A Columbia Bank survey shows a majority of small and midsize businesses plan to invest in growth and hiring over the next year.

However, most will wait at least six months before committing, according to the 2026 Business Barometer released June 24 by Tacoma-headquartered Columbia Bank.

The annual survey of nearly 1,200 firms nationally found 51 per cent anticipate adding employees, 72 per cent expect increased demand, and 67 per cent expect higher revenue through mid-2027. Columbia Bank says it marks the strongest 12-month investment trajectory since the study launched in 2019.

Yet 60% of respondents said they plan to delay major decisions for at least six months as they watch tariffs, inflation, and rising energy costs.

The survey, conducted April 28 through May 7 in partnership with DHM Research, polled leaders at companies with $500,000 to $500 million in annual revenue. It did not filter for Columbia Bank customers and carries a 2.7% margin of error.

A record share of firms said they are prioritizing investment over cost-cutting. On technology, 89 per cent said they are likely to invest in digitizing new areas, and AI topped the list of investment priorities for the first time.

62 percent plan to expand their real estate footprint, and 70 per cent said they are likely to borrow to fund expansion.

Columbia Bank President Tory Nixon said business leaders "are ready to invest but are timing those decisions carefully" given near-term volatility.

The survey revealed a divide on trade policy. Two-thirds of small businesses said tariffs had no impact or benefited them, while 48 per cent of middle-market companies said tariffs have been harmful. Small businesses are more likely to pass costs to customers; midsize firms are more likely to cover tariff costs with credit lines and delay hiring.

Washington-specific data shared with SouthSoundBiz.com showed roughly four in 10 Washington companies expect the economy to improve over the next year, with more than half planning to delay major decisions.

Eighty-five percent of all respondents expect tariff volatility to persist for at least another year, and 40 per cent expect it to last three years or more.