- Business services - Legal services (284%)
- Manufacturing - Industrial, commercial, or computer equipment (163%)
- Wholesale trade - Durable products (160%)
Generational Differences among Middle Market FirmsAs our economy becomes more service and technology focused, it stands to reason that the younger firms entering the middle market are not going to be producing the same products or services as companies that were founded over 50 years ago. Manufacturing is one industry where this generational difference is particularly strong. While it remains a foundational sector regardless of firm age, the types of products being manufactured differ between younger and older middle market firms. Middle market firms that have been in business for 50 years or more are much more likely than their youngest counterparts (those in business less than 10 years) to be making fabricated metal products - 17% vs. 10%. The youngest middle market manufacturing firms are instead much more likely than those in business 50 years or more to manufacture either electronic equipment or components (11% vs. 5%) or chemical products (12% vs. 5%). The shift in types of products being manufactured suggests how demand for certain goods has changed over time. Although manufacturing is the most prevalent middle market industry, business services is seeing significant gains as well. Middle market firms that have been in business 10 years or less are more likely to be in business services (15%) compared to those that have been in business 50 years or more (5%). Within business services, the subcategory of legal services has been driving growth in number of firms, employment, and revenues and is dominated by middle market firms that have been in business 50 years or more. These older firms represent 25% of middle market legal services companies, compared to 2% of middle market legal services firms that have been in business less than 10 years. This can be an indicator that, while legal services have led growth in this sector, it takes much longer for firms in this industry to scale.
"Middle market companies are not only driving the national economy in terms of revenue and employment growth, but the most transformative middle market industries are shaping the overall direction of our economy," said Brendan Walsh, Executive Vice President, U.S., American Express Global Commercial Payments. "The success of younger manufacturing companies in the middle market is a key indicator of how technology is influencing and guiding the future of the industry, while the growth of business services as a focus for younger middle market companies reflects the strengthening knowledge economy."Read the full Middle Market Power Index report here. American Express and Dun & Bradstreet will release subsequent Middle Market Power Index reports, which will explore other areas of opportunity unique to middle market firms. Study Methodology This report is based on an analysis of all of the U.S. firms in Dun & Bradstreet's commercial databases between March 2011 and March 2016: (1) 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); (2) their 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 & 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 Commercial Payments Through its Global Commercial Payments division, American Express offers a suite of payment and lending products that help businesses and organizations of all sizes gain financial savings, control and efficiency. Global Commercial Payments provides solutions for travel and everyday business spending, cross border payments, global currency solutions, and business financing. To learn more about Global Commercial Payments visit business.americanexpress.com. 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, services and corporate responsibility information: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, corporate card, business travel and corporate responsibility.