Latest mid-market research from GE Capital – June 2012

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Latest mid-market research from GE Capital – June 2012 Mid Market report


Latest mid-market research from GE Capital – June 2012 Mid Market report

By , August 20, 2012

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

quite short-lived.

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

and resilience:

„ 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.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.