Jeff Caywood, Communications Manager, National Center for the Middle Market, sponsored by GE Capital and the Fisher College of Business at The Ohio State University

1. UBM Canon | 2014
THE MIGHTY MIDDLE MARKET
PAT H W AY S T O G R O W T H
Jeff Caywood
Communications Manager
GE Capital

3. UBM Canon | 2014
THE MIGHTY MIDDLE MARKET
PAT H W AY S T O G R O W T H
Jeff Caywood
Communications Manager
GE Capital

4. NATIONAL CENTER FOR THE MIDDLE MARKET
A P L AT F O R M F O R G R O W T H
RESEARCH
EXPERTISE AND OUTREACH
EXECUTIVE TRAINING
+ Quarterly Middle Market Indicator
+ Experts travel nationwide to share
+ Executive seminars focused on
+ Breakthrough research on
relevant research with middle
globalization, innovation, talent
market companies, policymakers,
management and operational
media and academics
excellence
+ Interactive benchmarking tools
@midmarketcenter
solving real-world challenges
+ Informative webinars to build
capabilities and facilitate best
practices
4

5. THE MIGHTY MIDDLE MARKET
DEFINED
ANNUAL REVENUE
NEARLY
$10MM – $1B 200K
BUSINESSES †
REPRESENTING
OF
ALL
U.S. COMPANIES †
3%
1/3 OF
ALL
PRIVATE SECTOR
U.S. JOBS*
Business Services
26.7%
Manufacturing
16.7%
Wholesale
13.0%
Retail
12.0%
@midmarketcenter
†
* Source: Market that Moves America
Source: Last Available Census
5

6. POLL #1
W H AT I S Y O U R C O M PA N Y S I Z E ?
Small Business
1
ANNUAL REVENUE
<$10MM
Middle Market
2
ANNUAL REVENUE
$10MM to $1B
Large Corporations
3
ANNUAL REVENUE
$1B+
@midmarketcenter
6

7. POLL #2
W H AT I S Y O U R M I D D L E M A R K E T C O M PA N Y S I Z E ?
Lower middle
1
ANNUAL REVENUE
$10MM to >$50MM
Core middle
2
ANNUAL REVENUE
$50MM to >$100MM
Emerging large
3
ANNUAL REVENUE
$100MM to $1B
@midmarketcenter
7

8. THE MIGHTY MIDDLE MARKET
I M PA C T
@midmarketcenter
†
8

9. 9
THE MIGHTY MIDDLE MARKET
Q4 SNAPSHOT
REVENUE GROWTH
EMPLOYMENT GROWTH
CAPITAL INVESTMENT
CONFIDENCE
5.0%
2.5%
57%
PAST 12 MONTHS
PAST 12 MONTHS
GLOBAL ECONOMY
4Q’12
1.0%
0.8%
S&P 500
S&P 500
PAST 12 MO. NEXT 12 MO.
2.0%
2.3%
SMALL
BUSINESS
LARGE
BUSINESS
64%
WILL INVEST
33%
65%
NATIONAL ECONOMY
4.3%
2.2%
NEXT 12 MONTHS
NEXT 12 MONTHS
4Q’12
51%
76%
LOCAL ECONOMY
4Q’12
@midmarketcenter
71%
Source: 4Q 2013 Middle Market Indicator

10. 10
THE MIGHTY MIDDLE MARKET
TOP 5 BUSINESS CHALLENGES
88%
COST OF HEALTHCARE
3Q 2013: 90%
83%
82%
ABILITY TO
MAINTAIN MARGINS
3Q 2013: 83%
86%
4Q 2012: 90%
3Q 2013: 84%
4Q 2012: 85%
COST OF DOING BUSINESS
3Q 2013: 86%
@midmarketcenter
UNCERTAINTY OF HOW
GOVERNMENT ACTIVITIES
WILL IMPACT BUSINESS
4Q 2012: 85%
74%
4Q 2012: 84%
ABILITY TO
ATTRACT, TRAIN,
AND RETAIN TALENT
3Q 2013: 76%
4Q 2012: 73%
Source: 4Q 2013 Middle Market Indicator

11. ADVANCED MANUFACTURING TECHNIQUES
A M O N G U . S . M I D D L E M A R K E T M A N U FA C T U R E R S
+ In partnership with National Association
of Manufacturers
+ Survey of 200 C-suite mid-market
executives
+ Advanced manufacturing techniques
impact on:
 Revenue
 Profits
 Employment
 Challenges & Barriers
+ Reflects 33,000 U.S. middle market
manufacturers
@midmarketcenter
†
11

12. ADVANCED MANUFACTURING TECHNIQUES
KEY FINDINGS
Increased penetration of
advanced manufacturing
techniques
•
47% usage
•
92% of users & 78% of
non-users will implement
Skills gap a key challenge
•
Half report STEM skills gap
•
57% regularly re-train
workers
•
50% have open jobs
Increased profitability
without eliminating jobs
Educational partnerships and
training are key
•
20% increase in profitability
•
•
3.4% increase in jobs over
the past year with 4.7%
†
projected growth
51% created new training
programs
•
42% collaborate with
technical schools
@midmarketcenter
12

13. ADVANCED MANUFACTURING TECHNIQUES
TECHNOLOGIES USED
13

14. 14
POLL #3
W H AT A D VA N C E D M A N U FA C T U R I N G T E C H N I Q U E S D O Y O U U S E ?
1
Automation
6
Custom Manufacturing
2
Computer Technologies
7
High Precision Technologies
3
Process Technologies
8
Sustainability
4
Information Technologies
9
High Performance Computing
5
Control Systems
10
Advanced Robotics/Intelligence
@midmarketcenter

15. ADVANCED MANUFACTURING TECHNIQUES
I M PA C T O N P E R F O R M A N C E
15

16. ADVANCED MANUFACTURING TECHNIQUES
I M PA C T O N R E V E N U E , E M P L O Y M E N T & P R O F I TA B I L I T Y
REVENUE GROWTH
EMPLOYMENT GROWTH
PAST 12 MONTHS
PAST 12 MONTHS
20%
Increase in profitability over the past five years
16

17. POLL #4
W H AT C H A L L E N G E S D O Y O U FA C E ?
1
Training time & expense
2
Incorporating techniques into existing processes
3
Capital expenditure financing
4
Accessing the right technology
5
Keeping up with advances
6
Finding skilled labor
17

18. ADVANCED MANUFACTURING TECHNIQUES
ADDRESSING THE SKILLS GAP
TRAINING & RECRUITMENT
18

19. ADVANCED MANUFACTURING TECHNIQUES
ADDRESSING THE SKILLS GAP
INTERNAL & EXTERNAL INTIATIVES
19

20. ADVANCED MANUFACTURING TECHNIQUES
SUMMARY
+ Train & Develop Employees
Research shows an average of 8.8 weeks
on training and 7.4% of sales on
training/development
+ Be flexible
Focus on agility and new products,
rather than just increasing output
+ Be patient
The “factory of the future” is here … yet
it is changing all the time.
@midmarketcenter
†
20

21. www.middlemarketcenter.org