Shows Continue Growth Streak

Fourth-quarter events display improvement in all indexes tracked

By Jillian Dauer -- Tradeshow Week, 3/7/2005

Fourth-quarter tradeshows improved in every index tracked by Tradeshow Week as growth rates continued their yearlong upward trajectory.

According to the Quarterly Report of Tradeshow Statistics, the most significant growth for shows held in October, November and December was in attendance, which improved by 11.1 percent. The net square footage increased by 2.8 percent, while the number of exhibiting firms showed a 0.5-percent increase compared with the year-ago quarter.

This growth continued a trend set in the fourth quarter of 2003, when professional attendance rose by 7.8 percent, the number of exhibiting companies was up by 2.9 percent and net square footage increased by 1.3 percent.

The Annual Natl. RV Trade Show was one exhibition that performed substantially better in 2004 than 2003. The show's professional attendance increased by 8 percent in 2003 and by 10.3 percent in 2004. The 2004 show also saw a 2.5-percent increase in exhibiting companies and a 1-percent increase in net square footage.

"The manufacturing segment of the industry shipped more units in 2004 than in any other year," said Mike Hutya, vice president of meetings and shows for the Recreation Vehicle Industry Assn. "Space was sold out, and we had 30 companies on the waiting list. For two years now, vehicle manufacturers haven't gotten as much space as they feel they need to market their product."

As a result, projections for next year are even more optimistic. The Kentucky Exposition Center in Louisville, where the RV tradeshow has been held every year except 1986, is adding another 166,500 sq. ft. The expansion should be complete in time for this year's show.

Hutya said the RV show and industry both are doing well because of what she perceived as a return by the nation to family values.

"RVs put an emphasis on family togetherness," she said. "Younger families are coming into the market more than in the past. A few years ago our primary audience was senior citizens."

Hutya also said attendance began to increase after the terrorist attacks of Sept. 11, because RVs are perceived as a reasonable and affordable alternative to flying.

Managers whose shows experienced year-over-year growth in professional attendance in 2004 also said focusing on international exhibitors was a great help.

Global Gaming Expo (G2E) had a 30-percent increase in international exhibitors and attendees, said Courtney Muller, industry vice president for Reed Exhibitions.

Twenty percent of the show's attendees and 15 percent of its exhibitors in 2004 were from countries other than the United States. This year, information on G2E's Web site is available for the first time in six languages: Spanish, Russian, Chinese, French, German and English.

The show has also done well as gaming has become more popular throughout the United States.

"More states are turning to casinos for revenue if there's a shortfall in the state budget," Muller said.

The increase in professional attendance at SEMA Show may not have been as high as last year, but international attendance was booming.

"SEMA Show had more international buyers than ever," said Peter MacGillivray, vice president of marketing and communications for the Specialty Equipment Market Assn. In fact, the 2004 show had just under 10,000 international buyers, a 20-percent improvement over the previous show. "We're always finding new ways to make the show important to people," MacGillivray said. "We're constantly testing the market to get more people there."

Julie Wichert, show manager for the Annual Pet Industry Christmas Trade Show & Educational Conference, blamed increasing consolidation, not only in her industry, but throughout the economy, for the slowdown. She said that with fewer small companies in business, fewer people are attending industry shows.

"The pet industry is being taken over by the larger retail outlets like Petco and Petsmart," Wichert said. "It's harder for independent firms to survive."

The other big winner in the fourth quarter of 2004 appeared to be the health care sector, which experienced a 6.8-percent increase in net sq. ft., a 2.5-percent increase in exhibiting companies and a 3.8-percent growth in professional attendance compared to 2003.

Location mattered too. Of the seven shows held in Las Vegas during the fourth quarter of 2004, all of them saw growth across the board.

"There's a bit of comfort in going back to any city or facility that works," said MacGillivray of the SEMA Show, held in Las Vegas for more than 20 years. "The show is associated with the city. Attendees know where they like to stay, where they like to eat."