By Mary Tucker | Senior Communications and Content Manager | IAEE
Since January, new U.S. administration implementing policies are reshaping how industries operate. From trade tariffs and federal spending adjustments to extended tax cuts that could boost consumer spending, these macroeconomic shifts are creating both opportunities and challenges for the business-to-business (B2B) exhibitions and events industry.
How will these changes impact exhibitor participation? Which sectors should event organizers be watching closely? And what strategies can help navigate the uncertainty ahead?
To explore these critical questions, we sat down with two leading experts ahead of IAEE’s upcoming webinar, CEIR Insider Session: Update on the Macroeconomy to Leverage Event Success in the New Normal. Adam Sacks, President of Tourism Economics and a 25-year veteran of economic analysis for the travel sector, brings his expertise in forecasting and policy analysis. Joining him is Nancy Drapeau, IPC, Vice President of Research for the Center of Exhibition Industry Research (CEIR), whose 31 years in the industry and track record of identifying trends make her uniquely qualified to translate economic shifts into actionable insights for event organizers.
Here, they share their perspectives on the evolving economic environment, reveal which industries are positioned for growth and offer strategies for organizers looking to thrive in the new normal.
ADAM: Given the current mix of trade tariffs, federal spending cuts and extended tax cuts, which specific B2B exhibition sectors do you predict will see the strongest growth over the next 12-18 months, and what economic indicators are you watching to track these trends?
The U.S. is experiencing a significant boom in AI-related investments, particularly in infrastructure such as data centers. This surge is expected to continue, providing a substantial boost to sectors involved in AI technology and infrastructure. The demand for foreign-produced computers, driven by AI needs, has helped offset some of the slowdown in other imports, indicating a strong growth trajectory for exhibitions related to AI and technology.
Key economic indicators being monitored include the pass-through rate of tariffs to core goods prices, which has been increasing and is lifting consumer prices. Additionally, the strength of AI-related investment and consumer spending trends are critical indicators for predicting the growth of B2B exhibition sectors. These indicators help assess the broader economic environment and its influence on specific sectors.
NANCY: Based on your research into current industry trends, how are exhibitors’ decision-making processes changing in response to the new economic environment, and what does this mean for how organizers should position/market their events?
The Q2 Index Quarterly Report shows stalled growth in both the number of exhibitors and NSF of paid space. This suggests exhibitors are becoming more cautious given the current business climate, with some sectors facing stronger headwinds than others. Importantly, results are flat – not contracting.
Organizers in sectors affected by trade tariffs need to pivot and implement strategies to retain impacted exhibitors. On the attendee side, federal job cuts and reductions in grant funding could influence participation. However, the Q2 Index report indicates attendance remains one of the strongest performance metrics. These government actions are not affecting the industry overall but are likely impacting events serving those sectors.
In the webinar, Adam and I will discuss how affected events can adjust marketing and event offerings, whether by mitigating headwinds or leveraging new opportunities.
ADAM: What are the most important macroeconomic signals that exhibition organizers should monitor regularly to anticipate changes in exhibitor and attendee participation?
Exhibition organizers should track key macroeconomic signals to anticipate changes in exhibitor and attendee participation:
- Economic Activity and Recession Risk: Early indicators of economic slowdown, including financial market trends, help gauge the risk of reduced participation. These measures are often more timely than quarterly GDP reports.
- Consumer Spending and Income Disparities: Spending patterns differ across income groups – high-income consumers are rebounding, while lower-income households remain constrained. This affects demand and attendance for exhibitions targeting different audiences.
- Labor Market Conditions: Weakening hiring or job openings can dampen consumer confidence and business spending, influencing both exhibitor budgets and attendee turnout.
- Inflation and Interest Rates: Rising prices reduce disposable income, while higher interest rates increase borrowing costs for businesses. Both can limit the financial capacity of exhibitors and attendees.
NANCY: With some industry sectors experiencing more impact than others, what strategies have you seen successful organizers implement to either pivot toward growing sectors or better support exhibitors in challenged industries?
Let me share one right now. The current administration aims to bring manufacturing back to the United States. A major organizer is adding a pavilion to their show that will facilitate discussions with companies interested in launching manufacturing in the U.S.
ADAM: For exhibition organizers considering investments in new shows or significant expansions of existing events, what economic risk factors should they be evaluating right now that they might not have prioritized a year ago?
Exhibition organizers considering new shows or expansions should monitor several economic risk factors critical for strategic planning:
- Trade Policy Risks: Escalating U.S. tariffs and potential retaliatory measures can disrupt global supply chains and affect capital spending. Organizers should consider how trade uncertainty might impact costs and investment decisions.
- Policy Uncertainty and Economic Outlook: Ongoing U.S. policy uncertainty can weigh on business investment and consumer sentiment. Conversely, reduced uncertainty could support a rebound in global growth, benefiting event-related sectors.
- Global Economic Risks: Broader financial and economic challenges, including potential market corrections, can create inflationary pressures and impact real estate and event-related sectors. Organizers should factor in global market volatility when planning expansions.
NANCY: How does the current moment of economic uncertainty compare to previous challenging periods you’ve studied, and what lessons from past disruptions should organizers be applying today?
Today’s economic uncertainty is historic and unprecedented. It stems from actions by the current U.S. administration, where decisions are unilateral. Trade tariffs have reached levels not seen in nearly a century. At present, the federal government is shut down, Congress has not convened, and there is no effort toward bipartisan resolution. Hopefully, this challenge will be resolved before the webinar.
Crises are not new – consider the pandemic, the Great Recession of 2008, September 11, and health events like SARS. Each triggered downturns in the B2B exhibition industry, yet recovery always followed. The industry was on track to rebound in 2026; however, current headwinds from the administration are delaying full recovery, according to CEIR forecasts.
The key lesson from past crises: organizers and stakeholders who prevailed pivoted. Moving forward it suggests the importance of doing that, also having backup plans, risk analyses, and actionable contingency strategies tailored to the challenges at hand.
We will explore practical ideas and strategies during the webinar.
Don’t miss the opportunity to hear Adam and Nancy discuss these topics in depth! Come prepared to ask questions and join us as we navigate this evolving landscape together. Webinars are FREE for IAEE Members and cost $49 USD for non-members. Not a member? This is just one of many benefits to IAEE membership – learn more here!
