Financial-services firm CIT Group Inc. released the report, “U.S. Middle Market Outlook 2009: Navigating the Credit Crunch,” in March. The study is based on 150 surveys of executives responsible for finance, strategy and business development, or general management at companies in many industries, including energy, health care, retail, manufacturing and consumer goods.

“In the face of one of the most challenging financial crises in generations, middle-market executives remain cautiously optimistic about the market's recovery as well as their own prospects over the next 12 months,” says Jim Hudak, co-head of corporate finance at New York-based CIT.

* A majority of middle-market executives expect their revenues to be stable (23 percent) or to grow (41 percent). Thirty-six percent said their revenues would decline.

* Of those who expect their revenues to grow, 73 percent said they would achieve this growth by improving their operating efficiencies as they manage their cash flow and spending more effectively.

* Thirty one percent of respondents said they would use financing toward working capital needs and put off investments such as equipment (21 percent) and new technology (16 percent).

* About one-third of executives plan to cut capital expenditures, and another third plan to keep them at the same level.

* To cut costs, more than half expect to reduce staff levels, and 38 percent plan to cut back on research and development.

* Fully 40 percent said that changes in the availability of financing would have a negative impact on their business.