Matt Kleinrock's Linkedin Analytics

Tradeshows and events are 38% more expensive to produce compared to 2019. Lets break this down with data then connect some dots so event marketers/managers know what moves to make... 1. Kudos to Nicola Kastner for her post and article breaking down the 38% increase I mentioned above, comparing 2019 to today. Here are some highlights as reported to her from event marketers/managers: - Room blocks up 30% - AV/production costs are up 20-40% - F&B up 45-55% - Venue 20-25% - Airfare 25% - Shipping and freight 25% - Labor 25-40% - Custom fabrication and event build 15-25% 2. Thanks to Jessica Sibila, CMP, CTSM at The Exhibitor Advocate, we got another great report on 2024 exhibition rates compared to 2023; electrical, labor, material handling etc. - Electrical labor up 16% - Material handling up 2.2% (More on this later) - Booth furnishings up 5% - Hanging sign labor up 8% - Top 5 most expensive cities to exhibit; Philly, NY, Boston, Chi, San Diego. - Top 5 least expensive cities to exhibit; ATL, Seattle, San Antonio, NASH, HOU. 🔦 Quick note. I did a little research when I noticed material handling was only up 2.2% from 23'-24'. Currently the average in US is $2.07 per pound. Go back to 2019. Material handling average per pound data is showing 0.99 - $1.43. Material handling was a problem and sticking point in 2019 in terms of cost, transparency, and complaints from exhibitors. Well its doubled since 2019. Okay, so what's going on in the 🌎... - Inflation - Uncertainty with transition of power in US - Geopolitics unsettling - Travel restrictions Here are some of my thoughts, and its pretty simple. ✅ Tradeshow and events are very expensive right now. BUT they were very expensive in 2019 and prior this inflationary run we are having. These costs have always been a pain point or at least in the last 10 years. These costs 4-10 years ago were not because of inflation. They were because of greed and lack of creativity. We've now added inflation to that problem and amplified it. This is what happens when you don't fix big problems. For example... Why are individual exhibitors paying 8k for internet for 2 days??? Starlink roaming unlimited is $165 a month, I mean come on, its 2025. Why are companies paying $50,000+ for material handling???? The pricing models are inflated, broken and not transparent. ✅ When companies treat their event program like a cost of doing business, they get cut in times like this. Shows get cut, budgets get cut and people lose their jobs. Its pretty simple. ✅ When companies treat their event programs like a sales and marketing channels, they see minor and more realistic cuts. Why? Because the program creates pipeline, accelerates pipeline, drives revenue and is a contributor to GTM. Lastly, its measured and execs know its contributing. Companies don't cut effective sales and MKG in tough times.