CHICAGO, December 3, 2019 -- Just 30% of British manufacturers surveyed for our Risk and Confidence report are predicting confidence in their ability to grow and prosper in 2020, and 84% believe they will be operating in a moderate to high risk environment next year. These figures reflect the tough trading conditions facing manufacturers created by a drop in output linked to global trade wars and ongoing uncertainty over Brexit.
As we look ahead, manufacturers are caught in a cleft stick. Some 60% say they plan to invest in technology to transform productivity in 2020. But, on the flip side, this increasing reliance means that tech risk also tops manufacturers’ risk list in 2020, knocking political risk off the current top spot.
Other risks keeping confidence levels in check as we look ahead are regulatory & compliance risk and economic risk, both linked to political and economic uncertainty over Brexit.
The danger as we look ahead is that in all the noise over Brexit and the shift to greater reliance on technology, manufacturers will de-prioritise risk mitigation in "traditional" areas such as corporate and supply chain risk.
Trading conditions in 2020 will not be easier than in 2019. Manufacturers will need to be prepared to improve on risk management if they are to thrive in the risk landscape.
About CNA Hardy
CNA Hardy, acting in the UK through Hardy (Underwriting Agencies) Limited and CNA Insurance Company Limited, and in Europe through CNA Insurance Company (Europe) S.A., is a leading specialist commercial insurance provider for clients within both the Lloyd’s and company markets. For more information, please visit CNA Hardy at www.cnahardy.com.
CNA is one of the largest U.S. commercial property and casualty insurance companies. CNA provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada and Europe, backed by more than 120 years of experience and approximately $45 billion of assets. For more information, please visit CNA at www.cna.com.
Follow CNA Hardy on: LinkedIn
Follow CNA (NYSE: CNA) on: Facebook | Twitter | LinkedIn | YouTube