The role of construction has changed dramatically in recentyears. Growth in the developing world, increasing numbers ofmegaprojects, large-scale investments in infrastructure andglobalization of the industry are adding complexities to projects.Fragmented and sometimes inadequate workforces, uncertainregulatory frameworks and political climates, and the inescapablerise of technology have resulted in a host of interconnected risklandscapes that impact each other in difficult and unpredictableways.

To gain deeper insight into to this dynamic risk environment,Willis Towers Watson recently launched itsConstruction Risk Index, a boardroom view of the industry as seenby 350 senior executives from across the globe.  As partof this comprehensive study, we asked the executives to rank thegreatest threats to their businesses – both today and ten yearsfrom now.  We asked them about their attitudes toward 50specific risks from five megatrends. Subsequently, we conductedin-depth interviews to gain greater insight into the challengesthey face. The result offers a deep look into the concerns andexpectations of construction leaders and highlights the mostsignificant megatrends that will shape the future of theindustry.

The primary risks

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According to the data, the most prominent fears for constructionexecutives are the geopolitical instability and regulatory changesthat are manifesting across the globe in a sometimes volatilemanner. The top risk, "negative changes to government financing,policies and priorities", illustrates the industry's intimaterelationship with public spending and the impact of regulations.Geographically, executives are almost unanimous in their concerns.This risk ranks among the top three in every region except NorthAmerica, which identifies "capital availability, funding andliquidity" as the greatest threat.

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