed robust growth from 2015 to 2020, but faced a downturn from 2020 to 2023. However, positive signs are emerging, with the industry expected to be a top performer in 2024. This growth will be fueled by low-to-medium cost housing projects, commercial buildings, and government-funded infrastructure initiatives like highways and bridges. As of September 2023, over 1,100 public construction projects have been approved nationwide, signifying significant investment in this area.

This rebound presents a great opportunity for U.S. companies offering building products and equipment. Dominican membership in CAFTA-DR grants U.S. exports duty-free entry, giving them a significant edge over non-CAFTA competitors. However, the market remains price-sensitive, with the U.S. market share dropping from 40% to 35% in 2023.

To thrive in this competitive landscape, U.S. companies should prioritize affordability, high-quality products, and prompt delivery. Offering excellent technical support and after-sales service is also crucial. Partnering with local distributors or establishing a presence in the Dominican Republic is highly recommended. This allows U.S. companies to understand consumer preferences, build strong relationships, and provide the reliable after-sales service that Dominicans increasingly value.

Additionally, leveraging personal connections and networks is essential for success, as these relationships play a significant role in Dominican business culture. By understanding these factors and tailoring their approach accordingly, U.S. companies can gain a significant foothold in the Dominican Republic’s resurgent construction market.

For more information, please contact Senior Commercial Specialist Sheila Diaz: Sheila.Diaz@trade.gov