Analysis firm Plimsoll’s report on the UK exhibition and event industry looked at 677 firms and found that 235 of them are losing money, with 117 of them doing so for the second year running.
On the flip side, 201 firms have actually managed to increase profits, painting a picture of an event market in which it is difficult to make profit, but not impossible. The average profit margin in the event industry has now fallen to 3%.
"Whether its fuel, materials or wage demands every company in the UK exhibition and event organisers industry is being squeezed by ever increasing costs," said Plimsoll senior analyst David Pattison.
"64% of companies have seen their gross margin fall in the latest year. Unfortunately, many are reluctant to pass on price rises for fear of losing customers to cost savvy competitors. However, falling profit margins across the industry is the first warning sign that this strategy has become unsustainable."
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