Editor's Note: This article originally appeared in the October 2025 print edition of Golf Course Industry under the headline “Rising cost of doing business.”
In last month’s Game Plan, we discussed ways to make the budgeting process feel less frantic and more like business as usual. We continue this year’s budgeting discussion by focusing on three key factors that will influence 2026 maintenance budgets: labor, oil and risk.
Labor
According to an August report from the U.S. Department of Labor, the labor supply will continue to grow in the coming year, although not at the same brisk pace previously experienced. Unemployment projections for 2026 reflect a softening labor market with less access to entry-level manual-labor workers. As a broad range of observers, economists predict a rise in unemployment of 4.4 percent to 4.6 percent from 2025.
What do these numbers and projections mean for your 2026 golf course maintenance budget? Adding experienced and skilled workers will remain one of superintendents’ biggest challenges. Courses will have less access to workers when filling open positions. In addition, new hires will require more training in operational basics.
The limited supply of workers and the increased costs (time and money) for training indicate that superintendents should budget for increased labor costs of 4 percent to 6.5 percent, depending upon regional factors.
Oil
At most courses, the price of a barrel of oil seems a distant concern. While golf course operators purchase thousands of gallons of fuel to power maintenance equipment and vehicles, they mostly miss the global economic impact of the cost of oil.
According to J.P. Morgan Research data, “Supply-demand dynamics point to lower oil prices in the coming months. Demand remains soft, and markets may be underestimating final tariff levels on U.S. imports.” J.P. Morgan Research projects oil demand will expand with prices remaining steady.
What does the volatile global oil market — amid uncertain geopolitical considerations — mean for your 2026 budget? Golf courses should project an increase of 3.5 percent to 4 percent for gas/diesel for the year ahead.
Risk
Golf operations carry with them considerable risk for on-the-job injuries. Rising costs for risk management in most golf facilities is one of the fastest growing expense categories. While most golf course and club budgets show rising insurance costs within the administrative and overhead departments, superintendents should know that the rising costs of risk are also high with manual labor and outdoor activities.
What do these trends mean for your 2026 budget? The calamitous effects of climate-driven events such as wildfires, tornadoes and hurricanes are a ubiquitous concern for superintendents throughout their operations. A preemptive approach starts with a risk assessment of buildings, procedures, and operational practices to ensure that you are taking all reasonable steps to manage and minimize risk to your facilities and people.
Once your 2026 budget is finalized and approved, two factors loom that will influence your performance in 2026 and the satisfaction you take from the job. As course operating budgets increase with what no doubt seems to owners and managers unchecked control, superintendents must reckon with two subtle changes:
- Managing and measuring work
- Dealing with ambiguity
We will examine these two mission-critical demands next month.
Explore the October 2025 Issue
Check out more from this issue and find your next story to read.
