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Sales growth slows significantly for U.S. companies
Raleigh, N.C., December 10, 2013—According to the latest data from Sageworks, a financial information company, annual sales growth at privately held companies is the lowest it’s been since 2009. This declining rate of growth may be a discouraging sign for the jobs picture.
• Over 99% of U.S. businesses are privately-held and these companies create approximately 65% of new jobs. A slowdown in the rate of sales growth raises concerns about the hiring plans for U.S. companies.
• The tepid performance from retailers (both large and small) so far this holiday season has been widely discussed, however, according to Sageworks’ data it’s not just retail that is slowing: the rate of sales growth is slowing across most industries (looking at two digit NAICS codes).
• Brian Hamilton, chairman of Sageworks noted, “The sales growth rate of private companies is going down significantly. Looking at the data in context is important; last year, sales growth averaged about 9% across all private companies, now it’s less than 4%, which is a dramatic decrease. We are in the fourth year of an expansionary period. Things have gone well, but private companies have been very overhead-reluctant even before their sales growth slowed, which is concerning for hiring.”
About the Data
Sageworks possesses a proprietary database of privately held company financial statements aggregated by industry. Sageworks aggregates private-company financial statements from accounting firms, banks, and credit unions through a cooperative data model with their clients. The data is segmented and can be queried by 1,400 industry codes, 70 financial metrics, company size and geographic location.
Raleigh, N.C.,-based Sageworks is a financial information company that provides financial analysis and industry benchmarking solutions to accounting firms. Sageworks’ data and applications are used by thousands of banks and accounting firms across North America. Sageworks provides industry data on private companies to U.S. accounting firms at no cost. The company has been named to the Inc. 500 list of the fastest growing privately held companies in the U.S. and to the Deloitte Technology Fast 500.