Columbus, OH—Today's lower-than-projected jobs numbers send another mixed signal about the outlook of the nation’s economy. Middle market executives, however, expect to see strong, continued employment growth. In 2014 alone, this sector is projected to create 59 percent of all new jobs in the U.S.
According to the Middle Market Indicator, a quarterly survey of 1,000 C-suite executives, both revenue and employment projections have increased throughout 2014 for middle market companies. Defined as companies with annual revenues of $10MM to $1B, the nation’s 200,000 mid-market businesses expect to grow revenue by 5.8 percent and employment by 3.3 percent in the coming year.
"Middle market companies have proven to be a consistent and strong source of American job growth," said Thomas A. Stewart, Executive Director for the National Center for the Middle Market. Stewart continued, "Some 70 percent of mid-market executives expect revenues to increase and nearly half (47 percent) plan to add jobs to their payrolls over the next 12 months, which sends a strong signal about their optimistic outlook."
In particular, the services, manufacturing, construction, financial services and healthcare industries in the middle market saw a jump in gross revenue projections from Q1'14 to Q2'14. Nationally, according to today’s jobs report, manufacturers added 28,000 net new jobs in July but none in August. Despite the flat job growth in the manufacturing sector overall, mid-sized manufacturers tell the NCMM they plan to increase employment by 3.7 percent in the next year, suggesting this month's numbers could be a fluke.
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 nation’s leading research institution dedicated to helping middle-market companies be more competitive through rigorous and relevant research, thoughtful outreach, and educational programs. 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. To learn more about the Center or the MMI, visit www.middlemarketcenter.org.
CONTACTS:
Jared Favole
Hamilton Place Strategies for the National Center for the Middle Market
jfavole@hamiltonps.com
(202) 822-1205
Jeff Caywood
GE Capital
jeff.caywood@ge.com
(513) 530-7028
Ann Hamilton
The Ohio State University Fisher College of Business
hamilton_847@fisher.osu.edu
(614) 292-8150