Umpqua Bank's 2021 Business Barometer: Surging Optimism and Transformational Shifts Position Middle Market Companies for Growth Amid Continued Disruption
By Press Release
Middle Market optimism surges +24 points over pre-pandemic levels: more than 70% of companies embrace continued adaptation with "signi cant" changes to strategy and operations anticipate 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.” Together, small and middle market companies serve as bellwethers for the economy. Middle market businesses alone account for $6 trillion of the U.S. private-sector GDP and provide 44 million jobs. The strength and resiliency of these businesses are critical to economic well being and recovery. Key ndings and highlights from Umpqua Bank's fourth annual survey include: "Signi cant Changes" Made in 2020 Represent Transformational Shifts
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mpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ), released its annual 2021 Business Barometer, an in-depth study into the mood, mindset, and strategic priorities of nearly 1,200 leaders at small and middle market companies across the United States. Despite the heavy toll businesses nationwide faced last year, optimism has now surged past pre-pandemic levels, and many companies report being well positioned for growth in the year ahead. In addition to reporting transformational shifts in operations and strategy over the last year, middle market companies, in particular, are embracing the expectation of continued challenges and the need for ongoing
Not surprisingly, most businesses have made major strategic adjustments in response to the pandemic.
adaptation. And while growth is expected among both small and middle market companies, intense disruptions related to supply chains and competition for workplace talent pose considerable challenges. "Businesses of all sizes made signi cant changes over the past year in response to the pandemic. As a result of increased ef ciencies and diversi cation, 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.
Nearly all middle market companies (96%) and most small businesses (65%) say they've made "signi cant changes" to multiple areas, including supply chains, staf ng models, company culture and vision, brick-and-mortar operations, and products and services. These changes, however, re ect more than temporary pivots to survive. 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. Surging Optimism Paves Way for Growth Positivity around the current state of the economy has roughly doubled since last year, with expectations for overall economic
"Leaders have realized their organizations' capacity to pivot and adapt, and the pandemic has challenged them to think more strategically
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