A majority (73%) of U.S. middle market companies – those with revenues of $10 million to $1 billion annually – expect the economy to grow over the next 12 months, according to the just-released American Express Survey of Mid-sized Companies.
The annual survey found that three-quarters (75%) of financial decision makers at U.S. middle market enterprises believe the economy will have a positive impact on their company’s business prospects. Broken down by revenue:
- 81% of companies in the upper middle market ($101 million to $1 billion in revenues)
- 78% in the mid-middle market ($51 million to $100 million)
- 66% in the lower middle market ($10 million to $50 million)
Middle market companies prioritizing growth
Overall, mid-sized firms are prioritizing growth and plan to increase headcount and revenue over the next year:
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- Hiring: 69% of companies in the upper middle market say they currently have more employees than a year ago, compared to 64% in the mid-middle market and 48% in the lower middle market.
Nearly nine-in-ten (88%) middle market companies plan to hire staff over the next few months, with more than half (52%) planning to hire only full-time employees. The main reason companies plan to hire staff is to support business volume (49%).
- Plans for Growth: A nearly unanimous (99%) group says their firms are planning to grow, with 31% noting growth as top priority over the next 12 months. While seven-in-ten (72%) say their company has secured the capital needed to support growth, 91% expect cash flow concerns to arise over the next year.
- Growing Pains: The survey found the greatest challenges companies face as they grow is increasing competition (14%), followed by managing the rising cost of doing business (13%), an uncertain economic economy (12%) and data security concerns (12%).
A news release outlining additional survey findings is available here: http://about.americanexpress.com/news/pr/2015/u-s-middle-market-optimistic.aspx