What the Economic Outlook Means for Your Next Construction Project
Takeaways from the 2026 CASH Fall Conference for school leaders, facility owners, and teams planning their next investment in a building.
When you are responsible for a school, a healthcare facility, or a commercial property, economic headlines can feel far removed from the decisions on your desk. You still need to maintain the building, support the people who use it, and decide which improvements should come next.
Robert A. Kleinhenz, Ph.D., presented an economic outlook at the 2026 CASH Fall Conference on October 8. His presentation described a resilient economy alongside continuing concerns about inflation, labor supply, and affordability. For MZN, the useful question is how to translate that outlook into better project conversations.
Our takeaway: use the planning time you have to understand your building, test your assumptions, and clarify what the project needs to accomplish.
Continued growth does not remove the need for careful budgeting.
The presentation’s U.S. forecast projected GDP growth of 2.2% in 2026 and 2.3% in 2027. It projected consumer-price inflation of 3.4% in 2026, easing to 2.5% in 2027. These are the presenter’s forecasts as of October 8, rather than confirmed outcomes.
Consumer-price inflation is a broad economic measure; it is not a forecast of the cost of your construction project. MZN’s planning takeaway is to work from a defined scope and current project-specific information. Ask when estimates were prepared, what they include, and which assumptions still need verification.
Labor availability belongs in the schedule conversation.
Kleinhenz identified weak labor-force growth and labor shortages among California’s challenges. His presentation also raised longer-term questions about demographics and staffing.
For a project team, that is a reason to discuss the people and resources the work will require early. Which trades need to be involved? What work depends on a specialized crew? How will construction fit around an operating facility? Those questions help turn a desired completion date into a plan the team can evaluate.
A national spending trend cannot tell you what your project will cost.
The presentation’s construction-spending table reported U.S. nonresidential spending down 2.1% year over year in June 2026, with educational spending down 0.6% and healthcare spending down 1.5%. Those figures describe national spending activity, rather than bid prices or the cost of a particular building improvement.
Our interpretation is that owners should look closely at their own scope and local project conditions. A quieter market in one segment does not establish what another project’s labor, equipment, or materials will cost. Early conversations with the design and construction team can identify where updated pricing and further investigation would be useful.
School and facility plans need a long-term view.
The outlook highlighted K–12 enrollment, demographic change, staffing, and competition for resources as longer-term considerations. For educational leaders, those topics connect directly to how buildings will be used and maintained.
Before deciding what to build or renovate, bring facilities staff and the people responsible for programs and operations into the discussion. What needs to work better today? What may change over time? Which existing systems or spaces need a closer review? The same discipline can help healthcare and commercial owners connect a project to the people it serves.
Turn uncertainty into a clearer next step.
You do not need a perfect economic forecast to begin planning. Start with the decisions within your control: document the need, review available building information, identify unanswered questions, and bring the right people together.
At MZN, we see value in helping clients work through those questions before construction begins. A useful plan connects the scope, budget, schedule, and day-to-day needs of the facility so the team understands what it is working toward.
Questions for your next project meeting
What operational need makes this project important?
What do we know about the existing building, and what still needs investigation?
Is the budget based on a defined scope and current information?
Which trades, equipment, or facility constraints could affect timing?
How will the space support the people who use it over time?
About this insight
Based on Robert A. Kleinhenz, Ph.D.’s October 8, 2026 economic presentation for the 2026 CASH Fall Conference. Kleinhenz is Principal Economist at Kleinhenz Economics and Director of the Office of Economic Research at California State University, Long Beach.
Source references: slide 15, U.S. forecasts; slide 28, California challenges; slide 30, demographic considerations; slide 41, national construction spending; slides 49–50, concluding outlook. Economic figures and forecasts are presented as they appear in the conference material. The project-planning takeaways are MZN’s interpretation.
Let’s talk about the work ahead.
If you are evaluating a renovation, planning a move, or sorting through your facility’s next priorities, start with a conversation about your goals and the questions that need answers.