In the next edition of Grant Thornton’s series on trending international insights, we examine how disruption can be an opportunity for growth and differentiate mid-market firms from competitors.

Instability has come to define the global business landscape. Today, business leaders face an unprecedented array of both routine operational challenges and unpredictable global or regional shocks – challenging their ability to function and grow. From infrastructure breakdowns and cyberattacks to climate disasters and volatile shifts in global trade, disruption has become a daily reality.

The economic toll of this instability and disruption is staggering. Cybercrime alone is projected to cost the global economy $1.2 trillion annually by the end of this year [i] – a figure that dwarfs even major infrastructure failures. The power outage that plunged Spain and Portugal into darkness in April cost an estimated €1.6 billion ($1.82 billion) [ii].

These events underscore the growing vulnerability of modern enterprises, especially as global interconnectivity deepens reliance on critical supply chains and complex tech networks. In this environment, the capacity to adapt and stay ahead of disruption is now a critical differentiator – and a strategic advantage.

And that advantage matters more than ever. With 53.9% of mid-market firms identifying sector competitiveness as a constraint on growth, according to our latest International Business Report (IBR) research. Businesses that can anticipate, absorb, and adapt with confidence are better positioned to protect assets, maintain customer trust, and seize opportunities – while competitors scramble to recover.

Three forces of instability challenging mid-market firms 

This year, three key forces have exposed vulnerabilities across systems, supply chains and global markets. These are the areas mid-market businesses are most focused on – and where strategic investment is driving growth through disruption. 

1.

Systems and infrastructure

Reliable tech infrastructure is essential, but cyber threats are escalating. Our latest IBR research shows that 55.4% of mid-market firms are concerned about cybersecurity and digital risk – the highest level since tracking began in Q1 2024.

And the risks are real – ransomware attacks on UK retailers earlier this year caused one supermarket estimated losses of £300 million [iii].  While a global car manufacturer was forced to shut down systems and halt production worldwide, putting jobs at risk and causing chaos throughout the supply chain and retailer network [iv]. 

 

glass windows of an office building
In today’s world, cybersecurity is a key business risk comparable to geopolitics and natural disasters. The recent data breaches at several organisations around the globe, specifically in the Netherlands, show that being compliant with legislation doesn’t always mean being resilient. Organisations must take action themselves and build not only resilient organisations but resilient value chains.
Migiel de Wit-Beets Partner advisory – Cyber risk services, Grant Thornton Netherlands

Our IBR research shows firms aren’t standing still – 68.0% of mid-market firms are investing in technology, with over half (55.3%) prioritising cybersecurity upgrades. They’re also using tech to fuel transformation:

  • 59.7% are introducing advanced technologies 
  • 52.4% are upgrading software 
  • 67.4% are investing in AI to drive innovation 

These investments signal a shift from a base line of defence to opportunity. Firms are building smarter, more agile systems, not just to withstand disruption, but to grow through it. 

As the connectivity and power of systems and processes continues to increase, the investment and attention required by mid-market firms to keep pace should not be underestimated.   

“To build an organisation resilient to cybersecurity disruptions, start from the ground up. Establish continuous monitoring, define strategic key performance indicators (KPIs) and create a dashboard to track progress. Resilience and compliance begin with a foundation of continuous insights and improvement – small steps, for big impact!” – Migiel de Wit-Beets, Partner advisory – Cyber risk services, Grant Thornton Netherlands 

2.

Extreme weather

 

Extreme weather is no longer a distant threat; it’s a growing and immediate challenge for mid-market firms. From floods and wildfires to heatwaves and hurricanes, these events are disrupting operations, damaging infrastructure, and threatening supply chains. Our latest IBR research shows that 49.2% of firms now see environmental concerns as a constraint on growth – up 3.2 percentage points since Q2 2025. And the financial impact is escalating.

In the US, the National Oceanic and Atmospheric Administration’s (NOAA’s) National Centers for Environmental Information (NCEI) reported 27 major weather and climate disasters last year, costing approximately $182.7 billion [v]. January’s wildfires in Los Angeles alone are estimated to have caused $250-275 billion in economic losses [vi]. 

With such events becoming more frequent and more unpredictable, the effects can range from damage to physical infrastructure and logistics to an increase in insurance and recovery costs and an erosion of customer confidence – showing that together the impact is even more far reaching.   

In response, firms are recognising that sustainability isn’t just about risk management or responsibility – it’s about resilience and competitive edge. While most mid-market firms are maintaining or increasing their investment in sustainable initiatives, as seen in our report Scaling sustainability, 41.6% cite market competition as a key driver. This shows that sustainability is becoming a strategic lever – not just to keep pace, but to stand out and grow in a disrupted world. 

3.

Security of supply chains

Effective supply chains are the life blood of mid-market operations, but they’re under increasing strain. From geopolitical tensions and shifting trade policies and trade routes, to climate disruption and logistical bottlenecks, firms are facing a growing number of challenges that threaten the flow of goods, services, and information.

Our latest IBR research shows that 48.7% of mid-market firms see supply chains and complex procurement systems as a constraint on growth. This year’s wave of new tariff regimes has forced many businesses to rapidly reconfigure supply routes, source alternative suppliers, and enter new markets – often with little warning.

The impact is already being felt:

A road in the city of Shenzhen, China
53.0%
of firms
expect input costs (raw materials and other goods) to rise over the next 12 months
49.9%
of firms
expect non-domestic revenue to increase. This is down from 52.1% in Q1 2025

These disruptions are not just logistical, they’re strategic. Delays, shortages and rising costs can erode margins, damage customer relationships, and stall innovation. And in a post-globalisation era, where trade is increasingly fragmented, agility and adaptability are key.

 

Firms that can navigate complexity through a detailed understanding of their supply chains, maintain and grow a range of supply relationships and build flexibility into their procurement strategies will be better equipped to thrive. Our Trade in transition article outlines a five-point plan to help firms strengthen supply chains and turn disruption into opportunity.

Thriving through disruption 

As the environment mid-market business leaders operate in is set to be continually fractured, firms must build resilience and evolve. The nature of disruption – both daily and deeply unpredictable – requires a new kind of agility. Those able to maintain operations, pivot quickly and spot new opportunities amid the chaos will gain a competitive edge. In a world where disruption is constant, adaptability is the new currency of success - and differentiation is how firms can now shape disruption to their advantage. Those that are too slow to change will quickly get left behind.

Look out for more regular content in our “Trending Topics” series. For more tailored support or guidance on navigating the disruptive environment for your own business, connect with one of our dedicated International Business Contacts today. 

Get in touch
Meredith Vogel
National Managing Principal, Global Client Services

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i. The True Cost of Cybercrime: Why Global Damages Could Reach $1.2 – $1.5 Trillion by End of Year 2025 [cyberdefensemagazine.com]
ii. Post-blackout in Spain and Portugal, companies count the cost [reuters.com]
iii. M&S cyber-attack disruption to last until July [bbc.com]
iv. Some JLR suppliers 'face bankruptcy' due to hack crisis [bbc.com]
v. 2024: An active year of U.S. billion-dollar weather and climate disasters [climate.gov]
vi. Estimated cost of fire damage balloons to more than $250 billion [latimes.com]