The health and prosperity of the United States’ middle market is essential to the continued economic recovery from the “Great Recession”. Based on the latest data, the middle market appears poised for growth.
The middle market, defined as companies with annual revenues between $10 million and $1 billion is comprised of approximately 200,000 companies and accounts for nearly one-third of U.S. GDP. The National Center for the Middle Market (NCMM) recently released data that the middle market is finally starting to expand. The indicating trend that the middle market is strengthening was influenced by the conclusions that:
“Company performance continues to demonstrate positive momentum, employee hiring is projected to increase, and that confidence is climbing, encouraging increased global participation.”
The NCMM explains that these outcomes stemmed mainly from the data that “65% of middle market companies reported positive gross revenue performance during the last 12 months.” This is an increase of 2% from the first quarter of 2013.
Additionally, the NCMM projects a 20% increase in job growth from 2.1 to 2.5% in the next 12 months. The NCMM explains that growth in employee hiring is logical as it correlates to business’s increasing revenue. As companies earn more, they expand, and in turn they hire more employees proportional to their growth.
Finally, the NCMM asserts that overall confidence is rising because of a recent survey that questioned more than 2,000 executives in public and private businesses regarding their anticipated outlook on the market. The survey found that 44% of executives report positive sentiment and optimism about the market’s future for the upcoming year, doubling the 22% of executives questioned last year on the same issue. Hopeful executives may potentially lead to increased hiring and eventual growth, further signifying that the middle market is resurgent.
Continuing growth requires access to capital and strategic insight for middle market companies. As business deals get done, the upward trend of the middle market persists.
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Interested in reading more on the middle market? You can read the full article here