Middle market executives: ‘U.S. economy not doing well’

Many expect Affordable Care Act to negatively impact them and their customers
Nominate a Top Woman in Business. Click here. Nominate an NEPA business professional under 40. Click here.

For the Record

Sign up now for full access to Local Business Deeds, Bankruptcies, New Incorporated and Local Stock Activity from the Northeast Pennsylvania Business Journal. (read more)

20 Under 40: JenniferDessoye

Photo: N/A, License: N/A, Created: 2016:11:17 11:10:02

Dr. Jennifer Dessoye is assistant professor of occupational therapy at Misericordia University and owner of Bright Beginnings Early Learning Academy (BBELA). Discontent with the early education curriculum and understanding of human development and neurolo (read more)

20 Under 40: Amy Hlavaty Belcher

Photo: N/A, License: N/A, Created: 2016:11:09 13:55:46

Amy Hlavaty Belcher, 39, owner and artistic director of Abrabesque Academy of Dancing, believes that for those who have been given much, much is expected. “I just try hard to do my best,” she said. I have been blessed with many opportunities and many gift (read more)

20 Under 40: Christopher Hetro

Photo: N/A, License: N/A, Created: 2016:11:14 11:21:35

Chris Hetro, 33, works hard and plays hard. “A strong work ethic is important, but finding balance outside of work is important because life is too short and you need to enjoy it,” he explained. As an electrical engineer and project manager at Borton-Laws (read more)

20 Under 40: C. David Pedri

Photo: N/A, License: N/A, Created: 2016:11:14 15:19:17

For attorney C. David Pedri, 37, it’s all about a combination of qualities that contribute to success. “My philosophy is simple: be open and honest, treat people the way you would want to be treated, with respect, and work hard to attain your dreams. The (read more)

20 Under 40: Ed Frable

Photo: N/A, License: N/A, Created: 2016:11:09 11:13:04

Ed Frable, 28, believes “if I work hard and stick to my word, good things will happen. My crew will not be deterred. We will re-evaluate our game plan and not give up until the job is complete,” explained Frable, the owner/operator of Ed Frable Constructi (read more)

20 Under 40: William H. Bender II

Photo: N/A, License: N/A, Created: 2016:11:16 13:11:08

William H. Bender II, CFP, CIMA, CRPC, loves what he does. “I’m lucky. I come to work every day excited to help the people and institutions we work with,” explained Bender, 34, first vice president at Bender Wealth Management Group, Merrill Lynch. The fam (read more)

20 Under 40: Angelo Venditti

Photo: N/A, License: N/A, Created: 2016:11:14 16:09:11

Angelo Venditti, 38, heard a call to the helping professions early on. Geisinger Northeast’s chief nursing officer answer was to volunteer for his local fire company. After high school, he became a paramedic, then enrolled in nursing school. Three years a (read more)

20 Under 40: Donald Mammano

Photo: N/A, License: N/A, Created: 2016:11:17 12:38:37

At 20, Donald Mammano began his own company, while attending the University of Scranton. Mammano, now 33, and president of DFM Properties, recalls, as a youngster, holding a flashlight while his father fixed the kitchen sink. “From that point on I was fas (read more)

20 Under 40: William J. Fennie III

Photo: N/A, License: N/A, Created: 2016:11:15 09:50:19

William J. Fennie III, 27, is always knocking on the proverbial door, because he knows one day, one will open. As an investment specialist with Integrated Capital Management (iCM) he cannot take “no” for an answer. “I make cold calls every day to invite f (read more)

20 Under 40: Marcus Magyar

Photo: N/A, License: N/A, Created: 2016:11:14 13:25:24

As an advisor at CAPTRUST Financial Advisors, Marcus N. Magyar, CFP, 30, provides comprehensive wealth management and investment portfolio services to business owners, executives, families and high-net worth individuals. His multi-disciplinary team of pro (read more)

20 Under 40: Heather Davis

Photo: N/A, License: N/A, Created: 2016:11:10 13:34:44

Heather M. Davis, 33, director of marketing and communication, is responsible for creating, overseeing and implementing a strategic marketing and comprehensive communications plan for The Commonwealth Medical College (TCMC). She is also responsible for pr (read more)

