Navigate the tariff storm: 2026+ cost escalation forecasts and risk mitigation strategies

Blair Tennant and Melissa Chabot analyze tariff volatility, Federal Reserve monetary policy, and construction volume trends to deliver actionable cost escalation predictions for 2026 and beyond. They examine macroeconomic leading indicators—equities, GDP, job creation—alongside major commodity trajectories (oil, lumber, copper, steel) to reveal micro and macro drivers affecting research facility renovation and construction budgets. They present Vermeulens' latest construction labor weather map, forecasting regional cost trends and demonstrating its application for location-specific planning. They provide implementation frameworks for integrating annual escalation predictions into project cost planning and establishes risk reduction strategies for design, escalation, bidding, and construction contingencies. They deliver practical tools for controlling construction costs amid economic uncertainty, equipping planners with scenario-based forecasts and pricing structures that account for evolving trade policy and labor productivity shifts.