Across-the-board Fallout as Q2 Ends

At a time when the word “recession” has become less of a whisper and more of a constant murmur, the second-quarter results of the Tradeshow Week Quarterly Report of Tradeshow Statistics offer little to boost confidence.

For the first time since 2002, every index TSW uses to measure tradeshow activity is in negative territory.

The second quarter, which has steadily displayed robust growth since 2003, reflected losses in all three indexes. After a 2.2-percent increase in net square footage in 2007, space sold decreased by 1.2 percent in this year's second quarter. The number of exhibitors dropped by 1.8 percent, effectively canceling out the 1.9-percent gain in 2007. Finally, this year, the number of attendees was down 1.7 percent, a far cry from the second quarter last year when attendance surged 7.6 percent.

After several quarters of at least modest growth, enough to dismiss the impact a shaky economy could have on tradeshows, the negative growth rate tracked by this quarter's report might indicate that economic conditions may have finally caught up with the industry.

When tracking how many shows grew, shrank in size or remained the same in each index, decreases claimed the majority nearly every time. The same number of shows reported increases as decreases when comparing net square footage (44.1 percent grew, 44.1 percent decreased), while 48.5 percent of shows posted lower numbers of exhibiting companies and half of the shows revealed reduced attendance figures.

The usually dependable growth of the health care sector failed to remain steady this quarter, although overall losses were minimal. Attendance in the sector managed to eke out a small growth rate of 0.6 percent, but the other two indexes dipped slightly below zero, with the number of exhibiting companies down 0.9 percent and net square footage experiencing a 0.3-percent reduction.

When breaking out Las Vegas statistics, the results reveal that even the capital of the tradeshow universe had a tough quarter. Showfloor size declined 1.3 percent, and the number of exhibitors decreased 2.6 percent. Sin City's draw wasn't quite there last quarter either, evidenced by the 5.9-percent drop in attendance. When shows held in Las Vegas were removed from the overall statistics, net square footage and number of exhibiting companies bounced back a bit, but still didn't see too much of a change (1.1-percent and 1.5-percent decreases, respectively). Without the statistics from Las Vegas shows included, attendance registered a decline of only 0.9 percent.

Among the shows that did not fare so well in the second quarter was NEXPO, a show that was not only impacted by the economy, but also the drastic transformation the newspaper industry is undergoing. Owned and managed by the Newspaper Assn. of America, the tradeshow felt the effects of a continuing shift to digital media. The losses were to the tune of a 24.8-percent decrease in net square footage (from 127,700 net square feet in 2007 to 96,050 net sq. ft. in 2008), a 22.4-percent dip in number of exhibiting companies (from 277 companies in 2007 to 215 companies in 2008) and a 23.9-percent decline in attendees (from 2,088 attendees in 2007 to 1,588 attendees in 2008).

“Our members are investing significantly in emerging digital technologies, and that changes the tools they need and the way they do business and where they put their investment dollars,” said Kevin McCourt, NAA vice president of advertising and exhibition sales.

Of course, not every show has to worry about a rapidly evolving industry. Defying the overall results were Maintenance, Repair & Overhaul Americas Conference & Exhibition and the Council for Exceptional Children Annual Convention & Expo. Although both shows were relatively small, they experienced some growth.

“I would call (the education sector) as like a dial tone on your telephone. It has no abrupt peaks, and it has no dramatic valleys,” said Victor Erickson, director of advertising, exhibits and sales for the Council of Exceptional Children. “Overall, times are going to be … tough, but you also have to remember that children must go to school.”

That does not necessarily mean that education is recession-proof, he added.

Even if, as he said, the industry is not subject to abrupt peaks or valleys, the growth rate from 2007 to 2008 is, at best, significant for a small show. The show's Boston location (it was in Louisville, Ky., in 2007) afforded it growth across the board. Last year's 33,000 net sq. ft. showfloor grew 13.7 percent to 37,500 net sq. ft. this year. The number of exhibiting companies grew 15.7 percent, from 236 companies to 273 companies, and the most dramatic growth exhibited was in professional attendance, which shot up 34.5 percent, from 5,382 attendees to 7,237 attendees.

Mirroring the growth of the CEC, albeit in a different sector, was MRO Americas, a show geared toward the aviation industry.

“No matter what, people still need to maintain planes,” said Lydia Janow, director of conferences and exhibitions/tradeshows.

The show exhibited slight growth in number of exhibiting companies, with 427 companies, up 2.2 percent from last year's 418 companies. However, it registered more impressive growth in net square footage and attendance. The showfloor expanded 13.7 percent (from 65,200 net sq. ft. to 74,100 net sq. ft.) and attendance surged 21.4 percent (from 3,788 attendees to 4,599 attendees).