global exhibition barometer - cdn.asp.events€¦ · welcome to ththe 16 edition of the “ufi...

Global Exhibition Barometer 16th edition (January 2016) A UFI report based on the results of a survey conducted in December 2015

Southern Africa

Global

US

Central & South America

Mexico

Brazil

Page

Introduction 3

Results by region

1. Gross Turnover development 4

2. Development of Operating Profits 6

3. Most important business issues 8

4. Priorities in terms of strategy 11

5. Millennials as staff and HR acquisition costs 16

Detailed results for selected countries or zones 17

North America: US, Mexico 18

Central and South America: Brazil, other countries in Central & South America 20

Europe: Germany, Italy, Russia, other countries in Europe 22

Africa: South Africa 26

Middle East 27

Asia/Pacific: China, other countries in Asia/Pacific 28

Conclusion 30

Appendix: answers per country/region 31

Table of contents

2

Welcome to the 16th edition of the “UFI Global Exhibition Barometer“ survey. This study is based on a global survey,

conducted in December 2015. It represents up to date information on the development and the outlook of the global

exhibition industry as well as on 12 specific countries and zones.

UFI began assessing the impact of the global economic conditions on the exhibition industry twice a year in 2009, based

on perceptions of UFI members in 84 countries around the world. In 2010, this biannual survey became the “UFI Global

Exhibition Barometer“. For the United States, this survey includes SISO Members (Society of Independent Show

Organizers) and the scope of the Research has since been broadened to include members of AFIDA (Asociación

Internacional de Ferias de América) in Central and South America and of EXSA (Exhibition and Events Association of

Southern Africa) in South Africa. For the first time and in this 16th edition, members from AMPROFEC (Asociación

Mexicana de Profesionales de Ferias y Exposiciones y Convenciones) and UBRAFE (União Brasileira dos Promotores

Feiras) have also been invited to take part.

Important remark

It should be noted that the number of replies to the current survey (240 from 58 countries) provides representative

results. However, the consolidated regional results may not reflect the situation of specific countries in that region.

This is why a second set of results, specific to 12 countries or zones where a significant number of answers were

obtained are included (see full list on the page 17).

Questions related to this survey should be addressed to Christian Druart at [email protected].

Introduction

3

mailto:[email protected]



The 16th Barometer surveyed the evolution of participants’ gross turnover expectations for the second half of 2015 and

the 2 halves of 2016 compared to their turnover during the same period the previous year (regardless of possible

biennial effects).

The chart on the next page presents the percentage of companies declaring an increase in their turnover. It combines

these results with those of previous surveys since 2008. It does not take into account the “unknown” or “not applicable”

answers – see footnote.

Regional survey results indicate that in all regions, an average of 6 to 7 companies out of 10 expect an increase in

gross turnover for the second half of 2015 and 2016. When compared to the previous period, this appears to be an

improvement for the Americas and Europe, a rather stable situation for Asia/Pacific, but a slight slowdown in Middle

East and Africa. Detailed results by country/zone highlight contrasted situations:

• US and Mexico have stronger growth rates than Brazil (where an improvement is expected for the 2nd half of 2016)

or other countries of Central and South America (where around half of companies for each period are expecting

decreases in their turnover);

• Germany, Italy and other European countries have on average 7 to 8 companies out of 10 declaring increases. But

the situation in Russia is different with more companies declaring decreases, at least until the second half of 2016;

• A certain level of uncertainty for 2016 in China, the Middle East or South Africa.

Footnote: The charts included in the second part of this report (“Detailed results for selected countries or zones”) detail these

results, adding the percentage of companies declaring decreases in their turnover and the percentage of “unknown”

answers.

1. Gross Turnover development

4

% of companies declaring an increase in turnover when

compared to their projections for the same period

the year before (regardless of possible biennial effects)

As declared in previous surveys As declared

in December 2015

Americas Asia &

Pacific

Europe

5

Middle East

& Africa

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H22008

H12009

H22009

H12010

H22010

H12011

H22011

H12012

H22012

H12013

H22013

H12014

H22014

H12015

H22015

H12016

H22016

The 16th Global Barometer survey questioned the evolution of operating profits for 2015 compared to the previous

year.

