Midsize businesses are heading into 2026 with a mix of financial pressures that are making everyday decisions more difficult Leaders say they are dealing with rising labor costs, more expensive employee benefits, ongoing supply-chain problems and borrowing that still costs far more than it did a few years ago. Even though many companies remain healthy, most are operating with tighter margins and greater caution.

“Labor costs are ever increasing,” Dennis Linden, director at CBIZ Advisors in Independence, said.

To attract and keep the right employees, companies have to offer competitive pay and inflation makes that even more challenging, he said.

In some industries, workers still find that the fastest way to get a raise is to leave for another employer. That puts pressure on businesses to

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