The so-called ‘Critical Middle’ is a small sub-section of companies which have an outsized impact on UK economic outcomes. 

Before Christmas, NatWest published a report on the key role of such mid-market companies (MMCs) in driving prosperity.

Such firms (turning over £25-£500 million) have been identified as a critical part of the UK economy. A £1.3 trillion mid-market. Yet they had not been officially grouped - until now.

Put simply, the firms - which authors have now dubbed ‘The Critical Middle’ - represent 0.5% of UK companies. Yet they account for 26% of employment and 28% of GVA.

That means £1.3 trillion of turnover. £420 billion of Gross Value Added. And 7.3 million jobs. 

Taken together, it presents a clear opportunity for growth. The report’s researchers contend that just 1% would add £115bn to UK business turnover by 2030.

So what’s holding these dynamos back?

There are several barriers. And two of the big challenges facing MMCs align closely with priorities of the East Midlands Chamber’s own vision for our region.

Infrastructure and skills (again)

The NatWest report points out that, because MMCs are typically regionally-based, they are disproportionately impacted by weak infrastructure and planning restrictions.

This aligns with the second strand of the Chamber’s Manifesto For Growth.Its policy ask of Government is simple: to give business long-term certainty by closing the £1.26bn investment gap on improvements to road, rail, and digital infrastructure in the East Midlands.

Insufficient access to skills is another barrier identified in the NatWest report. It notes that MMCs struggle to fill vacancies at both entry and specialist level - and that the problem is getting worse. 

This also reflects what myself and Chamber colleagues presented at Westminster during the Manifesto launch a year ago - that skills reform is essential for addressing the realities of today’s workforce. The Manifesto notes that recruiting and retaining employees is one of the major challenges East Midlands businesses. 

Around two-thirds of Chamber members consistently report difficulties in filling vacancies. The issue is most acute among manufacturers. As one manufacturing MMC told the NatWest report:

MMCs are a neglected part of the economy . . . our sector tends to be without a voice.

Building an identity

As a communications professional, I was struck by another of the barriers to growth. This was the idea of such a significant sector being ‘without a voice’. The report author’s believed that lack of recognition stems from the Critical Middle not being considered a distinct segment within the economy by the government, private sector, industry bodies, or even MMCs themselves.

It struck me as one of the most interesting elements of NatWest report. Without being grouped together and given a badge, it’s easy for any group’s contribution to be overlooked. Yet the opportunity is there. As Irene Graham OBE, CEO of the ScaleUp Institute, says in the report:

We estimate that there are nearly 8,000 scaleups within the midmarket who are highly innovative and international. Tailoring solutions to the needs of our mid-market scaleups to foster their further growth makes sound economic sense.

At 1284 Communications, we think that it makes sound economic sense too. It’s why last year we reconfigured its own packages - including launching a package targeted specifically at ambitious firms at the smaller end of the MMC market.

Our instinct (in part inspired by my experience judging the Chamber’s Derbyshire Business Awards) was that East Midlands companies turning over between £3m and £50m had some fantastic stories to tell.

Accelerating growth

Since launching in the summer of 2020, we have worked with many, many innovative high-growth startups. Yet these young businesses are often well-served and represented - as are the PLCs at the other end of the scale. What about those in between?

The result is our new Growth Accelerator package. It provides a custom selection of services for firms which are ready to professionalise their profile by outsourcing their PR and comms. Firms that are creating economic growth at the early scale-up stage.

Our package sees 1284 team members work alongside in-house MMC marketing teams to step up execution of PR and comms. As such, it works for East Midlands-based businesses that are:

• Stakeholder engagement needed to maintain relationships with key business partners and investors
• PR campaigns, including press releases and media outreach, to promote growth and achievement
• Writing proposals for growth grant funding and leading industry award nominations
• Building narrative through corporate comms tools, including internal newsletters, executive speeches, and brand messaging
• Engaging with trade press, industry bodies, and Government departments
• Change communications to help growing organisations navigate transformation.

The Growth Accelerator package offers a comprehensive suite of services to support emerging MMC businesses in their next phase of growth. Each is a tailored package drawn from the 12 core services that underpin 1284's industry award-winning work with regional industry. And it’s drawn from our many years of experience working with industry and local government through our time in regional journalism.

But we can’t guarantee that we will lay rail tracks and charging points, transform skills supply, and build the digital infrastructure of the future.

We’ll leave that bit to the Chamber, NatWest and the Government.