Report highlights key risks facing global construction sector

A new survey by Aon Risk Solutions identifies the top risks facing the global construction industry. As the market suffered considerably at the hands of the economic downturn, recession-era trends are expected to plague construction project management for some time to come.

Specifically, Aon points out the top four risks facing the industry: the global economic slowdown, rising competition, damage to brand reputation and the failure to attract or retain top talent. The consulting firm also cited regulatory and legislative changes as leading concerns.

"Construction firms have committed significant resources to risk control [and] safety practices to help reduce frequency and severity of loss and, according to the survey, they would like to see lower premiums that recognize this investment," Aon reports in a statement.
Heavy industrial, engineering, supply chain and construction contractors are enjoying strong backlogs, but rising global competition may complicate client retention efforts and strategies.

Political uncertainty was ranked No. 11 on the list, but such concerns are only expected to grow in 2012, as the construction sector expands into developing markets with volatile political systems and populaces.