Source: Exhibition World report
UFI research has found that, despite an ongoing slowdown in global economic growth and a decline in open trade promoters on the international stage, the exhibition industry remains geared for continued growth in 2017.
Results of the 18th UFI Global Barometer survey indicate turnover increases for a majority of companies in 2017, following two years of relatively stable levels of operating profit.
Key findings:
- The positive mood is dampened by political developments around the world, as half of those polled expect significant or limited economic impact for exhibitions and events.
- Among the most important business issues, rising competition within the exhibition industry is gaining in importance.
- A large majority of companies globally intend to develop new activities to create growth.
This latest edition of UFI's biannual industry survey was concluded in January 2017 and includes data from 240 companies in 54 countries.
The study delivers outlooks and analysis on ten major markets: Brazil, China, Germany, Italy, Mexico, Russia, South Africa, Thailand, the United Kingdom and the United States. In addition, four aggregated regional zones were analyzed.
The United States, Mexico, China and the United Kingdom performed above average. Brazil and Russia also indicated a positive trend in turnover, but only for 2017. In Germany and Italy, however, 2017 appeared at that stage to be weaker than 2016.
When asked about the possible impact of recent major political developments, such as the Brexit vote in the United Kingdom, the failed coup in Turkey and the U.S. presidential election, on international trade and the exhibition industry, 45% of participants globally anticipated a limited or significant negative impact on business. At the country level, Mexico at 60% and the United States at 54% reported the highest levels of concern.
By comparison, an average of only one in ten respondents expected recent political developments to have a positive impact on business. On average, 20% anticipated no impact, and 20% to 30% were unsure. A core question in UFI's Global Barometer asks companies about the most important business issues they currently face. As in recent years, the national or regional economic situation and global economic uncertainty retained the top positions, but both items received slightly less attention than six months earlier. In contrast, competition from within the industry saw a measurable rise in importance and narrowed the previous gap with the other two leading issues. The impact of digitalization was highly relevant in Germany at 21% and in most countries in Central and South America at 20%.
Covering the strategic outlook of the global exhibition industry, the barometer shows ongoing expansion in the industry's business activities globally, both at companies' home bases and in new geographical markets. A large majority of companies from all regions intend to develop new activities, either in the classic range of exhibition industry activities, including venues, organizers and services, or in other live or virtual events, or in both. An average of four out of ten companies also declared an intention to develop operations in new countries. This figure was particularly high for companies based in the United Kingdom at 70%, the United States at 67% and the Middle East at 57%.
Kai Hattendorf, UFI managing director, said that some economists were predicting that the exhibition industry would outperform the global economy in its growth rate in 2017. The UFI Global Barometer showed that there was indeed cause for optimism on a global scale. At the same time, political developments in key markets for the industry were causing concern, and many expected negative impacts. The data underlined the need for organizers, venues and service providers to remain flexible and alert.
The 18th Global Barometer survey, conducted in December 2016, covered insights from 240 companies in 54 countries. It was conducted in collaboration with AAXO, the Association of African Exhibition Organizers, and EXSA, the Exhibition and Events Association of Southern Africa, in South Africa; AEO, the Association of Event Organisers, in the United Kingdom; AFIDA for Central and South America; AMPROFEC in Mexico; SISO in the United States; TEA in Thailand; and UBRAFE in Brazil.
The next UFI Global Barometer Survey was scheduled for June 2017.
Source link: http://www.exhibitionworld.co.uk/2017/02/02/ufis-global-barometer-shows-global-growth-ahead