Economic Outlook High Over Next 12 Months

Finance executives predict increases in spending, according to findings published in the third annual American Express/CFO Research Global Business & Spending Monitor, a survey of 479 senior finance executives from the around the globe.  Nearly three-quarters (71%) see expansion over the next 12 months and are optimistic about continued growth.

Nearly half (49%) percent of those surveyed said their companies plan to increase investment in the development of new products and services, and 46% aim to expand through increased sales and marketing activities over the next 12 months. A few other encouraging findings included:

• 57% plan to maintain or increase business travel spending compared to last year, with 26% planning to increase spending and 31% planning to maintain spending.
• 27% report plans to loosen policies for travel to meet with new clients or for business development.

You have to feel good about these numbers if you’re hoping to increase your trade show and event marketing budgets for 2011 and 2012.  Although the trade show industry experienced a 4% decline in Q1 (an improvement from the 11.7% decline experienced this time last year) we’ve seen an increase in business so far this year and all signs point to continued improvement in many industries.

What are your predictions for 2011?  Do you expect to see increased spending in trade shows and events?

via Hotel News Resource

Photo courtesy of http://www.backyardimage.com

1. 

   Stephen Cataldo says:

   June 1, 2010 at 12:46 am

   Since the middle of the last century the economy has tended to cycle in a somewhat steady way so a recovery is expected. But last time that the US and China both had economies running at full (and not very energy-efficient) steam, there wasn’t enough oil to go around. People are pretending that economics is more complex than it really is if we think the economy can recover without another huge spike in oil prices, just as large as the one that helped collapse the economy last time.

   My prediction: events involved in travel are going to continue to get hit with one-two punches, high travel costs during recoveries, followed by general slowdowns. Either we’ll get serious about efficiency, or Americans will get priced out of much of their current travel during the next decade as we face increasing demand-competition.

   Hopefully I’m wrong!

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2. 

   Joshua Rush says:

   June 1, 2010 at 8:31 am

   Stephen, thanks for your comments and general feedback. While I’m still young in this industry, I’ve been around it long enough to know that it’s survived several punches over the last fifty years and two knockout blows in the past decade. The events surrounding 9/11 nearly crippled trade show events and the bursting of the housing market bubble and subsequent economic downturn had definitely knocked the wind out of the industry, until recently. Still, there is something about the nature of this business that provides the tangible, face-to-face experience that can’t be outdone by videoconferencing or virtual events.

   You’re probably right to assume that the days of cheap air travel can’t hold up forever but I’d argue that those that need to travel for business events will continue to do so. People still need to meet in order to cultivate and manage relationships that drive business.

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3. 

   Kristin says:

   October 25, 2010 at 10:58 am

   I do agree that there’s going to be a change in the number of trade shows exhibitors are traveling to. However, I think many of them will begin doing more localized events. I am a trade show display supplier and, even in the tough economy, have seen an increase in our sales. Even with an increase, businesses are starting to tighten their belts and spend less on trade shows.

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4. 

   Joshua Rush says:

   October 25, 2010 at 11:18 am

   Kristin, oddly enough we’re experiencing much as the same as you when it comes to increased client activity but with restricted budgets. And while this requires that every company in the supply chain has to sharpen their pencils, it’s still encouraging to see that exhibitors are re-focusing their efforts on face-to-face marketing efforts. There simply just isn’t any replacement for the type of selling that trade shows facilitate and that is in-person, one-to-one or one-to-many interaction. Corporate Meetings & Incentives recently publisehd an article on the science behind face-to-face meetings and why companies should continue to invest in them. It’s a great read if you’re interested, http://meetingsnet.com/corporatemeetingsincentives/news/maritz-institute-cornell-center-whitepaper-1009/.

   I’d be curious to get your feedback.

   Thanks!

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