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.”
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“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.”
