Redefining the middle market for the modern era

The transformation of the middle market business landscape over the past 20 years is nothing short of remarkable, write RSM US Chief Economist Joe Brusuelas and Economist Tuan Nguyen in the February issue of The Real Economy. 

What was once a market of 200,000 businesses, each with revenue of $10 million to $1 billion, has now consolidated into a segment made up of fewer but more robust companies, Brusuelas and Nguyen note. Today, the middle market consists of 125,000 businesses, each with revenue of $30 million to $10 billion. This cohort is far more resilient than the middle market of the past, and it represents a critical, upscale and profitable element of the $30 trillion U.S. economy. In addition, they write, as the middle market has matured, its operational complexity has increased significantly.

Also in this issue, Brusuelas examines how the transmission of monetary policy to the real economy has changed in recent years.  He also looks at the volumes of exports and imports at American ports.

Finally, in our Market Minute series, Brusuelas analyzes the risks associated with the Treasury’s shift to T-bills, how increased U.S. productivity is driving economic growth, and how the entry of women in Japan’s workforce has helped drive its economy.

We look at these topics and more in this issue of The Real Economy.