Survey: Mid-Market Provides Economic Growth Opportunity
Revenue and employment growth in the U.S. middle market, representing nearly 200,000 American businesses across the nation, continues to outpace expectations and broader growth nationally. However, the threat of additional costs — specifically related to taxes, healthcare and regulation — could lead to significant pullbacks in this sector.
According to the latest Middle Market Indicator (MMI), a survey of 1,000 middle-market executives released today by the National Center for the Middle Market (NCMM), revenue and employment growth came in at 5.8% and 2.2% for 2012, respectively, outpacing executives’ projections for the year.
Further, two-thirds of middle-market leaders expect their company’s revenue to grow in the year ahead and more than one-third expect to add employees. The NCMM is a partnership between The Ohio State University’s Fisher College of Business and GE Capital. The full survey results are available at www.middlemarketcenter.org.
Unique in its resilience and growth during the financial crisis and since the recovery began — the middle market has added 2.2 million jobs while larger companies shed more than three million over this time — the sector increasingly reports a willingness to maintain growth through additional investments in technology and innovation.
Executives also report, however, concerns that increased costs including those related to health care or tax increases could result in decreased investment, hiring freezes, and employee benefit reductions, according to those surveyed.
“The positive growth stories we hear from the middle market every day provide reason for optimism,” said Mike Pilot, chief commercial officer, GE Capital. “These businesses are making investments in the people and technology that create new and sustained growth for the future. Yet the challenges they face are acute and merit our attention. This is why we partnered with Fisher to better understand and serve the needs of this segment.”
To read the entire news release, click here.