If you were at IAEE’s Expo! Expo! last month or at PCMA’s Convening Leaders this week in Austin, it’s hard not to notice what everybody was NOT talking about, especially since it’s what they’re talking about everywhere else they go: Donald Trump.
Regardless of whether you’re a Trump fan or not, it’s hard to deny that his sheer unpredictability has everybody in business a bit nervous. At the same time, event organizers talk politics in their work lives at their own peril, nervous that they’ll offend the sensibilities of clients.
So, the president-elect has become the proverbial elephant in the room. Despite the fact his plans for economic policy, deregulation and tax reform remain quite vague, most business leaders seem to be taking some comfort in the fact that something is going to happen – whether it’s good or not.
It is likely that this is the year when corporate America finally does begin to invest again in new products and infrastructure upgrades, which should mean more products and services that need to be introduced to potential buyers at trade shows.
The reality is this was probably going to happen no matter who was elected president.
Companies have taken much longer than anybody anticipated to get over their shyness after the recession of now nearly eight years ago. That is clear from the evidence that capital spending by Fortune 500 companies is increasing despite the fact the Fed raised interest rates and plans to do so at least two or three more times this year.
Dating back to the recovery that began somewhere around 2009, companies have been reluctant to invest much when the economy was rebuilding itself at the slow pace it was. They were more concerned about their hurdle rates – the minimum return on investment – and sought out safer alternatives like stock buybacks.
There is no real evidence that a Trump administration will do anything to spur economic growth. It’s more a case of companies simply tiring of waiting out the economy.
To its credit, the events industry has somehow managed to keep itself moving through all this, sometimes at a rate that is faster than the gross domestic product.
The next challenge for event organizers will be to assure that, even as their best customers look for the most effective marketing channels, their trade shows and conferences remain relevant.
Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at email@example.com.No Fields Found.