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.

Add new comment

Partner Voices
Dallas already boasts 35,000 hotel rooms, award-winning global cuisine, and a walkable downtown. But we are just getting started. Visit Dallas is thrilled to announce that the city of Dallas is doubling down with a massive new convention center and entertainment district. Featuring 800,000 square feet of exhibit area, 260,000 square feet of meeting rooms, and 170,000 square feet of ballroom. The center will connect business travelers with dining and shopping options in the popular Cedars District means more places to get down to business, and even more ways to unwind. “Dallas is already a great meetings and conventions destination, with the accessibility of two major airports, affordable labor, and an outstanding hotel product,” said D. Bradley Kent, Visit Dallas senior vice president and chief sales officer. “The new center and Convention Center District will enhance Dallas’ competitive position and are exactly what our customers’ need and have been asking for." What’s New – AT&T Discovery District Located in the heart of Downtown Dallas, this new district on the AT&T corporate campus is tailor-made for groups of all sizes. It boasts a multi-sensory experience, including outdoor event space, the AT&T Theater, and multiple dining outlets including JAXON Beer Garden and The Exchange, a bustling food hall. Hotels Coming Soon Names like the JW Marriott (Downtown), lnterContinental Dallas (Uptown), and Hotel Swexan (Uptown) are adding luxury amenities and bountiful event spaces. The projects will debut in 2023 and beyond. JW Marriott This new, 15-story, 283-room hotel will open in the heart of the city’s downtown Arts District this year. The property features a 25,000-square-foot grand ballroom, as well as a spa, restaurant, lobby bar, fitness center, and a rooftop pool deck and bar. InterContinental Dallas  Located in Cityplace Tower in Uptown, InterContinental Dallas will feature sweeping panoramic views of the Dallas skyline. Guests will enjoy spacious, high-end rooms and amenities, including more than 21,000 square feet of event space.   Hotel Swexan Hotel Swexan, a new, 22-story luxury property, is rising in Uptown’s Harwood District and will make its mark on the Dallas skyline. Opening this year, it is a sculptural building with cantilevered upper floors, as well as a 75-foot rooftop infinity-edge swimming pool and a hidden underground lounge.