Introduction to Business Uncertainty
The business world is no stranger to uncertainty. In fact, it’s a constant that many companies have learned to live with. Mike Thomas, EVP and Head of Corporate and Institutional Banking at PNC Bank, notes that "uncertainty almost feels like certainty" after a while. This idea that the only constant is change can be daunting, but it’s also what drives innovation and growth.
The Impact of Tariffs on Businesses
Recent news reports in the first half of 2025 highlighted concerns among companies about the impact of new tariffs on their operations. However, a survey by PNC Bank suggests that these reports may have been skewed towards the perspectives of larger companies. The survey found that only 46% of companies with $1 billion or more in annual revenues viewed the uncertainty as a net positive. In contrast, 78% of companies with $50 million to $1 billion in revenue saw the ambiguity as a plus, while 57% of companies with $5 million to $50 million in revenue shared the same sentiment.
Why Smaller Companies Are More Resilient
So, why are smaller companies more likely to view uncertainty as a positive? According to Gus Faucher, Chief Economist at PNC Financial Services Group, it’s because they are more nimble and can respond quickly to changes. Larger companies, on the other hand, have more complicated supply chains that are more heavily impacted by tariffs. This makes it harder for them to adapt and respond to uncertainty.
A Shift in Optimism
Despite the challenges posed by uncertainty, most CFOs are now more optimistic about the expected performance of their companies, local economies, and the national economy over the next 12 months. This shift in optimism is a significant indicator of the business community’s ability to adapt and thrive in uncertain times.
Conclusion
In conclusion, uncertainty is a constant in the business world, but it’s not necessarily a bad thing. While larger companies may struggle with the complexity of their supply chains, smaller companies are more agile and can respond quickly to changes. As the business landscape continues to evolve, it’s likely that companies of all sizes will need to learn to navigate uncertainty and find opportunities for growth in the midst of change.
