Is growth on thin ice? The rising pressures executives can't ignore

For C-suite executives worldwide, optimism about business growth in 2025 remains remarkably strong—93% expect their organizations to expand, a sentiment nearly unchanged from last year. Yet beneath this confidence, a shifting economic landscape is introducing new challenges that could stifle expansion.

A new study from Forvis Mazars, surveying over 1,700 C-suite executives across 35+ countries, reveals that while optimism remains strong, businesses face an unprecedented wave of challenges.

Two forces in particular have emerged as the highest rising threats to corporate growth: heightened competition and geopolitical instability. Both factors have surged in executives’ concerns, with 35% citing increased competition as a top challenge (up 13 points from 2024), while geopolitical instability rose eight points to 30%.

A More Cutthroat Competitive Landscape

The days of organic growth through steady demand and incremental market expansion are fading. Instead, business leaders are bracing for an unprecedented wave of competitive pressure, as global markets become more saturated and new entrants disrupt legacy players.

The impact is particularly pronounced in the technology, pharmaceutical, and energy sectors, where executives see competition as the biggest obstacle to growth.

In the tech sector, for instance, the percentage of leaders citing competition as their top concern has nearly doubled—from 20% in 2024 to 38% in 2025. This is due, in part, to the widespread adoption of artificial intelligence (AI), which has lowered entry barriers for startups while forcing incumbents to accelerate their own digital transformations.

Meanwhile, private equity-backed challengers are aggressively expanding, leveraging capital to undercut pricing and gain market share in industries ranging from financial services to infrastructure.

The result? Fewer companies are expecting strong growth in 2025, with many adjusting their forecasts downward to account for intensified market pressures.

Geopolitical Instability: A Growing Risk Factor

Beyond market competition, geopolitical turbulence is rapidly reshaping business strategies. With trade policies in flux and regulatory landscapes shifting, companies operating across multiple regions are finding themselves caught in the crosshairs of protectionist measures, sanctions, and tariffs.

In North America, geopolitical concerns have surged from the tenth most-cited challenge in 2024 to the second in 2025—a reflection of growing tensions between economic superpowers. New trade barriers and shifting foreign investment regulations are forcing C-suite leaders to reassess global supply chains and rethink international expansion plans.

The uncertainty is particularly acute in industries reliant on cross-border operations. Manufacturing and logistics firms, for instance, are bracing for disruptions in critical supply chains, while financial institutions are navigating evolving compliance risks tied to regulatory divergence between the U.S., Europe, and China.

The Talent Crunch and Expansion Dilemmas

Adding to these challenges, 43% of organizations worldwide continue to struggle with talent acquisition, with an acute shortage at the entry and mid-management levels. This signals a shift from last year, when hiring difficulties were largely concentrated at the executive level.

For companies looking to expand into new markets—a priority for 83% of businesses in the next five years—securing a skilled local workforce is proving to be a significant obstacle.

The most ambitious expansion efforts are coming from leaders in the Middle East and Latin America, but regulatory complexity and talent scarcity remain major hurdles. Understanding local compliance requirements, navigating cultural differences, and tailoring products to new markets are all adding layers of complexity to global growth ambitions.

Navigating the Road Ahead

Despite these headwinds, C-suite leaders remain steadfast in their investment strategies. Technology remains at the center of their playbooks, with 43% of executives prioritizing digital transformation—an 11-point increase from last year.

AI adoption is no longer just a buzzword but a strategic necessity, with 87% of leaders expecting generative AI to impact their businesses and 91% already deploying AI strategies. However, a notable shift is occurring in AI implementation: companies are now prioritizing AI-driven efficiency gains over customer-facing applications, signaling a maturation in how businesses approach automation.

Meanwhile, international expansion remains a focal point, but the approach is becoming more measured. Companies are prioritizing geographies with stable regulatory environments, and executives are increasingly cautious about expanding into regions where geopolitical risks outweigh potential market opportunities.

The C-Suite’s Biggest Test Yet?

In 2025, corporate leaders face a balancing act unlike any in recent years. Navigating heightened competition while mitigating geopolitical risks will require sharper strategic agility, deeper investments in technology, and a more sophisticated approach to international expansion.

As Mark Kennedy, Partner and Chief Clients & Markets Officer at Forvis Mazars Group, puts it: “The overarching challenge of 2025 will be maintaining strategic priorities and a clear vision amid new market entrants, continuing technological disruption and potential market turbulence if they are to cut through increasing competition and lead their businesses to success in 2025.”

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