Decision Economy

The Decision Economy

CAUGHT IN THE MIDDLE

These pressures are intensified by external shocks and uncertainty. Mid-tier firms are deeply embedded in supply chains but lack the bargaining power and buffers of larger corporates. In our survey, 43% of firms cited rising energy costs as the most significant trigger event they had faced since 2024, a figure that rose to over half in industrial and hospitality sectors. One in four leaders also reported that post-Brexit uncertainty had slowed or complicated major decisions as they waited for clearer regulatory direction. Taken together, these pressures create a familiar pattern - leadership teams are stretched thin, urgent issues crowd out longer term decisions, and without strong external support or deep knowledge of how similar businesses operate, opportunities are missed. However, the upside is significant. Mid-tier firms combine entrepreneurial agility with meaningful scale, and where these constraints are addressed, performance gains can be substantial. This research focuses on one critical lever: how mid-tier firms make decisions, what slows them down, and why improving decision speed and quality matters so much for growth.

Post-Election Triggers We asked mid‑tier leaders which decision drivers* were the most important for businesses since the July 2024 UK General Election.

Despite their size and impact, mid-tier companies often find themselves in a support gap – neither championed as start-ups/SMEs nor as equipped as large multinationals.

The Mid-Tier Squeeze

43%

Increase in energy costs

Mid-tier businesses face constraints that differ from those of both smaller firms and large corporates. Access to finance remains a persistent challenge: they do not benefit from the tax reliefs, grants and targeted schemes available to SMEs, yet can struggle to obtain financing on large corporate terms. Alongside finance, skills and talent constraints are also now limiting growth. Apprenticeship starts have fallen by around one third since 2015, disproportionately affecting mid-tier employers in sectors such as manufacturing and construction. In our 2026 survey, more than a quarter of leaders identified recruitment and retention as a major pressure. Rising wage costs and skills shortages increasingly force firms to choose between margin and operating below capacity.

Opportunities created by technological innovation Policy announcements by Government

35%

31% Changes to business regulations 28%

Increase in interest rates/borrowing costs

28%

27%

Workforce recruitment issues

Factors causing disruption to international markets

26%

* respondents could select multiple responses

8

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