While making up just 1% of all commercially active firms in the U.S., middle market companies are taking the lead when it comes to growth, according to the New Middle Market Power Index from American Express and Dun & Bradstreet. These companies employ just about 53 million workers-double the amount reported in 2011–and give the economy a $9.3 trillion boost.
These numbers show the supersized contribution middle market companies continue to make to the economy. “Middle market firms continue to have an outsized influence on the U.S. economy,” said Jeff Stibel, Vice Chairman of Dun & Bradstreet. “These firms have led the charge hiring Americans and now employ nearly 53 million people. The middle market plays a pivotal role in our rapidly changing economy.”
Upswing in middle market firms
The study showed that while the number of all commercial firms went down between 2011 and 2016, the number of middle market firms just about doubled – signaling an upswing of 87%.
These firms generated a just over one in every four dollars (26%) of revenue, while employing 27% of workers in the private sector. Over the past five years they have outpaced not only smaller businesses but larger businesses as well when it comes to both revenue and employment.
Location, location, location
Where are middle market companies headquartered? They are literally everywhere, but some states have more than others – Illinois (1.5%), Wisconsin (1.5%), Michigan (1.3%), New Jersey (1.3%), Indiana (1.2%), Kansas (1.2%), Massachusetts (1.2%), North Dakota (1.2%), New York (1.2%) and Ohio (1.2%). But Washington D.C (2.1%) also has more middle market firms, along with Puerto Rico (5.8%), and the U.S. Virgin Islands (3.6%).
Overall there was an 87% upswing in middle market firms across the U.S., but four states managed to double the number of middle market firms: Ohio (+106%), Texas (+106%), Michigan (+103%) and Indiana (+102%).
The New Middle Market Power Index was developed using Dun & Bradstreet’s branded database of firms in the U.S. With middle market companies being defined as being those bringing in revenues in the $10 million and $1 billion range. They focused on looking at trends over the past five years.