Business View Magazine - November 2016

14 Business View Magazine - November 2016 Opening Lines ployment numbers, 17 percent still say their current workforce size is insufficient for market conditions. Responding to increases in workforce demands, com- panies are providing high-quality jobs, placing more than three-quarters of Q3 hires in full-time positions. Executives elaborated on their hiring priorities, most commonly naming operations, marketing and IT de- partments as key areas for recruitment. “The tide has come in for middle market hiring, with employment growth up from 3.6 percent six months ago to a rate of 4.9 percent today,” said Stewart. “In- terestingly, the rate of hiring is growing faster than the rate of revenue growth. Whether we’ll see this trend continue or it’s simply the middle market play- ing ‘catch up’ to last quarter’s remarkable revenue numbers, it’s good news for workers.” Middle market companies are monitoring their costs carefully. The average company anticipates costs ris- ing just 2.1 percent while profit margins are projected to expand 3.1 percent over the next year. More than one-third of companies expect to achieve modest price increases on their products and services. The top three cost concerns for executives are rising interest rates, healthcare, and energy. While the Fed signals an oncoming rate hike, 29 percent of respon- dents indicated that this would dampen their capital spending. Additionally, 28 percent would expect hir- ing to slow and 22 percent will be rethinking their plans to expand into new markets if an interest rate hike did occur. Healthcare costs continue to be a challenge, with two-thirds of respondents indicating that their com- panies do not effectively manage associated costs. Three-quarters believe this will impact their business in the next year. More than half also expect to feel the blow of energy costs; though these remain benign, there is worry that they might increase. Building on a particularly strong first half, middle mar- ket construction companies continued a strong year of growth. In the third quarter, industry employment growth peaked at its highest level on record (8.5 per- cent) and revenue growth reached a two-year high of 10.5 percent. “While the seasons heavily influence the industry, it’s hard to deny that this is more than a summer boom,” said Stewart. “With record highs in employment growth and strong revenue growth, it’s surprising that executives are actually predicting a meager 3.7 per- cent revenue growth next quarter. We’ll be keeping a close eye on construction activity as we track these numbers into the colder months.”