Baker Tilly Report: Middle-Market Business Leaders Take Charge to Navigate Uncertainty

CEOs and business owners turn to technology, efficiency and proactive planning to lead their companies

CHICAGO--(BUSINESS WIRE)--Mid-market companies are maintaining a sense of confidence even as they brace for an unpredictable year ahead, according to Baker Tilly’s newly released 2026 Mid-Market Report. The report — based on survey responses from 500 U.S. CEOs and business owners representing geographically dispersed companies across industries with annual revenues between $200 million and $2 billion — reveals a pragmatic, proactive mindset among leaders who are focusing on what they can control amid shifting economic and policy landscapes.

According to the survey:

• Technology adoption, tariffs, and tax or regulatory changes top the list of concerns heading into 2026
• 76% of leaders say they are developing or updating transition plans, including succession strategies and private equity partnerships
• 89% of companies are investing in AI in this fiscal year, with 76% using it to improve efficiency and 60% to cut costs
• 80% of leaders are weighing supply chain changes with 61% securing domestic suppliers and 53% finding cheaper supplier alternatives

“Business owners know they can’t predict tariffs, taxes or interest rates. They can, however, prepare and mitigate the impact of changes in other ways,” said Rebecca Pomering, chief practice officer at Baker Tilly. “We’re seeing leaders double down on agility, technology and operational discipline to stay ahead of what comes next.”

Confidence in the Face of Change

Despite uncertainty tied to policy changes, rising interest rates, and ongoing tariff debates, 97% of respondents said they are confident in their company’s ability to navigate current economic conditions. The optimism comes even as leaders report top concerns around technology adoption (37%), tariffs (35%) and tax and regulatory changes (34%).

This year’s data underscores a clear theme of rather than waiting for external conditions to stabilize, mid-market leaders are taking decisive steps to strengthen their operations and manage risk.

Technology and Efficiency Take Center Stage

Nearly six in ten respondents (59%) reported investing in new technologies, particularly AI, to improve efficiency, cut overhead and analyze data for better insights. According to the survey, the average investment in AI for mid-market companies is over $600,000 in this fiscal year. Many leaders are using AI not only to automate processes but also to attract and retain talent, with 62% saying technology access is a key differentiator for top performers.

In addition to technology solutions, companies are finding ways to manage costs through hybrid work models, real estate reduction, and supply chain flexibility. Over 60% have already secured new domestic suppliers or adjusted pricing strategies in response to rising tariffs and costs.

Planning for What’s Next

Beyond short-term efficiency measures, 76% of leaders say they are developing or updating transition plans, including succession strategies and private equity partnerships. These forward-looking tactics highlight a generation of mid-market leaders that are both pragmatic and entrepreneurial, positioning their companies to thrive in the future.

“Businesses are getting comfortable with navigating uncertainty,” said Pomering. “The companies that succeed will be those that plan for multiple scenarios, use data to make informed decisions and seek guidance from advisors, like those at Baker Tilly, that are well-versed in the strategies and tactics businesses can take to continue to grow.”

Read the full report for a more detailed breakdown of the results.

About The Survey

Talker Research surveyed 500 CEOs and Business Owners of Companies with 200mill-2bill revenue who have access to the internet; the survey was commissioned by Baker Tilly between Sept. 22 and Oct. 9, 2025. This random double-opt-in survey was conducted by market research company Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).

About Baker Tilly (bakertilly.com)

Baker Tilly is a leading advisory, tax and assurance firm, providing clients with a genuine coast-to-coast and global advantage in major regions of the U.S. and in many of the world’s leading financial centers – New York, London, San Francisco, Seattle, Los Angeles, Chicago and Boston. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP (Baker Tilly) provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm that provides attest services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and business advisory services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms.

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are independent members of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 143 territories, with 47,000 professionals and a combined worldwide revenue of $7 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Instagram.