Our Business Outlook Survey results were presented in partnership with the University of Minnesota Extension at the 2026 Economic Summit. Thank you to all those who participated in the 2025 Business Outlook Survey. Your contribution provides valuable insights to understand better both the positive aspects and challenges in our local business community. Knowing the specific concerns across different sectors is crucial for targeted support and identifying solutions. KEY TAKEAWAYS FROM THE 2025 BUSINESS OUTLOOK SURVEY RESULTS: • Optimism for 2026 is lower than previous years, with nearly half of businesses expressing concern about the year ahead. Lower than expected 2025 sales may be a factor. Last year, 62% expected sales to rise, but 43% reported increases this year. • Just over half of businesses expect sales to grow in 2026, including 11% who predict increases above 25%. • Businesses are also looking to make capital investments in 2026. 22% of businesses plan to make a capital investment, down from 26% last year. • Most businesses, 63%, expect to maintain staffing levels in 2026. Staffing caution may be tied to higher rates of maintaining staffing levels in 2025 compared to all previous years of the survey, which may indicate that businesses have retained employees. There is also continued concern about rising employee costs, which remain the top issue for both 2025 and 2026. No businesses reported plans for staff reductions in 2026. • There was an increase of 8% in businesses that reported they used automation and/or artificial intelligence to increase productivity in 2025 as compared to 2024. • Compared to other state, multi-state, and national surveys, Rochester businesses appear to be slightly more optimistic about business and sales in 2026.
4 | ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE — APRIL 2026
APRIL 2026 — ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE | 4
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