The chart presented in the page combines these results with those of previous surveys which tracks the development

of operating profits since 2009. It highlights the results of companies declaring an increase of more than 10% and

those declaring a more stable result (between -10% and +10%) – see footnote.

The results show that:

• Around 3 to 4 companies out of 10 declare an increase of more than 10% in annual profits for 2015; this is stable in

comparison to the level registered for 2014 and 2013.

• These findings roughly apply to the major national markets where a large number of answers were received, except

for the US and the Middle East, where better results are expected (with 53% of companies declaring an increase of

more than 10% of their operating profits) and Brazil and Russia (where 25% and only 8% respectively are expecting

such increases).

Footnote: The charts included in the second part of this report (“Detailed results for selected countries or zones”) detail these

results, adding the percentage of companies with reductions in profits or losses.

2. Development of Operating Profits

6

Operating profits compared to the previous year

Americas Europe Asia & Pacific Middle East & Africa

% of companies declaring:

- stable profits (between -10% and +10%)

- or increases of more than 10%

% of companies declaring:

- profit increases of more than 10%

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015

Companies were asked to identify the three most important issues for their business in the coming year from a pre-

defined list of seven issues. Multiples choices were proposed to get an insight for some answers.

As in previous surveys, around 80% of all answers relate to the following 4 issues:

• “State of the economy in home market” (25% in the current survey)

• “Global economic developments” (20% in the current survey)

• “Competition from within the industry” (19% in the current survey)

• “Internal challenges” (14% in the current survey), where “Human Resources” are named as the most important

aspect.

“Impact of digitalisation” (“Responding to customer digitalization needs”, “New digital products” or “Internal

processes”), “Competition with other media” (“Internet”, “Social media”, “Virtual trade shows” or “Other”) and

“Regulatory / Stakeholders issues” (“Sustainability”, “Health & safety” or “Other) appear as less important issues in the

coming year.

The next slide shows the consolidated global results, including the insights, where asked.

The following slides details those results by region and by type of activity (for 3 main segments: “Organiser”, “Venue

only” and “Service provider only”). Results show that there are no significant differences based on these criteria,

except for the “Regulatory / Stakeholders issues” where “Health & Safety” appears more important to “Service

Providers” and “Venues”, than “Organisers”.

3. Most important business issues

8

Top issues: global results

9

25%

20% 19%

14%

9%

5% 4% 3%

State of theeconomy in

home market

Globaleconomic

developments

Competitionfrom within the

industry

Internalchallenges

Impact ofdigitalisation

Competitionwith other

media

Regulatory /Stakeholders

issues

Other

75%

30% 13%

Humanresources

Finance Other

71%

29% 27%

Sustainability Health &safety

Other

61% 39% 29% 8%

Internet Socialmedia

Virtualtradeshows

Other

(multiple answers possible)

80% 56% 45%

Respondingto customerdigitalisation

needs

New digitalproducts

Internalprocesses

Most important issues: detail by region and type of

activity for the five top issues identified globally

10

24% 21%

19%

13% 11%

5% 3%

32%

20% 19% 16%

3% 1% 4%

25%

17% 18% 19%

6% 8% 7%

State of theeconomy in home

market

Global economicdevelopments

Competition fromwithin the industry

Internal challenges Impact ofdigitalisation

Competition withother media


issues

Organiser

Americas Europe Asia & Pacific Middle East & Africa

Venue only Service provider only

27%

14% 17% 18%

8%

24% 25%

17%

11% 14%

27%

17% 18% 16%

5%

24% 24% 23%

13%

6%

State of the economy inhome market

Global economicdevelopments

Competition from withinthe industry

Internal challenges Impact of digitalisation

Companies were asked to share their current priorities in terms of strategy in two specific areas: their range of

activities and their geographical exposure.

