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Ohio’s middle market steady growth tops national rate

Revenue growth for Ohio’s middle-market companies over the past 12 months topped that of the national rate, according to the National Center for the Middle-Market’s 2Q 2015 Middle Market Indicator (MMI) report.

Ohio companies reported growth at 6.8 percent compared to a national rate of 6.6 percent.

“Ohio’s middle-market businesses are continuing to drive our state’s economy” said GCP President and CEO Joe Roman noting that more than half of those companies are in Northeast Ohio.

“We recognize that the middle market is critical to our region’s competitiveness and future and are focusing resources through our Middle-Market Initiative to identify and address the needs of these companies.”

Defined as companies with annual revenues between $10 million and $1 billion, Ohio’s middle-market firms provide nearly 28 percent of all jobs, although they represent less than 1 percent of all Ohio businesses.

“When we’re talking about employment, by comparison, the middle market more than holds its own when compared to small businesses and large corporations,” says Bernie Moreno, chair of the GCP’s Middle-Market Committee and president of Bernie Moreno Companies.

“While middle-market companies are a small fraction of Ohio employers, it is able to provide jobs for a significant number of the state’s workers."

Click to read or download the Ohio MMI.

Other key MMI findings include:

Slower employment growth persists

While middle-market companies continue to hire, and 46 percent report increases in the size of their workforce, the rate of employment growth is continuing the decline that began last quarter.

Companies reported mean total employment growth of 39 percent down from 4.3 percent in 1Q 2015 but still higher than levels reported one year ago. Looking ahead, expectations for employment growth over the next year continue to be lower at 2.7 percent

Talent and regulation concerns are growing

Employment issues, including hiring and retention remain the top internal challenges for middle market companies. External challenges include competition and the impact of government regulations, which are expected to be the biggest hurdles they will have to overcome in the year ahead.

Click to read or download the national MMI.