The 2023 Mid-Year Middle Market Indicator, conducted by Chubb and the National Center for the Middle Market (NCMM), shows middle market companies thriving, with a record-high three-quarters reporting improved performance despite economic challenges.
This positive trajectory is further substantiated by top-line growth over the past 12 months, overall employment expansion, and a continued push into new domestic markets through the introduction of fresh products and services.
Ben Rockwell, Division President of Chubb Middle Market, commented on the results, stating that the survey’s insights shed light on the challenges and opportunities middle market companies face. This awareness enables Chubb to provide the necessary guidance to navigate these areas effectively.
According to the MMI, 60% of middle market firms found inflation risk to be extremely or very difficult to manage, reflecting a 3% point decrease compared to the 2022 data.
Supply chain risk has also decreased, down 7% points to 43%. Furthermore, 49% of middle market firms indicated that recession risk remains extremely or very difficult to manage, representing an 11% point decrease from the previous study.
Despite these declines, inflation remains a significant concern for businesses. The report shows that 40% of respondents reported a negative impact from inflation in the last six months.
This has affected various aspects of their operations, including increased costs in areas such as commercial construction materials, which are vital for companies involved in post-natural disaster rebuilding efforts.
Michelle McLaughlin, Executive Vice President and Chief Underwriting Officer at Chubb Middle Market, emphasised the need to address these challenges.
She noted that more severe and frequent weather events are impacting clients, and Chubb is working closely with them to ensure they have adequate coverage and robust risk mitigation strategies in place to withstand these economic impacts effectively.
