Providing the first ray of sunshine in half a decade, the 11th UFI Barometer survey revealed a generally upbeat industry, with most companies in all regions posting turnover increases for the first half of 2014. It’s the first period since the survey began, that all regions indicate three companies out of four are expecting a turnover increase.
Those who have been following the industry’s performance will know that Asia Pacific and the Americas fared better in the post-recession trading environment, and since 2010 (with the exception of 2012) companies in these regions were expecting turnover increases the following year. The Middle East and Africa reached this position in the second half of 2012, and it now appears companies in Europe anticipate this improved performance by the beginning of 2014.
This growth must be viewed in context however, as it does not directly translate into immediate operating profit, with less than half of all companies – the Americas excepted – projecting more than a 10 per cent profit increase compared with 2012.
Divided by region, 53 per cent of UFI members in the Americas claimed operating profits increased more than 10 per cent; 39 per cent claimed the same thing in the Middle East and Africa; with 34 per cent in the Asia/Pacific region – a decline of nine per cent on 2012 and of almost half since 2011. Europe has also registered a decline in the number of companies reporting an operating profit increase of 10 per cent, with 29 per cent, down from 35 per cent in 2012 and 52 per cent in 2011. Only the Middle East and Africa saw an increase in the number of companies growing their operating profits by more than 10 per cent.
UFI MD Paul Woodward said the results indicate a positive outlook across all regions, in terms of turnover increase. “There is no doubt that global economic uncertainty and the state of the national/regional economy remain the top issues for a majority of companies,” he said. “Exhibitions continue to be an excellent indicator of economic development. While remaining cautious about the global economic environment, these current survey results are good news for us all.”
For the past two years a slight majority of companies in the Americas declared an increase of more than 10 per cent of their annual profit. Today the region stands as the only region where a majority of respondents declare the impact of the ‘economic crisis’ on their exhibition business is now over.
For those companies who consider that the economic crisis impact continues, almost 10 per cent anticipate its end in 2013, 40 per cent in 2014 and another 50 per cent in 2015 or later.
Continuing a line of questioning from previous Global Barometer Surveys, companies were asked to identify the three most important issues for their business in the coming year from a proposed list of seven issues. The responses have not changed since the first Barometer, with around 80 per cent of relating to the following issues.
- State of the national/regional economy (26 per cent in the current survey)
- Global economic uncertainty (19 per cent in the current survey)
- Local/national competition from the exhibition industry (19 per cent in the current survey)
- Internal management challenges (17 per cent in the current survey)
Remaining concerns were focused on environmental challenges such as customer expectations and regulations, and other media issues, or issues relating to integrating new media channels. Conducted in June 2013, this edition of the survey was answered by 217 companies from 56 countries. Its results, measured against previous surveys, provide an insight into the impact of the economic crisis on the industry.
This was first published in issue 4/2013 of EW. Any comments? Email exhibitionworld@mashmedia.net
