Despite an increasingly complex economic landscape, mid-market business leaders are entering 2026 with a striking level of confidence. According to the Baker Tilley recently published 2026 Mid-Market Report, 96% of surveyed executives believe their organizations are prepared to navigate uncertainty, including concerns around tariffs, regulatory change, inflation, and technology adoption. This apparent paradox, high confidence amid rising risk, reveals a significant shift in how mid-market companies are responding to volatility. Rather than waiting for clarity, leaders are acting decisively.
The data underscores that uncertainty is no longer episodic; it is structural. Respondents ranked the risks as environment (55%), cyber threats (52%), regulatory change (49%), and talent shortages. (43%) as their top business risks heading into 2026. Tariffs and tax policy changes, which are outside management’s control, are forcing executives to adjust internal levels across operations, capital allocation, and technology to protect margins and sustain growth.
Most respondents are confident they can manage these challenges. This optimism appears grounded not in complacency, but in experience, data, and preparation. Leaders are shifting away from reactive cost-cutting alone and toward integrated, long-term strategies.
One of the clearest signals in the report is the acceleration of technology, particularly AI, as a strategic necessity rather than a future option. Technology adoption ranked high among concerns (37%), yet 60% of leaders cited technology investment as a primary method for combating rising costs.
The most successful organizations are deploying a multipronged response. Beyond technology, leaders are improving operational efficiency, rethinking supply chains, Renegotiating vendor relationships, maintaining cash reserves, and strengthening customer experience. At the same time, they are resisting knee-jerk layoffs, instead prioritizing upskilling and retention to preserve institutional knowledge. Notably, 76% of respondents are considering some form of restructuring or business transition planning, including succession planning, private equity investment, or exit strategies. This reflects a more sophisticated view of capital and ownership as tools for resilience, not just liquidity events.
Recommended Next Steps for Mid-Market Leaders
Formalize Scenario Planning
Develop multiple financial and operational scenarios tied to tariffs, interest rates, and regulatory shifts and update them quarterly.
Align Al Investments to Strategy
Move beyond experimentation by establishing governance, measurable ROI targets, and clear use cases tied to productivity and margin improvement.
Strengthening Financial Discipline
Ensure real-time visibility into cash flow, working capital, and cost drivers so leadership can act quickly as conditions change.
Reassess Supply Chain Risk
Balance cost, resilience, and speed by diversifying suppliers and evaluating domestic alternatives where feasible.
Plan for Leadership and Capital Transitions
Whether succession, private equity, exit planning, or initiative-taking preparation, it gives leaders optionality in uncertain markets.
Bottom Line
Confidence alone will not set you apart in 2026; execution will. The mid-market leaders who will excel are those who turn optimism into disciplined action, using data, technology, and holistic planning to remain agile in an unpredictable world.
