Displeasure with Capitol Hill

By Patrick Burnson, Executive Editor
October 11, 2013 - SCMR Editorial

A significant majority of middle market executives agree that middle market job growth will have a significant impact on strengthening the U.S. economy (96%). Despite this, 83% believe Congress is doing too little to support the middle market; while 95% disapprove of the job performance of Congress and 70% disapprove of the job performance of President Obama. Overall, two-thirds reported disapproval of the job performance of both Congress and the President.

Other key findings in CIT: Voice of the Middle Market – Perspectives from the Heart of the U.S. Economy, by CIT Group, Inc. include the following:

*Better off Today than Yesterday: The majority of middle market executives report that their companies are in a strong position today (60%). In addition, many remain optimistic with 55% saying they are better off today than compared to a year ago.

*Top Concerns Are Taxes and Compliance with Affordable Care Act: However, the optimism of middle market executives is not without its challenges. While most are worried about economic uncertainty in the United States and globally (81% and 70%, respectively), there are also concerns about potential tax increases (74%), compliance with the Affordable Care Act (70%) and compliance with government regulations (66%). In addition, 54% said they believed rising interest rates would have a negative impact on their business.

*Uncertainty and Talent Management: Looking ahead to the next 12 months, middle market executives express concern about talent management with 59% concerned about their ability to retain top talent, and 60% with their ability to hire top talent.

*Focused on Growth and Expansion: Respondents report that over the next 12 months their companies are likely to: increase the range of products and services they offer (59%); expand into adjacent markets (55%) and increase the size of their workforce (46%).

*Balancing the Budget: Indicative of their lack of optimism in the strength of the U.S. economy and overall poor job performance rating for Congress, a vast majority of middle market executives (80%) reported that balancing the federal budget will have a significant impact on their business.

*Satisfaction with Financing: Overall satisfaction with financing remained high. Eight in ten middle market executives (81%) report that they are satisfied with their company’s access to financing, as well as the cost of financing for their company (80%). Most also say that they are satisfied with the variety of financing alternatives available to their company (79%).

*Putting Capital to Work: With satisfaction remaining high about their access to financing, middle market executives expressed plans to put that cash to work for working capital purposes (35%), by investing in plant and equipment (34%) and financing acquisitions (30%).



About the Author

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Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

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