FACT SHEET: Middle Market Projections Point to 2014 Growth
April 9, 2014
FACT SHEET: Middle Market Projections Point to 2014 Growth All signs point to increased employment growth among U.S. middle market companies in the year ahead. According to new data from the National Center for the Middle Market (NCMM), middle market executives expect to grow employment by a rate of 3.2 percent in 2014, which is a full percentage point higher than this sector’s own growth projections at the end of last year.
This resurgence in hiring is being driven in part by less federal policy uncertainty emanating from Washington. When asked about how government actions will impact business, 34 percent of middle market executives cited this issue as highly challenging, which is a double-digit decline over last quarter.
With annual revenues of $10 million to $1 billion, the U.S. middle market represents just three percent of American companies, yet it employs one-third of all workers.
Tom Stewart, Executive Director, National Center for the Middle Market: “With the government shutdown and debt-ceiling debates seemingly behind us, and less confusion about health care, mid-sized companies are getting back to the business of doing business. In fact, they plan to accelerate employment growth in the year ahead.”
According to new data from the Center, mean employment growth in middle market firms is up 1.2 percent between 4Q13 and 1Q14. Mid-sized firms created jobs at a rate of 3.7 percent in the first quarter of 2014, compared to 2.5 percent in the fourth quarter of 2013. Hiring among lower middle market firms – those making between $10M and $50M in revenue – is driving much of these gains.
BACKGROUND – NCMM:
The National Center for the Middle Market (NCMM) was founded in 2011 in partnership with GE Capital and is located at The Ohio State University’s Fisher College of Business. The Center is the leading source of research on the U.S. middle market economy, which represent one-third of non-government U.S. GDP and generates $10 trillion in annual revenues. Between 2007 and 2010, U.S. middle market firms created 2.2 million jobs while businesses with revenues over $1 billion cut jobs.
On a quarterly basis, NCMM releases the Middle Market Indicator (MMI), a survey of 1,000 C-suite executives that focuses on key growth challenges and opportunities. This year’s Q1 survey, which will be released on April 30, explored how concerns about increased cost of doing business - particularly related to health care, taxes and workforce development - are impacting growth potential in this key sector. To learn more about the Center or the MMI, visit www.middlemarketcenter.org.
Hamilton Place Strategies for the National Center for the Middle Market
The Ohio State University Fisher College of Business