Never underestimate the power of our nation’s mid-sized businesses – the 197,000 companies whose revenues range from $10 million to $1 billion, as defined by the National Center for the Middle Market (NCMM). In its 2Q 2013 Middle Market Indicator, NCMM reported that middle market companies could account for up to 70 percent of U.S. job growth this year.
Middle Market Clout
Mid-sized businesses are leading drivers of labor markets, as well as the economy, because they affect virtually everyone. Small companies provide products and services for them, and large companies rely on them as vendors and customers. And, current employment trends show that the middle market creates more jobs than its larger counterparts.
- U.S. businesses with 50 to 1,000 employees created 1.8 million jobs from March 2011 through March 2012. These accounted for half of all new jobs in the country and five times the number generated by larger companies. This is likely to increase as confidence in the economy continues to grow.
- Most current mergers and acquisitions involve mid-sized companies. As the economic uptick progresses, buyers will seek out high-quality businesses in which to invest their capital.
- Mid-market companies continue to grow along with the nation’s confidence. This is especially notable in the manufacturing, food and beverage, consumer products, financial services, healthcare, technology and new media sectors.
This is likely true because middle market businesses have the best of both worlds: benefits such as operational flexibility and favorable cost structures typically associated with small companies, and advantages like experienced senior leaders, proven track records and market stability that often are associated with larger firms.
When all is said and done, businesses that make it a point to understand, embrace and support the middle market will ultimately gain a competitive edge.
The Middle Market Employment Picture
Between 2007 and 2010, U.S. middle market firms created 2.2 million jobs. Companies with revenues in excess of $1 billion, by contrast, showed cumulative job losses during the same period. Middle market business is clearly a force to be reckoned with, as it represents the world’s fifth largest economy, behind Japan and ahead of Germany in terms of gross domestic product (GDP).
- Mid-sized firms are the source of 43 million jobs across the U.S., accounting for nearly 34 percent of the nation’s employment.
- Forty-three percent of 1,000 firms surveyed by NCMM expect to hire in the months ahead, up from 38 percent in this year’s first-quarter survey.
- Jobs increased 2.6 percent over the past 12 months among survey respondents, an increase from 2 percent in last year’s second-quarter report.
- Employment growth projections at mid-sized companies were significant, increasing to 2.2 percent from 1.2 percent in the first quarter of this year.
As noted by Dean Henson, president and CEO of GE Capital, Americas, “With a developing sense of confidence, executives are beginning to reinvest in their businesses and hire additional staff.”
If you work for a middle market company, chances are good that your hiring picture is a bright one. And if you don’t, keep them on your radar screen!
The experts at Premium Staffing can partner with you to stay abreast of industry trends and weave them into your recruitment strategy. Contact us to learn more!