We are at a unique intersection in history. Mid-market CEOs don’t have the luxury of waiting for clarity. The next 24 months will separate executives who act, from those who get trampled by shifting demand and AI-driven productivity gaps.

The latest two posts in our annual Vistage trends series provide practical roadmaps for where the economy is headed and how to utilize AI to build margin, capacity, and customer retention.

Special Report: AI Trends for 2026 and Beyond

In Part III of our series, we turn our attention to AI.

It was only three years ago that ChatGPT captured our imagination with its ability to generate text, images, and even video on demand.

Over the past year, I’ve led conversations with more than 500 Vistage members about how they’re using AI. Some have woven these tools into daily routines, while others are just tinkering. That’s not surprising — most of the business world is still figuring out how to put AI to use.

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Economic Trends

In Part IV of our series, we focus on Economic Trends facing small and midsize businesses (SMBs) in 2026 and beyond.

Margaret Thatcher once said, “Standing in the middle of the road is very dangerous; you get knocked down by the traffic from both sides.”

Small and midsize businesses are under pressure to maintain volume and pricing as tariffs and other inputs bite into margins. After spiking to 40-year highs, inflation has cooled but continues to run above the Federal Reserve’s target. Labor is scarce and expensive, with wages and benefits climbing fast. All this at a time when the cost of capital remains high, and growth plans are muted.

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A Pause In Employee Engagement?

We are seeing a troubling trend. As we’ve noted in these pages in the past, U.S. employee engagement is slumping. Some companies, including some repeat clients, are hitting pause on their annual engagement surveys. Why? Because they didn’t move the needle enough last year. Picture your doctor warning you about high cholesterol, and instead of taking action, you stop getting bloodwork and double down on bacon. If you believe you haven’t done enough to boost morale, the worst message you can send is to stop measuring it. Engagement surveys should be a routine discipline: measure sentiment, build an action plan, and report results over time. The evidence is clear: companies that thrive double down on two-way communication, and listening is the first step to fixing engagement.

    Ian Bremmer on GZERO

    Watch Ian Bremmer’s informative take on a GZERO world–one void of international leadership, and the implications for the U.S. and the world order. Bremmer asserts that Trump represents an “accelerant” of authoritarianism in which presidents yield too much power.

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    Upskilling in the Age of AI

    In Memoriam: Larry Cassidy

    The Vistage community lost a friend, counselor and patriot when Larry Cassidy passed last week. Larry served in the Marines and as a Vistage Chair in Orange County, California for 38 years.

    Larry has received recognition for his work as a group chair, including multiple Chair Excellence Awards, the Star Award (2006 and 2007), and three Master Chair Awards (2006, 2007 and 2018, a lifetime designation). At the TEC/Vistage 50th Anniversary Chair Convention in 2007, he was selected as one of “50 Who Made a Difference.” At the highest level, Larry has received two of the three Vistage Legacy Awards: the Robert Nourse/Chair of the Year Award (2018); and, the Don Cope Award (2000), the highest recognition accorded Chairs.

    We pass on our best wishes to Larry’s family and all the members he served. He will be missed.

    The Strategy Experts

    Marc Emmer is President and Chief Strategist & Facilitator at Optimize Inc. He is an author, speaker and consultant recognized as a thought leader throughout North America as an expert in strategic planning.

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