American Express and New Jersey-based business services company Dun & Bradstreet today announced the latest Middle Market Power Index, which finds that increases in the middle market is an increasingly important economic indicator. Designated as companies with revenues ranging from $10 million to $1 billion, Michigan was found to have an estimated 6,197 middle market companies, .02 percent of all firms statewide.
“Middle market firms are responsible for much of the economic growth we have experienced over the past several years,” says Nalanda Matia, lead economist at Dun & Bradstreet. “These companies are clearly growth-oriented and are indicative of where the economy may outperform in the years ahead.”
While middle market firms make up less than 1 percent of all U.S. businesses, they contribute to approximately one in four dollars (27 percent) and employ more than 25 percent of U.S. workers in the private sector. Overall, middle market firms were also responsible for 52 percent of the 51.8 million new jobs that have been created nationwide since 2011.
Michigan was found to currently have 449,146 of the nation’s 18.3 million small firms (revenues less than $10 million), and 96 of the nation’s 3,150 large firms (revenues higher than $1 billion).
“Between 2011 and 2017, while the overall number of commercially-active firms declined, the number of middle market firms nearly doubled, as did revenues at these firms,” the report says. “Middle market employment as a whole more than doubled, and the growth rate for all three metrics is far greater for middle market firms than for small and large companies. More than half of the new jobs since 2011 have come from middle market enterprises alone.”
Other states experiencing high growth in the number of middle market firms include: Texas, Ohio, Indiana, Delaware, Illinois, Missouri, Louisiana, North Carolina, and Utah.
A full version of the report can be found here.