It’s impossible to run any business without incurring risks, but the construction industry is riskier than most. Smart contractors do all they can to understand and mitigate the business threats they face so their businesses remain viable in times good, bad and uncertain.
One helpful resource is the Construction Risk Index 2017, released just last year by insurance analysts and consultancy Willis Towers Watson. The firm surveyed 350 high-level industry executives from around the world to identify megatrends affecting the global construction market and the risks posed by each.
Their report ranks these trends and forecasts their likely impacts over the next 10 years. Here are five of the pertinent risk factors to watch out for:
Studies such as the Construction Risk Index 2017 can help both contractors and risk management specialists prepare for new and evolving industry conditions. These findings should stimulate the development of new strategies and instruments to mitigate business threats that construction companies will face over the next 10 to 20 years. By keeping abreast of these developments, you’ll put yourself in a better position to protect your bottom line.