The future of the built environment: How industry leaders are preparing for 2026

As we enter 2026, the architecture, engineering and construction (AEC) industry is navigating a period of change. Technology is advancing quickly, regulatory pressure continues to evolve and clients are rethinking what they need and how fast they need it. From AI tools to new approaches to sustainability, the pace of progress is accelerating and reshaping how teams plan and deliver work. 

In moments like this, leaders look for clarity they can trust and language that helps their teams, partners and clients make sense of what is happening and why. Thoughtful communication becomes a strategic advantage. At Pierce PR, we help AEC firms translate complex issues into clear insights so they can share their expertise with confidence and stay ahead of the conversations shaping their work.

To better understand what 2026 will demand, we spoke with leaders who are already implementing strategies that will define success in the year ahead. Kevin Harney, vice president and principal at ESa,  Rebecca Ozols, member and vice president of growth and strategy at BELL Construction, Jennifer Carlat, executive director at ULI Nashville, and Jennifer Kinsey, general manager and commercial business unit leader at Reeves Young Nashville, offered practical predictions for the year ahead. Read on to discover how some of the most forward-thinking firms are preparing for what comes next. 

Kevin Harney

Vice President and Principal, ESa 

Looking into 2026, the biggest shift I see has been building for years. In healthcare, clients are navigating shifting reimbursement, rising construction costs and interest rates that make large capital projects more difficult to pursue. This is reshaping project demand and pushing our work towards smaller ambulatory facilities. Surgery centers, free-standing emergency departments and outpatient clinics will continue to dominate new projects. Major acute care projects will always be part of what we do, but these smaller jobs are quickly becoming a meaningful share of our portfolio. 

To stand out in a more competitive market, I believe we have to know our clients at a deeper operational level. It is not enough to design a building. We need to understand how a clinician or provider moves through their day and what helps them deliver better care. That level of subject matter expertise strengthens our reputation and leads to better outcomes. 

I also expect AI to remain a major driver of innovation. AI will continue to push us to rethink how we work. With compressed schedules and tighter fees, we have to look at how AI can support workflow efficiency and enable our teams to focus on the highest value parts of project development. For me, the greatest source of optimism for our industry stems from young professionals who embrace new technologies and are prepared to push us all forward. 

Rebecca Ozols

Member, Vice President of Growth and Strategy, BELL Construction

From my perspective, the most significant shift in 2026 will be the release of all the work that has been paused during this period of uncertainty. There is a lot of dry powder on the sidelines. Developers are watching the market closely, and once conditions normalize, I expect the floodgates to open and the pace to accelerate quickly. At the same time, we are in an era of mega projects in Nashville and the surrounding counties. We do not yet know how that scale of work will affect trade partner capacity, infrastructure or daily life for residents, but it will shape the region in noticeable ways. 

This past year reinforced something I have always believed. Relationships matter, especially in Middle Tennessee and this industry. Even in the face of new technologies and a turbulent market, the construction world runs on trust. A construction project requires time, attention and commitment, so people want to work with teams they like and know.

In a more competitive environment, firms need to be clearer about what makes them different. It is important to resist the urge to chase every opportunity. Instead, we have to understand our value add, understand how prospects perceive us and respond in a way that positions us as an advisor, not simply a bidder. The days of submitting the same RFP response over and over are gone. 

Jennifer Carlat

Executive Director, ULI Nashville 

The workforce question that will define 2026 is how artificial intelligence will reshape or replace roles across the AEC industry. Firms are weighing which tasks AI can support or supplant, and how teams can adapt as these tools become more precise. This shift will influence how AEC teams grow and organize their work in the years ahead. 

I am encouraged by the innovation happening in affordable and attainable housing. Every community, regardless of size or political leaning, is grappling with this need. We are seeing new housing types, new materials, new ownership models and new financial tools emerge. Progress will require openness to change and political will, but I am confident because there are so many great minds working to create what’s next in housing.

What gives me hope is how AEC leaders have responded to uncertainty in recent years. I have spoken with many professionals who are unsure about the market, their active projects and what comes next. Their concern is valid. But these same leaders continue to show up for conversations about policy and workforce, and they continue to sharpen their thinking. In Nashville, we have a community of practitioners who move toward challenges rather than away from them. That commitment makes me optimistic about where our industry is heading. 

Jennifer Kinsey

General Manager & Commercial Business Unit Leader, Reeves Young

When I look at 2026, I see a year shaped by two forces that do not always move in sync: sustained state-level investment and the broader economic pressure created by inflation and interest rates. On the public side, the state continues to drive a steady stream of work, and that pipeline is going to carry a lot of firms through the uncertainty we’re feeling elsewhere. My teams are tied to several of these projects, and while the opportunities are significant, the competition is, too.

The private market tells a different story. Interest rates have softened slightly, but affordability is still a major barrier. Everything feels inflated, from homes and cars to the materials needed to build the projects people want to pursue. In places like Nashville, the market is also saturated. Until existing product is absorbed and developers feel more confident, large private projects will continue to take longer to break ground. The most noticeable market shift is the widening gap between public and private momentum. Firms that understand both sides and know how to move between them without overextending will be the ones that stay steady next year. 

As competition grows, I believe the key to standing out is through trust built by consistent, personal follow-through. Credentials matter, but they are rarely what wins work. Clients remember who shows up, who is true to their word and who treats them as people rather than transactions. I have built my career on that philosophy. The small things matter more than people think, like walking in a proposal yourself or checking in with a client long after a project closes. Those habits create the instinctive trust that shapes real decisions. If you want to strengthen your reputation, be the firm that does the basics exceptionally well. Be responsive. Be honest. Be present. Those are the habits clients remember, and they’re the habits that get your phone to ring when the next opportunity lands.

I also see clear opportunities for growth in rural markets and healthcare. Rural communities in Tennessee and Kentucky are seeing meaningful investment in schools, infrastructure, mixed-use developments and new medical facilities. There is genuine energy in those areas, and families are looking for places where growth still feels accessible. Healthcare is another steady source of opportunity. Systems are expanding and modernizing, and certificate-of-need approvals are up. Demand in this sector rises with population growth rather than market cycles, which makes it more resilient when other sectors cool. 

The firms that succeed are those that can pivot easily and bring the right mix of skill and local understanding. You need to be comfortable navigating the technical complexity of healthcare while also building meaningful relationships in rural communities. It is not about chasing every project. It is about showing up with the right capabilities and the right mindset in the places that need them the most. 

What it takes to start building what’s next

The perspectives our experts shared point to an industry that is evolving quickly but also one that is full of opportunity for firms willing to adapt. Leaders who build strong relationships with their clients, invest in talent and communicate with clarity will be better positioned to navigate the shifts ahead. What becomes clear across every conversation is that people are looking for partners who help them make sense of change rather than add to the noise.

If you are determining how to communicate your firm’s direction in 2026 or bring more clarity to the conversations shaping your work, contact us. We’re here to help you articulate your expertise, thoughtfully respond to stakeholder questions and strengthen the relationships that matter most.