View
969
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Dean Poon of The Ohio State Fisher College of Business presentation on Job Creation. Presentation at GE Capital's Roadshow for Growth in Chicago, IL on May 9, 2013.
Citation preview
The Mighty Middle Market
Christine PoonDean of Fisher College of BusinessThe Ohio State University
Meet the Mighty Middle
197,000 BUSINESSES BETWEEN $10MM—$1B4th LARGESTGLOBAL ECONOMY
ONE-THIRD PRIVATE SECTOR GDP ($3.84 TRILLION)
43.3MM JOBS – ONE THIRD OF TOTAL PRIVATE SECTOR JOBS IN THE U.S.
US CENSUS DATA
Meet the Mighty Middle• Pillars of their communities
• 82% survivorship rate during recent financial crisis• 70% in business 20+ years• Grounded in their communities
• Majority are privately held
• Widely dispersed across all regions and industries
Chicago’s Mighty Middle Market
1% FIRMS
4,700 BUSINESSES
21% REVENUE
26% JOBS
Note: Estimates based on available data from Dun and Bradstreet and previous research conducted by the National Center for the Middle Market.
Economic OutlookMiddle Market Executive Confidence
29%22%
36%
48%50%
59%66%67%
70%
Global Economy US Economy Local Economy
1Q ‘12 1Q ‘13
36%
59%70%
40%
58%
74%
1Q ‘12 1Q ‘13 1Q ‘12 1Q ‘13
New EnglandNew England+192K
NJ & NY
+369K
Mid Atlantic+330K
Southeast+373K
Southwest+324K
Midwest+460K
Western-38K
Mountain-Plains+162K
Middle Market Companies Net Jobs Contributions: 2007 - 2010
MM+2.2MJobs
Big Biz-3.7MJobs
Outlook of the Middle Market…
CAUTIOUSLY OPTIMISTIC
Top 5 Business Challenges
COST OF HEALTHCARE
COST OF DOING BUSINESS
92%
84%
89%
ABILITY TO MAINTAIN MARGINS
UNCERTAINTY OF HOW GOVERNMENT ACTIVITIES WILL IMPACT BUSINESS
82%
ABILITY TO ATTRACT, TRAIN, AND RETAIN TALENT
75%
1Q 2013: Next 12 Months
1Q 2012: 92%
1Q 2012: 86%
1Q 2012: 88% 1Q 2012: 77%
1Q 2012: 81%
Healthcare
HealthcareNearly half of the firms are considering options:
1. Renegotiate with current insurer 25%2. Seek new insurer 12%3. Encourage wellness efforts 20%4. Pay fines and eliminate coverage 7%
4Q 2012
Impact of Healthcare on Jobs
4Q 2012
Two-thirds of firms claim that they will be impacted – top three actions:
• Less investment 32%
• Hiring Freeze 30%
• Laying off workers 17%
Skills Gap
Impact of Skills Gap
1Q 2013
More than 40% in Midwest report there is a skills gap
42%58%
37%
63%
Midwest Nation
Skills gap present
No Skills Gap
Skills gap present
No Skills Gap
Impact of Skills Gap
1Q 2013
1.30%
Top three workforce challenges:
Most challenging areas to hire:
Finding sources of talent
Lack of workers with relevant experience
Lack of workers with relevant training
0%20%40%60%80%
100% 79% 78% 73%82%62%
77%MMI Midwest
Sales Skilled Trade Operations0%
10%
20%
30%22%
18% 16%19%
28%
16%
MMI Midwest
Resolving the Skills Gap
1Q 2013
1.30%
Programs that would be most effective:
Improvements in the secondary educational
system
Business/community college partnerships
Regional vocational training programs
National vocational training programs
A streamlined hiring process for foreign
workers
0%
10%
20%
30%
40%
50%41% 39% 37%
12% 9%
66% Educational Improvements/Partnerships42% Vocational Training
Growth Champions
1.30%
Growth Champion Characteristics
Investment in InnovationBroader Geographic Vision
Customer FocusStrong Management Culture
Operational Excellence
Note: Identified in the National Center for the Middle Market’s foundational research “The Market that Moves America”.
www.middlemarketcenter.org