By Reagan Cook
Momentum requires a direction and some speed, and our industry has lacked both in the past five years. Fortunately, the 2014 CEIR Index report indicates that momentum is building in the exhibition industry. The report shows there’s more strength in the business sectors, and in years ahead it will look much stronger than 2013’s total industry index.
While it’s true that growth slowed somewhat from 2012 to 2013, the best news is that the Exhibition Industry’s Overall Index is forecasted to double in2014, and stay significantly above that level in 2015 and 2016.
Weakness Continues in Four Sectors
Education and Government sectors still show sustained weakness, which hardly constitutes a surprise, as the federal government continues to struggle with spending and downsizing. The Construction sector, especially homebuilders, is still struggling to recover from the very deep recession, and while growth is returning in some markets, there is much room for improvement.
The surprise comes from the slow growth of the Medical and Health Care sector, which still mystifies analysts because population trends indicate more patients in the near future from the Boomer generation. Speculation holds that growth is subdued because providers continue cost cutting in the face of new rules and shrinking reimbursements.
Growth is a Relative Term
Several CEIR sectors are experiencing, or will experience, very strong growth. Here is the list:
- Industrial/Heavy Machinery/Manufacturing, Finance, and Communications and IT consistently top the charts for Index growth from 2014 through 2016.
- Industrial/Heavy Machinery/Manufacturing grew 6.9% in 2013, based on their CEIR Index, and it should achieve growth over the next three years. That’s sustained growth, and it’s significant.
- Finance and Communications and IT should grow to indexes between 3.5 and 4.6 through 2016. That’s significantly higher than last year.
- Sports and Travel will see growth between 3.8 and 4.0 in 2015 and 2016, respectively.
- Food turned up the heat with significant CEIR Index growth last year. It’s projected to drop significantly in 2014 and should see good growth return 2015-2016, but not at the breakout level of 2013.
- Consumer Goods, Consumer Services, and Business Services will also expand at different times during the next three years.
- Four CEIR sectors grow all three years of the forecast period (Business Services, Consumer Goods, Food and Industrial/Heavy Machinery/Manufacturing).
- Eight sectors grew two out of three years, tapering in 2016 (Consumer Services, Finance, Industrial/Heavy Machinery/Manufacturing, Communications and IT, Medical and Healthcare, Raw Materials and Science, Sports and Travel and Travel and Amusement).
Click here to order your copy of the 2014 CEIR Index report and check out our easy to read and review infographic below.
2014.07.08 CEIR Blog_Recovery Graphic
Is your industry on the rise or decline? How do you plan to use this information to your advantage? Share your plans below.