A new study found Indiana ranked fourth nationally in growth of middle market firms that make between $10 million and $1 billion a year, such as Merrillville-based Centier Bank and Horizon Bank in Michigan City.
The Middle Market Power Index from American Express and Dun & Bradstreet found the Hoosier state has 3,763 middle market companies, making up 1.19 percent of all businesses in Indiana, a significantly higher rate than the national average of 0.97 percent.
By comparison, Indiana is home to 47 businesses that rake in more than $1 billion a year and 312,491 companies that bank less than $10 million in annual revenue.
The number of middle market firms operating in Indiana has risen 94 percent between 2011 and 2017, the study found.
The report found that middle market firms employ about 27 percent of private-sector workers and have accounted for 51.7 percent of the 51.8 millions new jobs created in the United States since 2011.
“Although small in number, middle market companies pack a large economic punch,” said Brendan Walsh, American Express global commercial payments executive vice president. “What our Middle Market Power Index shows us is that economic growth does not always come from the most expected places."
He said it’s not just the small startups and large multinational companies that are hiring the most people and leading the way in revenue growth.
"It is also mid-sized manufacturers and wholesalers in the heartland, which are becoming leaner and more globally competitive," Walsh said. "Growth in these sectors, among other middle market industries, is what is really moving the needle for the American economy.”
Middle market firms create about 26.8 percent of all revenue from U.S. businesses, or about $9.3 trillion
“Middle market firms are responsible for much of the economic growth we have experienced over the past several years,” said Nalanda Matia, Dun & Bradstreet lead economist. “These companies are clearly growth-oriented and are indicative of where the economy may outperform in the years ahead.”
Neighboring Illinois has the highest concentration of middle market firms in the U.S., with 1.55 percent of the companies doing business falling in that revenue range.