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
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
Add new comment