The latest RSM Mid-Market index just came out for Q3.<\/p>\n
RSM surveys 400+ executives each quarter across industries. They answer 20+ questions about their company\u2019s current conditions (revenue, employment, pricing, investment) and six-month outlook.<\/p>\n<\/div>
The Big Picture: Optimism, Refined<\/h2><\/div>The Q3 index came in slightly lower than Q2, at approximately 122. Also lower than the prior 4-quarter average of 130. But anything over 100 represents optimism and expansion.<\/p>\n<\/div>
Your Q4 Action Plan<\/h2><\/div>Based on the results, here are some specific recommendations:<\/p>\n<\/div>
![\"Q4](\"https:\/\/premiernx.com\/wp-content\/uploads\/2025\/09\/Action-plan-for-businesses-2025.jpg\" "\\"Q4")
<\/span><\/div>\n- Protect gross margin:<\/b> Tighten pricing cadence, index contracts where possible; run SKU-level elasticity tests before Q4.<\/li>\n
- Capex with ROI gates:<\/b> Favor projects that reduce unit cost or shorten cash cycles (ERP\/modules, AP automation, inventory analytics).<\/li>\n
- Price-rise choreography: <\/b>If 62% plan to raise prices, timing + comms matters\u2014bundle with service upgrades to preserve NPS.<\/li>\n
- People plan:<\/b> With hiring intent at 46%, target roles that convert cost to capacity (RevOps\/FP&A analysts, supply planning).<\/li>\n<\/ul>\n<\/div>
Pricing Pressure in Detail<\/h2><\/div>\n- Input Costs Rising: 67%<\/strong> of executives said they paid higher prices for goods and services in Q3.<\/li>\n
- Selling Prices Lag:<\/strong> Only 48%<\/strong> were able to raise prices to customers during the same period.<\/li>\n
- Future Intent: 62%<\/strong> plan to raise prices in the next six months to catch up.<\/li>\n
- Tariffs & Supply Chain:<\/strong> Average U.S. tariffs are ~9.75% now and expected to climb toward ~18%, compounding cost pressures.<\/li>\n<\/ul>\n<\/div>
No Freeze in Capex During Q3<\/h2><\/div>![\"Q3](\"https:\/\/premiernx.com\/wp-content\/uploads\/2025\/09\/Q3-snapshot-and-road-ahead.jpg\" "\\"Q3")
<\/span><\/div>\n- 3rd Quarter:<\/strong>\n
\n- 38%<\/strong> of executives said they increased capital expenditures<\/strong> in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Next Six Months:<\/strong>\n
\n- ~50%<\/strong> plan to boost capex despite overall economic caution.<\/li>\n
- This is slightly higher than the hiring intent (\u224846%), showing that investment in assets and systems remains a priority even with softer sentiment.<\/li>\n<\/ul>\n<\/li>\n
- Drivers:<\/strong>\n
\n- Technology upgrades\u2014ERP, analytics, AI tools, and automation.<\/li>\n
- Facility and equipment upgrades to offset tariff and input-cost pressures.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips Related to Capex<\/h2><\/div>Integrate AI & Data Early<\/h3>\n\n- AI is a top investment theme. But remember the MIT stat that 95% of AI pilots fail.<\/strong><\/li>\n
- Partner with firms that combine technology and business-process expertise<\/strong> to evaluate and implement AI\u2014ensuring the capex produces real returns.<\/li>\n<\/ul>\n<\/div>
People are Still the Basis for Q3 Growth<\/h2><\/div>Talent & Hiring Data<\/h3>\n\n- Current Hiring:<\/strong>\n
\n- 34% of mid-market companies increased headcount in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Near-Term Plans:<\/strong>\n
\n- 46% plan to add staff in the next six months despite economic uncertainty.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips for Hiring and Talent Going Forward<\/h2><\/div>![\"Tips](\"https:\/\/premiernx.com\/wp-content\/uploads\/2025\/09\/Tips-for-hiring-talent-and-going-forward.jpg\" "\\"Tips")
<\/span><\/div>Use AI Strategically within HR<\/h3>\n\n- AI can automate low-value tasks so staff can focus on higher-value work.<\/li>\n
- But, per MIT\u2019s 95% pilot-failure stat, partner with experts who blend tech and process know-how.<\/li>\n<\/ul>\n
Diversify Sourcing & Partnerships<\/h3>\n\n- Outsourcing: Partner with co-sourcing \/ outsourcing providers to access skilled talent and scale quickly without compromising quality.<\/li>\n
