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The Economic Outlook

64% of companies surveyed believed the economy will improve in

2013, while only 14% believed the economy would not.

Question: What are your expectations for the economy in 2013?

The Economic Outlook

Smaller middle market companies tended to be more optimistic about

the economy than the larger ones.

Question: What are your expectations for the economy in 2013?

The Economic Outlook

92% of companies surveyed expect to an increase in revenues in 2013.

Almost 40% of companies expect to see double digit growth.

Question: What are expectations for revenue growth at your company in 2013

The Economic Outlook

50% of companies between $20 and $49.9 million expect to see double

digit growth in 2013.

Question: What are expectations for revenue growth at your company in 2013

The Economic Outlook

Almost half (45.4%) the companies surveyed by MME believed

revenue growth will come from sales of existing products (or services)

to new customers.

Question: What will likely to be the primary driver for increasing revenues in 2013 at your

company?

The Economic Outlook

However, larger companies ($100 million +) will rely on new products

and offerings significantly more the companies under $100 million

Question: What will likely to be the primary driver for increasing revenues in 2013 at your

company?

The Economic Outlook

60% of companies believed that their sales pipeline was higher than at

this time last year.

Question: Which of the following statements best reflects your company’s current sales

pipeline?

The Economic Outlook

In general, companies under $100 million in revenues felt they had a

stronger sales pipeline that companies over $100 million

Question: Which of the following statements best reflects your company’s current sales

pipeline?

The Economic Outlook

Half the companies surveyed believed their backlog was the same as

last year. Only 14% said their backlog was lower than a year ago.

Question: Which of the following statements best reflects your company’s current

backlog?

The Economic Outlook

Companies under $175 million in revenues have seen more of an

increase to their backlog than companies over $175 million.

Question: Which of the following statements best reflects your company’s current

backlog?

Hiring and Employment

Over 60% of companies advised that they will be hiring additional

employees.

Question: Which of the following statements would apply to your company’s hiring

strategy in 2013?

Hiring and Employment

Hiring strategies are similar by company size, as about half plan to

make a modest number of hires

Question: Which of the following statements would apply to your company’s hiring

strategy in 2013?

Hiring and Employment

The majority of companies (62.8%) plan to add headcount within sales

& marketing.

Question: If your company is planning on adding to its headcount in the coming year,

please indicate in which of the following functional areas it will be creating new job

opportunities.

Hiring and Employment

All companies, regardless of size, indicated that the primary area they

would be hiring is within the sales & marketing function

Question: If your company is planning on adding to its headcount in the coming year,

please indicate in which of the following functional areas it will be creating new job

opportunities.

Drivers For Growth

Slightly over half the companies surveyed felt some level of need to

secure addition investment or financing in order to meet their growth

objectives in the coming year.

Question: How important will it be for your company to secure addition investment or

financing in order to meet its growth objectives in the coming year?

Drivers For Growth

Not surprisingly, smaller companies (under $50 million) indicated a

stronger need for addition financing and investment than the larger

ones.

Question: How important will it be for your company to secure addition investment or

financing in order to meet its growth objectives in the coming year?

Drivers For Growth

Sales & marketing and a healthy economy were viewed as the two

most important criteria by companies to achieve their targeted

revenue growth in 2013 .

Question: Which of the following will be the most critical element in order for your

company to achieve your targeted revenue growth in 2013?

Drivers For Growth

Companies under $50 million emphasize sales and marketing as their

key to achieve their growth targets, while the larger companies put a

greater emphasis on a healthy economy.

Question: Which of the following will be the most critical element in order for your

company to achieve your targeted revenue growth in 2013?

Drivers For Growth

Less than half the companies agreed that they had the right IT systems

and infrastructure in place for it to achieve its growth targets for the

next 3 years

Question: Your company has the right IT systems and infrastructure in place for it to

achieve its growth targets for the next 3 years.

Drivers For Growth

Respondents from companies over $175 million are more inclined to

believe their company has the right IT systems and infrastructure in

place for it to achieve its growth targets for the next 3 years.

Question: Your company has the right IT systems and infrastructure in place for it to

achieve its growth targets for the next 3 years.

Drivers For Growth

52% of survey respondents believed their company has the proper

financial reporting capabilities , while 33% believe the do not.

Question: Your company's has the proper financial reporting capabilities in place for it

to achieve its growth targets for the next 3 years.

