For businesses in Northwest Indiana, 2026 has already been quite a ride. Headwinds from inflation and supply chains continue, and yet many businesses are optimistic about revenue growth by the time the year’s books are closed.
Those are some of the key takeaways from a survey First Financial Bank conducted with 500 business leaders in Indiana and throughout the Midwest, as we sought a better understanding of how they view the current landscape. Findings from the research are revealing.
What struck me most was the degree of optimism.
Growth is the solid expectation among the group we surveyed, with 89% of business leaders projecting increased revenue by the end of the year. Some of that is attributable to margins, with 82% of leaders expecting profit margin growth, driven mostly by customer demand. It all adds up to economic optimism, with 65% of respondents sensing a positive outlook for the U.S. economy through the end of 2026.
Growth often requires investment, and the survey indicates that demand for credit is rising. More than half (54%) of the leaders we spoke with in Indiana and throughout the Midwest expect their need for credit to grow this year, and an even larger number (71%) anticipate increased capital expenditures in the current year. Most leaders in our survey expect to apply new credit toward digital and technology needs, followed by working capital and equipment financing.
Investment and credit demand are notable because of the challenges from today’s economy. Inflation, tariffs and supply chain disruption have grabbed some of the biggest headlines in recent years, and 52% of our respondents still monitor inflation as the most widely monitored risk. However, while they certainly point to inflation as a headwind, it’s not a confidence breaker. Responses revealed that many leaders see the higher cost of inflation as a manageable factor, which they feel they can navigate through pricing strategies, cost management, workforce realignment and automation.
I see this as an acceptance of business realities and a requirement to adapt and adjust. It’s the nature of the work we do.
Still more potential obstacles are floating out there for business. Leaders also told us of their concerns with access to talent, with 35% flagging it as a significant risk. As one said, “It’s hard to find people that have completed the training and schooling necessary to perform the jobs we need to hire.”
Our research also indicated many more interesting insights in areas such as adoption of AI and cryptocurrency.
For example, fully 97% of the businesses we spoke with are adopting AI at some level, with most, 61%, fully engaged in the process of scaling adoption.
In contrast, cryptocurrency, which has been top of mind for longer, has reached scaled adoption among just 25% of our respondents, with only 39% of them anticipating an increased need to conduct business in crypto.
It all reads as a complex cross section of the Hoosier economy and the country as a whole. Business finance is never one-size-fits all.
As business leaders’ needs continue to be diverse and wide-ranging, a business planning process that includes the financial expertise of a trusted banker can reveal the products and services best suited to plot the course for growth and expansion in the near future.
Note: The State of the Business Survey was administered by Burke Inc., an independent decision intelligence consultancy, in February.
