Publisher’s Note: Last week, Dr. Franza reviewed part of his 2026 economic predictions HERE.
Part One focused on the U.S. Economy, Financial Markets, and the Federal Reserve.
Below is Part Two, focused on our Business Environment in the CSRA, including workforce enhancements and skillsets. Dr. Franza also delved into state government and politics and the impact on our finances.
- Business Environment
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- Prediction #7: Workplaces will see an accelerated AI integration.
Assessment: Clearly happening. 78% of businesses use or explore AI, with about 58% of employees using it regularly. 50-60% of large enterprises (5000+ employees) have integrated AI, while 89% of small businesses report using AI for daily tasks.
Prognosis: This trend should continue. Half to two-thirds of employees report that AI improves their productivity, speed, and efficiency.
- Prediction #8: Companies will increase their investment and reliance on cybersecurity. The combination of the proliferation of both “bad actors” and AI utilization increases the likelihood of advanced threats.
Assessment: Cybersecurity company, Fortinet, reports that global cybersecurity investments are surging in 2026, with projected end-user spending expected to reach between $240 billion and $300 billion—representing a 12.5% to 15% year-over-year increase. Picus Security reports that this rapid budget expansion is primarily driven by the need to defend against escalating AI-enhanced threats, multi-extortion ransomware, and expanded cloud vulnerabilities.
Prognosis: As AI proliferates, so will the need for cybersecurity. Increased investment should continue.
Prediction #9: Most valued skill sets in the marketplace will include skilled trades (e.g., plumbing, electrical), “power skills” (e.g., communication, critical thinking, emotional intelligence, adaptability), and how to create resilient supply chains.
Assessment/Prognosis: Early returns look promising. AI and data centers are significantly increasing the need for trades such as robotics technicians, HVAC engineers, and all trades needed in construction. Power skills in business environments are needed to complement the increased implementation of AI.
- Government and Politics
- Prediction #10: The Republican Party will retain the majority in the US Senate but lose its majority in the US House. This split government will significantly limit legislation during the next two years.
Assessment/Prognosis: Four months out from election day, polling seems to confirm the likelihood of this prediction. While the Democrats might make the Senate interesting and the Republicans might make a run at the House, the most likely outcome is what I predicted in January.
- Prediction #11: There will not be enough traction in the Georgia Legislature to eliminate the state income tax, but work will continue to further lower the flat income tax rate.
Assessment/Prognosis: Correct, at least this year. The state income tax remains in place, and rates continue to come down.
Obviously, my predictions are a mixed bag to date, but overall, seem more right than wrong. However, with half the year remaining, many things can change. In particular, the situation with Iran, inflation, and employment are the things we should monitor most closely. On that note, I am going to take a short hiatus from this space and look forward to seeing you again in August!
