First-Ever Look at Dun & Bradstreet Data on
U.S. Middle Market Exporters by Size, Industry, Geography and Age
of Firm
U.S. companies significantly increase their engagement in
exporting as firm revenue grows and businesses mature, according to
the Middle Market Power Index: Taking the Global Stage from
American Express (NYSE: AXP) and Dun & Bradstreet (NYSE:
DNB).
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This second in the series of reports, analyzing Dun &
Bradstreet’s proprietary database of more than 19 million
commercially-active1 U.S. firms, explores the characteristics of
U.S. middle market companies (defined as businesses generating
between $10 million and $1 billion in revenues) engaged in
exporting their products and services. The series of reports is
designed to uncover opportunities for middle market companies to
expand their customer base and sources of revenue, based on a
virtual census of all of the commercially-active businesses in the
United States.
The analysis finds firms generally establish themselves
domestically before selling abroad. Five percent (5%) of middle
market businesses engage in exporting, while significantly more
companies (34%) with more than $1 billion in revenue sell
internationally. Additionally, the data reveals that the longer
middle market companies are in business, the more likely they are
to export. Less than 5% of middle market firms in business for less
than nine years sell to foreign markets, while more than two-thirds
(68%) of middle market companies in business for 25 years or more
export their goods or services.
Earlier this year, the U.S. Department of Commerce announced
that in 2014, total merchandise exports from all 50 states helped
the U.S. achieve the fifth consecutive record-setting year of goods
and services exports, which reached $2.35 trillion.
“One of the greatest signs of an economic recovery is growing
exports and these results are very encouraging for the U.S.
markets,” said Jeff Stibel, vice chairman of Dun & Bradstreet.
“As middle-market companies increase exports outside of the U.S.,
there is also a high likelihood for increased opportunities for
domestic job growth.”
Middle Market’s Expanding Exporting Opportunity:
Middle market companies, which today represent less than 1% of
all U.S. businesses, account for 29% of all U.S. business revenues
and 18% of the firms that export their goods and services,
according to the U.S. Census Bureau. That said, the International
Trade Administration shows that middle market companies account for
just 9% of the value of U.S. exports, showing that while more
likely than average to export their goods and services, the value
of middle market exports exports lags that of larger firms.
Exporting represents a $928 billion opportunity for U.S. mid-sized
companies over the next 10 years.2
“Middle market firms are cautiously—and strategically—entering
foreign markets,” said Susan Sobbott, president, Global Corporate
Payments, American Express. “Mid-sized companies are driving job
growth domestically,3 and many could benefit from overseas
expansion earlier in their lifecycles.”
To help middle market firms evaluate the risks and rewards of
exporting, American Express launched Grow Global, a program
providing free exporting resources, including interactive
development and learning workshops, online materials and webinars,
mentoring and one-on-one connections.
Middle Market Product-Focused Firms are More Likely to
Export
Analysis by industry finds middle market manufacturers and those
in wholesale trade are far more likely to engage in exporting than
the average middle market business. Compared to the industry-wide
average of 5% of middle market businesses that export, industries
most likely to export include:
- manufacturing (14%)
- wholesale trade (12%)
Industries with the least exporting participation—all with less
than 1% engaging in exporting—by middle market companies
include:
- social services (less than 1%)
- educational services (less than
0.5%)
- health services (less than 0.5%)
Middle Market Exporters are Found Throughout the
Country
Among the 25 most populous metro areas, middle market companies
that export are more likely than the U.S. average to take place
in:
- Miami, FL (20%)
- Houston, TX (9%)
- Tampa-St. Petersburg, FL (9%)
- Los Angeles-Long Beach (8%)
Puerto Rico (26%) and the U.S. Virgin Islands (14%) are also
significantly more likely than average to have middle market firms
engaged in exporting.
The data reveals a fairly consistent percentage of middle market
exporters in each state. States with the highest levels of middle
market firms engaged in exporting include:
- Florida (10%)
- New Jersey (8%)
States with the lowest levels of middle market exporters
include:
- Montana (2%)
- North Dakota (2%)
- South Dakota (2%)
- Oklahoma (2%)
- West Virginia (2%)
- Wyoming (1%)
- Washington D.C. (1%)
- New Mexico (1%)
American Express and Dun & Bradstreet will release
additional reports in the coming months, which will explore other
characteristics and economic contributions of middle market
firms.
To read the full Middle Market Power Index: Taking the Global
Stage, please
visithttp://about.americanexpress.com/news/docs/2015x/2015-07-08-Middle-Market-Power-Index-Taking-the-Global-Stage.pdf
Study Methodology
The Middle Market Power Index report is based on an analysis of
all of the firms in Dun & Bradstreet’s commercial databases of
nearly 19 million businesses between 2008 and 2014: the first a
virtual census of all of the commercially-active businesses in the
United States (defined as firms that have obtained a D-U-N-S®
number and that sell and receive goods and services and utilize
credit transactions in their business); the second commercial
database is Dun & Bradstreet’s credit scoring archive database,
which collects and models business commercial activity and business
financial strength. All subsidiary and business establishment data
are combined; only enterprise-level data (top of the business
family tree, or Ultimate D-U-N-S® number firms) are
reported. Additionally, public sector entities are excluded.
About Dun and Bradstreet
Dun & Bradstreet (NYSE: DNB) grows the most valuable
relationships in business. By uncovering truth and meaning from
data, we connect customers with the prospects, suppliers, clients
and partners that matter most, and have since 1841. Nearly ninety
percent of the Fortune 500, and companies of every size around the
world, rely on our data, insights and analytics. For more about Dun
& Bradstreet, visit DNB.com.
About American Express Global Corporate
Payments
Through its Global Corporate Payments division, American Express
offers a suite of B2B and T&E payment solutions that can help
organizations streamline processes and identify opportunities to
help drive savings and efficiency. American Express can help your
organization improve working capital flexibility and your
relationships with suppliers. For more information, visit
https://business.americanexpress.com/us/
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more at
americanexpress.com and connect with us on
facebook.com/americanexpress, foursquare.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products and services: charge and credit cards,
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1 Commercially-active firms are defined as businesses that have
obtained a D-U-N-S® number and that sell and receive goods and
services and utilize credit transactions in their business.2
Capitol Economic Advisors research brief for American Express3
Middle Market Power Index
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150708005959/en/
M BoothJohn McLaughlin212-539-3236johnm@mbooth.comorAmerican
ExpressMelissa Banas212-640-8658melissa.j.banas@aexp.comorDun &
BradstreetHeather Herndon310-919-2290herndonh@dnb.com
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