Umpqua Bank released its 2021 Business Barometer, an in-depth study into the priorities of over 1,000 leaders at small and middle market companies across the United States. Despite downfalls caused by the Coronavirus disease (COVID-19) pandemic, companies report being well positioned for growth in the year ahead.
Middle market companies are embracing the expectation of continued challenges and the need for ongoing adaptation. While growth is expected among both small and middle market companies, supply chain disruptions and the ongoing labor shortage are considerable challenges.
“Businesses of all sizes made significant changes over the past year in response to the pandemic. As a result of increased efficiencies and diversification, many have emerged more optimistic and poised for growth as the economic recovery continues,” said Richard Cabrera, EVP and Head of Middle Market Banking at Umpqua Bank. “Leaders have realized their organizations’ capacity to pivot and adapt, and the pandemic has challenged them to think more strategically and in greater detail about their larger purpose and value to the marketplace. This bodes well for the immediate future and will also make them better prepared to adapt to the next disruption.”
Per PR NewsWire:
- Nearly all middle market companies (96%) and most small businesses (65%) say they’ve made “significant changes” to multiple areas, including supply chains, staffing models, company culture and vision, brick-and-mortar operations, and products and services. According to the report, about half of those surveyed, including 71% of middle market companies, expect to keep most or all of the changes made.
- A majority of middle market (55%) and small (52%) businesses expect economic conditions to improve and for revenue to increase (62% of middle market and 53% of small businesses).
- The state of the commercial real estate sector may also be less dire than commonly assumed, as 47% of middle market companies are looking to expand their real estate footprint. That figure is most pronounced within the manufacturing, and finance and insurance industries.