CardWeb.com’s CardData Reports today features the
Middle Market Power Index: Taking the Global Stage from American Express and Dun & Bradstreet.
This second in the series of reports, analyzing Dun & Bradstreet’s proprietary database of more than 19 million commercially-active U.S. firms, explores the characteristics of U.S. middle market companies (defined as businesses generating between $10 million and $1 billion in revenues) engaged in exporting their products and services. The series of reports is designed to uncover opportunities for middle market companies to expand their customer base and sources of revenue, based on a virtual census of all of the commercially-active businesses in the United States.
The analysis finds firms generally establish themselves domestically before selling abroad. Five percent (5%) of middle market businesses engage in exporting, while significantly more companies (34%) with more than $1 billion in revenue sell internationally. Additionally, the data reveals that the longer middle market companies are in business, the more likely they are to export. Less than 5% of middle market firms in business for less than nine years sell to foreign markets, while more than two-thirds (68%) of middle market companies in business for 25 years or more export their goods or services.
Earlier this year, the U.S. Department of Commerce announced that in 2014, total merchandise exports from all 50 states helped the U.S. achieve the fifth consecutive record-setting year of goods and services exports, which reached $2.35 trillion.
Middle market companies, which today represent less than 1% of all U.S. businesses, account for 29% of all U.S. business revenues and 18% of the firms that export their goods and services, according to the U.S. Census Bureau. That said, the International Trade Administration shows that middle market companies account for just 9% of the value of U.S. exports, showing that while more likely than average to export their goods and services, the value of middle market exports exports lags that of larger firms. Exporting represents a $928 billion opportunity for U.S. mid-sized companies over the next 10 years.
Among the 25 most populous metro areas, middle market companies that export are more likely than the U.S. average to take place in:
• Miami, FL (20%)
• Houston, TX (9%)
• Tampa-St. Petersburg, FL (9%)
• Los Angeles-Long Beach (8%)
Puerto Rico (26%) and the U.S. Virgin Islands (14%) are also significantly more likely than average to have middle market firms engaged in exporting.
The data reveals a fairly consistent percentage of middle market exporters in each state. States with the highest levels of middle market firms engaged in exporting include:
• Florida (10%)
• New Jersey (8%)
States with the lowest levels of middle market exporters include:
• Montana (2%)
• North Dakota (2%)
• South Dakota (2%)
• Oklahoma (2%)
• West Virginia (2%)
• Wyoming (1%)
• Washington D.C. (1%)
• New Mexico (1%)
For data, background and forecasts on Business Spending : Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).