Construction and architecture/engineering firms are working their way through 2026 with cautious optimism despite ongoing cost pressures, labor shortages and economic uncertainty, according to Grassi’s 2026 Construction and Architecture & Engineering Survey Report, which surveyed nearly 200 industry leaders across the U.S.
Just over half of respondents expect revenue growth this year, but most anticipate only modest gains, while nearly half expect backlog to remain unchanged. Firms are increasingly investing in technology and artificial intelligence to improve productivity, even as inflation, supply chain volatility and workforce challenges continue to weigh on operations. Succession planning has also become a growing priority as many companies prepare for leadership transitions.
KEY FINDINGS:
- 51% expect revenue growth in 2026, but only 9% anticipate substantial gains.
- 60% rank inflation and cost escalation among their top business risks.
- 88% plan to invest in technology over the next year, with AI leading planned investments.
- About half of firms already use AI, and 86% are using it or expect to adopt it.
- Only 24% expect backlog to increase over the next 12 months, while 49% expect it to remain flat.
SOURCE: “Construction and Architecture & Engineering Survey Report,” Grassi // grassiadvisors.com/insights/construction-and-architecture-engineering-survey-report-2026
