FOR IMMEDIATE RELEASE
CONTACT: Joe Arnold, Fisher College of Business
arnold.974@osu.edu
614-292-3380
July 24, 2024
Mid-Year Indicator shows continued middle market growth, renewed focus on investment
Hiring and skills readiness remain top concerns among companies
COLUMBUS, OHIO — Despite expectations that overall growth would begin to moderate, the U.S. middle market continues to post positive double-digit, year-over-year growth following the pandemic.
The Middle Market Indicator, released today by the National Center for the Middle Market (NCMM), reveals that middle market companies’ year-over-year revenue growth reached yet another pinnacle, climbing to 12.9%.
Throughout the post-pandemic era beginning with Q4 2021, the U.S. middle market has experienced an average year-over-year revenue growth of 12.3%, five points above the 12-year average middle market revenue growth rate of 7.3%.
In addition to overall revenue growth, investment appetite is also improving. More than half (63%) of middle market leaders expressed a willingness to invest an extra dollar right away into additional resources, such as human capital or assets like buildings, equipment and technology, compared to 57% in Q4 2023.
Workforce considerations, however, remain a top concern. Despite a modest gain in middle market employment growth ― 10.3%, up from 9.6% in Q4 2023 ― nearly half (46%) of MMI respondents reported considerable difficulty finding and hiring workers who possess the right skills for the job ― specifically digital skills.
While nearly all middle market leaders said such skills are important to success ― 46% of businesses described digital-savvy talent as being critical ― gaps persist. Of the 45% of middle companies that reported having a digital skills gap, nearly all (91%) said it results in a noticeable impact on company performance; 63% described the impact as being significant or substantial.
“Although overall growth within the middle market remains strong and investment back into businesses is starting to pick up, attracting and retaining skilled workers continues to be a significant consideration for middle market companies,” said Doug Farren, managing director of the NCMM. “We’re seeing companies getting creative and exploring the use of digital tools to help address some of their workforce challenges.”
The use of Artificial Intelligence (AI) continues to climb in the middle market, with 82% of firms stating the impact of AI is very/somewhat positive. Leaders said they plan to implement AI into their businesses over the next year to help with certain functions, including: analyzing data (46%), customer service (42%), improving efficiencies (41%) and collecting data (40%). The largest barriers to AI investment, they reported, are cost, data privacy and security concerns, integration with existing systems, and technical complexity.
Additional MMI data and infographics, including in-depth looks at regional variations, hiring/talent acquisition efforts and other business concerns among middle market companies, can be found at https://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. 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.