Double-dip recession sparks mixed industry reaction

AOK Events, Adding Value and Smyle have reacted to news that the UK is in a double dip recession.

Double-dip reports spark mixed industry reaction
Double-dip reports spark mixed industry reaction

According to figures from the Office of National Statistics, a sharp fall in construction output was partly blamed for the economy shrinking by 0.2% in the first three months of 2012. The economy also shrank by 0.3% in the fourth quarter of 2011.

But Smyle managing director Rick Stainton said that his agency is upbeat. "These figures can still be readjusted, and in the past the difference has been dramatic," he said. "As construction is the major perpetrator, we can assume the service sector- which encompasses events- was fairly flat."

Stainton's point about readjustment was echoed by Randle Stonier, chief executive of Adding Value, who said: "The figures might mean nothing in the great scheme of things."

Meanwhile, shorter lead times are now more likely, according to AOK’s managing director Alex Hewitt. "The news will almost certainly mean that more events are booked at the very last minute and only when a clear business case has been approved. Most companies will not want to advertise their participation in any event-related activity for fear of negative PR," he said.

Despite the news, Hewitt and Stainton said there are a number of signs pointing to a positive outlook for the economy.

Stainton said that the BRIC markets and emerging markets still bring a lot of spend, whilst Hewitt added that buoyant companies will continue to spend.

Stonier said that business will continue as usual. "I think it’s more of the same – it means continued caution and continued prudence. Every single client is cost-centric and I don’t think it’s going to make a heap of difference in the current climate."

But he added that anyone who believes 2012 is going to be a year of good growth is "burying their head in the sand".

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
'Stress and burnout' are challenges we need to tackle

'Stress and burnout' are challenges we need to tackle

Event Concept's Jo Higgs explains why looking after your people is so important and how training mental health first-aiders could help.

Case study: Leon Winter Award Celebration

Case study: Leon Winter Award Celebration

The event at Hawker House in London tied in perfectly with the fast-food chain's innovative approach.

Events budgets rose in second-quarter, says Bellwether Report

Events budgets rose in second-quarter, says Bellwether Report

While wider marketing budgets flatlined in the second quarter of 2019, events bucked the trend.

Seven Events welcomes two new faces

Seven Events welcomes two new faces

Agency brings in client development manager and event executive to London and Birmingham offices.

The diversity debate is about more than gender

The diversity debate is about more than gender

The industry faces challenges representing people from low income backgrounds, argues TCEG's Russ Lidstone.

The growing importance of face-to-face marketing

The growing importance of face-to-face marketing

Keith Austin, CEO and founder of Event Marketing Solutions, believes roadshows are more important than ever.

Cost savings are damaging to business traveller wellbeing, report finds

Cost savings are damaging to business traveller wellbeing, report finds

Research by Capita Travel & Events suggests many organisations are still failing to limit the impact of regular travel on employee health.

How to get the most out of your keynote speakers

How to get the most out of your keynote speakers

From pre-event videos to research papers, keynotes can provide all kinds of content, says DMA Partners' Philip Martin.

What to expect at IMEX America

What to expect at IMEX America

A sneak preview before the events world descends on the Sands Expo and Convention Center in Las Vegas from 10-12 September.

Brisbane to host international ear, nose and throat congress

Brisbane to host international ear, nose and throat congress

The Asia Oceania ORL-HNS Congress will return to Australia for the first time in 40 years, attracting 1,500 clinicians and surgeons.

LATEST JOBS