2025 Industry Review | 2026 preparation

Planning for Uncertainty: Why Adaptive Incentives Strategy Matters More Than Ever

In today’s economic environment, businesses and developers are making decisions against a backdrop of shifting markets, evolving policies, and unpredictable global conditions. Whether you’re expanding, relocating, or pursuing a major real estate development, the ability to secure and sustain economic incentives has never depended more on thoughtful planning, sound projections, and a responsive strategy.

Economic incentives remain one of the most powerful tools available to support capital investment and job creation, but they are not static. They rely on a shared understanding between public and private partners of what a project is expected to deliver, and how those expectations hold up over time. That’s why, before any incentive package is approved, all parties must align around a clear set of commitments and realistic projections.

What jobs, investment levels, wages, and timing will your project achieve not only at opening, but several years into the future? That question sits at the center of every incentives negotiation.

States, counties, cities, utilities, and workforce training partner--alongside incentive/site selection consultants and the business or developer-- do their best to sculpt a win-win public-private partnership around current and future impacts and the anticipated reality of a project from a wage, tax generation, investment, and job creation perspective. Even with strong pro forma modeling, these projections rely heavily on a future that looks at least somewhat like the past. Like the weather, when tomorrow's economic climate suddenly changes and it isn't like today's, it can lead to capricious and unexpected outcomes to prepare for and pivot toward or against. Deep preparation for shelter from the storm -- surprises are inevitable -- can be part of a sound strategy for both maintaining economic incentives and driving future growth. 

Incentives strategy, in other words, is not a one-time exercise. It’s a constantly evolving conversation that adapts as conditions shift .

2025: A Year Defined by Pivoting

Few years have illustrated how quickly economic shifts can take place more clearly than 2025. Job projections and expansion strategies that began the year with confidence have shifted-- sometimes dramatically. We’ve seen major federal grant programs reshape under DOGE, supply chains recalibrate in real time, tariffs and trade adjustments introduce unexpected costs and opportunities, and dramatic investment in AI and data centers – it’s been a year to be prepared for dramatic change like no other.

2026 promises to be more of the same. Trade realignment and lower interest rates offer meaningful upside, but inflation risk, volatile labor participation, potential market corrections, and geopolitical conflict all remain significant variables.

The reality is, no one knows what’s truly in store.

Where Steadfast City Stands

At Steadfast City, we are built for moments like this. Our work lives in the interstitial space where government, business, real estate, community engagement, public policy, and conflict mediation intersect. We thrive in environments where conditions shift quickly and partnerships must adapt just as fast.

We are big believers in projections backed by logic, metrics and real-world performance, constant communication with economic developers, elected officials and community stakeholders, adaptive strategies that evolve as markets and plans inevitably change, and long-term relationships grounded in transparency and trust.

Our team of real estate, tax, community engagement planners, incentives, grant writers, and tax credit professionals are exacting in data yet flexible in approach as markets change. This balance allows us to guide clients through uncertainty with clarity and confidence, ensuring constant and complete problem solving and reliable and lifelong partnerships and project success. 

Looking Ahead

The years ahead will favor organizations that prepare for volatility, engage openly with public partners, and build incentives strategies that can withstand both expected and unexpected change. Economic incentives remain a powerful catalyst for growth - when paired with thoughtful planning, clear metrics, and the right team in your corner. At Steadfast City, that’s the work we’re privileged to do.

Let’s chat!

We want to know what your 2026 outlook is, we want to hear how you’ve pivoted in 2025, and we want to champion your growth plans.