Texas mid-sized companies lead national revenue and employment growth

Posted by David Gunderson on Jul 24, 2014 7:26:00 AM

Texas mid-sized companies led the nation in revenue and job growth in the last 12 months, according to a report released today by the National Center for the Middle Market.

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Overall, U.S. middle market companies — those with annual revenue of $10 million to $1 billion — grew for the second straight quarter in the April-June period, indicating that they’ve put the recession firmly behind them. Sixty-three percent of U.S. mid-sized companies reported improved overall performance, up from 60 percent in the first quarter.

Nearly 200,000 middle-market businesses represent a third of private sector economic output and employ 45.6 million people, so they serve as a solid indicator for the U.S. economy as a whole.

Virtually all industries reported revenue increases, led by manufacturing and healthcare.

Sixty-nine percent of U.S. mid-sized companies posted higher revenue in the second quarter than a year earlier.

Texas companies saw average revenue growth of 10.6 percent, compared with 6.6 percent for the nation, the report said. Over the next 12 months, 89 percent of Texas companies project revenue will grow an average of 9.2 percent vs. 70 percent of U.S. companies expecting growth of 5.8 percent.

Texas mid-sized companies created jobs at more than twice the national rate in the second quarter: 7.3 percent vs. 3.2 percent for the nation. Texas companies also more optimistic about future employment growth over the next 12 months: 68 percent say employment will grow at an average rate of 6.8 percent, compared with 47 percent of U.S. businesses expected 3.3 percent growth.

Texas and U.S. companies have one thing in common: They see health care costs as their biggest concern. Other challenges include the ability to grow revenue, and attract and retain employees.

The The National Center for the Middle Market surveyed 1,000 CEOs, CFOs, and other top executives at mid-sized companies. The center is a collaboration between Ohio State University’s Fisher College of Business and GE Capital.

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Originally published July 23, 2014

Dallas Morning News by Sheryl Jean

http://tinyurl.com/kaqot4p

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