Mid-Market Manufacturing Firms Are Thriving

Not only is the middle market is doing well, but it has been doing so consistently for nearly six years, according to Tom Stewart, executive director of the National Center for the Middle Market (NCMM). In a recent article for Industry Week, Steve Minter takes a look at the findings of the NCMM’s most recent Middle Market Indicator survey and accompanying comments from Stewart.

The NCCM defines middle market companies as those with $10 million to $1 billion in annual revenue. Within this group of companies, middle market manufacturing firms in particular are doing quite well. Results of the recent Middle Market Indicator study include the following:

  • Mid-market manufacturing firms reported an average revenue growth of 7.1% (as compared to 6.7% for manufacturers as a whole)
  • With the exception of one quarter, these firms have both grown and hired at a substantially faster rate than other business segments surveyed
  • 22,200 companies make up the middle market; this sector employs 29.9% of the manufacturing workforce and generate just over 15% of annual manufacturing revenue
  • Mid-market manufacturing firms are trailing other mid-market sectors in employment—they increased headcounts by 4.5% over the last year, versus an average of 5.7% for all middle market employers.
  • 53% of mid-market manufacturers added jobs in the survey period, with only 8% decreasing employment

Why is the middle market doing so well? Stewart explains that this sector occupies a “sweet spot”—its firms are more resilient than small businesses, yet small enough to focus on growth without the distraction of managing costs that plagues larger firms. According to Stewart, the author concludes, “middle-market leaders are pleased with the direction of the economy and confident about the future.”

For more details, read the article in full at Industry Week.