Three out of four executives at mid-market companies with annual revenues of $50 million to $1 billion plan to maintain or boost their long-term investment spending, according to a survey by Deloitte.
In addition, 61.2% expect their revenue to grow in the year ahead, and 52.6% foresee their profitability rising.
“Major economic events, such as the downgrading of the U.S. debt rating, the European sovereign debt crisis and the volatility in global equity markets, have reduced optimism about the future of the economy among mid-market enterprises,” said Tom McGee, national managing partner of Deloitte Growth Enterprise Services. “However, the survey results provide compelling insights into what these executives are thinking and doing to maintain a competitive edge for their companies.”
Seventy percent said their investments in automation, technology and strategic hiring have resulted in productivity gains.
As to what types of technology and automation the executives are focusing on, 52% are looking to business process automation, 49% are relying on data analytics and business intelligence and 30% are investing in customer relationship management software.
“Technology is on the mind of most mid-market executives,” McGee said. “While 74% believe globalization is forcing U.S. companies to become more productive to stay competitive, 46% are focused on higher-value customers and getting more revenue per customer. Technology and applications such as data analytics can help businesses better understand customers, operate more efficiently and set themselves apart from the pack.”
Additionally, 44% said their companies plan to hire over the next 12 months.