Why are Midsize Companies Important in Any Economy?

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These companies are a mix of newer “grownup startups” and older multi-generational family-owned businesses and exist in most industries and geographies. They tend to live in niches — industrial or geographical — and are not usually household names. Most American midsize companies focus predominantly on the domestic U.S. market which is still the single largest market in the world – most of them do not export.

This PowerPoint deck gives a reader a quick overview of the salient points of the midmarket – companies that are large enough to be viable but not behemoths. Take a drive and let us know what you think……..

At a time when we are searching desperately for companies with growth potential and viewing exports as a way out of the current downturn, these companies could very well be the answer everybody is searching for. In fact, if midmarket companies could expand revenues domestically and increase their exports, we would not only add jobs but also reduce the trade deficit. Given the significance of their revenues and employment contribution to the economy, a 10% increase in revenues and employment in the midmarket would greatly impact the GDP and job picture. And, helping them to export will reduce the trade deficit from a staggering $495.7 billion in 2010.

Midmarket companies may be unglamorous, with neither the buzz of start-ups nor the stature and heft of the big corporations. These companies may find it hard to get the attention of the business media, politicians, the government and the public-at-large. However, not paying attention to the midmarket is devastating to our economy.

Midsize companies are the engines of EVERY economy.

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Why are Midsize Companies Important in Any Economy?

