The results of our 2026 Agency Health & Growth Check are in, and one thing is clear, agencies are moving quickly with AI, but the old challenge of keeping a steady new business pipeline remains the top source of stress.
We asked Second Wind members about the pressures, priorities, and opportunities shaping the industry today. Here is what stands out.
The Biggest Threat: Feast or Famine Pipelines
When asked to identify the single biggest threat in 2026, 35.29% of respondents pointed to an unreliable new business pipeline. This is not just a worry, it is an operational bottleneck that affects margins, efficiency, and overall momentum.
Other notable stress points include payroll-heavy staffing relative to current revenue (17.65%) and client retention or churn risk (8.82%).
Interestingly, while 61.76% of participants said consistent new business activity is the top issue to solve in the next 90 days, only 25.71% felt that improving close rates would have the most immediate financial impact. The takeaway is that the challenge is not just closing deals, it is generating enough qualified leads to keep the pipeline moving.
AI: From Disruption to Integration
The conversation around AI has shifted dramatically. Fear of replacement is fading, replaced by curiosity and action.
- 51.43% of agencies are actively integrating AI into client work and internal operations
- 25.71% are experimenting but admit they lack a clear strategy
- Only 8.57% feel AI is more threatening than helpful
Agencies are moving from reactive to proactive, using AI to boost creativity, speed, and operational efficiency.
Financial Pressure Points and Opportunities
Where are agencies feeling the squeeze, and where are the levers for improvement?
Top sources of financial pressure:
- New business pipeline: 62.86%
- Payroll costs: 20.00%
- AI impact on services: 20.00%
- Pricing pressure: 17.14%
Despite these pressures, there is a clear path forward. 20% of agencies see increasing average client fees as the fastest way to better margins, while 17.14% are focused on reducing unnecessary overhead and improving staff utilization.
The 90-Day Outlook
If there were a magic wand this quarter, it would be aimed squarely at growth and stability.
Top operational priorities over the next 90 days include:
- More consistent new business activity: 61.76%
- Stronger digital capability: 11.76%
- Reduced stress across leadership and teams: 11.76%
Looking Ahead
Agencies are no longer waiting to see what AI brings, they are building it into their operations and culture. At the same time, the pipeline, the engine that drives growth, remains a major pressure point for many. The outlook for the rest of 2026 emphasizes balancing new tools, operational efficiency, and predictable growth, with attention to both financial health and team capacity.
