DALLAS, TX – Mayors from around the country voted yesterday in favor of a resolution to bolster policies at the local level in support of U.S. middle market businesses. With annual revenues of $10 million to $1 billion, the nation’s 200,000 mid-sized firms represent just three percent of American companies yet employ one-third of private sector jobs. The resolution, sponsored by Santa Ana, California, Mayor Miguel Pulido, passed the Metro Economies Committee at the 82nd U.S. Conference of Mayors with unanimous support before being passed on Monday, June 23rd.
“In the halls of Congress and City Hall, the country’s elected officials are taking note of the middle market’s significant contributions,” said Thomas A. Stewart, Executive Director, National Center for the Middle Market (NCMM). “With the recently formed bipartisan Congressional Caucus for Middle Market Growth and now the pledge of support from the U.S. Conference of Mayors, we applaud policy makers’ efforts to advance a national dialogue surrounding job creation and economic growth.”
The resolution, which also received support from cosponsors Mayor Evan Low of Campbell, California, and Mayor Lee Leffingwell of Austin, Texas, singled out the need to address uncertainty of how government actions affect business, one of the top concerns of mid-sized companies identified by the NCMM’s Middle Market Indicator (MMI). According to the latest report, which is a quarterly survey of 1,000 C-suite middle market executives, 34 percent cited government uncertainty as "highly challenging." The U.S. Conference of Mayors is responding by calling on elected officials at all levels of government to promote business policies that meet the needs of this critical economic sector.
Mayor Pulido's resolution recognizes the unique challenges faced mid-sized firms and the need to support these businesses to sustain national economic and employment growth. As these businesses account for one-third of the nation's private sector gross domestic product (GDP) and are projected to account for 59 percent of all new jobs in 2014, negative impact to this sector could harm the nation's growth capabilities more so than other economic sectors. Support at the local level by Mayors helps ensure these businesses can reach their full growth capability.
Supporting Pro-Growth Policies Benefiting
Middle Market Businesses Nationally
WHEREAS, the nation's middle market sector of the economy, representing
approximately 200,000 businesses with revenue between $10 million and $1 billion,
faces diverse challenges to growth that will negatively affect the nation's future
economic growth capacity; and
WHEREAS, negative impact to this sector will harm the nation's growth capabilities
more so than other sectors, as the middle market segment of the economy, although
only representative of 3 percent of businesses nationally, is responsible for 30 percent
of the nation's private sector gross domestic product (GDP); and
WHEREAS, negative impact to this sector will harm the nation's hiring prospects
more than any other economic sector, as the middle market accounts for one-third of
U.S. workers and is projected to account for 59 percent of all new jobs in 2014; and
WHEREAS, failing to address the growth challenges of middle market companies
would threaten businesses that have shown to generate growth for the U.S. economy
both in times of recession and expansion; and
WHEREAS, government officials at all levels, from the local to federal level, have
traditionally overlooked the middle-market sector of the economy; and
WHEREAS, a key challenge faced by middle market business executives since the
Great Recession has been concerns and uncertainty regarding government regulation.
NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of
Mayors calls on elected officials at all levels of government to promote pro-growth
business policies that recognize the potential and importance of the middle market
sector of the economy.
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About the National Center for the Middle Market
The National Center for the Middle Market (NCMM) was founded in 2011 in partnership with GE Capital and is located at The Ohio State University Fisher College of Business. The Center is the nation’s leading research institution dedicated to helping middle market companies be more competitive through impactful research, thoughtful advocacy, and educational programs. To learn more about the Center or the MMI, visit www.middlemarketcenter.org.