20 Under 40: Alexandria Duffney

Photo: N/A, License: N/A, Created: 2016:11:14 14:24:50

Alexandria Duffney, 30, is competitive by nature and loves a good challenge. These qualities have led her to her position as associate director of graduate admission at Wilkes University. Here she works with prospective students interested in enrolling in (read more)

20 Under 40: John Culkin

Photo: N/A, License: N/A, Created: 2016:11:07 17:18:26

John Culkin’s tenets inform: “Less haste equal more speed; the same boiling water that softens the potato hardens the egg, it is all about what you are made of, not the circumstances surrounding you; and don’t ask someone to walk a mile in your shoes, bef (read more)

20 Under 40: Conor O'Brien

Photo: N/A, License: N/A, Created: 2016:11:14 17:19:58

“What could be worse than getting to the end of your life and realizing you hadn’t lived it,” mused Conor O’Brien.” As co-founder and executive director of the Scranton Fringe Festival, O’Brien, 25, is responsible for leading the development of the overal (read more)

20 Under 40: Jessica Siegfried

Photo: N/A, License: N/A, Created: 2016:11:10 14:12:08

Jessica Siegfried, 38, is senior designer with BlackOut Design Inc., where she is responsible for all creative design at the full-service agency, from traditional branding and print to collateral and front end web design. “I’ve always had an interest in t (read more)

20 Under 40: David Johns

Photo: N/A, License: N/A, Created: 2016:11:08 10:15:37

David Johns’ career path has been shaped by his diverse experiences. As director of structural engineering at Greenman-Pedersen Inc., Moosic, Johns, 39, ensures that his engineering and consultant teams provide clients with their best effort. “We complete (read more)

20 Under 40: Robyn Jones

Photo: N/A, License: N/A, Created: 2016:11:14 12:41:32

Robyn Jones, 38, president of ReferLocal LLC, has learned just as many lessons from her business successes as she’s had from her failures — and she believes it’s important to share that knowledge with her employees. After graduating from American Universi (read more)

20 Under 40: Nisha Arora

Photo: N/A, License: N/A, Created: 2016:11:14 10:02:06

Nisha Arora, 36, tries to be the best version of herself every day. As general counsel for ERA One Source Realty Inc., she realized she cannot control other’s behavior so “I try to focus on myself and how I can be better,” she explained. Arora’s responsib (read more)

20 Under 40: Justin Sandy

Photo: N/A, License: N/A, Created: 2016:11:10 14:59:27

Starting at a young age in Hazleton, Justin C. Sandy, 33, found a passion for running. He became a member then a coach for Misericordia University’s cross country and track and field programs. “It was at Misericordia that I also garnered the profound sati (read more)

20 Under 40: Dr. Ariane Conaboy

Photo: N/A, License: N/A, Created: 2016:11:16 09:38:07

As a doctor of internal medicine at Physicians Health Alliance, Dr. Ariane M. Conaboy, 34, realizes the importance of human life and how fragile it can be at times. Conaboy graduated from Scranton Prep and the University of Scranton with a double major in (read more)

Find us on Facebook!

Photo: N/A, License: N/A

"Like" us on Facebook for all of the latest news! (read more)

Follow us on Twitter!

Photo: N/A, License: N/A

Follow us for constant updates! (read more)

Article Tools

Font size
+
Share This
EmailFacebookTwitter

Photo: CIT's Voice of the Middle Market, License: N/A

In addition to their anemic assessments of both economies, middle market leaders face a series of specific challenges ahead. This not only includes continued economic uncertainty within the U.S. and globally, but also tax increases, government regulations, compliance with the Affordable Care Act and hiring and retaining employees.

