Niche Players: Room in the Arena for All

No matter what the industry, certain firms dominate the sector – but that doesn't mean there isn't room for everybody. It's certainly true with tradeshow general service contracting, where the larger companies like Freeman and GES Exposition Services more or less split up most of the largest shows.

Yet, smaller service contractors compete everyday; indeed, prosper; and, with the challenges of a troubled economy, they're relying on what's worked for them to stay successful.

Many of the industry's long-established contracting firms have carved out niches for themselves over the years that have enabled them, not just to compete, but to co-exist with the big boys.

Here are some examples.

President Bill Casey III has nothing against contractors bigger than Brede Exposition Services. He said his company has a good relationship with all of them.

Most of the bigger contractors' customers, Casey said, are Tradeshow Week 200 shows, typically held in the same cities every year and too big to make many adjustments. Brede, on the other hand, has always specialized in medium-sized to large shows that rotate to different cities every year, although it's capable of handling shows of several hundred thousand square feet and does, in fact, service some TSW 200 shows.

“There's a place in the industry for companies like Brede that focus on relationships,” Casey said.

For Brede, that means sending more than a sales executive and an account executive out on the road. Casey said the company's team typically includes a lead decorator, lead freight foreman and the same customer service manager the show had the year before.

Brede has serviced many of its shows for 20 or 30 years, and some Brede employees represent the second, third or even fourth generation of families to work for the company.

What about the future?

“Shows are all off 6 to 9 percent, except for green, military and security shows,” Casey said. “It's going to be tough for a while yet, like it was after 9/11. We have to ride it out and hope things improve.”

For Champion Exposition Services, its size is key, said Executive Vice President of Sales Brian Manoogian. Not being too large means clients don't get lost in the shuffle, enabling Champion to provide personalized attention.

Champion does service some TSW 200 shows such as the AIA (American Institute of Architects) Natl. Convention & Design Exposition and CEDIA (Custom Electronic Design & Installation Assn.) Expo, but it doesn't really compete with the biggest contractors. That's because, at its size, the company can offer design solutions, which Manoogian likened to a custom concept: Champion creates the design, talks it over with the client and then tweaks it.

However, the company is not so small that customers slip through the cracks. Manoogian said that 20,000 sq. ft. shows get the same personal attention and level of design and construction as larger shows. Bigger contractors can't offer the same quality design and attention to detail, he added.

In this economy, how will Champion fare? Manoogian said tradeshows aren't recession-proof. Wind power and environmental shows his company serves are doing well, and medical shows are holding their own, but obviously, he added, investment and construction shows are down.

“We're still on target with our projections,” Manoogian said, “but it all depends on the industry. People still need to buy products and technology at tradeshows.”

According to Ray Pekowski, president and CEO of The Expo Group, when you look closely at the two largest contractors, there is zero material difference between them. Both use the same business model, offer the same services – and both have been successful, he said.

“We present to show organizers a business model far superior in service than Freeman or GES,” Pekowski added. “More and more exhibitors are becoming frustrated with the Freeman-GES model.”

Pekowski noted that The Expo Group streamlines the process to a simple, alternative way of doing business. The model is patent-protected and thus can be achieved only through working directly with The Expo Group or licensing its business processes and software.

He said many show organizers will look to TEG in these difficult times because they will want to add value to their shows without raising prices.

“The Expo Group provides an added value through its Single Source business process,” Pekowski said. “That is coupled with a written guarantee that, if show organizers believe they or their exhibitors have not received the true value for services rendered, they don't have to pay us. No one else offers that.”

At Hargrove, according to CEO Tim McGill, it's all about service. “Because we are a more entrepreneurial company, we can be nimble,” McGill said. “We have an all-under-one-roof culture that allows us to be more flexible. It's an anti-bureaucracy.”

“We don't claim to be the cheapest, but we strive to deliver the highest production value,” he added.

And even in a slow economy, McGill, aware of shrinkage in some show markets, still sees growth in many segments. The company's Modern Day Marine Expo, a TSW Fastest 50 winner this year, has been in Hargrove's stable for 20 years.

Hargrove made an investment early on in energy efficiency and recycling programs as a matter of good business and doesn't charge customers a premium for green “options.”

“We replaced most of our materials with recyclable and biodegradable products,” Hargrove said. “'Reduce, reuse, recycle' has been part of our culture since 1946. We have an extensive inventory of modular show elements ... they never look the same twice.”

For Richard Maples, vice president of sales and marketing at Shepard Exposition Services, the approach has been to emphasize “what really matters,” poking gentle fun at Freeman and GES to make a point.

“The GES's and Freemans of the world are good, solid organizations, very corporate- and business-to-business-minded and have come up with good products and services to offer the industry,” Maples said.

He added that his company doesn't even bother to go head to head with them. It's stepped away from the GSC role to a more consultative approach: it's not what Shepard wants to tell clients about itself, it's what the customer wants and how to achieve that goal. Shepard services about 30 shows, ranging from about 150,000 net sq. ft. to 500,000 net sq. ft.

“Capability is not an issue,” Maples said, “but we do recognize our limitations, and we won't solicit larger shows like Intl. CES or the Kitchen/Bath Industry Show & Conference.”

He compared the situation to the airline industry, where some legacy carriers foundered, while niche players leapt into the breach with a simpler customer service approach. “I'm not saying the major service contractors will do that, but it's an example,” Maples added.