Accelerating Growth in Indiana’s Mid-Market Companies
Mid-Market Firms Deliver; Growth Potential Remains
The numbers are overwhelming: In an analysis of Indiana-headquartered, for-profit companies, the mid-market sector comprises only 3% of those businesses yet generates 30% of the jobs and more than 40% of the sales.
Even more promising for the state’s economic future is that the potential is in place for these companies to substantially increase their impact. Strategies for making that potential a reality are part of “Accelerating Growth in Indiana’s Mid-Market Companies,” a study released today by the Indiana Chamber of Commerce Foundation.
Mid-market companies are defined as those with between $5 million and $100 million in annual sales. In an exclusive database analysis, 3,789 such firms were found to be in place in 2006. They employed more than 386,000 people and produced in excess of $55 billion in sales. In addition, the top 20% of the mid-market companies (ranked by growth rate from 2002-2006) experienced 53.5% growth compared to a 1.2% decline for all 121,000-plus Indiana-based, for-profit firms.
“These companies and their thousands of workers are located in all areas of the state, representing a broad range of industries,” states Mark Lawrance, Indiana Chamber senior vice president. “They are successful organizations, cornerstones in their communities. The goal of this project is to help them achieve at an even higher level.”
In-depth research, an online survey, one-on-one interviews and an executive forum were all part of the work product. Recommendations for next steps include:
- A Buy Indiana program – Indiana mid-market companies, when possible, utilizing the products and services of other Indiana firms and having increased access to major in-state purchasers
- Education and networking opportunities for mid-market owners
- Raising awareness of current incentive programs and increased utilization of strategic partnerships
- Development of a Mid-Market Resource Center to provide additional research/outreach to mid-market companies
Lawrance concludes, “The impact of these mid-market firms is even more widespread than originally anticipated. All of the private and public sector partners that actively participated in this study are committed to helping these companies and their employees to continue to prosper.”
Study Partners: Butler Business Accelerator, Clifton Gunderson LLP, Duke Energy, Ginovus, GrowthEconomics, Indiana Chamber of Commerce, Indiana Department of Workforce Development, Indiana Economic Development Corporation, Indiana Secretary of State, Krieg DeVault, National City, NIPSCO and Walker Information.