Positioning for Growth: What Business Leaders Should Know About Capital Planning

As 2026 moves beyond its opening months, the economic landscape may still feel noisy. From geopolitical headlines to shifting trade policies, it is easy to get distracted by short-term volatility.

Yet, across our region, many business owners are taking a different approach. Rather than reacting to every headline, they are focusing on capital planning and positioning for growth beyond uncertainty. Business leaders who prioritize capital planning now, rather than waiting for market clarity, are often best positioned to take advantage of the region’s next growth cycle.

That mindset is not only healthy; it is proving productive.

Capital planning activity has remained steady among companies preparing for long-term expansion. While uncertainty persists, the fundamentals of the regional economy remain positive. For many businesses, the remainder of 2026 represents an opportunity to move ahead of evolving conditions, take advantage of strong lending appetite, and position for growth.

What Effective Capital Planning Looks Like Today

One theme that applies across industries: start planning early. The strongest companies are not waiting for perfect clarity before engaging lenders. They are building relationships well before capital is needed, allowing financing partners to understand their strategy and provide guidance along the way.

Well-prepared businesses tend to share several traits:

• Strong financial reporting. Lenders want quality financial statements and budgets that show where the business is headed, not just where it has been.
• Proactive Communication. Early and consistent dialogue allows lenders to suggest structures, prepare credit teams, and reduce friction.
• Certainty in Cost of Capital. Businesses model projects around a cost of capital that works for their economics, then limit rate risk through fixed-rate loans or interest rate swaps.

For cyclical or seasonal industries, discipline is even more critical. Maintaining lower leverage and stronger liquidity provides flexibility to navigating downturns without disrupting long-term plans.

Industrial and Infrastructure Activity Provides Visibility

Across the region, industrial and infrastructure activity remains a steady driver of demand. Multi-year projects are creating downstream demand for contractors, suppliers, and service providers.

For business leaders, this activity provides valuable visibility. Longer-term projects tend to smooth economic cycles, allowing companies to plan ahead, staff appropriately, and evaluate growth investments with greater confidence.

Financing Conditions Favor Prepared Borrowers

Over the past 18 months, refinancing has dominated the capital landscape. With M&A volumes lower and lenders eager to deploy capital, borrowers have secured competitive terms and improved pricing. Traditional lenders and private credit providers continue to operate with ample capital encouraging borrower-friendly structures.

As 2026 progresses, interest in M&A is reemerging. Owners who delayed decisions during periods of heightened volatility are re-engaging, while demand for construction and infrastructure financing remains strong as major projects advance.

Bonus depreciation has become an added catalyst for financing equipment and other depreciable assets. Clarification around the phase-down schedule has encouraged companies to move forward with purchases, often incorporating depreciation benefits directly into 2026 capital plans.

The takeaway is clear: capital remains available, lender competition is strong, and companies with well-prepared financials are securing attractive structures.

Regional Strengths and Emerging Risks To Watch

The outlook for the Gulf South remains constructive. Planned and active infrastructure projects continue to support construction employment, industrial services, and related industries over multiple years.

At the same time, several risks warrant attention. Consumer health remains critical. Weakening household spending, rising unemployment, or declining credit quality can affect service businesses, hospitality, and retail. Lenders are monitoring commercial and consumer stress indicators closely, particularly in a higher-for-longer rate environment.

Trade policy also adds uncertainty. With major ports across the region, shifts in global trade flows carry meaningful implications. Recent tariff announcements triggered advance ordering, and over time, higher costs are likely to reach end customers, influencing pricing and growth.

What Business Leaders Should Do Now

For companies planning capital needs over the next 24 months, several actions can strengthen readiness:

• Build relationships with lenders early
  • Strengthen financial reporting and forecasting
  • Maintain adequate liquidity, especially for cyclical businesses
  • Model investments using a cost of capital that works and lock it in
  • Communicate frequently and transparently with capital providers

With disciplined planning and a long-term outlook, businesses can position themselves to capitalize on regional growth while managing emerging risks. As 2026 progresses, early preparation remains a clear competitive advantage.