In all regions, a large majority of companies intend to develop new activities, in either the classic range of exhibition

industry activities (venue/organiser/services), other live events or virtual events, or in both: 75% in the Middle East &

Africa, 86% in Asia/Pacific, 87% in Europe and 93% in the Americas.

In terms of geographical expansion, only one to two companies out of 10 on average in all regions declare an intention

to develop operations in new countries.

These results are also detailed in the following pages for the main segments of “activity type” (“Organiser”, “Venue

only” and “Service Provider only”).

4. Priorities in terms of strategy

11

Current strategic priorities related to the range of

activities : results by geographical zone

12

14% 29% 27% 30%

7%

14%

13%

25%

19%

31%

33%

34%

28%

24%

32%

18%

46%

31%

22%

23%

Asia/Pacific

Middle East

& Africa

Europe

Americas

WORLD

Stay within current

scope of activities (as a venue, an organiser

or a service provider)

Develop new activities

within the classical range

of the exhibition industry (venue / organiser / services)


in terms of live events

or virtual events

Both of these

developments

13

13%

23%

8%

28%

23%

46%

29%

23%

21%

29%

31%

25%

Current strategic priorities related to the range of

activities: results by type of activity

Stay within

current scope

of activities

(as a venue, an

organiser or a

service provider)


within the classical range of

the exhibition industry

(venue / organiser / services)



or virtual events

Both of these

developments

Service

provider only

Venue only

Organiser

Current strategic priorities related to geographic

exposure: results by geographical zone

14

Asia/Pacific

Middle East

& Africa

Europe

Americas

WORLD

77%

85%

92%

80%

23%

15%

8%

20%

88% 13%

Stay in the same countries as those in which I currently operate Operate in new

countries

15

Current strategic priorities related to geographic

exposure: results by type of activity

Service

provider only

Venue only

Organiser 84%

75%

84%

16%

25%

16%

Stay in the same countries as those in which I currently operate Operate in new

countries

This question relates to the fact that many companies are finding that younger members of staff are less loyal to

employers, which may lead to higher Human Resources acquisition costs.

The survey results show that this issue does indeed exist globally with every third company globally reporting higher

acquisition costs, but to different levels in different regions. It was sometimes mentioned that staff turnover was

relatively low due to the general lack of job opportunities in that specific region. It should also be noted that some of

those who declared that it was not an issue added that it was likely to become one. Others respondents also said that

this issue exists, but was financially compensated by the fact that younger staff were replacing most senior staff,

leading to lower HR costs all together.

5. Millennials as staff and HR acquisition costs

16

33% 67%

37%

14%

40%

55%

63%

86%

60%

45%

YES NO

Asia/Pacific

Middle East

& Africa

Europe

Americas

WORLD

Have your HR acquisition costs been impacted by increasing turnover among young staff?

North America: US

Mexico

Central and South America: Brazil

Other countries in Central & South America

Europe: Germany

Italy

Russia

Other countries in Europe

Africa: South Africa

Middle East

Asia/Pacific: China

Other countries in Asia/Pacific

17

Part 2: Detailed results for 12 selected countries or zones

Detailed results for United States (15 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know

How do you expect your turnover to change

when compared to the same period the previous

year?

Loss

Increase of more

than 10%

Reduced by

11-50%

Operating profits compared

to the previous year

Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

18

Have your HR

acquisition costs

been impacted by

increasing turnover

among young staff?

