CBIZ-Hofstra University CEO Survey Report

Middle-Market CEOs Grapple with Tariffs, Tax Uncertainty Amid Mixed Optimism

Middle-market CEOs are starting 2025 with a mix of cautious optimism and significant concerns over pressing economic challenges. The latest CBIZ-Hofstra University CEO Survey, conducted in December, highlights the weight of proposed tariffs and ongoing tax policy uncertainty on corporate strategies, even as confidence in the broader business environment improves.

The survey of executives leading companies with revenues ranging from $5 million to over $1 billion reveals a 7.2 weighted average score for business outlook, up from 6.6 in the prior quarter. The proportion of CEOs rating their outlook as highly positive (8-10) rose to 45% from 34.5% in September, reflecting a measured rebound in sentiment. Yet, the positive outlook is tempered by policy-related anxieties.

Tariffs: A Top Concern Driving Strategic Change

Proposed tariffs remain a dominant issue, with 53.2% of CEOs expressing deep concern over their financial toll. In response, businesses are adjusting their strategies:

1. 9% are considering relocating production to avoid tariff-related costs.
2. 4% may reduce headcount.
3. 3% plan to delay planned investments.
4. 4% are exploring changes to their supply chains, while 50% are contemplating price increases.

Tax Policy Impacts: A Mixed Bag

The survey highlights varied perspectives on the impact of U.S. tax policies. Nearly 43% of CEOs said their businesses have benefited to some degree from the Tax Cuts and Jobs Act (TCJA), but only 10.9% described the benefits as significant, while 39.5% reported no gains.

Looking ahead, the potential extension of TCJA provisions offers a possible advantage, with 51.9% of CEOs anticipating a positive impact on their financial positions. Similarly, the Inflation Reduction Act (IRA) has yielded mixed results, with 43.3% of respondents citing benefits but nearly half (47.7%) reporting no effect on their operations.

Broader Influences on Planning

Beyond tariffs and taxes, the survey underscores persistent concerns shaping corporate strategies for 2025. Economic uncertainty remains the leading influence on business planning, cited by 55.1% of CEOs. Talent availability, identified by 37.5% as a top-three issue, reflects ongoing hiring and retention struggles. Cybersecurity has also emerged as a rising priority, with concern increasing 6.7% since the prior quarter.

Industry-Specific Optimism Rises

Not all sectors are feeling the strain equally. CEOs in manufacturing, healthcare, and financial services reported sharp upticks in optimism, signaling pockets of resilience:

1. Manufacturing: 55% of CEOs expressed high optimism, up from 29% in September.
2. Healthcare: Positive sentiment jumped to 50%, compared to 30% in the prior survey.
3. Financial Services: Optimism nearly doubled, reaching 42% from 25%.

Strategic Challenges Ahead

The survey findings illustrate how businesses are adapting to an unpredictable economic and policy environment. With proposed tariffs and uncertainties regarding taxes on the horizon, middle-market CEOs are prepared to adjust their strategies. This may involve implementing cost-cutting measures, altering supply chains, or expressing targeted optimism in certain sectors.

Download the Full Report

For a comprehensive analysis of these findings and deeper insights into middle-market CEO priorities, download the full CBIZ-Hofstra University CEO Survey report. Visit the CBIZ Survey Download Page to access the survey and explore how these insights can inform your strategic planning for 2025.

For now, the road ahead is marked by uncertainty but also a renewed sense of resilience.