Report: Mid-Market Continues to Create Jobs, Grow Revenue
The National Center for the Middle Market (NCMM), a partnership between The Ohio State University Fisher College of Business and GE Capital, announced that the U.S. middle market added an estimated $650 billion in new revenue and more than 1 million jobs in 2012 based on findings in the NCMM’s Q4/12 Middle Market Indicator.
The report also concluded that the U.S. middle market – comprised of companies with revenue between $10 million and $1 billion – is poised to add an estimated $520 billion in new revenues and 1 million new jobs in 2013.
Conducted in December 2012, the quarterly survey of 1,000 CEOs, CFOs and other C-level executives across multiple industry sectors (construction, financial services/businesses, healthcare, manufacturing, retail trade, services and wholesale trade) hints at optimism among middle-market leaders heading into the New Year. With nearly a third of the private sector Gross Domestic Product and employment in the U.S. contributed by this segment, such an outlook also bodes well for the national economy moving forward.
However, healthcare costs and ensuring compliance with regulations persist as key external barriers to growth, forcing middle-market leaders to consider options to offset the issues.
“The fourth-quarter results for the middle market suggest a notable change in trends,” said Dr. Anil Makhija, academic director of the NCMM. “The findings of this research point to the broader economy softly turning the corner after a year of mostly tepid GDP growth and, overall, we see positive changes in the Q4 survey that can be the basis of cautious optimism for the U.S. economy in 2013.
“However, it remains to be seen how healthcare regulations will be applied, what costs will be levied and what options middle market firms can effectively exploit in response,” he added.
To download the full report click here.