9% 8% 25%

91% 85% 67%

8% 8%

2015-H2 2016-H1 2016-H2

18% 20%

16% 14%

11% 11%

0%

9%


home market

Globaleconomic

developments

Competitionfrom withinthe industry

Internalchallenges



media


issues

Other

8% 8% 38% 46%

Stay within current scope

of activities (as a venue, an

organiser or a service provider)

Develop new activities within the

classical range of the exhibition

industry (venue / organiser / services)



or virtual events

both of these developments

Current strategic priorities related to the range of activities

Current strategic priorities related to geographic exposure Operate in new

countries Stay in the same countries as those in which I currently operate

88% 13%

53%

40%

7%

2015

YES (29%)

NO (71%)

Detailed results for MEXICO (17 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

19

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments


Current strategic priorities related to geographic exposure

Operate in new countries Stay in the same countries as those in which I currently operate

7% 6% 6% 14% 6%

79% 88% 81%

13%

2015-H2 2016-H1 2016-H2

35%

53%

12%

2015

27%

10%

20%

24%

10%

6%

0%

4%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

0% 13% 25% 63%

67% 33%

YES (41%)

NO (59%)

Detailed results for BRAZIL (13 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

20

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




22%

33%

45%

17%

44% 45%

75%

9% 8%

2015-H2 2016-H1 2016-H2

25%

58%

17%

2015

31%

18%

26%

15%

5% 3% 3%

0%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

17% 25% 25% 33%

67% 33%

YES (31%)

NO (69%)

Detailed results for the other countries in Central and

South America (14 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

21

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events



Current strategic priorities related to geographic exposure Operate in

new countries Stay in the same countries as those in which I currently operate

11% 27% 30%

33% 27% 20%

56% 45%

20%

30%

2015-H2 2016-H1 2016-H2

36%

50%

7% 7%

2015

32%

11% 8%

16%

8%

3%

21%

3%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

8% 15% 31% 46%

88% 13%

YES (46%)

NO (54%)

Detailed results for GERMANY (12 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

22

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




8%

25% 27% 18%

67% 73% 82%

2015-H2 2016-H1 2016-H2

40%

30%

20%

10%

2015

18%

29%

12% 15%

12%

3%

9%

3%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

0% 50% 20% 30%

60% 40%

YES (17%)

NO (83%)

Detailed results for ITALY (10 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

23

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments



22%

11%

67%

88% 78%

13% 11%

2015-H2 2016-H1 2016-H2

30%

70%

2015

23%

17%

20%

17%

10%

7%

0%

7%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

30% 40% 20% 10%

Operate in new


100% 0%

NO (100%)

Detailed results for RUSSIA (13 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

24

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




NO (83%)

25% 27% 25%

42% 36% 17%

33% 27%

42%

9% 17%

2015-H2 2016-H1 2016-H2

8%

67%

17%

8%

2015

35%

19% 19%

14%

8%

3% 3% 0%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

25% 42% 17% 17%

100% 0%

YES (17%)

Detailed results for the other countries in Europe

(46 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

25

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




NO (83%)

12% 9% 7%

14% 18% 17%

74% 71% 69%

2% 7%

2015-H2 2016-H1 2016-H2

40%

30%

20%

10%

2015

24% 25%

17%

11% 14%

5% 2% 2%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

14% 29% 27% 30%

83% 17%

YES (17%)

Detailed results for SOUTH AFRICA (24 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

26

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments


Current strategic priorities related to geographic exposure Operate in

new


NO (64%)

21% 20% 15%

32% 30% 15%

47% 45%

45%

5% 25%

2015-H2 2016-H1 2016-H2

30%

48%

17%

4%

2015

30%

15%

20% 17%

3% 6% 8%

2%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

93% 7%

29% 38% 14% 19% YES (36%)

Detailed results for the MIDDLE EAST (17 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

27

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




YES (53%)

18% 12% 13%

18%

82% 53%

53%

18% 33%

2015-H2 2016-H1 2016-H2

53%

41%

6%

2015

26%

17%

13% 15%

9%

4% 7%

9%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

18% 35% 24% 24%

55% 45%

NO (47%)

Detailed results for CHINA (22 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

28

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events





YES (52%)

6% 5% 7%

25% 21% 20%

69% 58% 47%

16% 27%

2015-H2 2016-H1 2016-H2

32%

59%

9%

2015

24% 22% 24%

11%

6%

3% 5% 5%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

14% 38% 29% 19%

86% 14%

NO (48%)

Detailed results for the other countries in Asia/Pacific

(28 answers)

Decrease:

10% or more

Increase

Decrease:

less than 10%

I don’t know



year?

