COLUMBUS, OH - Employment and revenue growth projections from the nation’s approximately 200,000 mid-sized firms point to growth in 2014 in spite of this winter’s deep freeze, according to the National Center for the Middle Market’s (NCMM) quarterly Middle Market Indicator (MMI). In addition to the momentum suggested by today’s unemployment numbers from the Bureau of Labor Statistics, there’s even more cause for optimism among U.S. middle market businesses. According to the Center’s latest MMI, this segment grew employment at a rate of 2.5 percent during the fourth quarter of 2013 and anticipates growth at 2.2 percent for the year ahead.
“While this winter has been unseasonably harsh, the underlying performance gains and growth predictions give good reason to be optimistic about a springtime thaw,“said Dr. Anil Makhija, Academic Director, National Center for the Middle Market.
Specifically, the Center’s latest data on mid-sized manufacturers’ performance suggests a steady employment growth rate for 2014. According to the most recent MMI, mid-sized manufacturers grew jobs at a rate of 2.2 percent during the fourth quarter of 2013, up from 2.0 percent in the third quarter. During that same time, they grew revenue at 5.1 percent, compared to 4.4 percent growth in the previous quarter. For the year ahead, 48 percent of mid-sized manufacturers anticipate an increase in employment growth, by an average rate of 2.3 percent.
“It is encouraging to see confidence levels of mid-sized manufacturers increase as employment and revenue growth rates stabilize,“said Makhija. “According to our latest data, 61 percent of these firms are at least somewhat confident in the US economy, compared to 53 percent in the fourth quarter of 2012. 57 percent also expressed confidence in the global economy, compared to 37 percent in the year prior.
“Given these increased confidence levels, it’s no surprise that the proportion of manufacturing firms expecting to increase hiring in the coming year is up significantly, from 38 percent in the third quarter to 48 percent in the fourth quarter.“
Background - 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's Fisher College of Business. The Center is the leading source of research on the U.S. middle market economy.
Background - GE Capital:
GE Capital is one of the world's largest providers of credit and expertise. For more than 1 million businesses, GE Capital provides financing to purchase, lease, and distribute equipment, as well as capital for real estate and corporate acquisitions, refinancings, and restructurings. GE Capital is a leader in a number of industries, from airlines, health care and energy financing to fleet, franchise and middle market corporate finance. For approximately 80 million consumers, GE Capital offers credit cards and retail sales finance programs. GE Capital is an extension of GE's rich heritage of building and supporting growth, providing customers with insight, knowledge, and expertise in addition to financing.
CONTACTS:
Kate Bernard
Hamilton Place Strategies for the National Center for the Middle Market
kbernard@hamiltonps.com
(202) 822-1206
Jeff Caywood
GE Capital
jeff.caywood@ge.com
(513) 530-7028
Ann Hamilton
The Ohio State University Fisher College of Business
hamilton_847@fisher.osu.edu
(614) 292-8150