Hi All, 2026 is moving fast! Here are the commercial insights Elevate is seeing across the nation that are driving decisions and shifting priorities.

South Australian Insights

South Australia’s workforce capacity remains tight

Total employment in SA exceeded 1 million people for the first time in history, with participation rates increasing to 65.1%, indicating more people are entering the State's labour force.

What this means:

• Organisations are competing for the same limited talent pool, with increasing capacity constraints particularly affecting health, infrastructure and social services.
• Stronger, future focused workforce planning is becoming essential to maintain service delivery and avoid disruption.

Public Private Partnership (PPP) interest is increasing for complex SA programs

South Australia's PPP market continues to grow, underpinned by significant private-sector appetite for long-term social infrastructure investments including hospitals, schools, and housing.

What this means:

• SA is well-positioned to leverage PPP models for major projects where long-term certainty, risk sharing and whole-of-life value matter.
• PPP-style structures present agencies with an opportunity to unlock capital and accelerate delivery; especially where budgets are tight.
  

If this is a problem you face, Elevate has experience supporting organisations through the full PPP lifecycle, including options analysis, commercial structuring, market sounding, evaluation, contract development and transaction management.

National Insights

Cost pressure remains a key constraint

40% of leaders across Australia expect tougher business conditions in 2026, driven by cost escalation and margin pressure as input, fuel and energy costs remain at multi-year highs and inflation stays elevated.

What this means:

• Organisations are taking a more considered, value-driven approach to procurement optimising scope, sequencing and delivery models to maximise affordability.
• Contract structures are being scrutinised to reduce exposure to escalation, ensure price transparency and better allocate risk in a volatile market.
  

Infrastructure activity remains significant nationwide

Australia’s national infrastructure investment is forecast to continue at around $100 billion in 2026, and $278 billion for infrastructure across all States and Territories over the four years to FY2028-29 according to the latest Budget projections; a nominal increase of $7.6 billion, and a real increase of $1.9 billion from the FY2024-25 Budget. This increase is largely driven by major transport, health, energy and precinct projects.

What this means:

• Supply chains and skilled labour availability remain under pressure.
• Organisations must sharpen their sequencing, delivery planning, and commercial governance to avoid bottlenecks and cost overruns.
  

If you are navigating commercial pressures around procurement, contracts, workforce or infrastructure planning, we are here to help.

Our team supports organisations through every stage of commercial decision-making and delivery, and we are always happy to discuss any questions or challenges you may be facing.

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