Mid-market execs increasingly modest about 2012 expectations
Looks like we may need a recovery for our recovery. According to the findings of Deloitte's annual Mid-Market Perspectives: 2012 Report on America's Economic Engine—where there was once optimism about growth there's now a prevailing trend to stabilize their business' operations and workforce throughout 2012.
The survey of 528 mid-market executives in the United States indicated that 86 percent believe that conditions of uncertainty are higher than normal—sparking consensus in three key areas: talent, financing and technology in regards to how they will adapt to the unpredictable economic climate.
Adding to the uncertainty, the survey revealed that 44 percent of mid-market executives believe that the lack of clarity surrounding the U.S. presidential elections could have a negative impact on their businesses. Further, the general economic sentiment also has tempered: the median GDP growth forecast for the U.S. among mid-market executives for 2012 has declined to 0 to 2.0 percent from last year's moderate forecast of 2.0 to 3.5 percent.
"As a result of a significantly slower growth than we've seen in previous recoveries, mid-market executives are increasingly modest about their expectations for 2012," says Tom McGee, National Managing Partner, Deloitte Growth Enterprise Services.
"This year's survey revealed that mid-market companies are now trying to manage the challenges of this unpredictable economy by taking a more flexible and adaptable approach."
The survey included responses from executives at mid-market firms, which is defined by annual revenue between $50 million and $1 billion.
There is good news: Despite the uncertain environment, mid-market executives are not putting off significant business decisions. This year's survey indicates a significant change in strategy when it comes to making long-term investments in employees as more companies (51 percent) plan to invest in their existing workforce through training compared to last year (34 percent). Additionally, fewer companies plan to increase the number of part-time workers (only 13 percent compared with 18 percent in 2011).
Further evidence that mid-market executives are trying to optimize existing assets is that these companies are more financially self-sufficient than in the past—with 27 percent not planning to secure external financing this year, compared to 14 percent last year, McGee says.
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