One Weird Type of Employer Grew in Q2: Analysts
Those strange companies are also predicting the strongest future revenue growth.
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.
Resources
- 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.
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