Operating profits
In terms of operating profits compared to 2019 levels, around half of the companies are declaring an increase or stable level for 2022 and their proportion is increasing to seven out of 10 for 2023. Among them, the number of companies declaring an increase is higher now than it was expected six months ago: 30% for 2022 (compared to 24% six months ago) and 37% for 2023 (compared to 31% previously).
Globally, only 2% of respondents expect a loss for 2023, a notable improvement compared to 11% reported for 2022. The highest proportion of companies expecting a loss in 2023 is declared in Germany (11%) and Colombia (10%).
Critical issues
· Internal management issues – as the most pressing business issue declared in this survey, within this segment, 61% of respondents selected HR issues, 50% selected business model adjustments and 31% selected finance.
· The impact of digitalisation comes as the second most important issue globally (17% of answers), followed by competition with other media (15%), the state of the economy in home market (14%), and then global economic developments comes next (12%, compared to 15% in the previous edition).
· The latest results also confirm that the impact of the COVID-19 pandemic on the business is now one of the least pressing issues, as only 3% of companies mark it as one of the most important (compared to 5% six months ago and 11% twelve months ago).
Trends
An analysis of the trend around top business issues from 2016-2023 identifies several shifts:
· Impact of digitalisation and competition with other media rank as main issues, with 32% of answers (compared to 12% in 2016).
· Global economic developments and the state of the economy in the home market have dropped from being the main issue in 2016 (44% of answers) to 26% in 2023
· The impact of COVID-19 pandemic on the business fell from 29% in 2020 to 3% in 2023.
· Internal management challenges has increased from 13% in 2016 to 21% in 2023.
· Sustainability/climate and other stakeholders’ issues have more than doubled from 4% of answers in 2016 to 9% in 2023
Factors for business development
Elements that are expected to have the greatest impact on their company’s business development in the next five years:
· Globally, changing customer expectations are expected to have the highest impact in the next five years, with 68% of respondents considering it significant. This applies to all regions, except for North America where staffing is the leading answer.
· Some 54% of respondents believe that staffing will have a huge impact on business development. Besides North America, it is as well considered to be the key factor in Germany, Australia, and India.
· Around 45% of respondents expect that digitalisation will greatly influence business development, especially in Spain, Argentina, Colombia, and Malaysia.
· Climate-related regulations is expected to be the key factor in France and the UK; and for Italy it will be “de-globalisation”.
Digitalisation
· 64% of respondents have added digital services/products (such as apps, digital advertising, and digital signage) to their existing exhibition offerings. This is especially the case in Europe (67%).
· 55% of respondents globally indicated they have digitised internal processes and workflows (compared to 49% one year ago), and this number is higher in Central and South America (67%).
· 27% of respondents stated that they have developed a digital or transformation strategy for exhibitions and products, and this number is higher in the Middle East and Africa (38%).
· 33% reported they have developed a digital transformation strategy for the whole company and 21% have launched digital products not directly related to existing exhibitions. On average, 21% have created a designated function for digital (eg: chief digital officer) within senior management, this is especially the case in the Middle East and Africa (35%).
Future exhibition formats
· 91% of respondents (compared to 87% a year ago and 78% two years ago) agree that “COVID-19 confirms the value of face-to-face events” (with 68% stating “Yes, for sure” and 23% stating “Most probably”).
· 21% (compared to 31% and 46% previously) believe there will be “Less international ‘physical’ exhibitions and, overall, less participants” (with 2% stating “Yes, for sure”, 19% stating “Most probably” and 24% remaining unsure).
· 56% (compared to 61% and 76% previously) believe there is “A push towards hybrid events, more digital elements at events” (with 12% stating “Yes, for sure”, 44% stating “Most probably” and 21% remaining unsure).
· 6% (compared to 6% and 11% previously) agree that “Virtual events are replacing physical events”, while 10% are unsure and 84% state “Not sure at all” or “Definitely not”.
The next UFI Global Exhibition Barometer survey will be conducted in January 2024.
Source from: meetings-conventions-asia.com
