- Greater Cleveland middle market companies more optimistic about business performance 07 24 12
Greater Cleveland middle-market companies more optimistic about business performance
Tuesday, July 24, 2012
Area businesses also more confident in local economy than counterparts nationwide
Cleveland, Ohio—Greater Cleveland middle-market companies are more optimistic about their local economy and their business performance over the next 12 months than their counterparts nationwide.
A survey of 100 companies conducted today at the Greater Cleveland Partnership’s Greater Cleveland Middle-Market Forum also found that, on average, more local middle-market companies expect to add jobs and, overall, project higher revenues in the next year than respondents to a national survey by the National Center for the Middle Market (NCMM).
“These findings mirror other data indicating that our region is experiencing a faster economic recovery than the nation as a whole,” said Rob Recker, the GCP’s senior vice president of marketing, membership and communications. “While challenges remain, our local companies are projecting continued improvement in the next 12 months.”
The NCCM, a collaboration between The Ohio State University’s Fisher College of Business and GE Capital, released the results of its 2Q 2012 Middle Market Indicator (MMI) at today’s forum. Responses by Greater Cleveland companies were compared to those compiled by the NCCM from more than 1000 C-suite executives of middle-market companies nationwide.
How the responses differed
Percentage of revenue growth: More Cleveland respondents are expecting revenue growth but, overall, at a lower rate. (Responses not included indicate answers of “decline” or “flat.”)
- 1 to 4 percent growth: Cleveland: 33 percent; MMI respondents: 20 percent;
- 5 to 9 percent: Cleveland: 27 percent; MMI respondents: 21 percent;
- 10+ percent growth: Cleveland: 21 percent; MMI respondents: 28 percent.
Job creation: More Cleveland middle-market companies expect to grow their employee base, although the growth rate will be low. (Responses not included indicate answers of “decline” or “flat.”)
- 1 to 4 percent: Cleveland: 30 percent; MMI respondents: 12 percent
- 5 to 9 percent: Cleveland: 17 percent; MMI respondents: 11 percent
- 10+ percent: Cleveland: 12 percent; MMI respondents 11 percent
Confidence in the local economy: Overall, Cleveland middle-market companies are more confident in their local economy than the national group, although fewer are “highly confident.”
- Highly confident: Cleveland 4 percent; MMI respondents: 23 percent
- Somewhat confident: Cleveland 57 percent; MMI respondents: 44 percent
- Unsure: Cleveland: 27 percent; MMI respondents: 0 percent
- Somewhat not confident: Cleveland 12 percent; MMI respondents: 17 percent
- Highly not confident: Cleveland: 0 percent; MMI respondents: 16 percent
Greatest challenges: When asked to rank five challenges to growth, Greater Cleveland middle-market companies were less likely to see healthcare costs as an impediment than those in the national survey. The rankings:
- Cleveland: (1) ability to maintain margins; (2) cost of doing business; (3) regulatory uncertainty; (4) ensuring compliance with regulation: (5) cost of healthcare
- MMI respondents: (1) cost of healthcare; (2) cost of doing business; (3) ability to maintain margins; (4) ensuring compliance with regulation; (5) regulatory uncertainty.
-- Click here to read a summary of the 2Q 2012 Middle Market Indicator (MMI).
-- Click here to view or download the 2Q MMI report.
About the Greater Cleveland Partnership
The GCP mobilizes private sector leadership, expertise and resources to create attractive business conditions that create jobs, grow investment and improve the economic prosperity of the region. www.gcpartnership.com.
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