*U.S. Middle-Market Companies Contribute $1.7
Trillion to Economy, Support 16.5 Million American Jobs*
At 55,700, the U.S. has the largest concentration of middle
market companies and generates the highest amount of economic
output among such companies in major global markets, according to
the first global survey of the mid-market sector commissioned by
HSBC, and authored by Oxford Economics.
Among the 15 global economies tracked in the HSBC report, Hidden
Impact: The Vital Role of Mid-Market Enterprises, U.S. middle
market companies directly contribute $1.7 trillion to the U.S.
economy, or 13 percent of output, and support 16.5 million American
jobs, or close to 13 percent of employment, making these businesses
a critical engine for growth. Middle market companies examined in
the report have annual sales between $50 million to $500
million.
“Middle market companies clearly generate a large proportion of
economic output in most countries, and even more importantly, are
vital to the functioning of a dynamic economy, like the U.S.” said
Derrick Ragland Executive Vice President and Head of U.S. Middle
Market Corporate Banking, HSBC Bank USA, N.A. “They bring new
innovations and products to the market and compete with large
incumbents, increasing standards and competitiveness. Yet, they can
be considered the middle child of the global economy – too small to
have influence, but too big to benefit from the interventions,
incentives and support afforded to smaller businesses.”
Middle Market Companies Deliver Additional Benefits to Wider
Economy
In addition to direct economic impact, middle market companies
generate indirect benefits to the wider economy through demand
generated in their supply chains and induced economic impacts from
the wage-financed consumption of their employees. The combined
indirect and induced effects from U.S. middle market companies
contribute an extra $2.2 trillion in U.S. economic output, and
support an additional 21.3 million American jobs.
When considered in aggregate (direct, indirect and induced
effects), globally middle market companies sustain between 20 to
nearly 40 percent of economic output in the market sector of the 15
countries studied.
Business Services, Manufacturing, and Wholesale / Retail Lead
U.S. MMEs
In terms of industry, more than one-third of the American middle
market segment are in the wholesale and retail sectors, followed by
business services (legal, accounting, engineering and design) with
14,100, and manufacturing with 7,500, according to the report.
Other U.S. industry highlights include:
- Though second to wholesale and retail
in numbers, business services middle market companies provide the
largest overall economic contribution to the economy at $1.1
trillion, or about five percent. This group also directly accounted
for around 4.5 million jobs.
- Wholesale and retail, with an estimated
$1.8 trillion in sales, follows as the second largest contributor
to national economic output and accounted for about 3.1 million
jobs.
- Manufacturing provides the third
largest contribution (two percent) to U.S. economic output but
generates the second largest number of jobs at 3.3 million among
U.S. middle market companies.
The remaining sectors of the economy – transport, storage,
information and communication; construction; financial services;
mining and utilities; accommodations and food; agriculture and
fishing; and other services – are notably smaller representing less
than two percent each of U.S. national economic output.
“U.S. MMEs are at the heart of our economy and society,” Ragland
concluded. “However, they reach a point, where, having grown
successfully for some time, they have to shake up the way they do
things if they want to grow further. With the right kind of support
though, including understanding their characteristics, the choices
and the challenges they face, they could make an even greater
contribution to local, regional and national growth.”
China follows the U.S. with an estimated 40,200 middle market
companies, contributing 74 million jobs, or about 12 percent of
employment. And, even in smaller economies, the number of middle
market companies is substantial with proportionately large
employment figures: Singapore is estimated to have just over 1,500
supporting over 400,000 jobs and Poland has around 2,100 such firms
sustaining 1.7 million jobs.
Globally, the estimated 161,800 middle market companies analyzed
contribute $11.5 trillion to gross domestic product (GDP), employ
around 169 million people, have combined sales of $16.6 trillion,
and generate $4.8 trillion in economic value, accounting for
between 10 to 17 percent of economic activity in the respective
countries included in the report.
For more information about HSBC’s Hidden Impact: The Vital Role
of Mid-Market Enterprises and how HSBC is helping to make global
connections, please visit:
cmbinsight.hsbc.com/middle-market-companies-us or
globalconnections.hsbc.com
Follow the middle market company conversation on Twitter
@HSBC_US and #MadeForTrade
Notes to Editors
For updates from the HSBC Press Office, follow us on Twitter:
www.twitter.com/HSBC_Press
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indirect, wholly-owned subsidiary of HSBC North America Holdings
Inc. HSBC Bank USA, N.A. is a member of the FDIC.
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Media inquiries:HSBC Bank
USA, N.A.Laura Sheridan Powers, +1
212-525-0115laura.s.powers@us.hsbc.com
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