Amid overall positive trends, climate risk noted as a growing concern for middle market leaders
COLUMBUS, OHIO — New data from the National Center for the Middle Market (NCMM) reveals continued robust performance and positive outlook among U.S. middle market companies.
Key findings from the NCMM’s year-end 2024 Middle Market Indicator (MMI) showed record-high performance, with 80% of companies reporting improved overall performance compared to the previous year. Broadly, the middle market continues to achieve double-digit, year-over-year growth, with 85% of firms reporting revenue growth at an average rate of 12.1%, and 63% saying they have expanded their workforce. Confidence in the national economy rose to 84%, while local economic confidence climbed to 90%.
Middle market companies continue to prioritize investment, with 65% reporting they are reinvesting profits into their operations, focusing heavily on digitization and adopting advanced technologies such as artificial intelligence (AI). Additionally, companies are prioritizing human resource development, shifting toward training and developing existing staff. Many firms are engaging in expansionary initiatives such as launching new products or services, entering new markets, and leveraging borrowing for growth.
Foremost among concerns cited in the latest MMI was climate risk. Over half of all middle market companies said climate issues, specifically the threat posed by disruption and asset loss as a result of natural disasters, was concerning.
"The Middle Market enters the new year bolstered by strong performance and record-high confidence," said Doug Farren, executive director of the NCMM. "We see more plans for investment and expansionary activity; however, climate risks, effective technology implementation, and talent concerns remain a challenge."
The research report can be found at http://www.middlemarketcenter.org.
About the Middle Market Indicator (MMI)
The MMI, which was created in 2012, surveys 1,000 executives (CEOs, CFOs and other financial decision makers) from the middle market to examine topics related to business capabilities, performance, growth drivers and economic outlook among other topics. The MMI survey is conducted in June and December each year. It is weighted to accurately reflect the size, industry-wide and geographic distribution of this sector, which includes companies ranging from $10 million to $1 billion in annual revenue. The survey is conducted by RTi Research on behalf of the National Center for the Middle Market.
About the National Center for the Middle Market (NCMM)
The National Center for the Middle Market is a collaboration between The Ohio State University Fisher College of Business, Chubb and Visa. It exists for a single purpose: to ensure that the vitality and robustness of middle market companies are fully realized as fundamental to our nation’s economic outlook and prosperity. The center is the leading source of knowledge, leadership and innovative research on the middle market economy, providing critical data analysis and insights for companies, policymakers and other key stakeholders. The NCMM is fully committed to funding and distributing the most credible open-sourced research, dynamically creating new knowledge, providing programs that drive value for middle market companies and offering a well-informed outlook on the health and future of the middle market via the Middle Market Indicator.
About The Ohio State University Max M. Fisher College of Business
The Ohio State University Max M. Fisher College of Business provides tomorrow's business leaders with the foundation needed to succeed in business today. Fisher students experience an academically rigorous learning environment, led by world-class faculty, which fosters their development as principled leaders who possess an entrepreneurial spirit, global awareness and a commitment to social responsibility. Organizations from around the globe thrive under the leadership of Fisher alumni, who positively impact their communities and the world.