Amid Challenges, Confidence Remains Strong
Q2 MMI Graphics Presentation: Amid Challenges, Confidence Remains Strong
Every quarter, the National Center for the Middle Market conducts an online survey to gain insights from more than 1,000 C-level executives and financial decision makers. The respondents represent private and public organizations earning between $10 million and $1 billion in gross annual revenue.
The survey’s objective is to provide short- and long-term outlooks on topics ranging from business growth to confidence in the economy.
Answers for the second-quarter survey were compiled during the first two weeks of June, 2017.
Generally speaking, middle market leaders feel company performance remains strong, with 65 percent seeing an improvement over last year. While not as strong as the first quarter, this optimism is still some of highest since the first quarter of 2012.
Meanwhile, just 5 percent say conditions have deteriorated in the last 12 months.
Average reported revenue growth across all sectors was 6.7 percent, which is a return to average levels after the first quarter’s record-breaking 9.2 percent jump.
And while many industries maintained comparable revenue growth from last quarter, Retail Trade was the only industry to break ahead of last quarter’s growth. The industry saw a jump of 7.1 percent, compared to last quarter’s 6.8.
The Services industry, on the other hand, saw the greatest year-over-year growth at 9.9 percent.
And when it comes to growth, the rollout of new products is a key factor, as 45 percent of middle market firms introduced a new product or service in the past 12 months.
Looking ahead, 44 percent of firms believe they’ll introduce a new product or service in the coming year.
Additionally, 38 percent of firms expanded into new domestic markets.
[Employment Growth and Outlook]
Employment also saw growth, but similar to revenue, numbers didn’t reach the highs of last quarter. Even so, larger firms ($100M to $1B) saw the most growth at 6.6 percent. On the other side, smaller firms ($10M to $50M) had new employment growth of 5.4 percent.
And similar to revenue, the Retail Trade industry saw the biggest burst of growth at 9.1 percent. The Services industry came in second with 7.8 percent.
[Global Economic Outlook]
Confidence in the local economy, similar to last quarter, sits at nearly record-breaking levels. And while confidence in the U.S. and global economies dropped slightly from Q1, they are still historically positive.
Confidence in the U.S. economy is at 84 percent, down 6 percentage points from last quarter, but up 15 points from Q2 of last year. Confidence in the global economy sits at 70 percent from 77 percent last quarter. And yet this is 20 percentage points higher than Q2 of last year.
Finally, confidence in local economies is at 87 percent, down just 1 percentage point from last quarter.
Despite these growth projections and continued confidence, today’s middle-market leaders continue to face challenges from both internal and external forces.
Talent management issues, such as employee retention and talent recruitment are a primary concern, as are core business issues, such as maintaining growth and managing capital.
Maintaining growth and managing capital, as well as other core business issues, are also cited among top external challenges, with competition and government rules and regulations also factoring in.
For more insights, please download the full Middle Market Indicator Report and check out our podcast for expert insights on how the latest survey findings may impact the South Florida region.
This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
ACH fraud is one of the fastest growing types of fraud. Find out how we can help you stay one step ahead.
An effective cash strategy can help a company achieve its goals. But many companies lack a comprehensive plan, or they do not follow the one they have in place.
Business cycles progress and downturns happen. Businesses that assess their vulnerable points and prepare will be far more comfortable when the day arrives.
Harris Rosen bought his first hotel in 1974. Today, Rosen Hotels & Resorts is debt-free with eight Orlando hotels. And he remains committed to expanding the business so he can be more philanthropic.
For details about Wire Transfers with SunTrust, call 1.800.947.3786 – options 1 & 4
SunTrust Incoming wire instructions:
SunTrust Bank, now Truist Bank, Member FDIC. ©2019 Truist Financial Corporation. SunTrust®, the SunTrust logo, and Truist are service marks of Truist Financial Corporation. All rights reserved.
Equal Housing Lender
Investment and Insurance Products:
Are Not FDIC or any other Government Agency Insured Are Not Bank Guaranteed May Lose Value
All Truist mortgage professionals are registered on the Nationwide Mortgage Licensing System & Registry (NMLS), which promotes uniformity and transparency throughout the residential real estate industry. Search the NMLS Registry.Link opens a new window
Truist, SunTrust®, SunTrust PortfolioView, SunTrust Robinson Humphrey®, SunTrust Premier Program®, AMC Pinnacle®, AMC Premier®, Access 3®, Signature Advantage Brokerage, Custom Choice Loan®, SunTrust SummitView®, LightStream®, GFO Advisory Services®, BB&T®, BB&T Securities®, BB&T Sterling Advisors, Sterling Capital®, BB&T Investments, and BB&T Scott & Stringfellow® are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners.
Services provided by the following affiliates of Truist Financial Corporation: Banking products and services, including loans and deposit accounts, are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, and SunTrust Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by SunTrust Investment Services, Inc. and BB&T Securities, LLC, P.J. Robb Variable Corp., and Precept Advisory Group, LLC, which are SEC registered broker-dealers, members FINRALink opens a new window, SIPCLink opens a new window, and a licensed insurance agency where applicable. Investment advisory services are offered by SunTrust Advisory Services, Inc., GFO Advisory Services, LLC, BB&T Securities, LLC, Sterling Capital Management, LLC, and BB&T Institutional Investment Advisors, Inc., each SEC registered investment advisers. BB&T Sterling Advisors, BB&T Investments and BB&T Scott & Stringfellow, are divisions of BB&T Securities, LLC. Mutual fund products are advised by Sterling Capital Management, LLC. Mortgage products and services are offered through SunTrust Mortgage, a tradename for SunTrust Bank now Truist Bank.
"SunTrust Advisors" may be officers and/or associated persons of the following affiliates of Truist Financial Corporation: SunTrust Bank now Truist Bank, our commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., a registered broker-dealer, which is a member of FINRALink opens a new window and SIPCLink opens a new window, and a licensed insurance agency, and which provides securities, annuities and life insurance products; SunTrust Advisory Services, Inc., a SEC registered investment adviser which provides Investment Advisory services.
SunTrust Private Wealth Management, International Wealth Management, GenSpring, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups are marketing names used by SunTrust Bank now Truist Bank, SunTrust Investment Services, Inc., and SunTrust Advisory Services, Inc.
SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries, including SunTrust Robinson Humphrey, Inc., member FINRALink opens a new window and SIPCLink opens a new window.
Thank you for choosing SunTrust now Truist. We welcome the opportunity to serve your financial needs. While SunTrust and BB&T have merged to become Truist, both institutions will continue to offer independent product lines for a period of time. This may include differing underwriting guidelines, product features, terms, fees, and pricing.
Our friendly teammates at your local BB&T branches will be happy to walk you through their products. You can also learn more by contacting them at 1-800-BANK-BBT or BBT.com.