According to the 2022 Middle Market Survey, the top four categories in which business owners are investing in their companies are Talent and Recruitment, Process Improvement, Equipment and Technology.
These four investment categories are significant because they are the essential, interdependent components that create a strong foundation for a successful business in today’s economy. None of these investment areas can perform optimally without the others.
Technology is the overarching component because it is part of new equipment, it enables staff to be more efficient, and from that, it improves business processes. Of course, it is not only technology that must be considered when making investment decisions. What must also be taken into consideration is which aspects of the business’ operations can be improved by investment to increase the bottom line.
As you may have expected, the prior Middle Market Survey taken at the end of 2020 at the height of the pandemic listed the same four categories as the top investment priorities of business owners. There is one significant difference: In 2020, the top priority for investment was Process Improvement while, in 2022, the top investment priority is Talent and Recruitment. This difference reflects the problems created by the Great Resignation and the scarcity of qualified candidates. It means that businesses are now more focused on the investments needed to recruit and retain qualified staffers such as wage increases, better benefits packages and the cost of bring on a new hire.
The 2022 Middle Market Survey shows that in today’s pandemic driven, ever-changing business environment, middle market business owners are investing in the most essential elements of their companies that drive an increase in the bottom line.
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