Business Leaders Face Rising Stress From External Threats

Economic uncertainty, supply chain issues, and rising health care costs are causing increasing stress for business leaders, according to a new survey from Sentry Insurance, with two-thirds reporting higher stress levels in 2025 than last year and a quarter of companies considering downsizing or closure.
Despite these challenges, many executives remain optimistic, with plans to increase safety measures and reassess insurance coverage to navigate these pressures, the research reveals.
The survey of business owners and C-suite leaders reveals a significant uptick in executive anxiety. Two-thirds of executives (67%) report higher stress levels compared to the previous year, with only 10% experiencing a decrease in stress in 2025 vs. 2024. The situation is even more pronounced in larger companies, those with over 1,000 employees, where 82% of executives report elevated stress levels compared with a year ago.
The root causes of this mounting pressure are multifaceted. Economic uncertainty tops the list of external threats, with 47% of business leaders identifying it as their primary concern. Close behind are supply chain challenges (44%) and the rising cost of employee health care (41%). Labor shortages (38%) and inflation (36%) round out the top five external threats keeping executives awake at night in 2025.
These challenges are having a tangible impact on business operations, the Sentry research found. A quarter of companies anticipate potential downsizing or even closure in the coming year. Moreover, 97% of businesses are postponing upgrades due to cost pressures, affecting both business equipment and technology investments.
“Our research highlighted a recurring theme: managing risk is a big part of managing stress,” said David Dickinson, customer research director at Sentry. “Executives are experiencing worsening external challenges and putting strategies in place to protect the future of their businesses. This year, many are increasing safety measures, reassessing their insurance, and making adjustments to navigate external pressures.”
Business Outlook and Optimism
Despite facing numerous challenges, many business leaders maintain a surprisingly optimistic outlook for the year ahead. Nearly half of executives surveyed believe their companies will not just survive but thrive in 2025, showcasing resilience in the face of economic uncertainty and other external pressures.
Growth expectations vary significantly across industries, with some sectors displaying particularly high levels of confidence. Auto dealers lead the pack, with 60% anticipating robust growth in the coming year. Close behind are logistics and transportation companies, as well as health care businesses, both with 59% of leaders expecting their businesses to flourish.
Workplace Safety Investments
This optimism coincides with a widespread commitment to enhancing workplace safety, the survey showed. For example, 82% of business leaders reported plans to boost investments in worker safety. The percentage was even greater among large employers, those with more than 1,000 employees, where 99% of respondents expected to increase investment in worker safety.
Nearly half of business, 49%, hope to increase employee retention rates by increasing investment in worker safety, and 48% hope to gain increased output. Another 45% expect that safety investments in 2025 will boost recruitment efforts.
Severe Weather Disruptions and Litigation Concerns
The impact of severe weather on businesses has become impossible to ignore. Nine out of ten companies report being affected by extreme weather events in the past five years, leading to a range of operational challenges.
Business disruption was the most likely result of severe weather, the survey finds. Nearly half, or 45%, reported outages that left their company unable to operate, 39% experienced supply chain disruptions, and 34% cited staff unable to come to work.
About one-third of business experienced damage to company equipment (34%), company facilities (32%) or company vehicles (30%), as a consequence of severe weather in the past five years.
The specter of increased litigation and multi-million dollar verdicts looms large over many industries. A significant 72% of business leaders expressed concerns about this trend, with nearly a quarter (24%) describing it as a massive, growing problem.
Insurance Needs Under Review
In light of the challenges facing businesses in 2025, many business leaders are reevaluating their insurance needs.
A surprising 74% of business leaders aren’t fully confident in their current insurance coverage, with 42% planning to expand their coverage in the coming year. Among those re-evaluating their coverage needs, the top reasons were: increasing coverage as business expands (44%), lowering risk by adding coverage (43%) and securing coverage for areas of company not currently covered (38%).
View the full Sentry report here. &