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Inflation, labor challenges are the biggest risks facing construction sector

Since 2012, the growth rate of skilled craftspeople entering the workforce has slowed, with certain sectors such as carpentry seeing declines.

“No matter what the loss scenario is, nine times out of 10, unless it is related to a NAT CAT, it usually comes down to some sort of operator error,” Darren Tasker of Allianz Global Corporate & Specialty said. “So certainly the lack of talent is concerning as it could lead to more losses because of operator error.” (Credit: Michael Flippo/Adobe Stock) “No matter what the loss scenario is, nine times out of 10, unless it is related to a NAT CAT, it usually comes down to some sort of operator error,” Darren Tasker of Allianz Global Corporate & Specialty said. “So certainly the lack of talent is concerning as it could lead to more losses because of operator error.” (Credit: Michael Flippo/Adobe Stock)

Inflation’s impact on materials and labor challenges continue to be the biggest operational risks facing the construction sector, according to Selective Insurance’s General Contractor Risk report.

“Construction is an inherently high-risk industry given its exposure to and reliance on macroeconomic factors, such as commodity pricing, supply chain, labor dynamics, and housing demand,” Jim Albi, assistant vice president, contractors, at Selective Insurance, said in a release. “For general contractors, their ability to identify, anticipate and manage a range of workplace risks can determine the success of their projects and, more importantly, their business resiliency.”

Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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