WILLEMSTAD/PHILIPSBURG:--- The construction sectors in Curaçao and Sint Maarten are navigating a complex landscape of growth and rising costs, according to the 2025 Construction Survey Report released by the Centrale Bank van Curaçao en Sint Maarten (CBCS). While real output has surged in both nations, distinct differences in economic sentiment and operational hurdles are shaping the year ahead.
Robust Growth Amidst Operational Hurdles
According to CBCS estimates, the construction industry saw significant expansion, with real output in Curaçao growing by 9.6% and in Sint Maarten by 9.5%.
Despite this strong performance, the sector remains dominated by small players. The survey reveals that micro-enterprises account for the majority of the industry in both countries, with approximately 75% of companies employing fewer than five full-time staff members. Only a small fraction—6%—operate with more than fifty employees.
Activity is largely concentrated in general construction for residential and commercial buildings, followed by finishing work and infrastructure projects. However, the reliance on foreign resources is heavy. Nearly half of the surveyed companies (44%) reported importing construction-related products or services, leaving the sector vulnerable to global supply chain disruptions and price volatility.
The Labor Crisis
The most pressing challenge facing the industry is a severe shortage of skilled labor. Over half of the construction companies surveyed (54%) reported difficulty finding workers, and 81% rated recruiting skilled professionals as "difficult" or "very difficult."
The shortage is most acute in specialized trades. About 78% of respondents reported difficulty hiring electricians, plumbers, and carpenters. This labor gap was identified by nearly two-thirds of respondents (64%) as the primary obstacle to business operations, prompting calls for initiatives to strengthen the local skilled labor pool.
Rising Costs and Price Pressures
Financial pressures are intensifying for 2025. A majority of firms (58%) anticipate higher price levels compared to the previous year. This is driven by a combination of factors:
- Material Costs: A clear majority of firms expect material prices to rise, with over two-thirds predicting an increase of 5% or more.
- Transportation: Over half of respondents anticipate hikes in international shipping costs, while nearly two-thirds expect local transportation expenses to climb.
- Financing: One-third of companies expect an increase in annual financing costs.
Consequently, consumers can expect these costs to be passed down. More than half of respondents anticipate price increases in residential construction, with nearly one-third expecting hikes exceeding 15%.
A Tale of Two Outlooks
While both islands face similar operational challenges, their 2025 economic outlooks diverge significantly.
In Curaçao, optimism prevails. Nearly two-thirds of construction companies (65%) expect overall economic conditions to improve, and 60% anticipate strengthening their local market position. Investment sentiment is also positive, with 57% of firms expecting some growth in investment levels.
In contrast, sentiment in Sint Maarten is markedly more cautious. Firms there expressed concerns about worsening economic conditions and reduced investment activity. Beyond labor and cost issues, respondents in Sint Maarten cited infrastructure constraints and limited access to finance as specific hurdles dampening their outlook.
Industry Priorities
To sustain growth and mitigate these challenges, construction firms across both nations have outlined clear priorities. The most frequently cited need (36%) is to expand and strengthen the skilled labor pool. Other top priorities include reducing the cost of doing business (27%), cutting red tape, and improving access to credit.
As 2025 progresses, the ability of the sector to bridge the skills gap and manage soaring input costs will likely determine whether the current growth trajectory can be sustain
