TLDR: A recent survey of over 275 U.S. middle-market businesses reveals a strong focus on AI integration and cybersecurity investments for 2025. Despite economic uncertainties, 81% are optimistic about the economic landscape, with 88% anticipating growth. AI is seen as the most impactful technology by 62% of respondents, with 61% already utilizing it, though challenges like employee understanding and security persist. Cybersecurity is a major concern, with 79% planning increased investment following a high rate of cyberattacks.
A comprehensive ‘UHY 2025 Middle Market Survey’ has brought to light the strategic priorities of over 275 U.S. middle-market businesses as they navigate the evolving economic landscape. The survey, conducted throughout 2024, encompasses businesses with revenues ranging from several million to over $500 million and workforces between 20 and 1,000 employees, spanning diverse sectors including automotive, construction, healthcare, and technology.
Optimism prevails despite lingering uncertainties, with a significant 81% of respondents expressing confidence in an improved economic landscape for 2025. This sentiment is particularly strong in real estate, automotive, and healthcare, though staffing and financial services show a more cautious outlook. Growth expectations are notably high, as 88% of businesses foresee similar or higher growth in 2025 compared to 2024, with over half (51%) anticipating significant expansion and 37% expecting stable performance.
Monetary policy remains a key consideration, with 42% of business leaders expecting Federal Reserve interest rate cuts by late 2024, and an additional 25% by the third quarter of 2024. However, 21% believe adjustments may extend into 2025, while 11% even foresee potential rate hikes.
Cybersecurity has emerged as a critical concern, with 51% of businesses reporting cyberattacks or attempted breaches. In response, a substantial 79% plan to increase their cybersecurity investments in 2025, with 26% committing to a significant boost of over 20%.
Artificial intelligence (AI) integration is rapidly gaining traction. Approximately 62% of respondents view AI as the most impactful technology for their operations, and 61% are already utilizing AI tools. Common applications include customer service (32%) and operational efficiency (26%). Nevertheless, challenges such as employee understanding (32%) and security concerns (28%) are noted as factors slowing broader adoption.
Strategic priorities for 2025 include expansion into new markets, enhancing cost efficiency, fostering talent retention, driving product and service innovation, and pursuing mergers and acquisitions. Talent retention, in particular, is a prominent focus, with companies prioritizing compensation adjustments and improved benefits to maintain their workforce. The top workforce challenges identified are talent retention (29%), shortages (23%), and employee productivity (28%). External pressures such as economic uncertainty (50%), international conflicts (25%), and supply chain disruptions (14%) continue to be significant concerns.
Also Read:
- AI Integration Fuels Global Job Growth: Millions of New Roles Emerge by 2025
- AI’s Transformative Impact on UK and EU Marketing: A 2025 Outlook
UHY’s 2025 Middle Market Survey paints a picture of cautious optimism, highlighting the proactive approach of SMEs in leveraging technological advancements and addressing workforce and security challenges to thrive in a dynamic global environment.
