At Croixstone, we pride ourselves on being a boutique management consulting and executive search firm that serves a diverse portfolio of clients across the nation. However, we have a special focus on the Middle Market—a segment of the economy that, while often overlooked, plays a critical role in driving the U.S. economy.
Understanding the Middle Market
According to the National Center for the Middle Market (NCMM), the U.S. Middle Market consists of companies with annual revenues ranging from $10 million to $1 billion. This segment, representing just 3% of all U.S. companies, is a true powerhouse, accounting for one-third of private sector GDP and jobs. With approximately 200,000 businesses, the Middle Market is the backbone of American economic stability and growth.
A Flourishing Market Post-COVID
The Middle Market is thriving in the post-COVID era. The NCMM’s “Year-End 2023 Middle Market Indicator Report” reveals that the rate of year-over-year revenue growth in 2023 hit an all-time high of 12.4%. This impressive growth is not isolated—55% of Middle Market companies reported double-digit growth compared to 2022. Employment in this segment is also on the rise, though the pace of growth has slowed slightly.
The Secret to Success: Innovation and Investment
What sets the fastest-growing Middle Market companies apart? The NCMM highlights several key strategies:
- Expansion through Innovation and New Markets: Leading companies are not content with the status quo; they are continuously exploring new markets and investing in innovative products and services.
- Investment in Technology and Talent: Fast growers are heavily investing in technology, particularly in digitization and artificial intelligence (AI). These investments are coupled with a commitment to attracting and retaining top talent, often reflected in higher wage increases.
Conclusion: The Backbone of the Economy
The Middle Market is more than just a segment of the economy; it is a vital engine of growth and innovation. Croixstone is proud to dedicate significant time and expertise to serving this dynamic market, helping our clients navigate the complexities and opportunities that define the Middle Market today.
