State of Australia Mid Market firms.
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Late in 2012 Sean Rothsey was invited to present at a conference organised by a Global Alliance of Mid Cap Market financial services firms in Modica Ragusa in Sicily from 19 to 22 October 2012. With the assistance of GE Capital Australia he prepared the below report.
GE Australia reports that their June 2012 Mid-Market Report reports and measures just how accurate Australian mid market CFOs were in their outlook for business as reported in the 2011 report , and where they see themselves in six months’ time.
The picture is an overwhelming one of strength and resilience, but the Mid-Market is not without its challenges. In these tough and unpredictable times, understanding how Australian businesses are coping, how they contribute to the economy and how they plan for the future is critical.
Mid-Market companies are represented across all industries and are found in both capital cities and regional areas. And, while the Mid-Market represents only 1.4% of Australian businesses, it provides one-third of all business revenues and employs more than 3.2 million workers.
So what matters to these businesses, matters to the Australian economy and GE use this as a barometer to Mid –Market opportunities in Australian to Mid Market bespoke firms .The GE report –investigates and analyses the performance of the Mid-Market.
The Mid-Market is a key sector in the Australian economy that often flies under the radar, defined by companies with revenue of between $10 million to $250 million.
Mid-Market companies are represented across all industries and are found in both capital cities and regional areas. They contribute around $425 billion in added value and 3.2 million full-time equivalent jobs.
Compared to large and small businesses – which contribute $393 billion and $373 billion respectively – So what matters to these businesses, matters to the Australian economy.
The Mid-Market compared to the other business sectors
The Mid-Market stood out from the other sectors in remaining more optimistic throughout the decline and in the brevity of the downturn that it suffered. The downturn commenced later for the Mid-Market than any other sector. It also finished its downturn earlier than for any other sector excepting for Small Business, which had undergone an early and sustained fall.
The changing importance of key issues affecting the Mid-Market
At the end of the last survey period (September 2011), the GE Capital Mid-Market CFO Business Growth Outlook Index sat at 0.209 and continued to decline to a low of 0.166 in January 2012.
While the overall Index has remained steady since its low in January, the Future Expectations Index lifted significantly in February and March of 2012, which points to a growing optimism among CFOs – and a renewed focus on growth opportunities. The rise in the Future Expectations Index from January 2012 (at 0.29) to February 2012 (at 0.31) was the single largest rise in this Index since mid-2010. This graphic shows the changing importance of key issues affecting Mid-Market CFOs is shown here in terms of the percentage increase or decrease during the past year.
Acknowledgements to, and used by permission of Louisa Walsh, GE Capital Melbourne.
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