Trade Show Industry Growth Dips First Time in 25 Consecutive Quarters
February 27, 2017
The Center for Industry Research released its latest CEIR Total Index Report that indicated growth of the trade show industry declined during the fourth quarter of 2016.
Driven by a 1.8 percent drop in real revenues, the performance of the industry posted a modest year-on-year decline of 0.4 percent, after 25 consecutive quarters of year-on-year growth.
"The decline was a temporal set back as 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.
The dip occurred only in three sectors: Industrial/Heavy Machinery and Finished Business Inputs, Raw Materials and Science and Consumer Goods and Retail Trade.
“We are hopeful this is a temporary downturn and the industry will rebound in Q1 2017,” said CEIR Foundation CEO Cathy Breden, CMP, CAE. “We look forward to the release of the CEIR Index Report in early April which will provide an overall view of 2016 performance and a forecast for 2017-2019.”
In sharp contrast, Building, Construction, Home & Repair, Communications and Information Technology, Food, and Sporting Goods, Travel, and Amusement all registered robust year-on-year gains.
All exhibition metrics in the fourth quarter posted negative year-on-year losses, except net square feet which gained 1.3 percent.
Real revenues (nominal revenues adjusted for inflation) posted the largest decline of 1.8 percent, whereas exhibitors and attendees declined 0.8 percent and 0.6 percent, respectively.
The exhibition performance varied substantially by industry in 2016. The best performing sectors were Food and Building, Construction, Home and Repair, which gained 5.8 percent and 5.2 percent, respectively.
On the other end of the spectrum, the weakest sector was Raw Materials and Science, in which the index declined by 7.3 percent.
As mentioned previously, this sector has been plagued by weakness in oil prices that led to declining investment and production levels; however, prices and investment recently have begun to recover.
The Industrial/Heavy Machinery and Finished Business Inputs sector registered the second largest decline of 4.5 percent, which could just be a correction after a whopping 11.0 percent jump in 2015.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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