The National Center for the Middle Market recently released its Q4 2016 Middle Market Indicator. This report provides insight on past and projected revenue, employment and confidence of privately-held companies with revenues ranging from $10 million to $1 billion. A complete copy of the report can be found here (http://middlemarketcenter.org/performance-data-on-the-middle-market).
According to the report, middle market companies ended the year with a 6.9% growth in revenues. When filtered to just Ohio companies, revenue growth was 7.1%. In the immortal words of Chrissie Hynde: “Hey-o way to go Ohio!” What is worth noting, however, is that businesses with revenues over $50 million were responsible for most of the growth while businesses under $50 million actually reported reductions in revenue.
Looking forward to 2017, Ohio companies polled expect revenue growth of 4.8% as compared to the national figure of 5.5% indicating a bigger slowdown in the Buckeye state. This may be a function of our higher percentage of manufacturing companies polled (23%) as compared to the rest of the nation (9%). Or it could be that the folks in Texas are lying.
Ironically, despite the expectation of lower growth than the rest of the nation, Ohio companies are more optimistic about the local, national and global economies than the national average. Must be the lack of a winter here that has us feeling good.
Employment growth is also looking good in Ohio as the 9.0% registered for 2016 far outpaces the 5.4% nationally. Employment growth in 2017 is expected to continue at 8.0% in Ohio against a far weaker 3.4% nationally. Dear Texas: send us your employees.
Finally, an interesting statistic that the National Center for the Middle Market likes to report. If the U.S. middle market was its own nation, it would have the third highest GDP falling between China and Japan. By my calculations middle market Ohio falls between Chile and Bangladesh. Feel free to use that at any upcoming cocktail party.