US B2B exhibition industry continues improvement in Q4 2021 results

The Center for Exhibition Industry Research (CEIR) has reported that the US business-to-business (B2B) exhibitions industry improved significantly in the fourth quarter of 2021 from the previous seven quarters. Cancellation rates for physical in-person events dropped to 12.5% from 91.3% in the first quarter, 66.2% in the second quarter and 20.6% in the third quarter of 2021. About 98% of exhibitions were cancelled during the second half of 2020.

The CEIR Total Index, however – a measure of overall exhibition performance – remains below 2019 results, registering a decline of 45.3% compared to 2019, although the new CEIR figures mark a vast improvement compared to the three prior quarters: a decline of 94.0% from 2019 in Q1 2021, 75.6% from 2019 in Q2 2021 and 50.6% from 2019 in Q3 2021. 

CEIR noted the performance of the US economy increased at an annual adjusted rate of 7% from the previous quarter, a strong acceleration from 2.3% annual rate of growth in the third quarter. Imports increased. Thus far, economic recovery is led by strong spending on goods as services industries are seeing a far slower rebound.

Among cancelled events in Q4 2021, 75.8% instead offered digital events, up from 69.4% in Q3 2021.

Q4 2021 results speak to a choppy recovery that is underway, the survey revealed, though the industry is slowly improving overall. Excluding cancelled events, CEIR's Total Index for completed events in Q4 2021 dropped by 40.5% from 2019, compared to a decline of 54.9% from 2019 in Q1 2021, 39.8% from 2019 in Q2 2021 and 45.8% from 2019 in Q3 2021. Attendees suffered the largest fall of 43.2%, followed by Net Square Feet (NSF) plunging by 41.9%. Real Revenues tumbled 40.6%. Exhibitors in Q4 was the metric that contracted the least, 36.2% from the fourth quarter of 2019.

The US economy has been growing since May 2020. With a sharp rebound in the third quarter of 2020 and a continued recovery through the fourth quarter of 2021, real GDP in Q4 2021 exceeded its peak in the fourth quarter of 2019 by 3.2%.

Omicron infections dampened economic activities during the fourth quarter of 2021. However, the latest data for January 2022 shows that real personal consumption expenditures have regained growth momentum, rising 1.5% from the previous month and 5.4% from a year ago. The US population with at least one dose of the Covid-19 vaccine reached 76.6% on 8 March 2022.

“Rising vaccination rates and continued robust economic activities bode well for the B2B exhibition industry,” said CEIR economist Dr Allen Shaw, chief economist for Global Economic Consulting Associates, Inc. “The B2B exhibition cancellation rate should decline further.” 

CEIR survey research and Index results indicate recovery of the industry will accelerate. CEIR Omnichannel Study results indicate strong intent to return in 2022, particularly on the exhibitor side but with slightly softer intent to return among attendees.

There is pent-up demand for face-to-face engagement. The January 2022 COVID Impact and Recovery survey results indicate the overwhelming percentage of organisers are holding the course, with plans to run their 2022 events, despite Omicron as a factor when the survey was fielded. 

“With more vaccine mandates and safety measures implemented at large gatherings, and with a majority of the population vaccinated, the recovery of B2B exhibitions should continue in 2022, unless a new variant causes a severe fifth wave of Covid-19 infections,” added CEIR CEO Cathy Breden. 

The Center for Exhibition Industry Research (CEIR) plans to release the 2022 CEIR Index Report in early May, which analyses the 2021 exhibition industry performance and provides an economic and exhibition industry outlook for the next three years. CEIR collects data directly from exhibition organisers, who are encouraged to provide their show data by using the Event Performance Analyzer. Data submission is strictly confidential. Click here for more information. Click here for information on how to purchase the complete 2021 CEIR Index Report as well as individual sector reports.