Troy, MI – January 20, 2026 – ASE, one of the nation’s oldest and largest employer associations, has released its Organizational Challenges & Outlook Survey, highlighting the issues Michigan-based organizations expect to face in 2026 and how those concerns are largely extensions of challenges faced in 2025. The findings suggest organizations are entering the new year with few surprises, but with heightened urgency around long-standing workforce and economic pressures.
Key Findings from the ASE Organizational Challenges & Outlook Survey
Top Challenges Heading into 2026
Talent attraction and retention remain the most significant challenge for organizations in 2026, cited by 49.7% of respondents. This reflects a modest increase from 2025 levels (47%) and signals that labor market pressures are not easing. Service organizations continue to feel this most acutely, with 59.1% identifying talent as their top concern, compared to 42.2% of manufacturers.
Economic uncertainty remains a close second, with 44.3% of organizations expecting it to significantly impact operations in 2026. While slightly higher than 2025 responses (40.3%), the data suggests organizations are planning for prolonged uncertainty rather than short-term disruption.
Employee engagement and broader workforce issues are expected to remain relatively stable, with 30.9% of organizations citing them as a challenge in 2026, nearly unchanged from 2025 (31.5%).
Technology adoption and digital transformation is gaining importance, rising to 20.1% for 2026 from 16.1% in 2025. This increase is particularly notable as organizations look for ways to improve efficiency and competitiveness without expanding headcount.
In 2025, tariffs and trade policy impacts ranked third overall at 33.6%, driven primarily by manufacturing organizations, before declining modestly to 28.9% as a concern heading into 2026.
Inflation and pricing pressures weighed heavily on operations in 2025 at 26.8%, particularly for manufacturers. However, fewer organizations expect these pressures to dominate in 2026, suggesting cautious optimism around cost stabilization.
Industry-Specific Differences Persist
Manufacturing organizations remain far more concerned about tariffs and trade policy than service organizations, both currently and looking ahead to 2026. Service organizations, meanwhile, continue to report higher concern around talent availability and retention.
Technology adoption shows a narrowing gap between sectors. While service organizations remain slightly more focused on digital transformation, manufacturers report a notable increase in attention to technology as a 2026 priority.
“As organizations look toward 2026, they are not encountering a dramatically new environment, but rather an extension of the challenges they have been navigating,” said Mary E. Corrado, ASE President and CEO. “Talent remains the top concern, economic uncertainty continues to shape decision making, and more organizations are looking to technology to help them do more with less.”
The survey reinforces that while the intensity of some issues may shift, Michigan employers are planning for a year defined by persistence rather than disruption.
ASE members can access the full survey report in the ASE Survey Library. Non-Members can request a copy here.
About the ASE Organizational Challenges & Outlook Survey
The survey collected responses from 149 organizations across Michigan, including 83 manufacturing organizations (55.7%) and 66 service organizations (44.3%). It was conducted in late 2025 to capture both current operational challenges and forward-looking expectations for the 2026 planning year.
About ASE
ASE is employers trusted partner for Everything HR. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations and help them THRIVE. ASE strengthens organization's HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues. Learn more about ASE at www.aseonline.org.