United States

Middle market trend watch: Cautious capex views are red flag


Business reopenings and a period of somewhat economic stability may be the catalyst for a hopeful sentiment among middle market executives recently. According to the RSM US Middle Market Business Index report:

However, the one area of the survey that denoted risks for small and midsize firms over the medium term is their caution on capital expenditures.

The takeaway

As middle market businesses determine growth investments and strategies during this time of economic fluctuation and uncertainty it’s important to weigh a variety of areas, including incentives and key tax considerations, future business innovation needs, restructuring or acquisition opportunities and digital transformation necessities, to name a few. Optimize capital expenditure decisions by assessing business goals and evaluating risks like revenue fluctuations, supply chain disruptions, cybersecurity issues, cash flow, marketplace shifts and more.

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