Ecuador's construction sector shows signs of recovery with increased cement production

Ecuador's construction sector is showing promising signs of recovery, with cement production and sales experiencing significant month-on-month growth in July 2026. Production reached 474,900 tons, a 5% increase from June, while dispatches surged by 8.6% to 492,600 tons. This uptick suggests a potential rise in construction projects, particularly housing, which could translate into more employment opportunities.

The cumulative figures for January to July further support this trend, with production up 11.8% and dispatches growing 14% year-on-year, according to the Central Bank of Ecuador. Cement's role as a key material for housing, buildings, and infrastructure makes its consumption a reliable indicator of sector health. Inventories also decreased by 25.9% in July, with increased market dispatches.

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These indicators are consistent with greater construction activity, although the growth cannot be attributed exclusively to houses and apartments. There is also demand from public, commercial, and infrastructure projects.

Architect Fabricio Ruiz notes that while these indicators align with increased construction, the demand isn't solely from housing. Public projects, commercial developments, and infrastructure also contribute. He emphasizes that a consolidated recovery requires monitoring construction permits, new projects, mortgage credit, and public and private investment to fully gauge the impact on new housing.

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There is more demand.

The construction of a single home or apartment creates a ripple effect of employment, engaging masons, electricians, plumbers, carpenters, welders, architects, engineers, and installers, alongside suppliers and transportation services. Miguel Ovando, a specialist in construction and artisan in aluminum and glass, confirms a noticeable increase in demand for services over the past three months. However, he cautions that while demand for work is up, rising material costs are outpacing wage increases, potentially limiting income growth for workers despite more activity.

Ruiz further explains that the employment effect is contingent on material demand translating into executed projects. While cement dispatches rose 8.6% monthly, direct employment in cement companies saw a slight decrease of 0.04% in July, though it increased by 2.2% compared to July 2025. Ovando highlights the ongoing challenge for workers and contractors to manage costs effectively.

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This implies that more construction can generate employment opportunities without immediately translating into higher incomes for workers.