Bank of America’s first-ever mid-sized business data is now available. The report offers national insights into the perspectives and strategies of medium-sized business owners (MSBOs) and sheds light on the current economic landscape, how they are adapting to economic pivots, employee retention, and more.  

In Metro Detroit, here are some economic trends and insights from Larry Mann, Market Manager, SVP for Bank of America.   

• We are seeing Michigan companies struggle to find workers to fill key open positions. This leads to some companies having to turn down jobs because they don’t have the adequate workforce to fill new opportunities from suppliers.  
• There has been a strong shift to automation and robotics for many companies. Michigan companies that are not embracing this shift in manufacturing worker upgrades are finding themselves being left behind. Capital for many may be the cause for not upgrading. 
• With the capital requirements, constraints, recent down downgrade, and negative affect within the regional bank sector, their ability to lend has been dramatically affected. 
• Despite many challenges, the Michigan entrepreneurial economy grew across key industries and indicators, with small and mid-size business remaining resilient in a post-pandemic world. 
• Many companies are diversifying their product suite. They are finding new, creative ways to continue to grow the business and retain workers. This has led to increased business opportunities in the market and overseas.  
• A protracted work stoppage by the UAW like the one in 2019 increases risks for many mid-sized companies.  

• Economic Outlook: Despite the uncertain economic landscape, MSBOs maintain a positive business outlook, with 75% of them anticipating an increase in revenue over the next 12 months. 
• Top Economic Concerns: Inflation and supply chain issues persistently affect MSBOs, leading to operational adjustments and price increases. According to our findings, 94% of MSBOs confirm that inflation currently impacts their businesses, with 45% opting to raise prices, 37% reevaluating cash flow and spending, 35% increasing employee wages, and 33% reducing business costs. 
• Employee retention and attracting new talent: Among MSBOs experiencing labor shortages, they are raising wages (41%), reducing the products/services offered (37%), and working more hours (36%).  
• Use of AI: 87% of businesses who have adopted digital strategies in the last 12 months plan to utilize automation/AI tools.