Letters to the Editor

Dear Editor:

Re: "You Get What You Vote For" (May 21, 2007)

Now I ask you, what is worse? U.S. Sen. Harry Reid pushing through an amnesty bill for illegal aliens, negotiated behind closed doors, out of site of the normal committee procedure, that will cost all Americans $2.5 trillion over the next 20 years, or taking a few million dollars from an existing fund to solve transportation problems and maybe even cut down on pollution in Las Vegas?

Richard Melliand, President, Convention Information Systems, Alexandria, Va.

Dear Editor:

Re: "Could Investment Reform Exhibitor Costs?" (June 4, 2007)

The opinion of TSW ... that the entry into the exhibition services business by the investment community will bring "professionalism" to this industry segment implies "professionalism" is absent, or at least lacking from the sector. Such a comment is unfounded, untrue and quite offensive to the entire membership of the Exhibition Services & Contractors Assn. and very likely to many of our very loyal clients.

Venture capital and private equity investors have been active in the organizing side of the exhibition industry for many years. There is no evidence whatsoever to suggest that their involvement has increased the "professionalism" of that sector in the slightest. In fact, some would argue that the very nature of these investors that rely on significant returns in relative short time horizons after investing double digit multiples to acquire properties has resulted in unreasonable pressure for organizers to maximize short-term profits. This short-term outlook may be contrary to the goals of the organizer and can result in long-term negative consequences to an event. That being said, there are a number of other "ripple effects" of the entry by private equity investors that only the service contractor segment truly understands and experiences.

On the other hand, general service contractors by nature are committed long-term stake holders in the exhibition industry and generally make business decisions based upon the long-term implications as opposed to short term profits. This is evidenced by the CEIR Exhibition Industry Cost Scan that revealed less than 2.3 percent movement in the percent of the exhibitor exhibition dollar spent on show services between 1982 and 2006. This movement is in the same time frame that exhibit space rental fees experienced an increase of 10 percent of the exhibition dollar. And while it's very easy to point a finger at high service rates and imply a lack of "professionalism" with service providers, we should not overlook the fact that according to the same survey and statistics, show services make up only 20.3 percent of the total expenses related to exhibition and event participation, while exhibit space rental is at 31 percent.

We seriously doubt that venture capital and private equity investors will introduce this same model into our rates for service, but it is an interesting thought. In the end, perhaps an enhanced exposure to service contractors will help the outside investor community obtain a clearer understanding of companies that operate on small margins and are dedicated to helping make an industry successful.

Larry Arnaudet, Executive Director, Exhibitor Services & Contractors Assn., Dallas

Letters to the editor of Tradeshow Week are always welcome. Please send them to Editor in Chief Michael Hart (by mail) Tradeshow Week, 5700 Wilshire Blvd., Suite 120, Los Angeles, Calif. 90036-5804; (by e-mail) hartm@reedbusiness.com ; or (by fax) (323) 965-5306.