Business uncertainty up sharply as economic headwinds reshape C-suite decision-making

STEVENS POINT, WI. (August 4, 2026) – C-suite confidence has fallen sharply since the start of 2026. New research from Sentry finds 82% of U.S. executives are more concerned about the future of their business than at the beginning of the year, as shifting trade policies, geopolitical instability, and operational disruptions reshape the business landscape. The shift is even more pronounced among small business leaders, with 90% saying they are uncertain their businesses will survive.

The findings, featured in the mutual insurer’s 2026 C-Suite Stress Index: Midyear Report, found nearly all executives (98%) say events in the first half of 2026 have changed how they approach long-term planning and risk management. Many are preparing for a wider range of interlinked risks by shortening planning horizons (70%) and creating more contingencies (61%). This strategy is particularly true for geopolitical events, with 88% of executives saying they struggle to accurately manage risks due to the pace of change.

“What’s changed since the beginning of the year isn’t simply the list of risks businesses are managing—it’s how fast risks evolve and are affecting one another,” said Jeff Cole, Assistant Vice President of National Accounts at Sentry. “Leaders are recognizing that today’s environment demands a more adaptable approach to planning. Organizations that regularly reassess their risks add flexibility to their decision-making, allowing them to prepare for multiple possible outcomes and better position their organizations to respond to ongoing change.”

Executives remain uneasy about many of the same issues that shaped their outlook at the beginning of the year, with the most pressing business challenges significantly intensifying. Concerns about:

• Supply chain and logistics challenges rose 17 percentage points to 62%

• Tariffs and trade uncertainty increased 13 percentage points to 52%

• Labor shortages climbed 11 percentage points to 49%

The shift in executive outlook due to international and geopolitical events is even more pronounced among small businesses. Nine in ten (90%) executives at companies with 10–49 employees say they’re more concerned following the events thus far in 2026, a 21-percentage point increase from the start of 2026, compared to 69% of executives at companies with more than 1,000 employees.

Additionally, 65% of small business executives reported experiencing negative impacts from geopolitical events, with 95% struggling to keep pace with rapidly evolving external risks.

“Smaller businesses often have less capacity to absorb disruption, making it even more important to anticipate emerging risks and adapt quickly as conditions change,” said Brett Hoopingarner, National Sales Director—Direct Writer and Life & Annuities at Sentry. “Resilience isn’t about the size of a business—it's about the ability to adjust. Businesses that regularly evaluate their risks and work closely with trusted advisors—including their agent and insurer—can make more informed decisions in an increasingly uncertain environment.”

Wakefield Research conducted a survey among 625 U.S. executives with at least 10 employees. Eligible respondents included business owners, CEOs, CFOs, Chief Risk Officers (CROs).

Sentry Insurance is part of one of the largest and most financially secure mutual insurance groups in the United States. Sentry has an AM Best Financial Strength Rating (FSR) of A+ (superior), current as of July 2026, and is ranked No. 529 on the Fortune 1000. Recent AM Best rating activity is at https://ratings.ambest.com/ratingeventdisclosures.aspx. Sentry and its subsidiaries offer a wide range of insurance products, including property and casualty insurance, life insurance, annuities, and retirement programs for businesses and individuals nationwide. For a complete list of underwriting companies, visit sentry.com.