Agency view
Dealing with fastevolving event budgets
SARAH YEATS , MD AT SLEDGE HAS OVERSEEN PROJECTS IN COUNTRIES INCLUDING THE US , UK , CHINA AND FRANCE OF LATE , AND SHARES SOME INSIGHTS ON ADDRESSING THE CAUSES BEHIND DECLINING BUDGETS AND RISING ATTENDEE EXPECTATIONS
T he rising cost of living has dominated global news headlines this year , and it ’ s impacting the event industry in myriad ways .
However , just as no two countries are the same , the challenges – and even opportunities to embrace change – vary by location .
A look at the current state of play There was a level of recovery felt across the majority of sectors in 2022 , with company profits , headcounts , and marketing budgets mostly increasing . As a result , events were back with a bang .
Sledge Shanghai
This year , on the other hand , we ’ ve been faced with rising inflation levels – in August 2023 , the UK ’ s annual consumer price inflation was 6.7 % and Germany ’ s 6.4 %, while the Eurozone average was recorded at 5.2 %, and in the US it was 2.5 %.
This has gone on to affect even the largest of brands . According to Statista , layoffs in the tech sector , for example , saw 167,400 employees lose their jobs in the first quarter of this year .
However , tech brands are not alone . Companies across various industries are demonstrating caution , restructuring , and exploring ways to cut costs amid talks of a potential recession .
For the global event industry this means clients ’ budgets have mostly been reduced and , yet at the same time , they expect the same superior quality – all while we tackle rising production and operational costs .
Uniting as an industry in the UK Conversations around increasing rate cards are never easy , particularly with a historical client , and following the
Above : Sarah Yeats
“ Companies across various industries are demonstrating caution , restructuring , and exploring ways to cut costs amid talks of a potential recession .” pandemic , where many of us will have put a hold on revising these .
As agencies , we ’ re faced with somewhat of a conundrum here . We need to make a profit to keep our own lights on , so passing event production and operational increases on in one way or the other is required .
At the same time , we don ’ t want to lose out on work or damage partnerships , particularly when clients themselves don ’ t have the budget to manage these changes .
Right now , it ’ s important for agencies to be bold and highlight how they add value . In my view , this also represents an opportunity for us to band together , and explore establishing UK industry-wide rates and standards , so that the work is evenly spread , and clients receive the highest level of service , wherever they go .
A distinctive mindset in China China is an incredibly unique country , in that it ’ s ‘ on ’ 24 hours a day . You can make anything happen at speed – and there ’ s an expectation that you embrace the mindset that budgets and timelines are not a hindrance .
A piece of furniture , set even , can be built overnight , and given that labour costs are much lower than in other parts of the world , price isn ’ t an issue . Generally , the production of bespoke items is approximately 30 % cheaper in China when compared to the UK .
This approach can be associated with its own set of challenges , however , from human and labour rights , to the environment , in terms of creating products from non-recyclable materials , or items that won ’ t be used again .
We ’ ve also found there ’ s a client expectation that event production costs in China should be the same everywhere else , whereas in most instances , these are much higher . Factors impacting this include non-local material production , and differences in wage costs .
18 / CONFERENCE & MEETINGS WORLD / ISSUE 127