Construction and Real Estate

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 organizations 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.

01

Economic Slowdown or Slow Recovery

Global economic uncertainty is being fueled by geopolitical volatility and unpredictable inflation and interest rates.
02

Failure to Attract or Retain Top Talent

Companies excel when they have the best possible talent in each role, from the C-suite to the front line. An inability to fill these slots and retain top-performing employees can have serious repercussions.
03

Cyber Attack or Data Breach

Cyber attacks are, and will remain, a top risk across all geographies and industry sectors. All leaders need a cyber game plan.
04

Commodity Price Risk or Scarcity of Materials

The global commodity market continues to suffer from wild mood swings, often due to geopolitical volatility or extreme weather events.
05

Cash Flow or Liquidity Risk

Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.

Article

Rethinking Risk: Navigating Energy Volatility in Heavy Industry

The rising cost of energy is driving business leaders across heavy industries to rethink their approach to risk.

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Article 6 mins

Decarbonizing Construction for a Low-Emission Future

Decarbonizing 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.
Article 23 mins

The AI Data Center Boom: Strategies for Sustainable Growth and Risk Management

Rapid growth in data center construction, spurred by AI advancements and cloud demand, creates interconnected risks for developers. However, with effective risk management solutions, navigating this dynamic market while prioritizing sustainability is possible.
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, organizations should re-think their approach to engaging injured workers and use artificial intelligence to enhance outcomes.
Article 6 mins

The Long-Term Care Conundrum in the United States

Long-term care is expensive, and costs are rising due to shortages. With the population aging at the fastest rate in a century, finding solutions to pay for care is an urgent priority. How can employers support this growing population?
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.
Article 7 mins

How to Navigate Evolving Construction Contractor Risks in EMEA

Contractors in EMEA face an array of risks they must mitigate or transfer while managing the complexities inherent in major construction projects.
Article 7 mins

Managing Construction Risks: 7 Risk Advisory Steps

Risk advisory services can help construction stakeholders navigate uncertainties, optimize performance and drive growth in their projects.
Article 5 mins

How Climate Modeling Can Mitigate Risks and Improve Resilience in the Construction Industry

In an era of escalating climate-related challenges, the construction industry is turning to advanced climate modeling to fortify its risk management strategies.
Article 7 mins

Protecting North American Contractors from Extreme Heat Risks with Parametric

Growing extreme heat conditions have escalated risks, delays and costs for the construction industry in North America. Parametric insurance can help protect against such risks, offering contractors and building owners agility, efficiency and flexibility.
Article 9 mins

How Insurance Can Help Hedge Potential Exposures Under the New Unified Patent Court System

The launch of the Unified Patent Court allows for a new patent filing process across Europe using a centralized system. While this brings significant financial and operational benefits, navigating these changes will demand a robust litigation risk management strategy.
Article 8 mins

Parametric Can Help Mitigate Extreme Heat Risks for Contractors in EMEA

Construction projects in EMEA are often impacted by extreme heat, leading to project delays and increased costs. Many heat exposures are excluded by traditional markets, however, parametric is a flexible solution that can help mitigate these risks.
Article 7 mins

Unlocking Capacity and Capital in a Challenging Construction Risk Market

Complex market dynamics in the construction industry are pushing organizations to proactively explore alternative risk transfer solutions, including parametric insurance and captives.