On Oct. 11, CIT, a bank holding company, released its report, Voice of the Middle Market: Perspectives from the Heart of the U.S. Economy. The following is excerpted from the report:
While many middle market executives (middle-market companies or midmarket companies are those with revenues generally between $10 million and $1 billion) are optimistic about where their companies are right now, only a minority believe the U.S. economy is doing well today and that the global economy is even weaker.
In addition to their anemic assessments of both economies, middle market leaders face a series of specific challenges ahead. This not only includes continued economic uncertainty within the U.S. and globally, but also tax increases, government regulations, compliance with the Affordable Care Act and hiring and retaining employees. Most are anticipating interest rates to rise, with a majority saying higher rates will negatively impact their business.
These concerns aside, many middle market executives believe the sector is positioned for growth over the next year. This will come through a combination of horizontal growth, vertical growth and diversification, such as increasing the range of products and services offered in current markets, as well as expanding into adjacent markets.
Policymakers and their current legislative agenda create hurdles for the middle market, too. Middle market leaders disapprove of Congress’ job performance.
Moreover, contrary to their own opinions about how the middle market bolsters the U.S. economy, few think Congress recognizes the impact middle market companies have on the U.S. economy. They are also bracing themselves from the impact that select legislative initiatives may have, not just on their own businesses, but also on the economic stability of their customer base.
In particular, the majority of middle market executives report that their companies are in a strong position today (60 percent). This is true across revenue categories, with very few describing the current state of their company as weak or very weak.
There is renewed optimism this year, with 55 percent saying they are better off today than compared to a year ago. Thirty percent feel they are in the same place, while the remaining 15 percent say they are worse off.
Most believe the middle market has a major impact on the U.S. economy, with about three in four holding this opinion (74 percent). This is up six points from 2012, revealing that middle market executives are even more likely to believe that their companies have a strong connection with the health and strength of the U.S. economy than they were a year ago.
Still, only a minority believe the U.S. economy is doing well right now, and they believe the global economy is even weaker. However, there is optimism much closer to home, with a sizeable minority describing their local economy as strong. Middle market leaders are five times more likely to say their local economy is doing well than they are to offer the same rating of the global economy (36 percent vs. 7 percent). Their view of the U.S. economy falls along this continuum, albeit more closely aligned with their perspective on the global economy.
Importantly, middle market executives have confidence not only in their own companies, but also in the U.S. economy. As such, while their current assessment of the state of the U.S. economy is unfavorable, with only 15 percent describing it as strong, many expect progress over the next year. Half say the U.S. economy will be stronger 12 months from now (51 percent). The rest split between saying there will be no change in a year (33 percent) or that the U.S. economy will, in fact, be weaker (16 percent).
Middle market executives see many challenges ahead. Most are worried about continued economic uncertainty within the U.S. and globally (81 percent and 70 percent, respectively). There are also concerns about tax increases (74 percent), compliance with the Affordable Care Act (70 percent) and compliance with government regulations (66 percent). Talent management — both hiring and retaining talent — also remains a challenge for the majority of those surveyed. Sixty percent say they are concerned about their ability to hire top talent, and 59 percent are concerned about their ability to retain top talent.
Middle market executives are most likely to say their hiring is constrained by current economic conditions.
The second most common reason hiring proves difficult is the quality of the applicant pool. In addition to challenges related to hiring top talent, almost half experience difficulties when trying to retain top talent (47 percent). Notwithstanding challenges related to hiring and retaining employees, 46 percent anticipate an increase in the size of their workforce in the coming year.
Thinking about the current legislative agenda, middle market executives are most likely to say that tax reform, balancing the budget and health-care reform will significantly impact their businesses. They also expect sequestration and immigration reform to impact them, albeit to a lesser extent. Middle market executives were asked about the effect of these same issues on the economic stability of their customer base, as well. Half, if not more, believe balancing the budget, tax reform and immigration reform will positively impact their customers. Conversely, many expect the Affordable Care Act and sequestration to negatively impact the economic stability of their customers.

We welcome user discussion on our site, under the following guidelines:

To comment you must first create a profile and sign-in with a verified DISQUS account or social network ID. Sign up here.

Comments in violation of the rules will be denied, and repeat violators will be banned. Please help police the community by flagging offensive comments for our moderators to review. By posting a comment, you agree to our full terms and conditions. Click here to read terms and conditions.