3Q 2019 Middle Market Revenue Growth Falls to 5.8%

In the third quarter of 2019, all key performance indicators for middle market companies declined, with both revenue and employment growth rates dipping below historical averages. Still, a majority of middle market executives say that their company’s overall performance is better today than it was one year ago. However, this number is declining, too, from 68% last quarter to 60% currently. Overall, leaders appear to be taking appropriate steps and hedging their bets for the time being. Many leaders are focusing internally on ways to cut costs and drive efficiency to ensure they are prepared for whatever the coming months bring.

Mid-Year 2024 On-Demand Webinar

Watch our Mid-Year 2024 on-demand webinar for the latest performance, trends, and sentiment in the middle market sector. NCMM Managing Director, Doug Farren, shared key data and insights. You can download the PPT slides here.

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Whether you operate a middle market business, run an organization that serves middle market companies or are otherwise invested in the middle market’s success, the National Center for the Middle Market welcomes and values your contributions. The center offers several ways for organizations to partner with us. Learn more below about the ways you can work with the center and play a vital role in advancing the middle market’s prosperity.

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3Q 2019
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Spotlight

Spotlight on Cutting Costs

Middle market executives are cost hawks. Lacking deep pockets and as leery of taking on debt as they are of selling off equity, they are a pay-as-you-go crowd. An examination of Middle Market Indicator data over the years as well as other research by the Center shows that, as a group, middle market leaders hold back on hiring until they are sure they need new hands, and refrain from capital expenditures till they are stretched.

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Perspective

Perspective From the Center

In late 2018, a number of elements of the Middle Market Indicator started drifting downward. Economic confidence softened, particularly confidence in the global economy. The Short Term Index fell, primarily as a consequence of declines in executives’ perceptions of the business climate. Asked what they would do with an extra dollar, a growing number of executives said they would squirrel it away rather than invest immediately. But, as we pointed out three months ago, we saw little evidence that performance had weakened or that actual plans had changed.

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