Bloomberg March 25, 2018 07:49:48The top 1,000 companies in the U.S. are no longer able to be considered the “No. 1, or the No. 2,” of the economy, according to a new study from McKinsey Consulting.
The McKinsey report on the state of the American economy, which was released on Thursday, found that the top 200 companies now account for around half of the nation’s GDP and more than a quarter of its gross domestic product.
At the same time, the top 500 companies are experiencing a contraction in their share of the overall economy.
McKinsey analysts surveyed more than 2,500 U.M. CEOs in 2017, finding that CEOs of the top 250 companies are seeing a contraction of 11.6% in revenue and 6.2% in earnings, a decline that has been driven by shrinking sales.
While some of the biggest firms have seen their sales fall in recent years, they’ve still seen revenue grow by around 3% a year over the past five years.
“For CEOs who are in the top 1% of the U., that’s not a sustainable future,” said Doug Sinder, the chief executive of Sinder Strategies, a firm that specializes in measuring performance and hiring trends.
For the top 300 companies, revenue growth has slowed to 2.3% in the past three years.
“We are seeing the CEOs of companies with 1,300 employees or more say they will not be able to deliver the growth and innovation that they had in the first few years,” Sinder said.
But the biggest losers among the top 50 companies are the health care and insurance companies, which are seeing revenue decline by 2.5% over the last five years, according the McKinsey study.
Many of the health companies have already closed and are going to be shedding jobs as they struggle to meet their costs.
That has pushed up costs for everyone, not just CEOs, who now have to find new ways to generate more revenue.
“The big healthcare companies are not going to survive.
They’re going to have to make changes in order to stay in business,” said Mark Zandi, chief economist at Moody’s Analytics.
And some of them, including Anthem Inc., have had to lay off workers to keep up with the costs of the company’s $13 billion merger with UnitedHealth Group Inc.
Zandi noted that other companies are going through similar struggles as well.
For example, Cigna Inc., the biggest U.K. insurer, announced it will reduce employees from 1.7 million to 1.1 million by the end of 2021.
Some of these companies will continue to struggle as their profits continue to decline.
“They may not survive as long as we would like to see them survive,” Zandi said.