The 2008 CEIR Exhibition Industry Index reveals the overall exhibition industry continued to outpace U.S. economic growth from 2006 to 2007

By Kara Horner

The exhibition industry continues to see steady growth, according to The Center for Exhibition Industry Research (CEIR, www.ceir.org), which recently released its 5th Annual Exhibition Industry Index Report. While CEIR tracked a 3.2 percent increase in the performance of the overall exhibition industry from 2006 to 2007, compared with a 4.8 increase from 2005 to 2006, the 2007 increase outpaced the overall U.S. economic growth increase of 2.2 percent.

The CEIR Index measures performance based on four metrics: net square feet (NSF), number of exhibiting companies, number of professional attendees and exhibition revenue from all sources. The index baseline of 100.0 is founded on 2000 data. Year-overyear change in each metric is reported in index points. The average of these four index values comprise the “total.”

In 2007, CEIR found that the overall exhibition industry growth of 3.2 percent over 2006 levels was led by a 6.8 percent gain in revenue and a 4.9 percent gain in attendees. The report revealed that all but one of the 11 industry sectors — building and construction — grew in 2007, led by the government sector with a 12.6 percent gain for the year. Four sectors improved their growth rates in 2007 compared with 2006: sports, technology, government and consumer goods. Despite this growth, the 2007 growth rates for NSF declined for all sectors except technology.

CEIR found that the overall exhibition industry grew at a 2.5 percent compound annual growth rate (CAGR) from 2000 to 2007 as all four industry metrics rose across the period, led by NSF and revenue with 3.1 percent increases. Attendance rose at a 2 percent CAGR from 2000 to 2007 compared with exhibitors at a 1.5 percent CAGR. Growth for the overall exhibition industry across the period was led by the sports, transportation and building and construction sectors, which increased at 5.3 percent, 5.0 percent and 4.3 percent respective CAGRs.

CEIR reports that the first three quarters of 2007 saw positive growth for the overall exhibition industry of 3.5 percent, compared with the first three quarters of 2006, while the industry softened a bit in the fourth quarter of 2007, declining 1.9 percent compared with 2006. And although CEIR predicts some continued softness for the industry in the first half of 2008, the long-term outlook for the exhibition industry is promising, as the industry has historically rebounded well following economic downturns.

The total for the overall exhibition industry reached a periodhigh of 118.6 in 2007, a 3.2 percent increase over 2006 levels, led by an impressive 12.6 percent total increase in the government sector, a 6.9 percent gain in the communications and information technology sector and a 6.6 percent increase in the raw materials and science sector. From 2000 to 2007, the overall exhibition industry increased at a 2.5 percent CAGR. All industry sectors gained over the period, except for consumer goods and food, which remained flat, and technology, which declined at a 1.6 percent CAGR.

Although the professional business services sector was flat in 2007, it saw 4.6 percent and 5.7 percent respective gains in attendance and revenue. From 2000 to 2007, the sector grew at a 2.9 percent CAGR, similar to the overall exhibition industry’s growth. While NSF and exhibitors remained flat from 2000 to 2007, all other key metrics increased over the period, led by 6.7 percent and 4.2 percent CAGR respective gains in revenue and attendees.

The consumer goods and retail trade sector grew 1.6 percent in 2007 over 2006 levels, driven by 8.4 percent and 4.7 percent yearover- year respective increases in attendees and revenue. From 2000 to 2007, the sector declined at a 0.4 percent CAGR. At the same time, attendees and revenue increased at 1.3 percent and 0.5 percent respectively.

In 2007, the sports, travel, entertainment, art and consumer services sector’s total rose 5.5 percent over 2006 levels, led by double- digit attendance growth — more than twice the industry average. The Index’s top performer from 2000 to 2007, the sector grew at a 5.3 percent total CAGR. All metrics in the sector rose during the period, including a 9.5 percent CAGR gain in revenue and a 7.2 percent increase in attendance.

The food category performed flat in 2007, despite a 2.8 percent gain in attendance and a 2.3 percent increase in exhibitors. Food shows also remained flat from 2000 to 2007, with NSF and exhibitors increasing at 1.2 percent and 2.2 respective CAGRs, offset by attandance decreases of 0.8 percent and revenue decreases of 1.8 percent CAGR.

As the best performing sector in the Index, in 2007, the government, public and nonprofit services sector gained 12.6 percent over 2006 levels, led by a 17.3 percent increase in revenue, a 15.0 percent gain in exhibitors and a 13.8 increase in NSF. From 2000 to 2007, the sector increased at a 2.2 percent CAGR, with gains in all metrics except attendance. NSF, exhibitors and revenue grew at respective CAGRs of 4.2 percent, 2.8 percent and 1.9 percent.

Despite a 2.6 percent increase in revenue in 2007, the building, construction, home & repair sector’s performance fell 2.2 percent from 2006 levels, driven by a 6.8 percent decrease in attendees and a 3.2 percent decrease in NSF. However, the category increased at a 4.3 percent CAGR from 2000 to 2007, led by 7.2 percent and 4.3 percent respective CAGR increases in revenue and NSF, and outperforming the overall exhibition industry.

In 2007, the total for the industrial/heavy machinery and finished business inputs sector gained 1.9 percent over 2006, led by 4.7 percent and 2.9 percent respective gains year-over-year in NSF and revenue, but pulled down by a drop in attendance and flat numbers of exhibitors. From 2000 to 2007, the total for the sector increased at a 2.3 percent CAGR, led by a 6.2 percent gain in attendees.

The Index’s second top performer in 2007, the communications and information technology (IT) sector gained 6.9 percent over 2006 levels, with all industry metrics up, driven by a 10.2 percent gain in revenue, an 8.2 percent increase in attendees and a 5.2 percent gain in NSF. However, from 2000 to 2007, the total for the category declined at a 1.6 percent CAGR, with all metrics decreasing except revenue, which remained flat.

In 2007, the medical and healthcare sector saw relatively flat results compared with 2006 levels. During the period, attendees gained 1.6 percent, while revenue decreased 1.7 percent. From 2000 to 2007, the sector increased at a 3.4 percent CAGR, with all metrics gaining across the period, and outperforming the overall exhibition industry.

Another top performing sector year over year, the raw materials and science sector gained 6.6 percent over 2006 levels, led by a 17.3 percent increase in revenue, a 4.5 percent gain in NSF and a 4.0 percent increase in attendance. From 2000 to 2007, the sector increased at a 2.6 percent CAGR, with all metrics except exhibitors gaining.

In 2007, the transportation category also performed well, growing 6.2 percent over 2006 levels, led by a 13.9 percent increase in revenue and a 4.7 percent gain in NSF. From 2000 to 2007, the sector grew at a 5.0 percent CAGR, led by a 7.6 percent CAGR gain in revenue, outperforming the overall exhibition industry.

More on Expoweb.com