CEIR Index: Looming Fiscal Cliff, Global Economic Concerns Slow Down Trade Show Industry Growth in Q3
December 2, 2012
For the ninth quarter in a row, the trade show industry still is growing, according to the Center for Exhibition Industry Research’s latest CEIR Index, albeit at a slower rate in the third quarter of this year, with concerns over not only the looming fiscal cliff, but also the global economy.
The Total Index grew 0.9 percent in the third quarter, after the first quarter grew 3 percent and the second quarter grew 1.7 percent, and companies have become more conservative, waiting to see how everything plays out.
"Concern about the fiscal cliff and the global economy has continued to take a toll in the exhibition industry,” said CEIR's economist Allen Shaw, Ph.D., chief economist for Global Economic Consulting Associates.
He added, “The results show that the exhibition industry continues to grow, but attendees and exhibitors are being cautious due to the uncertainty about the global economy."
The first and second quarters also outpaced the GDP in the U.S. during the same time periods, though the third quarter indicates that growth is slowing.
"The good news is our industry continued the chain of nine consecutive quarters of growth after nine consecutive quarters of negative numbers,” said Doug Ducate, CEIR President and CEO.
He added, “And, while the rate of growth slowed to 0.9 percent after 3.0 percent in the first quarter and 1.7 percent in the second quarter, we are still on a positive growth track.”
Attendance started this year with a bang, snagging a 4.8-percent increase on the CEIR Index in the first quarter, and a 3.3-percent increase the following quarter before flagging to 1.1 percent in the third quarter.
Growth also slowed in net square feet tracked, which was down slightly to 1.3 percent from 1.4 percent in the previous quarter.
Exhibitors showed only a modest gain of 0.9 percent from a year ago, compared with 1.1 percent in the second quarter, and the growth of revenues, which were adjusted for inflation, grew to total $2.62 billion, a slim year-on-year gain of 0.4 percent.
At the CEIR Predict conference, held in September and New York City, Economist John Walker told the crowd of C-level trade show executive, M&A representatives, financiers and suppliers that the U.S. actually was in better shape than most other countries around the world, with a predicted, yet small, more than 2-percent GDP growth rate through next year.
However, he warned that the possible collapse of the Eurozone could have a profound effect on any recovery.
In addition, recent slowdowns in other emerging markets that previously had been growing in leaps and bounds, such as China and Brazil, also could have an impact on the U.S. economy in the near future.
At the event, Walker named several forces that currently were shaping the global economic cycle, including develeraging in an effort to reduce debt, cash hoarding by corporations and high commodity prices, among others.
Even with the uncertainty clouding the Eurozone, though, Walker said the U.S. would continue to see slow growth into 2014.
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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