From the MEA Chair: 8 March 2023

By Michael Firman, Chairman of the MEA Board of Directors

There are lots of reasons to be optimistic about the state of the events industry in 2023. In a climate of rising costs driving inflation, continued interest rate rises and ongoing staff shortages, the demand for events remains high and continues to grow.

Major events, such as the recent Melbourne International Air show, are breaking attendance records, while meetings and in-person events are thriving. With interest rate rises and speculation of a potential recession dominating the media, the demand for in-person events has been greater than anticipated.

The event industry is well and truly back. Many venues are reporting that business has returned to pre-pandemic levels, with some reporting record growth. But the spike in demand has created greater competition for available event space, shortage of staff and put pressure on the capacity of the supply chain to deliver. The combination of rising costs and high demand has also put significant pressure on budgets for many event organisers and participants and I expect many will look to find ways to bring down their event cost moving forward.

The state of the economy and the impact it can have on the event industry is a complex issue. I’m often asked to predict if the growth trend in events will continue or if rising costs will put the brakes on – it’s part and parcel with trying to determine the right staffing and resourcing levels to deliver forecasted budgets and client expectations within our own business.

However, it’s important to look beyond the media bubble and its constant focus on interest rates the cost of living. My first mortgage came with a double-digit interest rate as I attempted home ownership on a salary that today school leavers would snub their nose at. What’s changed? Interest rates remain at historical lows, salaries are incredibly high, but so is the value of property and the cost of petrol. Isn’t it all relative?

Changes to the economy will always impact the financial viscosity of event budgets, but perhaps what has the greatest impact is social change, the change in our social values. You see, events are growing and will continue to grow because the value we place on in-person events is greater than the cost to deliver them. And in a post-pandemic world, there is even heightened appetite for greater connections and deeper engagement. 

The pandemic has transformed how we work and how we connect. With many organisations adopting hybrid or remote working, a flexible workforce comes with new challenges. Connecting, training, and motivating employees who work remotely has changed the way we maintain a strong company culture. Events now play a vital role in keeping employees engaged, satisfied, and motivated. 

If I’m looking into my crystal ball, events will continue to grow because we relish human engagement; technology has reduced our ability to properly engage in our day-to-day lives – have you noticed how no-one picks up the phone anymore? Clients only want to communicate online.

The increase in cost to deliver events will only mean a focus on finding efficiencies and will place greater emphasis to prove ROI. Events will continue to grow because communities have a greater need to interact and engage, albeit with a new generation of face-to-face event experiences that provide enhanced engagement and that demonstrate social value on key issues like sustainability, diversity, equality and inclusion in events.

And if you’re reading this and thinking how to re-engage or motivate your teams with retention and personal development in mind, can I suggest sending them along to MEA’s upcoming Evolve conference that is designed to engage, educate and address the impacts social change is having on our industry.

Don’t be a victim of FOMO – Evolve will take place on the Gold Coast from 7-8 June, I suggest booking in early to secure great rates on flights and accommodation. Don’t miss the opportunity to engage with your team, colleagues and industry at Evolve 2023.

For more information, visit the Evolve website.

See you there!