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John Christison

John Christison. Trends That Are Impacting Business in North America. The Trends That Are Driving Change. Rapid growth in available facility inventory Major shifts in centers of manufacturing and trade More specialization of meetings and exhibitions More price sensitivity

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John Christison

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  1. John Christison

  2. Trends That Are Impacting Business in North America

  3. The Trends That Are Driving Change • Rapid growth in available facility inventory • Major shifts in centers of manufacturing and trade • More specialization of meetings and exhibitions • More price sensitivity • Higher expectations for service

  4. The Trends That Are Driving Change • Reduction in government subsidy and declining tolerance to operating losses • Impacts from internet marketing and conferencing • Changes in the management of programs • Lack of market response to ever increasing costs

  5. Rapid Growth in Available Facility Inventory • The facility industry will add 6.8 million sq. ft. of exhibit space to the existing north American inventory in the next four years. • Over one million sq. ft. of meeting room space will be added in that same time period • This is an approximate growth rate of 6.4% while the industry demand is only growing by only 4.8 % during this same period. • Facility inventory growth is currently outstripping demand growth. Competition is greater than ever!

  6. There Is a Major Shift in Manufacturing Location • Shifts from historic centers of manufacturing will impact trade events • Manufacturers are recognizing the benefits of regionalization and customization of events for selected customers • The size, focus and location of traditional tradeshows is changing The size and configuration of events is changing

  7. More Specialization Is Occur in the Meetings Industry As Well • The size of many meetings is growing smaller • Many meetings are becoming much more specialized through segmentation • More meetings may required to create the same economic impact While many facilities are growing larger many meetings are actually getting smaller

  8. Globalization Is Changing the Demographics of Our Guests and Clients • The number of international delegates wishing to attend meetings is growing • In the US visa restrictions are creating hardships for international visitors • Concerns for security have added new complications to event planning, service delivery and travel We are having to learn a new vocabulary of service

  9. The Economy Is Driving Greater Price Sensitivity • Budgets for event production and execution are becoming smaller even in an improving economy • It is a buyers market-the glut of available inventory complicates the ability to generate revenue • Planners have higher expectations for quality, service and benefits without the expectation of paying for those services. If you are not negotiating you probably are not doing any business

  10. Higher Expectations for Service • Clients are no longer satisfied with institutional service • Four or five star levels of service are not only expected but are now major issues in decision making • Everyone gives good service what comes next? It is about the experience Its not your father’s convention business anymore

  11. Reduction in Government Subsidy • Twenty years ago the government’s logic was- “ If we lose money operating the facility we will more than offset the loss with economic benefits”. • Today’s logic is “We still want the benefits but can no longer subsidize the effort”. • Facility operators are being squeezed from two directions It is just not as much fun as it used to be

  12. The Internet Is Impacting Us • We have debated the question of whether the internet would impact our marketplace for years. • We now know the answer is, we are impacted Our ways of doing business must change

  13. Third Party Planners and Contractors Are Impacting Revenue • Third parties have taken over large segments of our client base • These third parties are drawing down on the pool of available funds, while we still do the work • Third parties are becoming decision makers The last thing we needed was another pig at the trough

  14. The Expense of Operating Facilities Is Increasing, the Market Is Unable or Unwilling to Respond to These Increases • The increase in facility rental rates in North America has not increased to offset rising costs • Historical revenue sources that helped to offset this disparity are shrinking under client pressure We better figure out something or we are in for a rough ride

  15. Has Anyone Considered Farming As an Alternative Career Path?

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