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Mid-sized companies play big-sized role in economy
by Jean Wojtowicz, President
Cambridge Capital Management Corporation
The Indiana State Chamber of Commerce is completing a study entitled "Accelerating Growth in Indiana's Mid-Market Companies.'' It's a look at firms between $5 million and $100 million in annual revenue, and how they contribute to the Indiana economy.
Early numbers reveal that these companies carry significant impact. They consist of only 1.8 percent of Indiana firms, but they create 30.2 percent of jobs (635,000) and 36.7 percent of sales (more than $70 billion).
They appear to be efficient operators, as evidenced by the fact these companies produce a slightly larger share of sales than their share of jobs produced.
The companies pursue a variety of endeavors, but manufacturing leads the way with 920 firms, or 24 percent of the total. Others showing up big include wholesale and retail trade (each approximately 660 firms, or 17 percent) and construction (488 firms, 12.8 percent).
We also found that companies in this group don't get asked for their opinions very often. Most companies we invited to participate were happy to be asked.
The study includes an online survey administered by Walker Information of Indianapolis that asks companies to rate their general experience in six areas (work force, health care, education, public policy, transportation and digital connectivity).
The largest percentage response in each category is "good." But when asked to rate their overall experience for the entire group of categories, seven percent say "excellent" and 38 percent "very good."
These people are entrepreneurs. They ride on the uncertain waves of business and emerge as survivors. No matter any shortcomings or obstacles, many are going to thrive. These results would seem to prove the observation, "if you want to find an optimist, look for a business owner."
Happily, the results so far indicate that these companies are committed to staying and succeeding in Indiana. Walker's loyalty matrix found 74 percent are in the "truly loyal" category.
The final results and analysis of this study will be useful in helping state and local government shape economic development strategy, and also in assisting the efforts of local economic development organizations, colleges and advisory groups.
If Indiana's economy is to be as successful as many of the individual companies within our borders, we need to know how to help grow startups, attract new firms and provide constructive assistance to the companies already here.
The companies in this study seem to tell us that they demonstrate their loyalty to the state every day. They would be happy if their will to succeed is matched by the tools they need: a fair tax policy, workers with skills to perform technical jobs and a high-quality infrastructure.
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