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Positive Perspectives on Shifting Industries: What to Watch for in Surety & Construction

The surety industry has long been a symbol of stability, marked by low loss ratios and disciplined underwriting. It’s a profitable, reliable tool for managing risk—and it’s evolving. A recent study from EY, conducted in November 2024, points to important shifts ahead, including changes in technology, workforce demographics, infrastructure demand, and business operations.

For insurance agents, contractors, developers, and business owners, understanding these trends—and preparing for them—can turn uncertainty into opportunity. With the right mindset and the right partner, you can stay ahead of the curve.

AI Isn’t the Future—It’s Already Here

Artificial intelligence (AI) is already improving how the surety industry operates behind the scenes and at the point of service. From streamlining underwriting to automating approval workflows, AI is transforming how fast and how accurately surety professionals can respond.

At Merchants, we’re using AI to:

  • Analyze financials with greater depth and speed

  • Automate repetitive processes to accelerate decision-making

  • Support digital tools like the Merchants Bonding Company Hub™ and the Hub Express

  • Identify trends and opportunities across books of business

Whether you’re a contractor needing faster bond approval, or an agent managing high-volume accounts, AI helps everyone move faster—with confidence. 

Talent Shortages Affect Us All

Retirements are creating a talent gap across the insurance and construction sectors. Fewer experienced professionals means fewer people with deep institutional knowledge and slower onboarding of new employees. That affects decision-making, customer experience, and business growth.

Here’s what it could mean for you:

  • Contractors may find it harder to access knowledgeable bond advisors

  • Agents might face added pressure managing client relationships

  • Everyone could experience slower turnaround

Taken together these equate to a massive supply chain breakdown. That’s why Merchants invests in Merchants University, providing industry professionals with practical, relevant education that strengthens their expertise, enhances their ability to consult with confidence, and deepens the relationships they build with clients.

Agents and business leaders can embrace roles as mentors and educators—to pass along expertise, empower teams, and make knowledge a strategic asset.

Infrastructure Investment = More Opportunity

Massive investments in public and private infrastructure—especially via the federal Infrastructure Investment and Jobs Act (IIJA)—are driving up demand for surety bonds. Contractors are bidding on more projects, and new firms are entering the marketplace. That means more opportunity for agents and more demand for flexible, reliable surety partners. Merchants meets a variety of needs through a range of programs like:  

For agents, these tools mean quicker answers and more solutions. For contractors, they mean a better shot at growth. For both? A smoother bonding experience.

Consolidation Is Changing the Landscape—but Creating Room to Shine

Mergers and acquisitions are reshaping industries across the board, including insurance. Large firms are expanding, and digital automation is replacing some traditional service models. That might sound like a challenge—but it’s also an opportunity.

Independent agents and smaller businesses can stand out by offering:

  • High-touch, personal service

  • Quick decision-making and flexibility

  • Deep local and industry knowledge

At Merchants, we believe strong relationships will always be the foundation of surety. Whether you're an agent helping a contractor grow their business or a developer seeking reliable bonding advice, we offer partnership based on common sense solutions and first class experiences. 

Surety Stability Helps You Move Forward with Confidence

In an unpredictable economy, surety bonds offer something rare: consistency. Surety continues to be a safe, smart part of any risk management strategy.

Whether you’re:

  • A contractor bidding on your first bonded job

  • A developer navigating multi-phase projects

  • An agent guiding clients through complex bids

...surety gives everyone more confidence to move forward.

It tells project owners, lenders, and regulators: this business is reliable, capable, and protected.

Bottom Line: A Positive Perspective Goes a Long Way

The surety industry is shifting. But change doesn’t have to mean disruption—it can mean progress. Contractors, agents, and developers who embrace innovation, mentorship, and relationship-building will be best positioned to lead.

Key Takeaways:

  • AI is a tool, not a threat—use it to simplify and speed up your work

  • Invest in people, whether training your team or learning something new

  • Capitalize on infrastructure demand—opportunities are growing

  • Stay human in a digital world—relationships still matter most

  • Leverage surety’s strength—it’s one of your best business assets

At Merchants, we’re proud to offer first class experiences, common sense underwriting, and a forward-thinking culture. Whether you're writing bonds, bidding on a job, or planning for growth, we’re here to help you succeed.

How do I get a Surety Bond?

Surety bonds are issued by Merchants Bonding Company through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company) to underwrite your bond.

All information provided is subject to change.