Report Shows Mid-Market Leaders Prioritizing Tech and Talent
A Q1 2026 report from CBIZ indicates that leaders of middle-market businesses are prioritizing cost management, talent strategy, and technology investment. The Mid-Market Pulse Report offers insight into how these companies are planning for growth amid current economic conditions. These priorities shape the demand for services from consulting and marketing agencies.
- A recent KeyBank survey of 750 financial decision-makers found that 77% of middle-market businesses are optimistic about their performance in the coming year, a near-historic high. This positive outlook is largely attributed to gains in operational efficiency, cited by 66% of leaders, and improvements in technology, mentioned by 57%. - The investment in technology is heavily focused on practical applications of artificial intelligence. Mid-market firms are prioritizing AI for efficiency improvements (76%), cost reduction (60%), and data analysis (57%). - According to a JPMorgan Chase survey, 71% of mid-size business leaders are optimistic about their own company's prospects for 2026, though only 39% are optimistic about the national economy. Key concerns for these leaders include economic uncertainty (49%), revenue growth (33%), and the impact of tariffs and labor costs (31%). - The focus on talent is driven by significant hiring challenges, with 84% of middle-market executives who need to hire expecting it to be difficult, a considerable increase from 66% in late 2023. This is leading 62% of companies to invest in skills training for their current workforce. - To address labor shortages and improve productivity, 61% of mid-market companies are investing directly in AI. A survey by RSM and the U.S. Chamber of Commerce found that 74% of respondents plan to increase their spending on AI over the next two years. - For marketing and data analytics professionals, the most in-demand skills for 2026 reflect these priorities and include data analysis, proficiency with AI and automation tools, and expertise in SEO/SEM. There is a growing demand for performance marketing specialists who can demonstrate a clear return on investment. - The broader economic optimism is influencing growth strategies, with two-thirds of middle-market companies anticipating involvement in mergers and acquisitions within the next three years. Additionally, 53% of leaders are planning to expand into new domestic markets to diversify their revenue. - Despite overall positive sentiment, nearly four in ten middle-market executives report that a lack of talent is constraining their company's growth. The primary reason cited is a shortage of candidates with the necessary skills.