- Work with executive-search firms (Korn Ferry, Spencer Stuart, Heidrick & Struggles, Egon Zehnder) for critical leadership hires.<\/li>\n<\/ul>\n<\/div>Reference<\/div><\/div>
The Q3 index came in slightly lower than Q2, at approximately 122. Also lower than the prior 4-quarter average of 130. But anything over 100 represents optimism and expansion.<\/p>\n<\/div>
Your Q4 Action Plan<\/h2><\/div>Based on the results, here are some specific recommendations:<\/p>\n<\/div>
<\/span><\/div>\n- Protect gross margin:<\/b> Tighten pricing cadence, index contracts where possible; run SKU-level elasticity tests before Q4.<\/li>\n
- Capex with ROI gates:<\/b> Favor projects that reduce unit cost or shorten cash cycles (ERP\/modules, AP automation, inventory analytics).<\/li>\n
- Price-rise choreography: <\/b>If 62% plan to raise prices, timing + comms matters\u2014bundle with service upgrades to preserve NPS.<\/li>\n
- People plan:<\/b> With hiring intent at 46%, target roles that convert cost to capacity (RevOps\/FP&A analysts, supply planning).<\/li>\n<\/ul>\n<\/div>
Pricing Pressure in Detail<\/h2><\/div>\n- Input Costs Rising: 67%<\/strong> of executives said they paid higher prices for goods and services in Q3.<\/li>\n
- Selling Prices Lag:<\/strong> Only 48%<\/strong> were able to raise prices to customers during the same period.<\/li>\n
- Future Intent: 62%<\/strong> plan to raise prices in the next six months to catch up.<\/li>\n
- Tariffs & Supply Chain:<\/strong> Average U.S. tariffs are ~9.75% now and expected to climb toward ~18%, compounding cost pressures.<\/li>\n<\/ul>\n<\/div>
No Freeze in Capex During Q3<\/h2><\/div><\/span><\/div>\n- 3rd Quarter:<\/strong>\n
\n- 38%<\/strong> of executives said they increased capital expenditures<\/strong> in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Next Six Months:<\/strong>\n
\n- ~50%<\/strong> plan to boost capex despite overall economic caution.<\/li>\n
- This is slightly higher than the hiring intent (\u224846%), showing that investment in assets and systems remains a priority even with softer sentiment.<\/li>\n<\/ul>\n<\/li>\n
- Drivers:<\/strong>\n
\n- Technology upgrades\u2014ERP, analytics, AI tools, and automation.<\/li>\n
- Facility and equipment upgrades to offset tariff and input-cost pressures.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips Related to Capex<\/h2><\/div>Integrate AI & Data Early<\/h3>\n\n- AI is a top investment theme. But remember the MIT stat that 95% of AI pilots fail.<\/strong><\/li>\n
- Partner with firms that combine technology and business-process expertise<\/strong> to evaluate and implement AI\u2014ensuring the capex produces real returns.<\/li>\n<\/ul>\n<\/div>
People are Still the Basis for Q3 Growth<\/h2><\/div>Talent & Hiring Data<\/h3>\n\n- Current Hiring:<\/strong>\n
\n- 34% of mid-market companies increased headcount in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Near-Term Plans:<\/strong>\n
\n- 46% plan to add staff in the next six months despite economic uncertainty.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips for Hiring and Talent Going Forward<\/h2><\/div><\/span><\/div>Use AI Strategically within HR<\/h3>\n\n- AI can automate low-value tasks so staff can focus on higher-value work.<\/li>\n
- But, per MIT\u2019s 95% pilot-failure stat, partner with experts who blend tech and process know-how.<\/li>\n<\/ul>\n
Diversify Sourcing & Partnerships<\/h3>\n\n- Outsourcing: Partner with co-sourcing \/ outsourcing providers to access skilled talent and scale quickly without compromising quality.<\/li>\n
- Work with executive-search firms (Korn Ferry, Spencer Stuart, Heidrick & Struggles, Egon Zehnder) for critical leadership hires.<\/li>\n<\/ul>\n<\/div>Reference<\/div><\/div>
Based on the results, here are some specific recommendations:<\/p>\n<\/div>
<\/span><\/div>- \n
- Protect gross margin:<\/b> Tighten pricing cadence, index contracts where possible; run SKU-level elasticity tests before Q4.<\/li>\n
- Capex with ROI gates:<\/b> Favor projects that reduce unit cost or shorten cash cycles (ERP\/modules, AP automation, inventory analytics).<\/li>\n
- Price-rise choreography: <\/b>If 62% plan to raise prices, timing + comms matters\u2014bundle with service upgrades to preserve NPS.<\/li>\n
