Heading into 2015, midsize businesses are well-positioned to be a
driving force of our nation’s economy. A majority of midsize business
owners are optimistic about the economy and plan to make key investments
to drive growth for their companies, including operations, technology,
new products and services, adding staff, and expanding into new markets,
according to The
Hartford’s 2014 Midsize Business Monitor.
The inaugural survey found that 66 percent of midsize business owners
and C-level executives are optimistic that the national economy will
strengthen in the next six months. As evidence of their optimism, these
midsize businesses are likely to make investments in the following areas
in 2015:
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Technology (88 percent)
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Operations (87 percent)
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Additional staff (74 percent)
A majority of midsize businesses are also looking at growth
opportunities in 2015:
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76 percent are likely to provide a new product or service offering
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70 percent are likely to expand into new customer segments
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61 percent are likely to expand into new geographies
“Midsize businesses are vital to the U.S. economy, fueling growth as
both customers of and suppliers to smaller and larger businesses,” said
David Carter, senior vice president of Middle Market insurance at The
Hartford. “The investment and expansion plans of businesses in this
sector create a ripple effect of opportunity for companies of all sizes
that provide the products and services they will need.”
Talent is Needed, But a Lack of Qualified Candidates Hinders Hiring
Eighty-five percent of businesses hired employees in the prior 12
months, and a majority of businesses (74 percent) plan to add staff in
2015. However, a lack of access to qualified talent may challenge hiring
plans. While 45 percent of businesses made all the hires they had wanted
to in the prior 12 months, 40 percent said they hired fewer than
desired. The most common reason cited by those respondents was a lack of
qualified talent (61 percent).
Technology Use: Mobile Devices, Cloud Computing, BYOD
Midsize businesses are embracing technologies in multiple aspects of
their operations, and many are considering some of today’s most
innovative technologies in the near future. The majority of businesses
(71 percent) are currently using employer-owned mobile devices, 53
percent use cloud computing, and 53 percent are using Internet telephone
service, according to the survey.
More than one-third of those businesses surveyed allow employees to
access company systems using their personally owned technology device,
also known as Bring Your Own Device (BYOD). Nearly a quarter of
businesses are currently using big data technologies, and an additional
42 percent are at least somewhat likely to use them in the next three
years.
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Technology
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Currently using
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Considering in the next three years
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Mobile devices (employer-owned)
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71 percent
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18 percent
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Cloud computing
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53 percent
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35 percent
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Internet telephone service
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53 percent
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29 percent
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Employee devices accessing company systems (BYOD)
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36 percent
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27 percent
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Big data technologies
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24 percent
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42 percent
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Telematics
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17 percent
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27 percent
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In the future, the technology landscape for midsize businesses may be
quite different than it is today. Many are considering the potential use
of new, cutting edge technologies. For example:
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36 percent are looking at Automatic Identification and Data Capture
(AIDC) technologies;
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35 percent are considering 3-D printing;
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35 percent are thinking about using wearable technology;
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13 percent are considering drones; and
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12 percent are considering autonomous/driverless vehicles.
“The adoption of these newer technologies is closer than many may
realize. As midsize businesses pursue growth and integrate new
technologies into their operations, the insurance industry will need to
be ready to address these new types of risk,” added Carter.
The Hartford’s Middle Market segment provides comprehensive, multiline
commercial insurance coverage for midsize and larger businesses,
associations and organizations. Coverage offerings include property,
general liability, workers’ compensation, commercial auto, umbrella
liability, management and professional liability and marine protection,
as well as specialty coverages for target industry segments, including
technology, life sciences, construction, manufacturing and private
education.
Survey Methodology
The Hartford’s 2014 Midsize Business Monitor was fielded from
September 16-23, 2014. More than 500 owners and C-level executives of
midsize businesses headquartered in the U.S. with annual sales or
revenues of $10 million to $1 billion participated in the online survey,
which had a margin of error of +/- 4.3 percent at the 95 percent
confidence level.
For more information about these survey results, visit www.thehartford.com/midsizemonitor.
For more news about The Hartford, visit: http://newsroom.thehartford.com/.
About The Hartford
With more than 200 years of expertise, The
Hartford (NYSE: HIG) is a leader in property and casualty insurance,
group benefits and mutual funds. The company is widely recognized for
its service excellence, sustainability practices, trust and integrity.
More information on the company and its financial performance is
available at www.thehartford.com.
Join us on Facebook at www.facebook.com/TheHartford.
Follow us on Twitter at www.twitter.com/TheHartford.
HIG-M
Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of
1995. We caution investors that these forward-looking statements are not
guarantees of future performance, and actual results may differ
materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include those discussed in our 2013 Annual
Report on Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission. We
assume no obligation to update this release, which speaks as of the date
issued.
From time to time, The Hartford may use its website to disseminate
material company information. Financial and other important information
regarding The Hartford is routinely accessible through and posted on our
website at http://ir.thehartford.com.
In addition, you may automatically receive email alerts and other
information about The Hartford when you enroll your email address by
visiting the “Email Alerts” section at http://ir.thehartford.com.
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