2026 Construction Forecast: The Only Thing Certain Is Uncertainty

As 2026 dawns, it is natural to consider the outlook for construction in the coming year. John Kenneth Galbraith famously opined on the validity of economic forecasting in general: "The only function of economic forecasting is to make astrology look respectable."

With that admonition in mind, the construction industry is again faced with uncertainty and challenges including tariffs, rising material costs, supply chain disruptions, a dwindling workforce, insurance cost increases, interest rates, and other economic and political challenges. While a couple of sectors such as data center and manufacturing construction continue to thrive for now, most other sectors will continue to deal with significant issues. Identifying and analyzing the key factors that will impact the construction industry will help owners and contractors alike prepare a nimble strategy for dealing with them. This update will briefly address those potential obstacles and offer ways to overcome them.