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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.
Industry Overview
Industrials and Manufacturing
Transforming to Address Both Old and New Challenges
As global demand for goods surged following the initial shock of the pandemic, businesses across the industrials and manufacturing industry struggled to keep up due to materials shortages, supply chain failures, and challenges in attracting and retaining key talent. Against this backdrop, managing inventory was near-impossible at times, with cost fluctuations, rising cyber threats and geopolitical uncertainty compounding issues.
To move forward with clarity and confidence, companies across the sector must adopt more holistic risk management and workforce strategies that cover both physical and human assets, take into account expanding environmental, social and governance (ESG) expectations, and reflect the industry’s rapidly rising insurance needs.
At Aon, our teams have deep experience across all segments of the industrials and manufacturing industry—including advanced manufacturing, aerospace and defense, automotive, and heavy industry firms—and we partner with these clients to provide both catastrophic risk and daily cost-of-risk management, implement novel risk transfer solutions by harnessing powerful modeling tools, and build dynamic and resilient workforces.
Top 5 Current Risks
According to our latest Global Risk Management Survey, the biggest risks facing the Industrials and Manufacturing industry include:
More Insights
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Article 3 mins
Better Decisions in Trade, Technology, Weather and Workforce
From global supply chain risks to climate insecurity, organizations face challenges and complexities on a scale rarely seen before.
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Article 3 mins
Risk Capital and Human Capital Perspectives
Risk Capital CEO Andy Marcell and Human Capital CEO Lambros Lambrou discuss how innovations in Risk Capital and Human Capital can help organizations boost resilience and navigate volatility.
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Article 10 mins
Top Risks Facing Industrials and Manufacturing Organizations
Industrials and Manufacturing respondents to our Global Risk Management Survey (GRMS) ranked commodity price risk or scarcity of materials and supply chain or distribution failure as their two most critical risks.
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Article 5 mins
Using Data to Close Workforce Gaps in Manufacturing Companies
Our research shows three workforce challenges specific to manufacturing companies. Addressing these is critical to future success.
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Article 6 mins
El Niño and the Storm Brewing in Supply Chains
The return of El Niño is creating challenges for the global supply chain, including risks for transportation and logistics. As disruptive weather and climate events persist, vulnerable industries will need to rethink their supply chain strategies to maintain resilience.
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Article 6 mins
Protect and Grow: An Integrated Approach to Tackling Global Volatility
In today’s increasingly volatile global economy, business leaders are focusing on two key areas of decision-making: Risk Capital and Human Capital.
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Article 7 mins
COVID-19 has Permanently Changed the Way We Think About Wellbeing
Aon’s 2022–2023 Global Wellbeing Survey explores what employers around the world are doing to support the needs of today’s workforce.
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Article 7 mins
ESG Data: How Businesses Can Use Data to Gain an Edge
To make the most out of their ESG data, companies can draw on different approaches to benchmarking and increase their attention to governance.
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Article 7 mins
Catastrophes and Coverage: What 2022 Can Teach Us About Climate Risk
The impact of climate change on businesses, insurers, and communities can provide insight on how to mitigate the risks associated with extreme weather events.
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Article 12 mins
A Guide to Preparing for Greater Climate Disclosure in 2023
Climate disclosure requirements will increase globally in 2023. Use this guide in preparation to reduce risk and attract investors.
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Article 6 mins
How Will a Recession Impact the Great Resignation And Quiet Quitting?
A new phenomenon in which employees become disengaged — 'quiet quitting' — is drawing increasing interest.
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Article 7 mins
Retaining Talent in a Job-Hopping World
A record number of workers are quitting jobs and changing companies — or thinking about it. How can employers retain talent in today’s competitive market?
