CEIR Announces 2017 Fourth Quarter Index Results, Releases New Industry Insight Report

February 28, 2018

After a temporary setback in the third quarter of 2017, the growth of the exhibition industry resumed during the fourth quarter, according to Fourth Quarter Index Results conducted by the Center for Exhibition Industry Research (CEIR).

The performance of the industry, as measured by the CEIR Total Index, posted a strong year-on-year gain of 3.1 percent (see below).

Figure 1: Quarterly CEIR Total Index for the Overall Exhibition Industry, Year-on-Year Growth, 2011Q1-2017Q4

 

CEIR

 

Despite displaying somewhat greater volatility, exhibitions are keeping pace with the macroeconomy (see Figure 2).

 

 

 

 

Figure 2: Quarterly CEIR Total Index for the Overall Exhibition Industry vs. Quarterly Real GDP, Year-on-Year Growth, 2008Q1-2017Q4

 

CEIR

“The increase in the fourth quarter supports our prediction that economic fundamentals still point to moderate growth for the exhibition industry,” said CEIR Economist Allen Shaw, Ph.D., Chief Economist for Global Economic Consulting Associates, Inc.

Discretionary Consumer Goods and Services; Industrial/Heavy Machinery and Finished Business Inputs, and the Building, Construction, Home and Repair sectors all registered robust year-on-year gains, while the Consumer Goods and Retail Trade; Government, and Raw Materials and Science sectors posted year-on-year declines.

All exhibition metrics in the fourth quarter posted positive year-on-year gains (see Figures 3 and 4).

 

 

Figure 3: Quarterly CEIR Metrics for the Overall Exhibition Industry, Year-on-Year Growth, 2017Q4

 

CEIR

 

Real revenues (nominal revenues adjusted for inflation) posted the largest increase of 5 percent, followed by exhibitors which rose 3.4 percent. Net square feet and attendees gained 2.5 percent and 1.5 percent, respectively.

 

 

 

 

 

Figure 4: Quarterly CEIR Metrics for the Overall Exhibition Industry, Year-on-Year Growth, 2009-2017Q4

 

CEIR

 

“When looking at the quarterly results for real revenue, one has to keep in mind perspective,” said Cathy Breden, CEO of CEIR.

She continued, “During the Great Recession, real revenue suffered the biggest decline among four metrics. The big fall naturally leads to a big rebound. As such, real revenue has experienced the largest recovery during the past seven years. Nonetheless, real revenue in 2017 – $10.29 billion – was still 3 percent below the peak in 2007. In addition, revenue per NSF in 2017 was still below the 2007 level.”

 

 

Earlier this week, CEIR released a new Industry Insight Series Report, Designed to Engage – How to Build Elements of Engagement Into Booth Designs written by exhibit marketing strategist, Marlys Arnold, author of Build a Better Trade Show Image and Exhibit Design that Works.

In this guide, which focuses on how to integrate effective engagement tactics in exhibit booth design, Arnold emphasizes what engagement should be in an exhibit booth.

“Information is everywhere,” Arnold writes. “People crave experiences instead, especially in a face-to-face environment.”

The seven-page report covers the following:

• Definition of engagement

• Discussion of the disconnect between what attendees want and what exhibitors are doing

• Range of engagement opportunities to consider using in an exhibit booth

• Three case studies and other examples

“The heart of a trade show is the engagement that takes place between exhibitors and attendees on a show floor,” Breden said. “It is an important, unique value of the channel.”

She continued, “Marlys’ report does a great job pulling out key trends from CEIR’s Attendee Engagement Study Series and offering examples of how exhibitors have successfully responded to them in a way that helps them achieve their overall goals for exhibiting.”

Click HERE to download the full report.

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Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors. TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders. Lisa Messina, Chief Sales Officer, LVCVA With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role? Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”  These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.  Allegiant Stadium As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward? Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees. What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events? We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.  Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city. Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.  What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization? We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.  What are your favorite ways to recharge? My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.  Valley of Fire What advice would you give to women following leadership paths in destination marketing? I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.   This interview has been edited and condensed. This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.