Middle Market Companies Report a Strong Finish to 2022 with Record Year-Over-Year Revenue and Employment Growth
The middle market’s recovery from the performance lows of 2020 was well underway by mid 2021, and it accelerated in the second half of the year. In 4Q, the vast majority of middle market businesses reported year-over-year performance improvements. Nearly four out of five businesses reported year-over-year revenue gains while 57% of middle market businesses expanded the size of their workforce. Among those reporting growth, a significant majority reported gains of 10% or more over the course of the year. New products and services and expansion into new domestic markets are fueling the growth as economic confidence remains high and investment appetites to continue to inch up. While COVID-19 related concerns linger for some businesses, the bigger challenges revolve around growth and talent, specifically IT capabilities and the ability to recruit and hire people with the necessary skills for available jobs. Despite these headwinds, predictions for 2022 are strong with most companies expecting continued healthy revenue and employment growth over the next 12 months.