Update wording (point is they are loyal to their communities NOT “they source locally”)
Demonstrates that even during the recession, the middle market added jobs. The middle market is a “pillar” of the national economy.
A lot of uncertainty but at least half are considering these kind of options
And clearly two-thirds claim they will be impacted
Optimistic of ways to resolve the skills gap: GE & NCMM bringing together student, academic, and business resources.
The Mighty Middle MarketChristine PoonDean of Fisher College of BusinessThe Ohio State University
Meet the Mighty Middle197,000 BUSINESSESBETWEEN $10MM—$1B4th LARGESTGLOBAL ECONOMYONE-THIRD PRIVATE SECTORGDP ($3.84 TRILLION)43.3MM JOBS – ONE THIRD OFTOTAL PRIVATE SECTOR JOBSIN 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 regionsand industries
Chicago’s Mighty Middle Market1% FIRMS4,700 BUSINESSES21% REVENUE26% JOBSNote: Estimates based on available data from Dun and Bradstreet andprevious research conducted by the National Center for the Middle Market.
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 Jobs4Q 2012Two-thirds of firms claim that they will be impacted –top three actions:• Less investment 32%• Hiring Freeze 30%• Laying off workers 17%
Impact of Skills Gap1Q 2013More than 40% in Midwest report there is a skills gap42%58%37%63%Midwest NationSkills gap presentNo Skills GapSkills gap presentNo Skills Gap
Impact of Skills Gap1Q 20131.30%Top three workforce challenges:Most challenging areas to hire:79% 78% 73%82%62%77%0%50%100%Finding sources oftalentLack of workers withrelevant experienceLack of workers withrelevant trainingMMI Midwest22%18% 16%19%28%16%0%10%20%30%Sales Skilled Trade OperationsMMI Midwest
Resolving the Skills Gap1Q 20131.30%Programs that would be most effective:41% 39% 37%12% 9%0%10%20%30%40%50%Improvements in thesecondary educationalsystemBusiness/communitycollege partnershipsRegional vocationaltraining programsNational vocationaltraining programsA streamlined hiringprocess for foreignworkers66% Educational Improvements/Partnerships42% Vocational Training
Growth Champions1.30%Growth Champion CharacteristicsInvestment in InnovationBroader Geographic VisionCustomer FocusStrong Management CultureOperational ExcellenceNote: Identified in the National Center for the Middle Market’s foundationalresearch “The Market that Moves America”.