KEY MARKETS – BY INDUSTRY SECTOR
Corporate Meetings In many world regions, expansion of the market for corporate events of all kinds has been impeded by low levels of business confidence and uncertainty over future trading conditions. In Europe particularly, businesses are putting new investments on hold so they can build up cash reserves to protect themselves against another possible major downturn. Many companies are stockpiling cash instead of investing in the type of corporate events aimed at improving their human infrastructure or getting closer to their existing and potential clients.
Effective planning ahead by companies (including their investment in training and marketing events) depends on them being able to have a reliable view on the global economic outlook, which is likely to have a significant effect on the demand for their products or services. But currently it is extremely difficult for companies to make predictions of this sort with any degree of confidence. Consequently, most companies are now very cautious in their planning, and in many cases taking every day as it comes. This approach is hardly conducive to increases in spending on corporate events.
Nor is this lack of business confidence limited to Europe. In September, the Financial Times reported that confidence among US chief executives plunged to its lowest level for three years, according to the lobby group Business Roundtable, as a result of fears of steep tax rises and government spending cuts scheduled to take place next year. The article quoted the chairman of the Business Roundtable who said that ‘CEOs foresee slower overall economic growth … and have lower expectations for sales, capital expenditures and hiring compared to last quarter’.
Association Conferences
The situation in the association conferences sector looks more favourable than that for the corporate meetings, but nevertheless showing signs of struggle. The INCON Survey of the Global Association Conference Market showed that 44 percent of their survey respondents confirmed that their business levels in 2012 remained on par with 2011, and with 15 percent reporting a decline. However, as may be seen in the table below, these figures were 62 percent and 12 percent respectively in last year’s report.
Reed Exhibitions | EIBTM Trends Watch Report 2012 20
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