Job Creation
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Transcript of Job Creation
The Mighty Middle Market
Christine PoonDean of Fisher College of BusinessThe Ohio State University
Meet the Mighty Middle
197,000 BUSINESSES BETWEEN $10MM—$1B4th LARGESTGLOBAL ECONOMY
ONE-THIRD PRIVATE SECTOR GDP ($3.84 TRILLION)
43.3MM JOBS – ONE THIRD OF TOTAL PRIVATE SECTOR JOBS IN THE U.S.
US CENSUS DATA
Meet the Mighty Middle• Pillars of their communities
• 82% survivorship rate during recent financial crisis• 70% in business 20+ years• Grounded in their communities
• Majority are privately held
• Widely dispersed across all regions and industries
Chicago’s Mighty Middle Market
1% FIRMS
4,700 BUSINESSES
21% REVENUE
26% JOBS
Note: Estimates based on available data from Dun and Bradstreet and previous research conducted by the National Center for the Middle Market.
Economic OutlookMiddle Market Executive Confidence
29%22%
36%
48%50%
59%66%67%
70%
Global Economy US Economy Local Economy
1Q ‘12 1Q ‘13
36%
59%70%
40%
58%
74%
1Q ‘12 1Q ‘13 1Q ‘12 1Q ‘13
New EnglandNew England+192K
NJ & NY
+369K
Mid Atlantic+330K
Southeast+373K
Southwest+324K
Midwest+460K
Western-38K
Mountain-Plains+162K
Middle Market Companies Net Jobs Contributions: 2007 - 2010
MM+2.2MJobs
Big Biz-3.7MJobs
Outlook of the Middle Market…
CAUTIOUSLY OPTIMISTIC
Top 5 Business Challenges
COST OF HEALTHCARE
COST OF DOING BUSINESS
92%
84%
89%
ABILITY TO MAINTAIN MARGINS
UNCERTAINTY OF HOW GOVERNMENT ACTIVITIES WILL IMPACT BUSINESS
82%
ABILITY TO ATTRACT, TRAIN, AND RETAIN TALENT
75%
1Q 2013: Next 12 Months
1Q 2012: 92%
1Q 2012: 86%
1Q 2012: 88% 1Q 2012: 77%
1Q 2012: 81%
Healthcare
HealthcareNearly half of the firms are considering options:
1. Renegotiate with current insurer 25%2. Seek new insurer 12%3. Encourage wellness efforts 20%4. Pay fines and eliminate coverage 7%
4Q 2012
Impact of Healthcare on Jobs
4Q 2012
Two-thirds of firms claim that they will be impacted – top three actions:
• Less investment 32%
• Hiring Freeze 30%
• Laying off workers 17%
Skills Gap
Impact of Skills Gap
1Q 2013
More than 40% in Midwest report there is a skills gap
42%58%
37%
63%
Midwest Nation
Skills gap present
No Skills Gap
Skills gap present
No Skills Gap
Impact of Skills Gap
1Q 2013
1.30%
Top three workforce challenges:
Most challenging areas to hire:
Finding sources of talent
Lack of workers with relevant experience
Lack of workers with relevant training
0%20%40%60%80%
100% 79% 78% 73%82%62%
77%MMI Midwest
Sales Skilled Trade Operations0%
10%
20%
30%22%
18% 16%19%
28%
16%
MMI Midwest
Resolving the Skills Gap
1Q 2013
1.30%
Programs that would be most effective:
Improvements in the secondary educational
system
Business/community college partnerships
Regional vocational training programs
National vocational training programs
A streamlined hiring process for foreign
workers
0%
10%
20%
30%
40%
50%41% 39% 37%
12% 9%
66% Educational Improvements/Partnerships42% Vocational Training
Growth Champions
1.30%
Growth Champion Characteristics
Investment in InnovationBroader Geographic Vision
Customer FocusStrong Management Culture
Operational Excellence
Note: Identified in the National Center for the Middle Market’s foundational research “The Market that Moves America”.
www.middlemarketcenter.org