Things are looking up in the construction industry. Private nonresidential construction spending increased nearly 13% to $187.5 billion in the first seven months of 2014, according to Fitch Ratings, compared to just more than 1% last year. Through August, housing starts were up 8% from the prior year, according to the U.S. Department of Commerce.
"We are experiencing a material increase in projects in general," says Matt Walsh, chief brokerage officer with Aon Risk Solutions' U.S. construction practice. "We're also seeing an increase in major, $1 or $2 billion projects, both civil and private—not just bridges and roads and tunnels, but corporate headquarters, manufacturing facilities and natural gas projects,"
That's translating into more demand for coverage. "The market is very active at the moment. We are seeing increased opportunity on contractor accounts, including contractor- and owner-controlled programs and project-specific business," says Bill Hazelton, executive vice president at ACE USA.
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