Reed Sheds Defense Shows

Pressure from science and medical customers leads to exit decision

By Rachel Wimberly -- Tradeshow Week, 6/11/2007

With growing public disenchantment throughout the world over ongoing wars in Iraq and Afghanistan, it's no surprise U.K.-based Reed Elsevier has bowed to pressure from what it calls "important customers, particularly in the science and medical markets," and decided to sell all five of its defense-related tradeshows and exit the sector altogether by the end of this year.

"Our defense shows are quality businesses which have performed well in recent years," said Sir Crispin Davis, CEO of Reed Elsevier. "Nonetheless, it has become increasingly clear that growing numbers of customers and authors have very real concerns about our involvement in the defense exhibitions industry. We have listened closely to these concerns, and this has led us to conclude that our defense shows are no longer compatible with Reed Elsevier's position as a leading publisher of scientific, medical, legal and business content."

None of the affected shows under the Reed Exhibitions banner were held in the United States. They include five European, Middle Eastern and Asian events:

• DSEi (Defense Systems and Equipment Intl.), an air, land and sea defense technology show held biennially in London, next scheduled in September 2008 at ExCeL
• IDEX, a show for the defense industry held biennially in Abu Dhabi, United Arab Emirates, next scheduled in February 2009 at the Abu Dhabi Natl. Exhibition Centre
• ITEC, a training and simulation exhibition held biennially in rotating European cities, next scheduled in April at Koelnmesse in Cologne, Germany
• LAAD (Latin American Aero and Defense), a show for all three armed forces, special forces, security forces, space organizations and government agencies, consulting companies and specialist media held biennially in Rio de Janeiro, Brazil, next scheduled in April 2009 at the Riocentro Exhibition Center
• TADTE (Taipei Aerospace & Defense Technology Exhibition), an aerospace and defense event held biennially in Taiwan, next scheduled in August at the Taipei World Trade Centre

According to the company, revenue from these shows accounts for less than 1 percent of its portfolio of 460 events across 52 industry sectors.

"From knowing people at Reed, I know they have been having this pressure over in Europe where they ask, 'Why are you into this business?,'" said Jim Bracken, group show director for Nielsen Business Media's Marine Military Expos and Force Protection Equipment Demonstration.

Given the relative small portion of Reed's portfolio the shows occupy, he added, "it's a big percentage of harassment."

Bracken, former CEO of Nielsen Business Media (previously VNU Exhibitions), said, in the past demonstrators would come to military shows in the United States and sometimes throw "fake or real" blood on the showfloor. "It's been a number of years since we've seen any of that (in the United States)," he added, but the current climate in Europe is particularly tense.

Cherif Moujabber, principal of Creative Expos and Conferences who worked for Reed Exhibitions when it was Cahners, said the backlash against defense shows has been cyclical. "In the '70s and '80s there was controversy," he said. "The shows were in Europe, and it was the pacifist movement. Every time a show would go to Germany, the pacifists would throw eggs and blood. Some exhibitors said, 'It's not worth it,' and management said, 'Let's get the heck out of it.'"

Moujabber said Reed Elsevier's customers most likely weren't happy with the company dealing in the defense industry.

The big question now is, who will step up to the plate and buy the shows?

"They will have no problem selling," Bracken said.

But, he added, it might take time, since some are joint ventures with national governments, such as IDEX, which Reed Exhibitions bought in January of this year in conjunction with the United Arab Emirates.

Nielsen also has a few defense shows of its own and might look to buy some more, Bracken said.

Moujabber believes a British company, such as Expomedia, also might be interested. "They're buying everything right now," he added.

Tradeshow Week is a business unit of Reed Elsevier.