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.
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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