UFI’s latest biannual Global Barometer research has revealed that after monthly activities dropped sharply everywhere in the world, the exhibition industry is gradually starting up again. However, revenues for 2020 are expected to represent 39% of 2019 revenues and 44% of companies say they have stopped all investments.

The shift to digital is evidenced by every second company reporting increased investments related to digitalisation. A large majority of the industry is still confident that Covid-19 confirms the value of face-to-face events, and believes the sector will come back quickly.

The UFI Global Barometer is designed to take the pulse of the industry, and this year this major piece of research from the association delivers dedicated profiles for 25 markets and regions.

The flagship report, as expected, highlights the severe impact of the Covid-19 pandemic on the exhibition industry worldwide.

Whereas, globally, 85% of companies surveyed declared their overall level of activity was “normal” in January, the figure quickly dropped to 15% in March, reaching between 5% and 6% in April, May and June.

For both April and May, 73% of companies worldwide declared “no activity”.

 With a majority of companies expecting local and national exhibitions to open again during the second half of 2020, the level of activity is expected to slowly increase, and two companies out of three projects at least a “reduced” level of activity in the last quarter of 2020.

In all regions, a majority of companies believe that exhibitions with an international scope will not open until 2021.

Globally, revenues for the first half of 2020 dropped by two thirds on average, compared with the same period last year. Looking at 2020 as a whole, it is currently expected that globally, revenues will represent only 39% of those of 2019.

In terms of profits, a strong level of performance was reached in 2019, with 45% of companies declaring an increase of more than 10% for 2019 when compared to 2018. The sharp drop in revenues that occurred in 2020 has led to a loss for 39% of companies, and only 7% of companies currently expect a stable or increased profit for 2020.

The survey shows 44% of companies that participated in the research have stopped all of their investments, yet, at the same time, 50% of companies say they are increasing their investments in digitalisation programmes.

By comparison, investments have decreased or been stopped for 55% of companies in programmes related to diversity, and 54% in those related to sustainability.

The survey also tackles possible driving trends for the format of exhibitions in the coming years. Global results indicate that 57% are confident that “Covid-19 confirms the value of face-to-face events”, anticipating that the sector will bounce back quickly, whereas 31% are “not sure” and 12% are “not sure at all” or “disagree completely”.

“On the back of an exceptional year in 2019, we are now seeing an unprecedented drop in revenues around the world. While the industry remains confident that it will bounce back, everyone is aware that this crisis will lead to major changes in the way exhibitions are produced, especially with a push towards more digital elements before, during, and between events,” said Kai Hattendorf, UFI managing director and CEO, commenting on the results.