Grassi Releases 2026 Construction and A&E Industry Report, Revealing Moderate Growth Expectations as Cost Pressures Persist
New York, NY – Grassi, a leading provider of advisory, tax, and accounting services to the Construction and Architecture & Engineering (A&E) industry, has released its 2026 Construction and A&E Survey Report, a comprehensive benchmarking resource for industry leaders, owners, and decision-makers across the Northeast.
Based on responses from nearly 200 firms, including General Contractors, Subcontractors, and A&E companies, the report finds that while growth remains a priority, firms are operating in a more constrained and complex environment driven by cost pressures, workforce challenges, and evolving risks.
The survey highlights several key findings, including:
- Revenue growth is anticipated, but expectations are tempered: 51% of firms forecast growth in 2026, yet only 9% expect substantial gains, and backlog projections signal stability rather than acceleration.
- Cost escalation continues to strain margins: 6 in 10 firms cite inflation as a top risk, and 4 in 5 report increased overhead costs.
- Labor challenges are placing pressure on capacity, as rising wage demands (46%) and difficulty securing skilled talent (45%) limit project execution.
- Supply chain disruption is driving sustained changes in procurement strategies, with firms increasingly turning to pre-purchasing and stockpiling materials to mitigate volatility.
- Technology investment is accelerating: 88% of firms plan to invest in the next 12 months, and approximately half already use AI; however, only 25% report strong satisfaction with their financial and operational data.
- Succession planning is gaining urgency, as firms prioritize ownership transition and long-term continuity strategies, including increased interest in Employee Stock Ownership (ESOP) plans.
These findings reflect an industry shift toward more disciplined financial and operational execution. Firms are prioritizing project performance and long-term strategy through targeted investments in technology and evolving operating approaches.
Access the report for benchmarking data and industry insights, and a deeper look at how firms are navigating cost pressures, labor constraints, and changing market conditions.
