WASHINGTON--(BUSINESS WIRE)--Top policy and business leaders examined the untapped potential of the nation’s 200,000 middle market companies to create jobs and grow the economy in a panel discussion today convened at GE’s What Works Summit on American Competitiveness. The discussion was based on research findings from the largest-ever study of the U.S. middle market, which highlighted the resiliency of middle market companies in spite of enduring challenges. This survey was a collaborative effort by The Ohio State University Fisher College of Business and GE Capital.
Middle market companies, those with revenues between $10 million and $1 billion, encompass some 41 million jobs, 34% of total private employment and generate over $9 trillion in combined revenues annually—making them critical to America’s competitiveness and future.
“Middle market companies represent critical opportunities for job creation and economic growth,” said Tom Quindlen, President and CEO of GE Capital, Corporate Finance. “As policymakers consider new initiatives to put Americans back to work and to keep our nation on the cutting edge of manufacturing innovation, they must not forget the enduring challenges and significance of middle market companies.”
Manufacturers are the second largest industry concentration of middle market firms, representing 17.3% of the sector, according to the study. Compared to their peers in other industries, more middle market manufacturers are longer enduring enterprises and have higher levels of employment. “Middle market manufacturers are currently experiencing a pronounced phase of growth, yet they have real concerns about regulatory compliance and competitiveness that deserve Washington’s attention,” said Anil Makhija, Academic Director for the National Center for the Middle Market. “They lack a formal advocate and the resources to share their views on the policy agenda. Today’s forum presents a meaningful opportunity to convene a dialogue around how to better support the growth and potential of the middle market.”
While middle market manufacturers boasted relatively favorable balance sheets and levels of corporate debt, they reported lower access to capital markets and greater pressure from international competition than peers in other industries. Manufacturers in this sector considered lower cost of capital and the ability to restructure debt as key components to their ability to grow.
Several key concerns identified by middle market executives who participated in the study reflect the sentiment of American businesses nationwide, including:
- Cost of regulatory compliance – 75%
- Inflation – 37%
- International competition – 45%
Full survey results are available on the National Center for the Middle Market’s website, www.middlemarketcenter.org/.
Background information:
The Ohio State University Fisher College of Business (Fisher) and GE Capital have partnered on a foundational, multi-source research initiative on the U.S. middle market. Their recently released report polled more than 2,000 business leaders across the United States on their business, their capabilities and performance, their growth needs and their overall economic outlook. This comprehensive insight-driven research uses a compilation of highly reputable data sources, including the Bureau of Economic Analysis, the U.S. Census, The CIA World Factbook, Compustat and Dun & Bradstreet, as well as comprehensive primary research led by Fisher in partnership with GE Capital.
About GE Capital: GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital). GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's Web site at www.ge.com.
About The Ohio State University Fisher College of Business (Fisher): Ranked by U.S. News and World Report among the top business schools in the country, The Ohio State University Fisher College of Business offers full-time, part-time and executive MBA, Master of Accounting, Master of Labor and Human Resources, Master of Business Logistics Engineering,Master of Business Operational Excellence, and Specialized Master in Finance programs. The College of Business was started in 1916, and was named the Fisher College of Business in 1993, in honor of Max M. Fisher, a noted philanthropist, industrialist and alumnus of the college. For more information, visit www.fisher.osu.edu.