If financial professionals are looking for prospects with reasonably stable income, they might consider seeking out employees of companies with about $50 million to $100 million in annual revenue.
Companies at that revenue level may have increased their revenue by 0.7% in the second quarter, as revenue at all businesses with $10 million to $1 billion in annual revenue fell 3.7%, and as revenue at S&P 500 companies fell 14%.
Analysts with the National Center for the Middle Market, an Ohio State research center backed by Chubb, have included a little data on the strength of the “core of the middle market” in a summary of results from a survey of about 1,000 top executives at middle market businesses.
- A copy of the Chubb survey report is available here.
- An article about “socialism” for corporate giants is available here.
Analysts prepared the summary to show how COVID-19 has affected middle market businesses.
The analysts say their survey reflects the overall performance of all of the 200,000 U.S. businesses with $10 million to $1 billion in annual revenue.
Revenue for all of the middle market businesses that the survey team tracks fell 3.7% in the second quarter. That compares with 8.5% revenue growth in the second quarter of 2019, before COVID-19 had surfaced.
The middle market businesses in the complete survey sample predicted that they would increase their revenue by 2% over the next 12 months.
The “core of the middle market” businesses in the survey — the ones with $50 million to $100 million in annual revenue — predicted 3.9% revenue growth over that same 12-month period.
The middle of the middle market businesses also reported the most stable employment levels: They employed just 0.6% fewer people June 30 than they had employed a year earlier.
For all middle market businesses in the sample, the average employment drop was 4.4%.
— Read U.S. Must Fix ‘Bipolar Economy’: BlackRock’s Fink, on ThinkAdvisor.