Report: Mid-Market Businesses Prioritize Cost and Tech
Business leaders in the middle market are prioritizing cost management, talent strategy, and technology adoption, according to the Q1 2026 Mid-Market Pulse Report released by CBIZ. The report offers insight into how these businesses are navigating current challenges and planning for growth. The findings indicate a focus on efficiency and strategic investment.
- The CBIZ report's findings are based on feedback from over 1,300 of the firm's clients, revealing that beyond the headline priorities, 41% of mid-market businesses are challenged by rising labor costs and others cite pricing pressures and working capital constraints as key issues. - The focus on technology adoption is not just about big overhauls; for many small and medium-sized businesses (SMBs), the top priorities for 2026 are improving security (41%), automating IT workflows (31%), and introducing AI tools (30%). - While 75% of SMBs are investing in AI, there's a significant maturity gap; a 2025 McKinsey report found only 1% of companies believed their AI investments had reached maturity, signaling an opportunity for specialists to guide businesses on practical applications. - The talent squeeze is leading more employers to adopt skills-based hiring, with nearly 70% using this approach for early-career talent, which opens doors for specialized contractors and freelancers to fill specific needs without a traditional resume focus. - For e-commerce brands, a key mid-market segment, growth continues to be a central driver, with annual growth rates of 9-12% outpacing other retail channels. - The push for efficiency is making no-code automation platforms more critical, as they allow businesses to streamline repetitive tasks like invoicing and client onboarding without needing to write code, a key service area for automation specialists. - Hiring in 2026 is expected to be more deliberate, with a "low-hire, low-fire" environment where companies are focused on recruiting for digital, finance, and HR roles that are critical for business transformation in the AI era. - A broader economic forecast from the IMF projects the U.S. GDP will grow by 2.1% in 2026, while inflation is expected to moderate to 2.6%, suggesting a stable but cautious environment for business investment.
