Recovery emerging in the events sector
The events sector is slowly recovering from the pandemic, according to figures from the new survey by industry associations Expo Event Swiss LiveCom Association and Tectum. Although sales and profit forecasts have not yet reached pre-pandemic levels, despite significant increases, they give cause for cautious optimism for the future.
While the first quarter of 2022 was still dominated by the measures to combat the corona pandemic, sales figures in the trade show and event industry literally exploded in the summer of 2022. At the end of the year, however, volumes fell again as energy shortages and the conflict in Ukraine put the brakes on business once more. This leads to sales figures that, while still only 70 % of those before the pandemic, give the events sector a more hopeful outlook for the future, according to a survey by Expo Event Swiss LiveCom Association and Tectum, the Swiss association of marquee builders and temporary structures. Sales figures for 2022 are put at 3.85 billion. CHF (2021: CHF 2.52 billion, 2020: CHF 2.37 billion). But it is still a long way from the pre-pandemic figure; this was CHF 5.56 billion in 2019. CHF.
The hype on digital events is subsiding
Due to the pandemic, digital events experienced a real boom, which is now, however, slightly put into perspective again, as the surveyed figures show: Last year, an average of 80 to 100 % of the revenues of the companies surveyed were generated by physical events, while the remaining revenue came in equal parts from hybrid and digital events. This suggests that live events will continue to be favored by the market, even though digital formats are here to stay and will continue to play an important role in the future. This is also reported by a current article (chargeable) of this medium.
Shortage of skilled workers and energy costs still key issues
Nevertheless, the event sector continues to struggle with major challenges: Although the total number of people employed has increased slightly again, the shortage of skilled workers is leading to higher wage and recruitment costs. As a result, price increases of 15 to 20 % are expected due to the narrowed margins caused by the combination of ongoing strong inflation and massively higher material and energy costs. Whether and how this will affect the order situation is currently still open. Christoph Kamber, President of Expo Event, nevertheless remains cautiously optimistic: "We are pleased and grateful that the figures and sales are pointing upwards again. Nevertheless, we still have some sticking points to solve in the future. It has been shown once again that uncertainty is poison for our industry and immediately triggers significant sales losses on the event organizer side. However, we are facing this challenge courageously, optimistically and, of course, with creative and convincing solutions. If 2023 goes by without any further substantial restrictions, we hope to return to pre-pandemic revenue levels."
Source: Expo Event