16.4%

35.5%

14.8%

24.0%

9.3%

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Drivers For Growth

Respondents from companies under $100 million tended to be more

concerned with their proper financial reporting capabilities than

respondents from companies between $100 and $150 million

Question: Your company's has the proper financial reporting capabilities in place for it

to achieve its growth targets for the next 3 years.

Drivers For Growth

Almost 69% of survey participants believed that their company is

innovative and is developing new products that will help it achieve its

growth targets for the next three years

Question: Your company is innovative and is developing new products that will help it

achieve its growth targets for the next three years .

29.0%

39.9%

21.3%

8.2%

1.6%

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Drivers For Growth

In general, survey participants at smaller companies believed that their

company was more innovative than their counterparts at larger

companies.

Question: Your company is innovative and is developing new products that will help it

achieve its growth targets for the next three years.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million $175 million to $249.9 million

28%

43%

28%

0%

49%

30%

41%

0%

19%

28%

19%

29%

4%0%

13%

50%

Strongly agree

Agree

Neutral

Disagree

Drivers For Growth

Almost 61% of survey participants believe their company has the

proper investment and financial backing for it to achieve its growth

targets for the next three years.

Question: Your company has the proper investment and financial backing for it to

achieve its growth targets for the next three years.

16.9%

43.7%

24.0%

9.3%

6.0%

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Drivers For Growth

Survey respondents from companies with over $100 million in revenues

felt more secure in their financing than those at the smaller companies.

Question: : Your company has the proper investment and financial backing for it to

achieve its growth targets for the next three years.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million $175 million to $249.9 million

9%

20%

28%

36%

41%

53%

38%

50%

24% 25%

28%

14%16%

3% 0% 0%

Strongly agree

Agree

Neutral

Disagree

Drivers For Growth

Over 45% of survey participants believed new regulations will not

hinder your company’s ability to achieve its growth targets for the next

3 years.

Question: New regulations (i.e. tax code, healthcare) will not hinder your company’s

ability to achieve its growth targets for the next 3 years.

Drivers For Growth

Survey participants from smaller companies appear more concerned

with new regulations (i.e. tax code, healthcare) than larger ones.

Question: : New regulations (i.e. tax code, healthcare) will not hinder your company’s

ability to achieve its growth targets for the next 3 years.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million $175 million to $249.9 million

3%0%

13%

7%

33% 33%

16%

50%

29%

48%

34%

29%26%

20%

31%

7%

Strongly agree

Agree

Neutral

Disagree

Drivers For Growth

Less than half the survey participants agreed that their company has

the right sales and marketing functions in place for it to achieve its

growth targets for the next 3 years.

Question: Your company has the right sales and marketing functions in place for it to

achieve its growth targets for the next 3 years.

Drivers For Growth

Survey participants level of agreement on sales & marketing appears

relatively consistent regardless of company size.

Question: : Your company has the right sales and marketing functions in place for it to

achieve its growth targets for the next 3 years.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million $175 million to $249.9 million

4%

15%13%

7%

38%

45%44%

29%29%33%

38%43%

25%

8% 6%

21%

Strongly agree

Agree

Neutral

Disagree

Investment For Growth

Over 70% of survey participants indicated that their company would be

making at least a moderate investment in their IT systems and

infrastructure.

Question: Please indicate what level of investment your company will be making in IT

systems and infrastructure.

Drivers For Growth

Regardless of company size, plans to invest in IT systems and

infrastructure appear to be similar.

Question: : Please indicate what level of investment your company will be making in IT

systems and infrastructure.

Investment For Growth

Most survey participants do not believe their company will be making a

significant investment in the company’s business processes or model.

Question: Please indicate what level of investment your company will be making in

business processes/business model.

Drivers For Growth

The larger the company, the more inclined they are to be making

significant or moderate investment in their business processes/business

model.

Question: : Please indicate what level of investment your company will be making in

business processes/business model.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million

$175 million to $249.9 million

2% 3%

9%

21%23%

43%41%

57%60%

48%

31%

14%15%

8%

19%

7%

Significant investment

Moderate investment

Minimal investment

No investment

Investment For Growth

The majority of survey participants indicated that their company will

only be making a minimal investment in financial reporting capabilities.

Question: Please indicate what level of investment your company will be making in

financial reporting.

