But this isn’t a time to throw your hands up. It’s time to recalibrate.

In a Bloomberg survey of economists, the probability of a recession within the next year is still hovering near 50%. So while we’re not in a crisis, this is no time for complacency. And that means taking action without overcommitting to a single narrative.

1. Double down on core, but don’t fall asleep at the wheel

Our recent study on marketing (see below) revealed a fascinating insight. In times of uncertainty, poorer performing companies reduce marketing spend. They focus on segments and customers they know best, which produces a more predictable ROI.

While this is sensible, it’s also limiting. There will be sharks in the water, ready to capitalize on others’ conservatism and seize opportunities.

2. Shift focus to certainty

As highlighted in our strategy work, chasing too many markets leads to diluted value. Instead, create targeted offerings for niche segments with pricing, communication, and delivery models tailored to each.

Use your experience, signature clients and social proof (white papers, case studies and testimonials) to exude certainty. You know this business, so you can project actual results based on your track record. “No one ever gets fired for hiring IBM.”

3. Dynamic and other pricing strategies

Dynamic pricing is here to stay. Companies using real-time data to adjust prices are better able to manage labor, inventory and demand. It’s bad business to maintain variable inputs (labor costs) and fixed outputs (prices). If you’re still relying on annual price adjustments, you’re leaving margin on the table.

This isn’t a time to accept the status quo. Just because pricing in your industry has stuck to a pattern doesn’t mean you need to follow competitors. The adoption of dynamic pricing is exploding, and creating better alignment of your costs and pricing is a useful tactic.

4. Build a flexible labor model

Low-cost labor is getting harder to come by. Consider investing in automation where possible (workflow tools can dramatically cut admin overhead), while developing a core of skilled workers you can incentivize and retain. Flexibility is the name of the game: contract where needed, retain where it matters most.

5. Audit your energy strategy

AI infrastructure is consuming more electricity than expected, and global energy demand continues to rise. Manufacturing businesses should reassess their exposure to volatile pricing, especially during peak hours. Consider energy efficiency audits, off-peak production, or long-term power purchase agreements to stabilize costs.

6. Demand adoption of AI 

AI continues to drive investor buzz and stock volatility. But with adoption still relatively low (only 29% of businesses have implemented GenAI tools), leaders must balance opportunity with realism. Instead of betting the farm, test narrowly and learn fast. Adopt where ROI is proven. But the time for waiting is over; if you’re not adopting AI every day, you will fall further behind.

7. Scenario plan for political turbulence

Frustration with the administration and rising social unrest makes it essential to run scenario planning exercises. Could new tariffs disrupt your supply chain? What if tax policy shifts dramatically in 2026?

Most importantly, be aware of the strain on your employees’ mental health. People are picking sides, and they are upset. This creates a lot of tension in a workplace.

8. Shift spending to customer retention

With personal spending slowing and acquisition costs rising, 2025 is the time to shift marketing dollars toward retention. Loyalty programs, subscription models, and white-glove service can be more impactful than a new ad campaign.

9. Map your talent pipeline

As boomers continue to exit and Gen Z enters, succession planning is no longer optional. Identify high-potential talent and build a roadmap to develop and retain them. Invest in leadership readiness, not just skills training.

10. Game your tax situation

The 2017 tax cuts are set to expire after 2025. The Big Beautiful Bill will probably pass in some form, with many revisions and the requisite pork provisions. Business owners will have a unique opportunity to lock in lower tax obligations.

Business owners should begin tax optimization strategies now: accelerating income, delaying deductions, or restructuring entities to mitigate exposure. You may not get another window like this.

In our annual analysis of marketing trends, we found that companies have pulled back on marketing investment as a result of economic uncertainty. To see a list of benchmarks and Marc Emmer’s recap on patterns in the evolving world of marketing, click here.

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