Loss

Increase of more

than 10%

Reduced by

11-50%



Stable (between

-10% and +10%)

Reduced by

more than 50%

Top issues

29

Have your HR

acquisition costs

been impacted by

increasing

turnover among

young staff?









or virtual events

both of these

developments




YES (61%)

9% 4%

32%

22% 21%

59%

70% 63%

9% 13%

2015-H2 2016-H1 2016-H2

37%

59%

4%

2015

23% 25% 22%

15%

6% 5% 4%

0%


home market

Globaleconomic

developments


Internalchallenges



media


issues

Other

14% 25% 21% 39%

85% 15%

NO (39%)

The Global Barometer survey has been measuring the pulse of the exhibition industry since the end of 2008. The 16th

survey, conducted in December 2016, was answered by 240 companies from 58 countries. In the new format of this

report, the results are detailed for 12 geographical zones, including 8 major national markets.

Overall, the results indicate positive turnover expectations in 2016 for a large majority of companies in North America

and Europe, with the exception of Russia. In Asia/Pacific, Middle East and Africa the situations remains generally

positive, but with a certain level of uncertainty. In Central and South America, half of companies are expecting

decreases of turnover, but an improvement is expected in Brazil for the second half of 2016.

In terms of operating profits, around 3 to 4 companies out of 10 on average, have declared an increase of more than

10% in their annual profits for 2015; US and the Middle East outperform these results. Lower levels are identified in

Brazil and Russia.

The most important business issues remain related to the general economic situation with the state of the economy in

home market and global economic development uncertainty consistently selected as among the three most important

business issues for the last five years, together with competition from within the industry and internal challenges. The

impact of digitalisation comes fifth globally, and fourth in Europe.

In terms of strategy, a large majority of companies intend to develop new activities, in either the classic range of

exhibition industry activities (venue/organiser/services), other live events or virtual events, or in both: 75% in the

Middle East & Africa, 86% in Asia/Pacific, 87% in Europe and 93% in the Americas. In terms of geographical

expansion, only one to two companies out of 10 on average in all regions, declare an intention to develop operations in

new countries.

Regarding higher HR acquisition costs due to increasing turnover among young staff, the survey results show that this

issue does exist globally with every third company stating an increase. However, associated comments tend to

indicate that this is also an issue which is set to increase.

THE NEXT GLOBAL BAROMETER SURVEY WILL BE RUN IN JUNE 2016 – PLEASE PARTICIPATE!

Conclusion

30

Appendix: Number of survey replies per country

Total = 240 (in 58 countries)

31

North America 35 Europe 81 Africa 30 Asia & Pacific 50

Canada 2 Austria 1 Algeria 1 Australia 2

Mexico 17 Belgium 4 Egypt 1 China 22

US 15 Bulgaria 1 Libya 1 India 3

(*) 1 Czech Republic 1 Mozambique 1 Indonesia 1

France 2 South Africa 24 Japan 3

Georgia 1 Sudan 1 Malaysia 2

Central & South America 27 Germany 12 (*) 1 New Zealand 2

Argentina 2 Greece 2 Pakistan 2

Bolivia 1 Hungary 1 Middle East 17 Singapore 8

Brazil 13 Italy 10 Bahrain 1 South Korea 3

Chile 1 Luxembourg 1 Egypt 1 (*) 2

Colombia 4 Netherlands 4 Iran 2

Cuba 1 Romania 1 Iraq 1

Ecuador 3 Russian federation 13 Jordan 2

Venezuela 1 Serbia 1 Lebanon 2

(*) 1 Slovenia 2 Oman 1

Spain 2 Saudi Arabia 3

Sweden 3 United Arab Emirates 2

Switzerland 2 (*) 2

Turkey 5

Ukraine 1

United Kingdom 9 (*) several countries

(regional answer)

(*) 2

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