With the economy evolving rapidly, many job-creating middle-market companies are adjusting their strategies to seize new opportunities and position themselves for growth. Industry leaders will gather for a panel discussion on how they are repositioning their firms at “Shifting Landscapes: How Middle-Market Leaders Are Preparing for Change,” a live event presented by Crain’s Content Studio and Citizens on March 12, from 8:30 to 10 a.m. at the New York Athletic Club.
The event will unveil key findings from the soon-to-be-released Citizens Middle Market Business Challenges Survey. Despite ongoing macroeconomic uncertainty and challenges such as inflation and declining consumer spending, middle-market leaders are preparing to make crucial investments in 2025, the study found. In particular, middle-market companies are increasingly turning to technology investments to navigate volatility while driving growth.
A discussion of the survey’s findings, moderated by Crain’s New York Business Publisher and Executive Editor Fred Gabriel, will provide diverse perspectives to help business leaders navigate macroeconomic uncertainty and make informed decisions on hiring and investment strategies.
Featured panelists include Citizens’ Chairman and CEO Bruce Van Saun; Rebecca O’Connell, New York City Metro Market President for Citizens; Cecilia Kushner, Chief Strategy Officer of the New York City Economic Development Corporation; Rachel Mattes Greenberg, Head of Sustainability at Citizens; and David C. Chung, Founder & CEO of iLABS.
Businesses have concerns, but are planning for modest growth and expansion
Middle-market companies generate nearly one-third of the nation’s GDP and account for 30% of U.S. jobs, according to the National Center for the Middle Market. New York City is home to more firms of this size than any other metro area, collectively employing more than 50 million workers. Many of these firms are planning for growth, fueled by an ongoing expansion of the private capital ecosystem.
That growth picked up towards the end of last year. Q4 2024 saw modest business expansion, according to the Citizens Business Conditions Index, a separate study. The index rose to 51.0 in the final quarter of 2024, driven by solid corporate revenue trends and continued strength in the service sector. This modest growth signaled hope for a big 2025, but expectations have been tempered to start the year due to consistent macroeconomic concerns.
AI’s role in the middle market
Artificial intelligence, in particular, is creating new opportunities for middle-market companies. Citizens’ 2025 survey on AI in midsize U.S. companies found that CFOs are increasingly responsible for championing and implementing AI in financial processes. Eight in 10 CFOs report that they are leading AI adoption in their departments, and budgets for AI investments are expected to rise.
The top use cases include payment protection and fraud detection. A significant 63% of CFOs say AI has improved payment automation, while 60% report that AI has enhanced fraud detection efforts. Private equity firms are also integrating AI into portfolio management. However, concerns remain—many CFOs and PE firms cite legal risks as a growing issue in AI adoption.
Strengthening supply chains and enhancing financial flexibility
Improved corporate supply chains are also creating a more stable environment for middle-market firms. As many companies diversify and strengthen their supply chains, they are increasingly turning to supply chain financing to manage payables and enhance working capital.
In an unpredictable marketplace—where factors such as globalization and trade barriers impact operations—having access to financing allows middle-market companies to seize opportunities while maintaining sufficient inventory and cash reserves to protect their financial stability.
Go to www.crainsnewyork.com/middlemarket to register for the event.
