Amid the public market jitters to start 2016, it looks like middle market companies grew faster than the rest of the economy to end 2015, according to CFO Magazine summarizing a survey by the National Center for the Middle Market.
“The National Center for the Middle Market said companies in that sector showed year-over-year growth of 6.1% in the fourth quarter, down from 7.2% in the third quarter. Employment grew 3.6% year-over-year compared to 4.1% the quarter before.”
Middle market companies in California are sending a strong message that they are poised to invest with 60% of businesses saying that they will invest in 2016.
California’s middle market companies (i.e., companies with $10 million - $1 billion in annual revenue) represent $750 billion in annual revenue. There are over 16,000 middle marketing businesses in California (many of which are in Silicon Valley and the San Francisco Bay Area). This represents just 0.7% of all companies in California, yet accounts for 21% of all California revenue and 27% of the workforce.
The breakdown by industry for California middle market companies is:
Professional Services: 9.2%
Wholesale Trade: 14.4%
Finance & Insurance: 5.2%
Transportation & Warehousing: 2.5%