  1. 1. WHY IS THE MIDMARKET IMPORTANT?March 3, 2013 ©The Midmarket Institute 2013 1
  2. 2. WHAT is the American MIDMARKET?March 3, 2012 2
  3. 3. #1 COMPANIES with revenues of $10 M - $1B USD and 100-5000 employeesMarch 3, 2012 ©The Midmarket Institute 2013 3
  4. 4. #2 There are about 197,000 * Midmarket companies in the U.S.A *only 3% of all U.S. companies are in the MidmarketMarch 3, 2012 ©The Midmarket Institute 2013 4
  5. 5. #3 Midmarket companies have total revenues of $3.9 Trillion * (33% of private sector GDP) *OSU Fisher School DataMarch 3, 2012 ©The Midmarket Institute 2013 5
  6. 6. #4 Midmarket companies employ 40 ofMillion (34% total non-government employment * in the U.S.) *Latest U.S. Census Bureau figuresMarch 3, 2012 6
  7. 7. Why is the MIDMARKET important?March 3, 2012 ©The Midmarket Institute 2013 7
  8. 8. They have more room to GROW than larger companiesMarch 3, 2012 ©The Midmarket Institute 2013 8
  9. 9. They are more likely tosurvive and grow than smaller companiesMarch 3, 2012 ©The Midmarket Institute 2013 9
  10. 10. They tend to add jobs in their HOME MARKETSMarch 3, 2012 ©The Midmarket Institute 2013 10
  11. 11. They add MORE SUSTAINABLE JOBS than larger & smaller companiesMarch 3, 2012 ©The Midmarket Institute 2013 11
  12. 12. They have strong roots in their COMMUNITYMarch 3, 2012 ©The Midmarket Institute 2013 12
  13. 13. THEY SPEND A LOT Vendors big & small want to get to them (seen the recent ads in the papers, the radio and tv about the midmarket?)March 3, 2012 ©The Midmarket Institute 2013 13
  14. 14. They are loyal customers providing HIGHER MARGINS Smart vendors see this as THE segment to chaseMarch 3, 2012 ©The Midmarket Institute 2013 14
  15. 15. They tend to have domestic suppliers rather than foreign ones – and tend to stay with their suppliers longer than many larger companies doMarch 3, 2012 ©The Midmarket Institute 2013 15
  16. 16. Many of them are fast growing - need help to GROW!March 3, 2012 ©The Midmarket Institute 2013 16
  17. 17. THE MIDMARKET is the THE GROWTH ENGINE of every country’s economy. Ram V. Iyer Founder & President The Midmarket InstituteMarch 3, 2012 ©The Midmarket Institute 2013 17
  18. 18. Midmarket companies haveMarch 3, 2012 UNIQUE CHALLENGES 18 ©The Midmarket Institute 2013
  19. 19. WHERE is the MIDMARKET?March 3, 2012 ©The Midmarket Institute 2013 19
  20. 20. Midmarket - Structure and Geography 197,000 BUSINESSES MOUNTAIN PLAINS 5.7% BETWEEN $10MM—$1B NEW ENGLAND 6% $3.9 TRILLION NY / NJ 11.7% (33% of PRIVATE WEST 18.6% SECTOR GDP) MIDWEST 20.9% 4th LARGEST ECONOMY IN THE WORLD MID ATLANTIC 10.1% SOUTH WEST 10.6% 43.1 MM JOBS NET JOB CREATOR 18% THROUGH THE CRISIS SOUTHEAST 16.4% 82% SURVIVORSHIP 82% 70% IN BUSINESS FOR 20+ YEARS Private Public Source: Ohio State University, NAMMMarch 3, 2013 ©The Midmarket Institute 2013 20
  21. 21. Industry Concentrations of Midmarket Companies 17.3% 13.8% 0.8% 9.3% 8.4% Wholesale Manufacturing Financial Insurance Holding Companies Construction & Real Estate 0.6% 5.4% 0.7% 12.4% 31.3% Mining Transport & Communication Agriculture, Retail Services Forestry & FishingMarch 3, 2012 ©The Midmarket Institute 2013 State University Fisher School of Business Source: Ohio 21
  22. 22. WHAT IS THE MIDMARKET INSTITUTE?March 3, 2012 ©The Midmarket Institute 2013 22
  23. 23. Founded circa. 2009 The HUB for midsize companies, suppliers, capital providers, advisors and influencers worldwide Click to watch video on importance of midmarket (and what we do)March 3, 2012 ©The Midmarket Institute 2013 23
  24. 24. Our Websites www.midmarket.org www.midmarketworld.com • Membership site focused entirely on • Largest virtual marketplace that the midmarket brings together midmarket buyers • Has many communities of midsized and sellers – open 24/7 companies, vendors and influencers to midsized companies • Will host periodic special events • Has largest collection of content on on specific segments of the challenges of the midmarket midmarket (for targeting) • Has special NICHE sites for various • Has special sections for Private prominent midmarket niches – CEOs, CFOs, IT, Resellers, Midmarket high Equity Investors, Consultants, growth companies, exporting, family Financial Advisors, Resellers, owned businesses, employee owned Suppliers, etc. businesses, etc.March 3, 2012 ©The Midmarket Institute 2013 24
  25. 25. SOLUTIONS HUB ?Help to overcome business challenges –with content, tools, events and experts www.midmarket.org COMMERCE HUB Buy, sell & partner 24/7, 365 days a year www.midmarketworld.com COMMUNITY HUB Bringing midmarket companies, suppliers, advisors, capital providers, influencers & job seekers together.March 3, 2012 25 ©The Midmarket Institute 2013
  26. 26. What Do We PROVIDE? ©The Midmarket Institute 2013March 3, 2012 ©The Midmarket Institute 2013 26
  27. 27. SOLUTIONS HUB Leverage Mi Page – Each member has a personal page showing their top challenges and new solutions every day from our Knowledge Center, Business Tools, Community, Events and Marketplace.March 3, 2012 ©The Midmarket Institute 2013 27
  28. 28. American Thought Leaders Interviews Alan Tonelson, Michael Werner Michael Erwin Research Fellow, The U.S. Business President & CEO President and Industry Council Globe Union Group, Inc. Tailored Label Products Mohit Uberoi President Jack Stack, Keith Campbell MEGTEC Systems Founder & CEO, SRC Holdings Chairman, Mannington MillsMarch 3, 2012 ©The Midmarket Institute 2013 28
  29. 29. European Thought Leaders Interviews Left: Professor Dr. Hermann Simon discusses outsourcing strategy with Midmarket Institute President Ram V. Iyer. Below: Dr. Patrick Adenauer, President of Above: Prof. Dr. Bernd ASU, talks about the strengths of German Venohr talks about the family businesses. Mittelstand model. Left: Midmarket Institute President Ram V. Iyer meets with third and fourth generation leaders of Glasbau Hahn, Mr. Till Hahn and Ms. Isabel Hahn. Photo: Anushka IyerMarch 3, 2012 ©The Midmarket Institute 2013 29
  30. 30. Companies Expanding Across America: 1. Have Increased Revenues 2. Hire More American Suppliers 3. Hire More Americans 4. Increase Wealth for Individuals, Businesses & Local CommunitiesMarch 3, 2012 ©The Midmarket Institute 2013 30
  31. 31. www.midmarketworld.com FUTURE: Job Board PartnershipsMarch 3, 2012 ©The Midmarket Institute 2013 31
  32. 32. Special NJ Vendors Directory FUTURE: 1. Business Services 2. Econ. Dev. Orgs. 3. Chambers of Commerce 4. ResellersMarch 3, 2012 ©The Midmarket Institute 2013 32
  33. 33. Midmarket Directory SAMPLE BOOTHFeb 5, 3, 2012March 2013 ©The Midmarket Institute 2013 33
  34. 34. Come and join us – if you are: • Midsize Companies • Suppliers to Midsize Companies • Advisors & Consultants to Midsize Companies • Capital Providers to Midsize Companies • Influencers of the midmarket • Government Agencies • Education Institutions • Media Organizations • Associations • Unions • Individuals interested in the midmarket …become a MEMBER today!March 3, 2012 ©The Midmarket Institute 2013 34
  35. 35. Ram V. Iyer Founder & President 5 Independence Way Suite 300 Princeton, NJ 08540 info@midmarket.org Phone: (609) 275 6300 Fax: (609) 916-1324 www.midmarket.org Check out our presentation ‘About The Midmarket Institute’March 3, 2012 ©The Midmarket Institute 2013 35

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