Where have all our industry freelancers gone?
As the industry ramps up for this year’s summer events and festival season, we are hearing rumbles of concern from organisers claiming that securing resources such as key suppliers and freelancers is becoming increasingly difficult. This resource shortage and spiralling costs are putting pressure on planners to secure contracts for this year and future events.
There are several reasons for the shortage of freelancers in the UK event industry. Some of these include:
- Brexit: The UK’s departure from the EU has led to restrictions on the movement of people, including freelancers who previously worked in the UK event industry.
- COVID-19: The pandemic resulted in fewer opportunities for freelancers to find work. Encouraging them to consider other industries.
- Competition from other sectors: With the rise of the gig economy and the growth of other industries, such as tech and creative, freelancers now have more options for work outside of the event industry.
- IR35 regulations: The introduction of new tax rules known as IR35, which came into effect in April 2021, has led to confusion and uncertainty among freelancers, making some hesitant to stay freelance.
- Changes to working practices: The pandemic has also led to changes in the way events are organised, with a shift towards some events to an online or hybrid version, which has reduced the volume and size of many events and also meant that they may require different skill sets than those traditionally used in the industry.
Overall, these factors have contributed to a shortage of freelancers in the UK event industry, making it challenging for event organisers to find the talent they need to deliver successful events.
Is the cost of producing a live event spiralling?
The rising cost of living has affected the entire UK economy, including business and commerce. The event industry is no exception, with energy, transport, catering and venue costs seeing an average 10% increase across the board. This includes:
- Brexit: Since the UK left the EU, there have been increased costs associated with transporting goods and services across borders, which has impacted the event industry.
- COVID-19: The pandemic has increased event organisers’ costs due to additional safety measures such as sanitising stations and additional cleaning processes.
- Labour costs: The event industry relies heavily on freelance workers, and the costs associated with hiring them have increased due to changes in tax laws and regulations.
- Venue costs: The cost of venue hire has increased due to increased demand and competition for venues, as well as rising property prices and increased venue running costs.
- Insurance costs: Event organizers now face higher insurance premiums due to the increased risks associated with events, such as cancellations due to COVID-19 or other unforeseen circumstances.
These are just some of the issues that have contributed to a challenging economic environment for the UK event industry, resulting in increased costs and financial pressures for event organisers.
Are reputable suppliers that have capacity getting harder to find?
As more festival and event suppliers are moving towards preferred supplier contracts that safeguard them from a supply and cost perspective for 3-5 years, the best suppliers are less available for ad-hoc gigs and those that choose not to enter into contractual obligations.
Supplier availability issues are down to several issues, some of those already covered above, but include:
- COVID-19: The pandemic has caused significant disruption to the live events industry, resulting in many suppliers going out of business or reducing their capacity due to the lack of demand for their services during this period. Some are still reluctant, unable to scale back up to pre-pandemic levels.
- Brexit: The UK’s departure from the EU has led to challenges in the supply chain, including delays in the import and export of goods and increased costs associated with transporting equipment and materials.
- Changes in technology: The live events industry is constantly evolving, with new technologies and equipment being developed all the time. Keeping up with these changes can be expensive for suppliers, and some may struggle to invest in new equipment and talent to stay competitive.
- Seasonal demand: The live events industry is highly seasonal, with peaks during summer and around holidays such as Christmas. This can make it challenging for suppliers to maintain a consistent revenue stream throughout the year. Making cash flow prohibitive to scale up when required.
- Shortage of skilled workers: The live events industry relies heavily on skilled workers such as sound and light techs, tech project managers, and engineers. There is currently a shortage of workers with these skills in the UK, which can make it challenging for suppliers to find qualified staff.
These factors have contributed to a shortage of live event suppliers in the UK, making it challenging for event organisers to find the services they need to deliver successful events.
Top tips to ensure that you secure reputable suppliers for peak periods:
To ensure that you are procuring reputable event industry suppliers during peak periods, there are several steps you can take:
- Consider putting preferred supplier contracts in place: Securing the best suppliers at the best rates for annual events.
- Fine-tune your contracts: Ensure you have a written contract with the supplier outlining the scope of work, payment terms, and other important details. This can help protect you in case of any issues or disputes.
- Do your research: Do your research and check the reputation of potential suppliers. Look at their website, reviews, and testimonials from previous clients. You can also check industry directories and trade associations for recommendations.
- Referrals: Ask colleagues or friends in the industry for recommendations on reputable suppliers they have worked with in the past. This can help you find suppliers with a proven track record.
- References: Ask potential suppliers for references from previous clients, and follow up with those references to get a sense of their experience working with the supplier.
- Due diligence: Conduct due diligence on potential suppliers, including checking their financial stability and legal compliance. This can help you avoid working with suppliers who may not be reliable or may not meet legal requirements.
- Communication: Maintain open communication with the supplier throughout the process to ensure that expectations are clear and any issues are addressed promptly.
By taking these steps, you can help ensure that you are procuring reputable event industry suppliers who are reliable, skilled, and able to deliver the services you need to make your event a success.
If you’re looking for an industry expert to connect your next event, contact Noba.
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