Deloitte: Mid-market executives focus on moving forward during uncertain economic recoveryNEW YORK, US: In the wake of a slower, less predictable economic recovery, mid-market executives are adapting to managing uncertainty, according to Deloitte's "Mid-Market Perspectives: 2012 Report on America's Economic Engine." The annual survey of 528 US executives indicates that 86% of respondents believe that continued uncertainty is tempering their expectations for economic growth. "Because of the significantly slower growth than we've seen in previous recoveries, mid-market executives are increasingly cautious about their expectations for 2012," said Tom McGee, national managing partner, Deloitte Growth Enterprise Services, Deloitte LLP. "Mid-market companies are now trying to meet the challenges of this volatile economy by taking a more adaptable approach to managing certain key business fundamentals." Moving forward during uncertain timesTo prepare for continuing, uneven market conditions, mid-market executives are taking careful actions in three key areas in 2012; talent, finance and technology. TalentIn last year's survey, respondents were overly optimistic about hiring plans. This year, executives are investing in their people and moderating plans to hire new employees:
More companies (51%) plan to invest in their existing workforce through training compared to last year (34%). Additionally, fewer firms plan to increase the number of part-time workers (only 13% compared with 18% in 2011). FinancingMid-market companies remain focused on balance sheet health and improving their cash positions while continuing to invest.
Interestingly, only 7% of privately held mid-market companies would consider going public in the next year. TechnologyLast year's survey showed that mid-market executives understand the importance of technology to their business. This year, respondents re-affirmed that technology continues to be vital to increasing productivity.
Research Methodology Some 23% of the companies represented are public; the other 77% are privately held. Of the private companies, about one-third are family-owned and another third are private-equity backed; one-quarter are closely (non-family) held. The remaining companies represented are venture capital-backed, employee-owned or other ownership structures. Diverse industries were surveyed. The three largest sectors were professional/business services, retail and distribution and technology, comprising 24% of the respondents. The other 76% were spread across 18 different sectors. Respondents to the survey also represented a diversity of management positions. Finance professionals contributed 23% of the responses; general management, 16%; information technology, 16%; operations and production, 13%; and sales and marketing, 11%. The other 25% were spread across 10 different functions, from customer service to supply chain, procurement, and R&D. Exactly one-half were owners, board members, or C-suite executives; the rest were vice-presidents, department heads, or managers. The full survey results are included in the Appendix; some percentages may not add to 100% due to rounding, or for questions where survey participants had the option to choose multiple responses. About Deloitte Growth Enterprise ServicesDeloitte's Growth Enterprise Services team delivers a distinctive client experience through service offerings tailored to address the unique needs of mid-market and privately held companies. View the entire Mid-Market Perspectives report here. |