- People plan:<\/b> With hiring intent at 46%, target roles that convert cost to capacity (RevOps\/FP&A analysts, supply planning).<\/li>\n<\/ul>\n<\/div>
Pricing Pressure in Detail<\/h2><\/div>
- \n
- Input Costs Rising: 67%<\/strong> of executives said they paid higher prices for goods and services in Q3.<\/li>\n
- Selling Prices Lag:<\/strong> Only 48%<\/strong> were able to raise prices to customers during the same period.<\/li>\n
- Future Intent: 62%<\/strong> plan to raise prices in the next six months to catch up.<\/li>\n
- Tariffs & Supply Chain:<\/strong> Average U.S. tariffs are ~9.75% now and expected to climb toward ~18%, compounding cost pressures.<\/li>\n<\/ul>\n<\/div>
No Freeze in Capex During Q3<\/h2><\/div>
<\/span><\/div>- \n
- 3rd Quarter:<\/strong>\n
- \n
- 38%<\/strong> of executives said they increased capital expenditures<\/strong> in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Next Six Months:<\/strong>\n
- \n
- ~50%<\/strong> plan to boost capex despite overall economic caution.<\/li>\n
- This is slightly higher than the hiring intent (\u224846%), showing that investment in assets and systems remains a priority even with softer sentiment.<\/li>\n<\/ul>\n<\/li>\n
- Drivers:<\/strong>\n
- \n
- Technology upgrades\u2014ERP, analytics, AI tools, and automation.<\/li>\n
- Facility and equipment upgrades to offset tariff and input-cost pressures.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips Related to Capex<\/h2><\/div>
Integrate AI & Data Early<\/h3>\n
- \n
- AI is a top investment theme. But remember the MIT stat that 95% of AI pilots fail.<\/strong><\/li>\n
- Partner with firms that combine technology and business-process expertise<\/strong> to evaluate and implement AI\u2014ensuring the capex produces real returns.<\/li>\n<\/ul>\n<\/div>
People are Still the Basis for Q3 Growth<\/h2><\/div>
Talent & Hiring Data<\/h3>\n
- \n
- Current Hiring:<\/strong>\n
- \n
- 34% of mid-market companies increased headcount in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Near-Term Plans:<\/strong>\n
- \n
- 46% plan to add staff in the next six months despite economic uncertainty.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
Tips for Hiring and Talent Going Forward<\/h2><\/div>
<\/span><\/div>Use AI Strategically within HR<\/h3>\n
- \n
- AI can automate low-value tasks so staff can focus on higher-value work.<\/li>\n
- But, per MIT\u2019s 95% pilot-failure stat, partner with experts who blend tech and process know-how.<\/li>\n<\/ul>\n
Diversify Sourcing & Partnerships<\/h3>\n
- \n
- Outsourcing: Partner with co-sourcing \/ outsourcing providers to access skilled talent and scale quickly without compromising quality.<\/li>\n
- Work with executive-search firms (Korn Ferry, Spencer Stuart, Heidrick & Struggles, Egon Zehnder) for critical leadership hires.<\/li>\n<\/ul>\n<\/div>Reference<\/div><\/div>
- 46% plan to add staff in the next six months despite economic uncertainty.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>
- Partner with firms that combine technology and business-process expertise<\/strong> to evaluate and implement AI\u2014ensuring the capex produces real returns.<\/li>\n<\/ul>\n<\/div>
- AI is a top investment theme. But remember the MIT stat that 95% of AI pilots fail.<\/strong><\/li>\n
- Next Six Months:<\/strong>\n
- 38%<\/strong> of executives said they increased capital expenditures<\/strong> in Q3.<\/li>\n<\/ul>\n<\/li>\n
- Selling Prices Lag:<\/strong> Only 48%<\/strong> were able to raise prices to customers during the same period.<\/li>\n
- Capex with ROI gates:<\/b> Favor projects that reduce unit cost or shorten cash cycles (ERP\/modules, AP automation, inventory analytics).<\/li>\n
![\"Call](\"https:\/\/premiernx.com\/wp-content\/uploads\/2025\/04\/people-working-call-center.jpg\")
<\/a><\/span><\/div>![\"Customer](\"https:\/\/premiernx.com\/wp-content\/uploads\/2024\/10\/customer-supports.webp\")
<\/a><\/span><\/div>![\"Modern](\"https:\/\/premiernx.com\/wp-content\/uploads\/2025\/04\/modern-equipped-computer-lab.jpg\")
<\/a><\/span><\/div>