What's in Store for Tradeshows?

By Staff -- Tradeshow Week, 4/19/2004

There is enough conflicting information to make many people uncertain whether the recent so-called economic recovery is real and lasting. If global economic conditions are indeed on the mend, is the tradeshow industry on the road to improving health as well?

Dexter King, Executive director, Intl. Assn. of Assembly Managers

"It is for real, although it may be a long, plodding recovery. Regardless of tight budgets, I sense that companies are starting to realize that they cannot sustain themselves without a face-to-face marketing effort."

Jeff Price, President, Cygnus Expositions

"The recovery is real. It's not a dramatic recovery that transcends all industry sectors with double-digit growth, but a more subtle recovery with year-over-year growth in the lower single digits overall.

"Two things to keep in mind: One, the tradeshow business will lag behind the recovery of whatever industry the event serves, and, two, this recovery is very fragile."

Steven Hacker, President, Intl. Assn. for Exhibition Management

"Given that a year-to-date comparison of some basic economic data reveals that new U.S. unemployment claims filings in March 2004 represent a three-year low, that the S&P 500 index is up, that the Dow Jones is up, and that the NASDAQ is up – and also based upon our continuing review of exhibition industry performance in the U.S. and abroad – I would say the economic recovery is real."

Chris Brown, Senior vice president, conventions and expositions, Natl. Assn. of Broadcasters

"It is too early to tell. There are certainly some very positive signs, and we all want to believe the industry has turned the corner, but until we can point to strength across the board and for a sustained period, I don't know that we can call it a done deal."

Gary Shapiro, President & CEO, Consumer Electronics Assn./Intl. CES

"The recovery depends upon the segment. Incredibly low interest rates are fueling spending on housing, cars and consumer products. Defense spending is up. Tradeshows focusing on these areas are strong. Others have to innovate simply to stay at prior levels."

Francis Friedman, President, Time & Place Strategies

"Tradeshow economic recovery is directly tied to the economic recovery of the sector the show serves. In this turnaround, where economic sector activity is growing and cash flow is up, tradeshows in that sector will also benefit."

Donald Freeman Jr., Chairman & CEO, The Freeman Companies

"It's definitely for real. Our monthly revenues have been over budget since November. That said, however, price concessions we have made over the past three years in response to customer demands and competition have continued to depress margins."

David Audrain, COO/executive vice president, ConvExx Show Management

"Many shows that saw a big dropoff in participation between 2000 and 2002 have at least seen bottom, if not an uptick.

"There are two main situations: One, the industry cannot really be judged across the board – you really need to look at individual market segments; and two, no matter whether your segment was hard hit by the recession or not, everyone is seeing an ongoing need to help participants measure their returns from shows.

"The situation isn't going to change. The days of 'hold it and they will come' are over for good."

Skip Cox, President, Exhibit Surveys

"It's real, because it appears to be broad-based across more than just a few vertical industry segments, and across all industry constituents (e.g., exhibitors, suppliers and organizers). Ultimately, the length and depth of the recovery will depend on how successful we are as an industry in bringing back the attendees."

Jack Withiam Jr., Executive vice president and general counsel, George Little Management

"The recovery has begun, but in a modest way. Improvement is not across the board, and strength in any show directly relates to the relative strength in the industry served. Overall, we are seeing more companies looking to exhibit, but those companies remain selective in the shows they choose, and are cautious about the amount of space they purchase."

Dennis Slater, President, Assn. of Equipment Manufacturers

"I have attended a number of industry tradeshows and conventions during the first quarter of this year, and have seen the positive effects of the economic recovery on these events. It's a positive atmosphere that I haven't seen in two and a half years, and it should continue to improve throughout 2004."

Jeff Quade, Executive vice president, sales and marketing, GES Exposition Services

"Trends in exhibitions follow the trends of the industries they serve. Consequently, we are seeing some modest show growth within the industries that are rebounding. However, exhibit space growth in a specific industry would be one of the last signs of recovery."