Contact:
M Booth & Associates
Alex Della Rocca
212-539-3203
[email protected]
American Express
Rosa Alfonso
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American Express Survey of Mid-Sized Companies
Subsets of the Middle Market in Key Areas by Revenue
The American Express® Multinational Survey of Mid-sized Companies was conducted in the U.S.
among a sample of financial decision makers in mid-size companies, defined as having revenues of
$5 million to $1 billion annually. The survey was also conducted in six other countries.
Outlook
Top Priority is Growing
the Business next 6
months
Expect Business to Grow
Regardless of the
Economy next 6 months
Say Revenues are More
than they were a Year Ago
Expect Cash Flow Issues
next 6 months
Plan to Hire next 6
months
Say they Currently have
more Employees than a
Year Ago
Plan to Increase
Investments in Data
Security
Have Tapped
International Markets to
Acquire Customers
Lower Middle
Market
($5 million to $50
million)
58%
Middle
Market
($51 million to $100
million)
51%
Upper Middle Market
($101 million to $1
billion)
41%
47%
44%
63%
87%
67%
78%
84%
83%
76%
44%
88%
66%
38%
86%
58%
65%
84%
89%
59%
66%
70%
Lower Middle Market
Lower middle market companies have revenues ranging from $5 million to $50 million, with mean
revenues of $20.5 million in the last fiscal year. On average, they have been in business for 30 years,
employ 1,050 people, and more than eight-in-ten (82%) are privately-owned with more than onein-four (27%) being single proprietor-owned.
Lower middle market companies are most likely to say their top priority is growing their business
(58%). What would most help them grow their business is acquiring new customers (35%). The
biggest challenge faced by the lower middle market when growing their business is acquiring new
customers (27%). Over the next six months the primary way lower middle market companies plan
to acquire/retain customer is to increase investments in sales and marketing (27%).
When comparing current revenues to the previous year, the lower middle market is most likely to
say their revenues are more than they were a year ago (63%). Lower middle market companies are
the least likely to expect cash flow issues over the next six months (76%). Their greatest cash flow
concern is the ability to track cash flow into and out of the business (26%) followed by collecting
accounts receivables (23%).
They are also least likely to plan to hire over the next six months (78%). Their main reason for
hiring is to support business volume (58%).The largest number (49%) say will hire full -time staff.
Lower middle market companies are more likely to use paper checks to pay bills (43% of bills are
paid this way, on average) vs. credit cards (23% of the time), e-payments (18% of the time) or
cash (8% of the time),
Middle Market
Middle market companies have revenues ranging from $51 million to $100 million, with mean
revenues of $73.3 million in the last fiscal year. On average, they have been in business for 32 years,
employ 1,640 people, and more than eight-in-ten (84%) are privately-owned with nearly three-inten (29%) being founder or majority-owned.
They are most likely to expect their business to grow regardless of the economy (47%). Their single
most important priority is growing their business (51%) and what would most help the middle
market to grow their business is to increase investments in infrastructure including technology and
operations (28%).
When comparing current revenues to the previous year, the middle market is most likely to say
their revenues are more than they were a year ago (87%). Surprisingly, middle market companies
are most likely to experience cash flow issues (88%). Their top cash flow concern is tracking cash
flow in and out of their business (36%).
Middle market companies (66%) are most likely to say they have more employees than they did a
year ago and are most likely to plan to hire in the next six months (84%). Middle market companies
are most likely to say they will hire only full-time employees (47%). Their main reason for hiring is
to help support business volume (56%).
Over the next six months the primary way middle market companies plan to acquire/retain
customers is to both increase sales/marketing investments and introduce new products or services
(each, 25%).
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Middle market companies preferred method for bill payment is to use paper checks (33% of bills
are paid this way, on average) followed closely by credit cards (31% of the time).
Upper Middle Market
Upper middle market companies have revenues ranging from $101 million to $1 billion, with mean
revenues of $376.3 million in the last fiscal year. On average, they have been in business for 33
years, employ 2,430 people, and nearly two-thirds (65%) are privately-owned with three-in-ten
(30%) being founder or majority-owned.
Their single most important priority is managing cash flow (42%). Eighty six percent expect cash
flow issues and their greatest cash flow concern is the ability to track cash flow into and out of the
business (27%), followed closely by having enough cash on hand to win new business (26%).
Nearly four-in-ten (38%) say their top priority is growing their business. What would most help the
upper middle market (31%) to grow their business is to increase investments in infrastructure
including technology and operations. The biggest challenge to growth is managing expenses/the
rising costs of doing business (31%).
While forty-four percent expect their business to grow regardless of the economy, a similar number
(42%) are even more positive and see the economy improving and expanding opportunities for
their business over the next six months.
Over the next six months the primary way upper middle market companies (26%) plan to
acquire/retain customers is to increase investments in sales and marketing,
Upper middle market companies are most likely to say they will be increasing data security
investments in their business (89%)
Upper middle market companies are also the most likely to tap international markets (88%, vs.
83% in middle market and 72% of lower middle market companies); they will do so to acquire new
customers (70%), find new suppliers (63%) or manufacture products and services (58%). The top
three international markets they would most like to enter in the future are China (29%), Japan
(24%) and Canada (20%).
About American Express Global Corporate Payments
American Express Corporate Payment Solutions provide Corporate Cards, Corporate Purchasing
Card, and other expense management services to midsize companies and large corporations
worldwide. Globally, American Express is a leading issuer of Commercial Cards, serving 62% of the
Fortune 500® companies in 2013 and tens of thousands of corporate clients. [i]
For more information, visit business.americanexpress.com.
[1] As determined by an analysis conducted by American Express Global Corporate Payments. FORTUNE 500® is a registered trademark
of Time Inc. and is used under License. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of,
Licensee. Claim of Licensee not confirmed by FORTUNE or Time Inc.
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,
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foursquare.com/americanexpress, linkedin.com/companies/american-express,
twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products and services: charge and credit cards, business credit cards, travel services,
gift cards, prepaid cards, merchant services, business travel, and corporate card.
About the American Express Multinational Survey of Mid-sized Companies
The American Express® Multinational Survey of Mid-sized Companies was conducted in the U.S.
and six other countries. Research was completed online among a sample of 339 financial decision
makers in U.S. Mid-Size Companies, defined as having revenues of $5 million to $1 billion annually.
Interviewing was conducted by Ebiquity between June 2 – 19, 2014. Overall, the results have a
margin of error of +/- 5.3% at the 95 percent level of confidence. The survey was also conducted in
Canada, Mexico, Germany, the U.K., Australia and Japan.
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