A survey reveals technology investments are playing an increasingly larger role in midmarket companies' bottom line.
at three out of four midmarket companies are maintaining or boosting their
long-term investments despite the U.S. economy's less than 1 percent growth
rate during the first half of the year, according to a Deloitte survey. The
report, "Mid-Market Perspectives: America's Economic Engine - Competing in
Uncertain Times," also indicates that a majority of respondents are
forecasting growth in revenue (61.2 percent) and profitability (52.6 percent)
in the year ahead.
three quarters (70 percent) of respondents see productivity gains principally
from their investments in business process automation, technology and strategic
hiring, leaving them optimistic about revenue and profitability growth,
according to survey results.
economic events, such as the downgrading of the U.S. debt rating, the European
sovereign debt crisis and the volatility in global equity markets, have reduced
optimism about the future of the economy among midmarket enterprises," said Tom
McGee, national managing partner of Deloitte Growth Enterprise Services. "However,
the survey results provide compelling insights into what these executives are
thinking and doing to maintain a competitive edge for their companies."
Deloitte survey also revealed that technology investments are playing an
increasingly larger role in midmarket companies' bottom line. Business process
automation and technology improvements are the two top contributing factors to
the jump in midmarket productivity; new hiring ranked fifth overall. Midmarket
executives also said they believe the technology driving increased productivity
includes business process automation (52 percent), data analytics and business
intelligence (49 percent), and customer relationship management software (30
is on the mind of most midmarket executives," said McGee. "While 74
percent of respondents believe globalization is forcing U.S. companies to
become more productive to stay competitive, 46 percent of companies are focused
on higher value customers and getting more revenue per customer. Technology
and applications such as data analytics can help businesses better understand
customers, operate more efficiently and set themselves apart from the pack."
the survey found 38 percent of companies agree that strategic hiring of new
staff with specific skills offers a path to higher productivity, 47 percent of
midmarket business leaders say it is difficult finding employees with the
skills and education to become productive immediately. Despite the skilled
labor conundrum, 44 percent of the respondents indicate that their companies
are prepared to increase the size of their U.S. workforce and hire over the
next 12 months.
commissioned OnResearch, a market research firm, to conduct the survey from
July 19 through Aug. 15, 2011. The study polled 696 executives of U.S. midsize
companies about their expectations, experiences and plans around becoming more
competitive in today's difficult economy. Respondents were limited to senior
executives-with 50 percent being owners, board members or working in the
C-suite-at companies with annual revenue of at least $50 million and no more
than $1 billion. Two-thirds of the companies responding were privately
held, while one-third were public. The private companies were roughly evenly
divided between family-owned, closely (non-family) held and venture capital-backed.