The global trade and projects environment has rarely been more volatile and challenging.
Companies undertaking major projects both internationally and in home markets are seeing their execution frustrated, interrupted or even halted by supply chain issues, ongoing Covid-19 disruption, labor shortages, rampant inflation, embargoes, market restrictions and much more.
Despite these challenges, contractors and exporters across the world are still full of ambition for international expansion something that is evident in the latest Allianz Trade Global Trade Survey. The research, involving 3,000 businesses across the US, China and major European economies, shows that the vast majority were expecting to expand into new markets by the end of 2022, with ambition running highest in China (92% of companies) and the US (84%). And even when asked to reassess their outlook in light of the conflict in Ukraine, between 71% and 84% of those surveyed in Europe said they expected to see growth in their international activities during the year.
More than ever, though, projects in international locations need to be backed by guarantees or bonds that instill high levels of confidence in your business’s ability to deliver on its contract obligations. That is especially true for complex projects in areas such as construction, engineering and transportation, where commitments might run for multiple years, span several borders and involve execution in territories where the legal and market frameworks are unfamiliar to you and your team.
Many companies have traditionally looked to their bank to provide these kinds of guarantees. However, an increasingly large number now see major competitive advantages in supporting their projects with issued by an insurer.