Business View Magazine - November 2016

12 Business View Magazine - November 2016 Opening Lines NCMM: US Middle Market Employment Grew by 4.9 Percent in Q3 A major driving force in the United States economy, the middle market delivers above its own expectations year over year. Middle market companies – those with annual revenues between $10 million and $1 billion – provide roughly one third of the United States’ total employment and GDP. As an individual market seg- ment, it is comparable to the economies of Germany and Japan. Employment grew at a rate of nearly five percent in the third quarter of 2016 at U.S. middle market com- panies, according to a new study from the National Center for the Middle Market (NCMM). The annual- ized employment growth rate of 4.9 percent was the highest level observed across the middle market in nearly two years. In addition, all industries except manufacturing reported increases from Q2 numbers. This occurred as overall revenue growth held steady (6.3 percent) to its historical average of 6.4 percent. “While companies continue to outpace their year- over-year expectations, revenue growth seems to be settling in at more moderate levels and is in line with long-term averages,” said Thomas A. Stewart, execu- tive director of the NCMM. “The real news this quar- ter is the jump in employment growth amid expecta- tions for further workforce increases.” The third quarter Middle Market Indicator (MMI) out- lines the sector’s economic performance and outlook. The results come from a survey of more than 1,000 C-suite executives at middle market firms, defined as companies with annual revenues between $10 million to $1 billion. Middle market executives’ confidence in the U.S. and their local economies remains high and essentially un- changed, with 72 percent and 80 percent expressing confidence in each, respectively. Confidence in the global economy has risen to 56 percent, breaking out of a year-long slump that saw global confidence dip to about 50 percent. Talent management, most commonly workforce growth and retention, continues to be a key area for improvement as cited by executives – 39 percent of respondents identify talent management as a top in- ternal challenge. Despite the overall increase in em- As revenue holds steady with broad industry-wide improvements in employment, executives note confidence in U.S. and global economies.