Middle market shows first quarter of spending growth since onset of COVID-19 in latest trends report from AvidXchange
CHARLOTTE, N.C. (April 1, 2021) — AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, today released the second report in its Middle Market Spending Trends series based on data captured from the 12 million payments processed annually through the AvidPay Network.
The latest research shows that overall spending by middle market companies increased six percent in Q4 2020 compared to the same quarter in 2019 – the first quarter of positive growth since the onset of COVID-19. This growth was preceded by a flat quarter in Q3 2020 when the middle market initially took a turn toward recovery. Q4 2020 also marked the highest growth in spending levels of any quarter last year, even surpassing pre-pandemic growth in Q1 2020.
Looking closely at where the middle market is investing, spending on finance and insurance has continued to increase rapidly in comparison to other industries, reaffirming financial services’ critical role in supporting growth and maintaining operations. Technology spending also continues to increase as leaders invest in new solutions and tools to operate more efficiently and support a hybrid workforce for the foreseeable future. Several industries that were previously in decline transitioned to positive percentages in this most recent report, including construction; arts, entertainment & recreation; and professional, scientific & technical services.
“Middle market businesses employ roughly 48 million people and represent one-third of private sector GDP, making them a critical driver of the U.S. economy,” said Dan Drees, Chief Growth Officer at AvidXchange. “Our data shows that the middle market has adjusted to new conditions and addressed changing customer needs by continuing to invest in areas like digital transformation to find new growth opportunities.”
“We experienced our challenges last year, like all companies, but this past quarter was really a turning point,” said Billy Edwards, Chief Financial Officer at Ross Management Services, an AvidXchange customer in the real estate industry. “Looking ahead, we’re feeling optimistic about what’s to come and the potential for growth that technology helps create for our business.”
AvidXchange’s Middle Market Spending Trends report is based on customer spending data across the AvidPay Network. As the largest payments network for the middle market, the network allows businesses to make payments more efficiently and cost-effectively by transitioning suppliers to electronic options like virtual card and AvidPay Direct (APD). Offering services including maintaining supplier payment conditions and fielding calls on outstanding invoices, the AvidPay Network allows AP teams to focus on more strategic initiatives that support future growth, rather than printing and mailing paper checks.
To learn more, read Middle Market Spending Trends.
AvidXchange is the industry leader in automating invoice and payment processes for mid-market businesses. With 1,500 employees supporting 6,000 customers across North America, AvidXchange processes over $140 billion transactions annually with more than 680,000 suppliers paid through its network. To learn more about how AvidXchange is transforming the way companies pay their bills, visit www.AvidXchange.com.