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Economic Slowdown or Slow Recovery
Global economic uncertainty is being fuelled by geopolitical volatility and unpredictable inflation and interest rates.
Industry Overview
Construction and Real Estate
A Sector Being Transformed by Digital and Green Commitments
Demand for construction and real estate has rebounded — even accelerated — in the years following the pandemic. But against this backdrop, the industry faces ongoing challenges, including supply chain disruption and scarcity of materials, a lack of available talent and the uncertainty of operating in a volatile economic landscape. Plus, perennial risks like cashflow management have not gone away.
Of course, new challenges are always emerging. Cyber and intellectual property-related threats are rising, and climate considerations are rapidly growing in importance. This is not a moment where leaders can afford to stand still.
To address these challenges, Aon has vast experience in providing risk capital and human capital capabilities to contractors, developers, investors, and the full range of organisations that support the construction and real estate industry. We continue to innovate on behalf of clients, developing solutions such as environmental, social and governance benchmarking to help leaders reduce their overall cost of risk and manage their people and risks optimally.
Top 5 Current Risks
According to our latest Global Risk Management Survey, the biggest risks facing the Construction and Real Estate industry include:
More Insights
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Article 6 mins
Decarbonising Construction for a Low-Emission Future
Decarbonising construction demands new materials and approaches, with a focus on managing risk and securing capital. By aligning sustainability with business strategy and risk management, the industry can meet net-zero targets.
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Article 22 mins
The AI Data Centre Boom: Strategies for Sustainable Growth and Risk Management
Rapid growth in data centre construction, spurred by AI advancements and cloud demand, creates interconnected risks for developers. However, with effective risk management solutions, navigating this dynamic market while prioritising sustainability is possible.
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Article 9 mins
3 Strategies to Help Avoid Workers Compensation Claims Litigation
When a workers compensation claim goes to litigation, expenses rise dramatically — a burden that is often shouldered by the business. To mitigate attorney-related costs, organisations should re-think their approach to engaging injured workers and use artificial intelligence to enhance outcomes.
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Article 8 mins
3 Human Capital Recommendations for Construction Contractors Entering Asia
European construction contractors are looking with increasing interest at Asia, but to expand successfully into the region, they need to overcome key workforce and market challenges.
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Article
Cyber Risk: Turning Uncertainty into Opportunity
Cyber risk tops the global risk agenda in 2025 — and is forecast to retain the number one position through to 2028. As digital threats evolve, organizations should strengthen resilience, quantify exposure and adapt their risk strategy.
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Article 7 mins
Managing Construction Risks: 7 Risk Advisory Steps
Risk advisory services can help construction stakeholders navigate uncertainties, optimise performance and drive growth in their projects.
