Exhibitors Cite Cost Increases as the Most Difficult Challenge They Face in 2023, According to Recent Survey

April 7, 2023
 
Exhibitor trends

With the annual U.S. inflation rate at 6.0% for the 12 months that ended in February (according to U.S. Bureau of Labor Statistics data published March 14), it should come as no surprise that 76% of exhibitors said rising costs are the most difficult challenge they face in 2023, according to research by A2Z Events by Personify.

What other challenges are confronting exhibitors in 2023? More than half (54%) noted the importance of finding innovative ways to connect with attendees, and 27% reported decreased attendance as one of their biggest concerns. 

“We completely agree — rising costs are the No. 1 concern for exhibitors,” said Jessica Sibila, executive director of the Exhibitor Advocate, a non-profit group founded to amplify the voice of the exhibitor. 

“We recently conducted similar research that aligns with these insights. Exhibiting costs for I&D labor, electrical and material handling is outpacing inflation by as much as 30% in some cases, according to our 2022 Material Handling and Labor Rate Survey,” she said. “With these dramatic increases, exhibitors are scrutinizing the value of events more than ever before.”

Related: NEW RESEARCH PROVIDES BENCHMARKS FOR TRADE SHOW LABOR AND MATERIALS HANDLING COSTS IN 16 CITIES

How are trade show organizers addressing these concerns? Some are re-evaluating their current exhibitor pricing and packaging, while others are renegotiating with service contractors and venues. A number of trade shows are providing more support services for exhibitors, such as online marketing and exhibitor education, as well as finding new ways to reach out to potential attendees. 

In January 2023, 318 participants from companies or organizations that have exhibited at least one trade show, conference or event in the U.S. within the past 12 months were surveyed. The survey was distributed among a wide range of industries and reflected the perspectives of exhibitors with booths ranging from 100 net square feet (NSF) or smaller to 700 NSF or larger.

Daria Knupp, senior content marketing manager at Personify"As the event industry evolves and marketing continues to transform, it’s more important than ever to stay up to date with the latest trends and strategies,” said Daria Knupp, senior content marketing manager at Personify. "We wanted to take a deep dive into exhibitors' expectations, needs and challenges to help equip show organizers with the insights they need to create effective and engaging events in 2023 and beyond."

Here are four more key takeaways from the research that you can use to benchmark against your own organization.

1.     Event participation will stay the same or increase in 2023. In fact, 89% of survey respondents reported their 2023 event participation is staying the same or increasing compared to 2022. “When broken down further, 55% said they would be increasing their participation in 2023 events, 34.9% said it would remain the same, and 10.1% claimed it would decrease,” according to the report.

2.     Expectations for attendee satisfaction and engagement are high. The majority of surveyed individuals (93%) anticipated either an increase or no change in attendee satisfaction and engagement levels. Content is king for this, as 84% of exhibitors believe it will be the key driver for attendance at the events they participate in. 

3.     Objectives for exhibiting in 2023: Visibility, leads, brand reputation and strategic partnerships. When asked about objectives for exhibiting, 67% of companies stated visibility as the No. 1 priority for exhibiting in 2023, followed by generating leads (59%). Half (50%) look to enhance their brand reputation, and 41% look to exhibit to form strategic partnerships. “The results demonstrate the shift in how businesses approach events today compared to even a few years ago. Events no longer serve merely as tools to acquire new customers but as a platform to increase visibility and foster relationships within the business’ core market and beyond,” according to the report.

4.     Exhibitors want to reach millennial buyers, with 47% indicating this demographic was their primary target. The survey data also showed a significant gap between the other generations targeted by event exhibitors — Gen Xers: 23%, Gen Zers: 21% and Baby Boomers: 9%. How are show organizers targeting and delivering millennial buyers? Some shows are creating more inclusive environments, targeted content and experiences, and incorporating more event technology for product discovery, matching buyers to suppliers and setting appointments.

Why It Matters

Jessica Sibila, executive director of the Exhibitor Advocate“This research highlights other important factors that exhibitors consider when making decisions on their participation level in an event,” Sibila said.Access to quality data, attendee demographics/buying interests and brand building opportunities highlight the value side of this equation. The value gained from participating in an event must balance out the cost.”

Sibila continued, “As costs rise, exhibitors will need to see additional value to justify participation. Show organizers who can address both sides of the equation, understand the needs of their exhibitors and innovate to meet their objectives will be positioned for success in the future.”

Want To Know More

Sibila will present the results from the 2022 Material Handling and Labor Rate Survey at EXHIBITORLIVE in April in Louisville, Ky.

The full Personify report can be found here. Watch a webinar about the results here. Personify plans to conduct this survey again in Q3 to compare the data. Stay tuned.


 

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