Our view: we’ve been in a subtle recession for two years, masked by AI spending. Expect a real upturn around 2026, but plan now for persistent inflation and higher rates. Build inflationary buffers into every contract. Interest rates may stay elevated for a long haul, and inflation’s “small bump” could become the new normal. The good news? Emerging growth pockets are popping up across the U.S.—now’s the time to scout opportunities.