KeyBank Survey Reveals 91% of Companies Are Focused on Tariff Management

Understanding the Impact of Tariffs on Middle Market Companies



In a recent survey conducted by KeyBank, it was revealed that a dominant 91% of middle market businesses are prioritizing the management of tariff impacts in response to ongoing economic challenges. This survey, conducted in May 2025, sought to understand how executives from businesses with annual revenues between $25 million and $1 billion are adapting in a climate of uncertainty and potential tariff repercussions.

The Role of Tariffs in Business Strategy



The data collected from the survey indicates that the potential for tariffs is a significant driver in how these companies are shaping their investment decisions. A striking 91% of the surveyed businesses indicated that managing the impacts of tariffs is a top priority, emphasizing the widespread recognition of this essential factor. Moreover, executives highlighted that clarity regarding the health of the U.S. economy is paramount for making informed business investment decisions—61% of participants echoing this sentiment.

Interestingly, the perspective on tariffs isn't solely negative. Approximately 49% of respondents believe that tariffs can offer opportunities for market expansion. This suggests a split in viewpoint where, while tariffs pose challenges, they may also catalyze strategic pivots or new market entry for some firms. Among those actively engaged in technology, 68% display higher confidence—likely reflecting the increasing necessity for software solutions designed to effectively manage supply chain costs and complexities.

Strategic Shifts in Supply Chain Management



The findings from the survey also shed light on how companies are recalibrating their supply chain strategies to mitigate the effects of tariffs. About 60% of participants reported they are adjusting their supply chain management to accommodate tariff costs. This figure rises sharply to 74% among larger firms with revenues ranging from $500 million to $1 billion, highlighting the different scales at which companies are operating.

Among larger businesses, 88% are enhancing their technological frameworks to gain better visibility into their supply chains while 71% are expanding their supplier networks to decrease exposure to risks associated with tariff changes. This proactive approach reflects a newfound determination among middle market firms to not merely endure challenges but to seize opportunities for improvement and growth.

Accessing Capital for Future Growth



The importance of financial health was also underscored, as 87% of companies reported efforts to strengthen their access to capital. The methods identified for enhancing capital access include adopting advanced technology and automation (52%), increasing equity capital (43%), and improving cash flow management (43%). These strategic shifts resemble a collective movement towards long-term resilience and sustainability within the middle market.

Ken Gavrity, the Head of Key Commercial Bank, emphasized the proactive mindset of middle market companies amidst uncertainty. He noted that these firms are not waiting for ideal economic conditions to enact changes; instead, they are diligently creating their own paths to success. “The businesses that will thrive are those capable of swift adaptation, prudent technology investments, and forming robust relationships with capital providers who genuinely grasp their visions,” he stated.

Conclusion



The survey conducted by KeyBank sheds light on the adaptive strategies of middle market companies facing potential tariff repercussions. With a significant majority prioritizing tariff management, it's clear that these companies are navigating challenges with a proactive mindset. By focusing on innovation, capital access, and strategic adjustments to supply chains, middle market firms are demonstrating a remarkable capacity for resilience in the face of economic uncertainty. As they strive to balance the scales of opportunity and challenges, the future of the middle market appears robust and full of potential.

Topics Financial Services & Investing)

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