Latest mid-market research from GE Capital – June 2012 Mid Market report
According to the GE Capital Mid Market report June 2012 which was recently released some interesting trends are becoming obvious in terms of this key sector of the economy – 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 – the Mid-Market punches above its weight as a key driver of the Australian economy:
In the last six months, the Mid-Market – the most growth-oriented segment of the Australian business
community – became less focused on growth and more concerned about barriers to growth compared
to the previous months. This setback dominated CFO thinking from October to January.
The past few months have shown signs of recovery, indicating that the Mid-Market decline may be
All sectors of the business community were affected by a fall in optimism. However, the Mid-Market
was the last to record this decline and among the first to recover, demonstrating continuing robustness
„ The Micro and Small business segment felt the decline first, starting early in 2011, and continuing
through to March 2012 for the Micro sector and November 2011 for Small business.
„ The Large business sector first showed evidence of a downturn in June 2011, with sentiments
dropping to an all-time low in the last six months. From March 2012, the sector has been showing
strong signs of recovery.
„ The Mid-Market was the last to decline commencing around September 2011, with recovery
starting only four months later, in February 2012.
The economic environment has been the single most important factor driving the fall in optimism, with
reduced demand causing a shift away from growth strategies towards a greater focus on maintaining
revenue and managing costs.
The downturn has not been uniform across the Mid-Market, reflecting Australia’s multi-speed
economy. Industry sectors such as Business & Property and Other Industries have retained a strong
focus on growth, and remain largely unaffected by the more difficult economic conditions. On the
other hand, Manufacturing, Construction, and Wholesale Trade have fared much worse.
Government regulations remain a top concern.