CEIR Index Year-end Results Indicate Trade Show Industry Growth Slowdown

March 18, 2013

The trade show industry started off last year with strong numbers, as tracked by the Center for Exhibition Industry Research’s Index, with continued growth of 2.4 percent in the first two quarters of the year, but the third and fourth quarters saw a slowdown, with 2012 ending with overall 1.5-percent growth.

The numbers missed CEIR’s initial projections of 2.9-percent year-over-year growth for 2012, compared with 2011. Even though the last two quarter’s numbers were down, they still marked 10 consecutive quarters of growth for the trade show industry.

While the results were positive, the numbers lagged behind the U.S. government GDP estimate of 2.2 percent growth for 2012.

"We had a positive outlook during the first and second quarters of 2012, however, the exhibition industry began to slump in the third quarter and continued through the end of the year,” said CEIR Economist Allen Shaw, Ph.D., Chief Economist for Global Economic Consulting Associates.

He added, “We attribute this to the well-publicized prospect of the "fiscal cliff" which substantially hurt business sentiment and willingness to incur travel expenses and ultimately hurt the exhibition industry."

All four indices that are tracked in the CEIR Index were down in the fourth quarter, compared with the third quarter.

-       Attendance, the leading indicator, slowed from 1.3 percent to 1.0 percent.

-       Net Square Feet was down from 1.2 percent in the third quarter to 0.8 percent in the fourth quarter.

-       Exhibitors slowed from 0.5 percent to 0.2 percent.

-       Revenues, which were adjusted for inflation, slowed from 1.6 percent to 1.3 percent.

Some of the sectors that the CEIR Index predicted would perform well exceeded expectations, while other sectors that were expected to struggle had lower results than expected.

The Discretionary Consumer Services and Sporting Goods, Travel and Entertainment sectors had upticks, which both rely on consumer confidence, according to CEIR officials.

The state of the economy in the U.S. and worldwide will be a main topic of discussion when trade show industry professionals gather Sept. 12 in New York City for Predict: CEIR's Annual Outlook Conference 2013.


"Inspiring confidence in an unpredictable time will guide this year’s Predict conference," said CEIR CEO and President Doug Ducate, CEM, CMP.

He added, "As the key forecasting event in the exhibition industry, the data presented at Predict will provide the industry’s decision-makers with real-time and reliable information upon which to strategize in the coming year."



Executives will discuss operating strategies including projected event growth, merger and acquisition strategies and planned launches.

New this year will be special discussion session called, "Association Nation" that examines the unique challenges leading and up-and-coming associations are facing and what they are doing to be effective and relevant for their membership in an increasingly complex and changing world.

The co-chairs for the 2014 CEIR Predict are David Audrain, CEM, president and CEO Clarion Events, North America, and Dennis Slater, president, Association of Equipment Manufacturers.

The application to attend the high-level conference and registration process is now open at www.ceir.org/predict.

               

Add new comment

Partner Voices
One of the most iconic names on the Las Vegas Strip just got an upgrade. Mandalay Bay has everything that your business needs from a refreshed convention space designed to inspire productivity and creativity, to an impressive selection of world-class restaurants and amenities. If you're looking for a venue that's both inviting and innovative, you have to be here. New Wave Experiences Mandalay Bay continues to invest in a new wave of enhancements both in the convention space and within the resort as a whole. New restaurant openings including Orla by Michael Mina, drawing inspiration from the award-winning chef’s childhood in Egypt and with flavors and décor inspired by the spices found in markets common to coastal Mediterranean towns, as well as Caramá by Wolfgang Puck, bringing the essence of Italy and spirit of Wolfgang into one concept, are recent additions. The Four Seasons Hotel Las Vegas also experienced a recent remodel of all 424 rooms. Swingers, a high-end, adults-only golf and entertainment concept will debut in Fall 2024. Enhanced Technology Creating a truly effective conference venue requires careful thought into what a business needs: the right technology, capacity, and inspiration to bring ideas to the next level. As part of the resort’s refresh, Mandalay Bay implemented state-of-the-art technology upgrades, installing cutting-edge Cat6A Ethernet cabling throughout the convention center. This advancement doubles the frequency of data transmission, enabling lightning-fast speeds up to 9400% faster. The convention center now boasts 11 dynamic digital walls, spanning up to 24' x 13', strategically positioned for brand placements, sponsorships and targeted event messaging. Additionally, attendees can benefit from 20 double-sided 55" mobile flexible display units, facilitating effortless navigation to meeting rooms and events. RFID locks were installed on all meeting room doors, and over 200 motion detection cameras have been placed throughout the space. Refreshing New Design & Fine Art The newly remodeled convention space provides a bright and vibrant atmosphere that complements Mandalay Bay's tropical-inspired brand. Featuring white-washed walls and ceilings adorned with bold floral patterns in cerulean and coral tones, the space is complemented by warm walnut accent walls. In addition to the redesign of all pre-function spaces, meeting rooms and ballrooms, Mandalay Bay's 1 million square feet of exhibit space has undergone a rejuvenation, including new paint, covered pillars and relocated strobe lights. Sustainable Spectacles Mandalay Bay is committed to Focused on What Matters and creating more responsible meetings. Refillable water stations all available around the resort, cutting unnecessary plastic usage from single-use bottles. The Mandalay Bay campus’ recent upgrades represent a bold step forward in redefining the Las Vegas experience. With a focus on innovation, sustainability, and unparalleled service, Mandalay Bay sets a new standard for excellence in business hospitality. Whether you're seeking cutting-edge conference facilities, world-class dining options, or simply a luxurious retreat, an unparalleled meeting experience awaits.