KANSAS CITY, Mo.--(BUSINESS WIRE)--According to new research released today by the National Center for the Middle Market (NCMM), mid-sized companies in the Kansas City Metropolitan Statistical Area (MSA) experienced strong employment growth at 4.9% compared to large companies nationally at 2.1% and small companies nationally at 1.2%. In addition, revenue of mid-sized companies in Kansas City grew 10.1% versus 7.0% nationally for middle market companies, and 2.9% for S&P 500.*
“Middle market firms remain critical to the U.S. economic recovery, adding more than 5 million new jobs since 2007. In 2012, they grew their workforce on average 2.7%, compared with 2.1% for large U.S. firms”
The research is being released as part of the Roadshow for Growth, a national bus tour hosted by the NCMM, GE Capital and Slate. The tour begins today in Kansas City and will cover 20 cities, identifying growth challenges and opportunities for mid-sized companies.
Mid-sized companies are the most important - yet frequently overlooked - segment in the U.S. economy. Consisting of almost 200,000 businesses nationally, with annual revenues from $10 million to $1 billion, these companies account for one-third of all U.S. jobs and private sector GDP. They are the most sustainable source of job growth for the U.S. economy and added 2.2 million jobs during the Great Recession as large companies shed more than 3 million.
New Kansas City Middle Market Research from the National Center for Middle Market
New data released today in conjunction with the Roadshow for Growth indicates that Kansas City’s middle market is growing. The research was conducted by the NCMM, the nation’s premiere research center committed to helping mid-sized companies grow. According to the new data, the Kansas City middle market:
- Employs 1/3 of the Kansas City workforce and consists of more than 350,000 firms;
- Grew revenues 10.1% versus 7.0% for national middle market companies; and 2.9% for S&P 500 companies nationally;
- Increased employment 4.9% versus national middle market rates of 2.7%; large companies nationally of 2.1%; and small companies nationally of 1.2%;
- Generated $47 billion in revenue;
- Services segment is the largest source of revenue at approximately $14.25 billion in 2012 and the biggest source of jobs with approximately 153,000.
“Middle market firms remain critical to the U.S. economic recovery, adding more than 5 million new jobs since 2007. In 2012, they grew their workforce on average 2.7%, compared with 2.1% for large U.S. firms,” said Dr. Anil K. Makhija of the National Center for the Middle Market. “Kansas City is showing similar trends of middle market firms outpacing their larger and smaller peers.”
Makhija continued, "But we must not take the remarkable resilience of middle market growth for granted. While the sector continues to outperform national economic growth rates, the prospect of increased costs related to health care or tax increases could hold back this positive trend. It's surprising that, given the middle market's potential for significant growth, policy initiatives are rarely viewed through this sector's lens."
National Roadshow for Growth to spotlight vital role of middle market companies
Today marks the kick-off of the Road Show For Growth tour, a 20-city bus tour spotlighting the key contributions, opportunities and challenges for this critical growth sector around the nation. The tour will feature custom research, live events, video profiles, town halls; sessions with policy makers, and a dedicated website (http://roadshow.slate.com) about the middle market business sector.
Today’s agenda includes visits with middle market companies, executives and local business leaders:
- University of Kansas head basketball coach Bill Self will present his thoughts at an event on building high performing teams, an area of interest to middle market executives;
- Mayor Sylvester James, Jr. and a select group of Kansas City middle market CEOs will participate in an open-press roundtable discussion about the local needs of middle market companies.
- The bus will visit a GE Capital location in Merriam, KS that supports middle market businesses and employs more than 500 local residents and has added more than 135 jobs in just the past 12 months.
“When middle market companies do well, the economy does well,” said Mike Pilot, chief commercial officer of GE Capital. “As the leading lender to the middle market and sponsor to a number of programs to help this critical segment of the U.S. economy grow, we think helping convene a dialogue around the needs of our customers is critical to driving economic growth and creating jobs. From the National Center for the Middle Market to the Roadshow for Growth, our goal is to help policymakers and job creators alike understand that the middle market is the market that drives America.”
Over the next six months the Roadshow for Growth will travel to large cities and centers of commerce across the United States to gain real-time feedback from this critical segment of the US economy. This effort will culminate with the third annual National Middle Market Summit in Columbus, OH at The Ohio State University where these issues and views will be formally presented and shared with a national audience.
For more information on the middle market, click here: www.middlemarketcenter.org
National Center for the Middle Market (www.middlemarketcenter.org):
The National Center for the Middle Market (NCMM) was founded in 2011 in partnership with GE Capital and is located at The Ohio State University’s Fisher College of Business. The Center is the leading source of research on the U.S. middle market economy.
About GE Capital (www.gecapital.com):
GE Capital is one of the world’s largest providers of credit and expertise. For more than 1 million businesses, GE Capital provides financing to purchase, lease and distribute equipment, as well as capital for real estate and corporate acquisitions, refinancings and restructurings. GE Capital is a leader in a number of industries, from airlines, healthcare and energy financing to fleet, franchise and middle market corporate finance. For approximately 80 million consumers, GE Capital offers credit cards and retail sales finance programs. GE Capital is an extension of GE's rich heritage of building and supporting growth, providing customers with insight, knowledge and expertise in addition to financing.
About Slate (www.slate.com)
Slate is a daily magazine on the Web that offers analysis and commentary about news, politics, culture, business, law, and technology. Slate's strong editorial voice and witty take on current events have been recognized with numerous awards, including the National Magazine Award for General Excellence Online and the Missouri Honor Medal for Distinguished Service in Journalism. Reaching 17 million unique visitors per month, Slate is the centerpiece of the Slate Group, an online publishing subsidiary of the Washington Post Co. (NYSE:WPO)
*The Kansas City research report from the National Center for Middle Market Research can be provided upon request.