B2B Firms Shifting The Middle-Market Landscape

In the mid-market economy, manufacturing and wholesale trade usually reign supreme. But according to new data from American Express and Dun & Bradstreet, another segment of middle-market companies is making waves.

The companies released their “Middle Market Power Index: Exploring Generational Changes in Middle Market Industries” report on Thursday (Jan. 28). Analysts concluded that businesses in the B2B services industry — those that offer public relations and advertising, consulting, landscape and other services — are growing quickly and changing the makeup of the middle-market population.

“Service businesses formed in the last 10 years are showing ability to scale into the middle market at a greater rate than more traditional industries,” the companies said in their announcement.

Today, more than half of mid-market enterprises fall into one of four sectors: manufacturing, wholesale trade, retail trade and business services. Both manufacturing and wholesale trade continue to account for the majority of this split, holding 17 percent and 13 percent of mid-market businesses, respectively. But business services now make up 12 percent of this population, researchers found.

Further, 17 percent of mid-market companies that have been in operation for less than a decade are business services firms, a statistic that represents the generational impact of this trend, the companies said.

In a statement, American Express President of Global Commercial Payments Susan Sobbott said the findings “show an important evolution for the future of the middle market.”

“While manufacturing and wholesale trade are still foundational pillars of middle-market companies, business services is an industry of choice for the next generation of middle-market entrepreneurs,” she added.

[bctt tweet=”‘Business services is an industry of choice for the next generation.'”]

Dun & Bradstreet Vice Chairman Jeff Stibel agreed, adding in his own statement that “we are moving to a technologically advanced service economy, and these younger middle-market firms are both driving growth and, importantly, creating significant numbers of new jobs.”