Ohio State report details middle market growth

A new report from The Ohio State University identifies factors that allow certain midsize companies to expand faster than their peers. The study, titled “The Early Investment Advantage: How Fast Growers Drive the U.S. Middle Market,” was compiled by the university’s National Center for the Middle Market. The center is currently celebrating its 15th anniversary and serves as a resource hub for businesses in this specific sector.

Doug Farren, the executive director of the center, stated that the organization focuses exclusively on the approximately 200,000 midsize companies in the United States. He noted that these businesses face unique challenges distinct from those encountered by very large or very small firms. The center aims to provide data that helps business owners and leaders evaluate their current strategies and ask critical questions about their growth trajectories.

The report draws on 15 years of longitudinal research. It analyzes 44 survey cohorts and includes more than 41,500 responses from business executives. One primary finding is that companies which consistently reinvest in their operations grow at a faster rate than those that invest sporadically. Farren explained that businesses that continue to fund training and facility upgrades during economic downturns tend to see long-term success.

The study also highlights the role of innovation and technology in maintaining a competitive edge. Farren observed that many midsize firms recognize the need to use artificial intelligence but often struggle to determine where to deploy it. Because these companies frequently have small IT departments, they may rely on outside consultants or partners to implement new technologies effectively.

To promote the report and mark the center’s anniversary, Farren and other representatives traveled to Washington, D.C., and Philadelphia for National Middle Market Week. The National Day Calendar organization issued a proclamation recognizing the observance in the first week of October each year. During the trip, the group met with the U.S. Chamber of Commerce and the National Association of Manufacturers to discuss potential future collaborations.

In Philadelphia, NCMM representatives participated in a fireside chat with David Adelman, an Ohio State alumnus. Adelman serves as the CEO of Campus Apartments and is a partner in the Philadelphia 76ers. Farren said the trip helped increase the visibility of the middle market sector. He noted that several new contacts expressed interest in partnering with the center following the meetings.

The center is housed in the Fisher College of Business. While other organizations provide resources for businesses of all sizes, Farren said NCMM dedicates its efforts to understanding the specific economic impact of midsize companies. The report is available on the organization’s website for business leaders to review.