Richards continued: "As one of the largest international banks, HSBC offers clients warm support at every port. We are a one-stop-shop, which makes us uniquely positioned to deliver comprehensive banking solutions and sector expertise across geographies: from structuring cross-currency financing transactions, to providing access to broader institutional markets, to acting as their primary operating bank. This sweet spot is reflective of why we're further sharpening our strategy and are strengthening our middle-market franchise."HSBC's middle-market strategy is driven by sector-based, banker-led initiatives aligned with key industry areas of focus. These seasoned banking leaders are subject matter experts in their respective fields, tasked with identifying trends and opportunities and developing customized strategies tailored to meet clients' individual needs both domestically and internationally. The technology and venture capital, professional services, apparel and food and beverage segments will play a significant role given their high levels of activity. Commenting on the growth agenda, Richards said: "More than ever, MMEs are seeking global partnerships with sector-specialists in markets that they've identified for expansion. That's why we're doubling down on our sector-driven strategy in both established hubs, like San Francisco and New York, and those that are continuing to incubate growth." Other key findings include:
- US MMEs rely on imports for approximately 14 percent (14%) of their supply chain purchases. While Canada and Mexico are important trading partners, the second-largest source of imports is China.
- US decision makers think that investing in innovation (63% vs. 58%) is a top priority. This correlates closely with the belief that they are more likely to be first to market with new innovations (40% vs. 34%) and be a disruptor (39 % vs. 28%).
The research covers the following 14 countries: Australia, Canada, China, France, Germany, Hong Kong, India, Indonesia, Mexico, Saudi Arabia, Singapore, the UAE, the UK and the US.In this report, MMEs are defined as companies with between 200 and 2,000 employees. All sectors are covered with the exception of public administration, education and health, which are more vulnerable to policy-related factors and are therefore more difficult to compare across countries.
- MMEs' direct contribution to their local economy is measured according to their Gross Value Added (GVA) contribution to a country's Gross Domestic Product (GDP), and to the sales (turnover) and employment they support.
- MME's openness to trade is measured using OECD data on imports and exports, assuming that MMEs have a similar propensity to import and export as other firms in their country and sector.
- MMEs' contribution through supply chain and consumption 'multiplier' effects is estimated using detailed 'input-output' tables from the OECD and national statistical offices. The consumption impact reflects the economic activity supported when employees in MMEs and in their supply chains spend their wages on other firms' products and services.
1 For the purpose of this study, mid-markets enterprises are defined as those with between 200 and 2,000 employees.