6.6%

21.3%

53.0%

19.1% Significant investment

Moderate investment

Minimal investment

No investment

Drivers For Growth

Companies with revenues of over $175 million, appear to be more

inclined to be making a moderate or significant investment in financial

reporting.

Question: : Please indicate what level of investment your company will be making in

financial reporting.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million

$175 million to $249.9 million

6% 5% 6%

14%

22% 20%19%

29%

52%

65%

50%

36%

21%

10%

25%

21%

Significant investment

Moderate investment

Minimal investment

No investment

Investment For Growth

Over 61% of the survey participants stated that their company would be

making either significant or moderate investments in R&D and new

products.

Question: Please indicate what level of investment your company will be making in

research & development/new products.

Drivers For Growth

The level of investment in R&D and new products is consistent across all

company sizes.

Question: : Please indicate what level of investment your company will be making in

research & development/new products.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million

$175 million to $249.9 million

26%

40% 41%

21%

33%

25%

19%

29%

33%

28%

31%36%

8% 8%9%

14%

Significant investment

Moderate investment

Minimal investment

No investment

Investment For Growth

Enhancing sales & marketing capabilities is clearly viewed as a key

driver for middle market firms. 51% of survey respondents indicated

their company will be making a significant or moderate investment.

Question: Please indicate what level of investment your company will be making in

Sales and marketing.

Drivers For Growth

The level of investment in sales & marketing is consistent across all

company sizes.

Question: : Please indicate what level of investment your company will be making in

Sales and marketing.

Investment For Growth

Approximately 41$ of survey participants indicated that their firm would

be making either a significant or moderate investment in talent

acquisition.

Question: Please indicate what level of investment your company will be making in

talent acquisition.

Drivers For Growth

As with sales & marketing, the level of investment in talent acquisition is

consistent across all company sizes.

•Question: : Please indicate what level of investment your company will be making in

talent acquisition.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million

$175 million to $249.9 million

19%

13%

19%14%

22%

25%

19%

57%

32%

50%

41%

7%

28%

13%

22%21%

Significant investment

Moderate investment

Minimal investment

No investment

Investment For Growth

Less than 20% of survey participants indicated that their company

would be making a significant or moderate investment in the supply

chain. 43% said there company would be making no investment.

Question: Please indicate what level of investment your company will be making in

Supply chain/logistics.

4.4%

15.3%

37.2%

43.2%

Significant investment

Moderate investment

Minimal investment

No investment

Drivers For Growth

As with sales & marketing, the level of investment in talent acquisition is

consistent across all company sizes.

Question: : Please indicate what level of investment your company will be making in

Supply chain/logistics.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$20 million to $49.9 million $50 million to $99.9million $100 million to $174.9 million

$175 million to $249.9 million

0%

13%

6% 7%9%

25%

9%

43%

37%

33%

47%

29%

54%

30%

38%

21%

Significant investment

Moderate investment

Minimal investment

No investment

Investment For Growth

Less than 7% of survey participants said their company would make a

significant investment in facilities & machinery. The majority (48%)

believed their company would only make a minimum investment.

Question: Please indicate what level of investment your company will be making in

facilities & machinery.

Drivers For Growth

Companies in the $100 to $175 million range are the most likely to

make a significant investment in facilities & machinery.

Question: : Please indicate what level of investment your company will be making in

facilities & machinery.

Investment For Growth

While outsourcing is not viewed as a critical component to growth

strategy, 42% of survey respondents view outsourcing as somewhat

important. However, almost 51% view as not important.

Question: How critical to your company’s growth strategy is outsourcing business

functions to third party vendors?

Investment For Growth

According to survey respondents, payroll (42.6%) and IT infrastructure

(32.8%) are the most common functions currently outsourced to a third

party vendor.

Question: Does your company currently outsource any of the following business

functions

* The pct. of respondents whose companies currently outsource each function

Investment For Growth

According to survey respondents, IT infrastructure (24.0%), apps

development (21.9%), and payroll (19.7%) are the most common

functions to be outsourced to a third party vendor.

Question: Please select any business functions that your company may be planning to

outsource to a third party vendor in the next three years.

8.7%

8.7%

8.7%

19.7%

21.9%

24.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

HR

Accounting

Sales & marketing

Payroll

Apps Development

IT infrastructure

* The pct. of respondents whose companies plan to outsource each function