Higher disposable incomes will allow players to put on more consumer-oriented events
Los Angeles, CA (PRWEB) March 19, 2013
Growth in the Trade Show and Event Planning industry in Canada is heavily dependent on the size of corporate marketing budgets and the ability for consumers to spend. “Most recently, corporate profit and disposable income have been on the rise, enabling industry revenue to reach prerecession levels,” says IBISWorld industry analyst Austen Sherman. IBISWorld estimates that the industry will build on its recent strong performance and increase an additional 2.0% to $1.5 billion in 2013. Recent growth has largely been propelled by expanding client marketing budgets as a result of a significant increase in corporate profit following the recession; according to the Center of Exhibition Industry Research (CEIR), nearly 40.0% of business-to-business marketing budgets in 2011 were spent on trade shows.
However, the industry did have its plans for growth interrupted during the early part of the past five years. According to Sherman, “The Canadian economy mired in a recession for the majority of 2009, weighing on client marketing expenditures.” The effects on industry revenue were immediate and aggressive, resulting in a decline of 7.0% in that year. As a result, IBISWorld estimates industry revenue has risen at an annualized rate of just 1.4% during the five years to 2013. Since the recession, industry operators have increasingly used new technologies to ease labour intensive processes and reduce wage costs.
The Trade Show and Event Planning industry has a low level of concentration. IBISWorld estimates that in 2012, the top four operators in the industry accounted for about 26.0% of available market share. The industry's largest operators have the ability to negotiate deals with vendors and venues across Canada, and even around the world. However, the largest companies, which employ more than 200 people, account for just 0.1% of total industry enterprises. Major companies often provide industry services to large corporate clients on a contractual basis to guarantee sources of revenue for multiple years at a time. The industry also has a large percentage of small operators, with nearly 90.0% of all firms having less than 10 employees. Furthermore, the industry has a large number of nonemployers; sole proprietors account for more than 50.0% of all companies. Smaller operators and nonemployers were hit particularly hard following the recession in 2009 as they were less likely to have the security of corporate contracts. Nevertheless, as the industry and broader economy show signs of sustained growth, the number of independent planners should rise due to the industry's low barriers to entry.
During the next five years, IBISWorld forecasts industry revenue will rise. Demand for industry services is expected to increase as clients expand their marketing budgets and corporate profit grows. In addition, the industry will benefit from rising disposable income among consumers, a market that is more important for Canadian operators than for their US counterparts. Furthermore, industry profit margins are expected to improve slightly as the use of new technologies becomes the standard. However, operators must learn to use new technologies as an asset to events and not as a replacement for event attendance.
For more information, visit IBISWorld’s Trade Show & Event Planning in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry organizes, promotes and manages events, such as business and trade shows, conventions, conferences and meetings. It may also manage and provide staff to operate the facilities in which these events take place. This industry does not include establishments that organize, promote or manage live performing arts, sports events or festivals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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