Did you know that Middle Market companies – those with annual revenues of $10 million to $1 billion – represent 197,000 U.S. businesses and one-third of the private sector GDP, and employ approximately 43 million people? As part of an ongoing quarterly study for The National Center for the Middle Market (a partnership between GE Capital and The Ohio State University Fisher College of Business), RTi recently surveyed 1,000 CEOs, CFOs, and other C-suite executives of America’s Middle Market companies to accurately reflect on key indicators of economic health. The study, Middle Market Indicator 4Q 2013, found that “Middle Market companies are sending a strong message that they are poised to invest capital to add jobs, equipment, make acquisitions or train employees.”
Some of the other key findings from the study were:
- 56% of mid-market companies reported strong revenue growth.
- That the expected rate of growth of revenues is 4.3% for the upcoming year. In contrast, the rate of growth of revenues for the Middle Market was 5.0% for the past 12 months.
- Employment within the mid-market sector grew at a stable rate of 2.5% in Q4.
- The percentage of Middle Market executives willing to invest an extra dollar reached 64% in Q4, a year over year increase above the 59% seen in Q4 2012.
- Echoing this positive pattern in Q4, the majority of mid-market managers are more confident in the local/regional economy, the main hub of operations for Middle Market firms, and the global economy than they were in Q4 2012.
- Yet concerns remain. While confident, business leaders have nevertheless voiced uncertainty throughout 2013 regarding federal policies and burdensome regulations as significant inhibitors of Middle Market growth. Throughout the year, executives also have flagged health care costs and taxation as revenue growth inhibitors.
So what does this mean for your business? Do you agree? What’s your company experiencing? What are your executives thinking? As market researchers, we always want to hear directly from those in the trenches.