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2027 PlanningExecutive Survey

Key findings to support 2027 planning

Survey responses collected September through mid-October 2026

Download the full report (PDF)See the key findings ↓

Headline results

2027 Planning Survey Results at a Glance

Growth

70%

are more optimistic about 2027 than a year ago

6.1%

average 2027 growth target9.4% for those in very strong demand markets
1.6% for those in slow-growth consumer markets

64%

of the average 2027 growth target comes from new initiatives

Earnings

95%

cite input cost inflation as a top headwind

100%

plan cost reduction, including administrative process automation

80%

plan pricing actions for 2027

Notes: Initiative benefit averages use range midpoints, and 12% for over 10%.

Survey groups

How We Grouped Respondents

Respondents are grouped by the market demand they expect in 2027, based on the tailwinds they cited, rather than by industry.

Very strong market demand

45%of respondents

Who is in the group

Companies citing AI, data center and grid demand, defense spending or recovering customer capital spending, or resilient demand with a double-digit growth target. Led by the AI supply chain, which is 67% of this group.

Average 2027 growth target

9.4%

Resilient demand

30%of respondents

Who is in the group

Companies citing resilient and growing end-market demand, without the drivers above. Consumer companies that cited resilient demand are included here. Consumer demand held up in luxury segments outside food, drug and mass channels.

Average 2027 growth target

4.7%

Broad consumer markets

25%of respondents

Who is in the group

Consumer products companies citing no significant tailwind. Every company that cited no tailwind is a consumer products company, so the group is named for them.

Average 2027 growth target

1.6%

Use these results as reference points for your 2027 plan.In the full report, compare your growth and cost targets (pages 5 and 7), headwinds and tailwinds (page 6) and initiatives (pages 8 to 10), then review the recommendations (page 11).

What executives told us

Key Findings

1

Executives are optimistic about 2027

70% are more optimistic than a year ago. Demand supports that view in AI supply chain, aerospace and defense, and high-end consumer markets. Elsewhere, growth targets rest on new initiatives, as base businesses grow slowly or shrink.

Average 2027 growth target

Very strong market demand9.4%
Resilient demand4.7%
Broad consumer markets1.6%
2

Input cost inflation is a shared earnings risk

95% of respondents cite input cost inflation as a headwind. Every respondent plans cost reduction to hedge it, and 80% plan direct labor productivity improvements.

Top headwinds, share of respondents

Input cost inflation95%
Competitor pricing45%
Weak or uncertain demand40%
3

Very strong demand, led by AI supply chain, brings capacity constraints

56% plan automation or capital investment, more than any other group. They expect to price for these constraints while still growing earnings. The risk is meeting demand while it stays strong and before new entrants or solutions alter those markets.

Cite supply chain or material availability

Very strong market demand33%
Resilient demand17%
Broad consumer markets0%
4

Cost reduction is key for all, critical for slow growth, especially consumer

Companies with very strong and resilient demand both target cost reduction of 2.3% of net sales; consumer companies target 3.2%. Those savings are critical to meeting earnings targets as inflation raises costs and revenue grows slowly.

2027 cost reduction target

Very strong market demand2.3%
Resilient demand2.3%
Broad consumer markets3.2%
5

Pricing is critical to meet performance targets for 80% of respondents

Strategic pricing (new business or pricing models) builds long-term relationships and captures value, and 56% of companies with very strong demand reference it. As demand weakens, companies shift to tactical pricing (price, discount and rebate actions) to support volume and offset cost inflation.

Pricing actions planned for 2027

  • Strategic only35%
  • Both10%
  • Tactical only35%
  • Neither20%
6

Broad consumer markets are squeezed

Consumer companies without a significant tailwind face weak demand and are at earnings risk. 100% plan price, discount or rebate actions to drive demand, against 11% of companies with very strong demand.

Cite weak or uncertain demand

Very strong market demand11%
Resilient demand33%
Broad consumer markets100%

Notes: Cost averages use range midpoints, and 3.5% for over 3%.

What it means

Implications for 2027 Planning

1

Set challenging but achievable growth targets by line of business – optimism is not a strategy

  • Base targets on market potential: capture share in growing markets and protect it in slow-growth markets
  • Separate base business from new initiatives and set a target for each initiative
  • Set separate targets for price, volume and mix, rather than revenue alone, so price increases do not hide weaker volume or mix
  • Allocate resources and set cost reduction goals consistent with these targets
What the survey shows70% are more optimistic, but outside very strong demand, new initiatives deliver 77% or more of 2027 growth targets.
2

Explicitly define and govern pricing strategies

  • Define new pricing models that build long-term partnerships and capture value in growing segments
  • Price to offset cost inflation where possible
  • Establish promotional pricing plans with governance to manage the return on discounting
  • Consider menu-based pricing to capture revenue for added services, such as handling and freight
What the survey shows80% plan pricing actions. Price, discount and rebate actions rise from 11% to 100% as demand weakens.
3

Aggressively target direct and overhead cost reduction to offset inflation and protect earnings

  • Set targets by initiative and tie each to specific P&L lines so savings are realized
  • Use AI and other technologies for continuous cost improvement, starting with administrative processes
  • Reinvest part of the savings in growing businesses; let the rest reach earnings
What the survey shows95% cite input cost inflation. Every respondent plans cost reduction and administrative process automation.
4

Strategically align capacity and capital

  • Add capacity to support growing businesses
  • Remove excess capacity in declining or cost-pressured businesses
  • Set return on invested capital hurdles that reflect higher interest rates and capital costs
What the survey showsAmong very strong demand companies, 33% cite supply chain or material availability as a headwind and 56% plan automation or capital investment.
5

Integrate target setting with strategic and operating plans

  • Build from a 3–4 year strategic plan; year one becomes the operating plan
  • Check top-down targets against bottom-up plans
  • Use a short, consistent set of metrics across business units
  • Review quarterly and tie incentives to the targets
What the survey shows2027 growth targets range from −2% to 20% and average 6.1%.

Notes: Initiative benefit averages use range midpoints, and 12% for over 10%.

The full report

Get the complete 2027 Planning Executive Survey

The 12-page report details growth targets and their sources, headwinds and tailwinds, actions by market group, pricing, growth initiatives and cost reduction plans.

Download the full report (PDF)

Source: Arcpath 2027 Planning Executive Survey, September to October 2026. Findings also reflect interviews conducted alongside the survey.

Notes: Initiative benefit averages use range midpoints, and 12% for over 10%. Cost averages use range midpoints, and 3.5% for over 3%.

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