Trade Show Industry Sees 1.8-percent Growth Uptick in Third Quarter
December 16, 2014
After last quarter, which saw slowing growth in the trade show industry, the third quarter bounced back with the 17th consecutive positive quarter showing, a 1.8-percent year-on-year increase overall, according to the Center for Exhibition Industry Research’s Index Report.
Even so, the growth of the exhibition industry index lagged a bit behind GDP growth for the second straight quarter, in contrast to the previous two quarters (2014Q1 and 2013Q4), where exhibitions grew slightly faster than GDP.
"We are very pleased by the third quarter results and confirm our forecast that the exhibition industry will gain momentum," said CEIR's economist Allen Shaw, Ph.D., chief economist for Global Economic Consulting Associates.
The growth of the CEIR Total Index averaged 1.9 percent during the first three quarters of 2014, just 0.1 percent point shy of the 2.0 percent forecasted for 2014 the year as a whole, as published in the 2014 CEIR Predict Report.
The only metric of the four measured by CEIR that did not see year-on-year growth in the third quarter was real revenues.
The strongest performer was the number of exhibitors, which rose 3.7 percent. Net square feet increased 2.1 percent, whereas professional attendance was up 1.9 percent.
Nominal revenues increased just 1.2 percent year-on-year, weighted down by a moderate decline in consumer goods and retail trade exhibitions. Adjusted for inflation, real revenues declined by 0.5 percent year-on-year, according to CEIR.
The trade show industry saw another big boost last week when more than 2,000 trade show organizers and suppliers were in Los Angeles to take part in three days of networking, education sessions and a bustling showfloor at the 2014 International Association of Exhibitions and Events’ Expo! Expo!
The exact number of attendees, 2,104, was a significant jump, compared with 2013, with also more than 1,000 show organizers on hand this year.
Putting a spotlight on the state of the industry right now, IAEE also held a media forum with several trade show industry executives who talked about current challenges.
David DuBois, president and CEO of IAEE, said the overall industry is seeing growth, with more and more interest coming from international attendees and exhibitors.
Bradley Kent, who heads sales at the Dallas Convention & Visitors Bureau, said the recession caused a lot of consolidation in the industry. “Customers have more voice and more choice,” he added.
Megan Tanel, from the Association of Equipment Manufacturers, said, “We are questioning a lot of antiquated models,” adding that they are especially looking at rising costs that are not tied to receiving the same value.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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