The NCMM has been studying the U.S. middle market economy since 2011, creating the world’s largest and richest dataset on this critical economic segment. While our focus has primarily been on companies based in the U.S., we have also conducted studies on global trade and supply chain management. It is only natural, then, to extend our research across North America, given the interconnected economic relationship between the U.S. and Canada, built on significant cross-border trade and investment. In collaboration with Visa, the NCMM set out to better understand the Canadian middle market and how it compares to and differs from the U.S. market across various key performance indicators. This research highlights the interdependence of the two markets, with Canadian middle market companies deriving approximately 20% of their revenues from the U.S.
The NCMM and Visa were particularly motivated to explore the Canadian middle market because it represents a new area of study. We were thrilled to have Visa’s support in conducting this groundbreaking research—the first of its kind to focus on Canada’s middle market. Visa recognized the Canadian middle market as a significant contributor to the economy, akin to its U.S. counterpart, yet lacking the same depth of research. Our goal was to gain a deeper understanding of this segment and bring the Middle Market Indicator (MMI) to the forefront in Canada. With data collected from 300 senior leaders, the NCMM can now shine a much-needed spotlight on the Canadian middle market, a sector that has traditionally been underrepresented and under-recognized.
Our research reveals that growth rates in Canada and the United States are comparable. Both markets face similar ongoing challenges to growth, including macroeconomic conditions such as inflation, interest rates, and the cost of doing business, as well as a shortage of skilled talent—particularly digitally skilled talent. One key difference, however, lies in the rate of technology adoption, which is slower and more deliberate among Canadian middle market companies. Supply chain integration and cross-border trade issues also remain important factors to consider.
Looking ahead, we aim to develop an annual Canadian supplement to the U.S. Middle Market Indicator. Regularly collecting data on performance, sentiment, and other challenges and opportunities will provide the NCMM with critical insights into companies north of the border, enabling us to supplement our domestic expertise while maintaining a strong focus on our northern neighbors.
Download the first research report, "Understanding the Canadian Middle Market," to gain deeper insights into this critical segment.