The construction sector in Latin America is operated on under pressure: risk prospects in Latin America based on the establishment of the economy, social, ecological, ecological, ecological, ecological, ecological, ecological, ecological, ecological and technological area.
The continued inflation, the devaluation of currencies and the increasing work and material costs erode the profitability in the region. Cristian di Lorio, regional head for construction, Chubb América Latina, emphasizes that “the building has become under pressure”, since the contractors have to deal with high project costs, unstable regulatory environments and limited access to financing. The report also warns that late payments and contracts of contract continue to burden the liquidity, which contributes to financial uncertainties.
The safety of the construction sites remains a critical problem. From height, inappropriate machine use, the lack of personal protective equipment (PSA) and the defective infrastructure to the most common causes of accidents. The lack of specialists continues to complicate the company, says Chubb.
In addition, Latin America's susceptibility to natural disasters such as earthquakes, floods and hurricanes is a significant threat to construction projects. At the same time, social conflicts, protests and oppositions of the community are increasingly disrupted projects with medium and large scale. New environmental requirements also urge companies to pursue higher sustainability standards, increase compliance costs and to extend the project schedule.
Abrupt political changes and regulatory changes continue to destabilize the sector. From the developing work laws to stricter environmental regulations, contractors are forced to constantly adapt the project planning and execution. These shifts can change cost structures overnight and affect the trust of investors, which means that the risk of risk and reducing is of essential importance.
Low technological introduction and rising cyber risks
Despite the availability of transformative technologies such as the building information model (BIM), IoT and AI, they have implemented only a few construction companies in the region, warns Chubb. This delay hinders efficiency and risk prevention. At the same time, construction companies confronted with cyber attacks on project management and financial platforms and underline the need for stronger digital protection.
According to Chubb, the future of the Latin America construction industry will depend on its ability to adapt, to invest in prevention and to build strategic partnerships that improve resilience. In this process, the insurance company plays a crucial role by offering financial protection and operational continuity in the middle of uncertainty, says Chubb.
“The ability to adapt to changing contexts, invest in prevention and consolidate strategic alliances can determine the future of the sector,” says Di Lorio.