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US middle market businesses see revenue up 6.3% in Q1

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US middle market businesses see revenue up 6.3% in Q1

Executives look to grow core business, focus on retaining talent.

According to a new survey from the National Center for the Middle market, middle market companies reported year-over-year revenue growth of 6.3% in the first quarter of 2016. Revenue growth exceeded that of Q4, but is down from the 7.4% growth from a year ago.

"We're seeing renewed firmness in the middle market, following a year in which growth rates, while strong, subsided a bit. After eight years of expansion, this healthy resilience is inspiring optimism for the future," said NCMM Executive Director Thomas A. Stewart. "Over half of executives predict gross revenue growth this year and one-third predict growth in employment."

"We're seeing renewed firmness in the middle marketRevenue Growth Remains Strong

Mean total revenue growth rates throughout the middle market are robust, up to 6.3% from 6.1% in Q4. Large middle market companies – those with revenue between $100 million and $1 billion – showed the strongest growth, with posted gains of 6.9%. Core middle market firms ($50 million to $100 million) held a comparable 6.5%; while smaller companies ($10 million to $50 million) posted somewhat softer gains of 5.9%.

Plans to Drive Growth Involve Expansion

To promote revenue growth, executives are focusing on growing their core business. Forty-one percent are looking to drive growth by investing in increased capacity, exploring new channels of business and/or sourcing additional partners. Middle market companies with $50 million to $100 million in annual revenue are particularly intent on expanding their services in the coming year; more than half intend to introduce a new product or service in the next 12 months, up from 34% in the last quarter.

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