CEIR Total Index: Q1 2020 Trade Show Industry Growth Drops 15 Percent
June 8, 2020
Growth of the exhibition industry plunged more than 15 percent during the first quarter of 2020 during which 72.6 percent of events originally scheduled for the second half of March were canceled, according to the Center for Exhibition Industry Research.
The remaining 27.4 percent of the events were postponed and some of those events may eventually be canceled as well.
The massive negative growth was tracked by the CEIR Total Index, a measure of exhibition industry performance, which also reported a modest 0.3 percent year-over-year gain of inflation-adjusted GDP.
The GDP results had been somewhat buffered by continued opening of essential businesses and online purchases.
“Prior to the lockdown, the fundamentals of the exhibition industry were in good standing as the growth of exhibitions continued,” said CEIR Economist Allen Shaw, Ph.D., Chief Economist for Global Economic Consulting Associates, Inc.
He added, “Social distancing will remain a challenge for the exhibition industry for the remainder of the year.”
All exhibition metrics in the first quarter posted sharp year-over-year declines.
Exhibitors and attendees posted the largest drop of 16.3 percent and 15.2 percent, respectively.
Net square feet decreased 14.9 percent, whereas real revenues (nominal revenues adjusted for inflation) tumbled 14.2 percent.
“The exhibition industry is a key business driver for hotels, airlines, restaurants and ground transportation as well as for the broader U.S. economy. In 2019, the industry contributed more than $101 billion to U.S. GDPI,” said CEIR CEO Cathy Breden, CMP, CAE, CEM.
She added, “It is incumbent for Federal financial rescue programs to extend to event organizers and service providers so that the exhibition industry can help buoy economic recovery by helping keep businesses alive and help people keep their jobs and put millions of people back to work.”
Were it not for the start of the pandemic crisis, the exhibition industry was poised to continue growth as forecasted.
Excluding the cancelled events in March, the Total Index grew by a modest 0.3 percent. All exhibition metrics except exhibitors posted moderate year-over-year gains.
Real revenues rose 1.0 percent and both NSF and attendees increased by a modest 0.7 percent. Exhibitors declined 1.0 percent from a year ago.
Excluding cancelled events, Government; Transportation; and Industrial/Heavy Machinery and Finished Business Inputs all registered robust year-over-year gains. In contrast, Building, Construction, Home & Repair; Discretionary Consumer Goods and Services; and Raw Materials and Science posted year-over-year declines.
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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