Number of U.S. mid-sized companies has nearly doubled since 2011
NEW YORK (June 1, 2016) — Despite comprising only 1% of the total number of commercially active firms in the country, middle market companies have led national job growth over the past five years, employing nearly 53 million workers – more than double the number employed by this segment in 2011. Middle market firms are also contributing $9.3 trillion to the U.S. economy, according to the Middle Market Power Index from American Express (NYSE: AXP) and Dun & Bradstreet (NYSE: DNB).
Using Dun & Bradstreet’s proprietary database of commercially active U.S. firms, the latest report in the Middle Market Power Index series analyzes the characteristics and economic impact of middle market enterprises—defined as businesses generating between $10 million and $1 billion in revenues—focusing on growth trends over the past five years.
Kentucky ranks No. 21 out of all 50 states for growth in number of middle market firms from 2011-2016.
Kentucky has an estimated 2,178 middle market companies ($10 million-$1 billion in annual revenues), which make up 0.94% of all firms in the state according to the latest Middle Market Power Index from American Express and Dun & Bradstreet.
According to the report, while the total number of all commercially active firms declined between 2011 and 2016, the number of middle market firms nearly doubled, with an increase of 87%. Middle market firms generate just over one in four dollars (26%) of U.S. business revenues and employ more than one in four workers (27%) in the private sector. Since 2011, middle market companies have outpaced both smaller businesses (less than $10 million in revenues) and the largest companies (more than $1 billion in revenues) in both employment and revenue growth.
“Over the last five years, middle market companies have led the way in economic growth,” said Brendan Walsh, Executive Vice President, U.S., American Express Global Commercial Payments. “This report highlights the often overlooked economic might of these companies, which contribute over $9.3 trillion to the U.S. economy and are growing faster than any other sector.”
“Middle market firms continue to have an outsized influence on the U.S. economy,” said Jeff Stibel, Vice Chairman of Dun & Bradstreet. “These firms have led the charge hiring Americans and now employ nearly 53 million people. The middle market plays a pivotal role in our rapidly changing economy.”
Middle Market Geographic Concentration
Middle market companies are headquartered across the country. However, the ten states in which middle market firms comprise a greater than average share of companies include: Illinois (1.5%), Wisconsin (1.5%), Michigan (1.3%), New Jersey (1.3%), Indiana (1.2%), Kansas (1.2%), Massachusetts (1.2%), North Dakota (1.2%), New York (1.2%) and Ohio (1.2%).