Trade show uptick may indicate stronger economy

The troubles at McCormick Place aside, business seems to be looking up in the convention and trade show sector - and, according to Ken Buckman, perhaps for the rest of us as well.

"People don't seem to realize that trade shows are a pre-indicator of what will happen in the economy," Buckman says.

Buckman is president of Tradetec Skyline, a Lombard provider of booths and trade show management services for exhibitors. He pays attention to industry data reporting, for example, that more than 70 percent of exhibitors expect to go to additional trade shows this year, an almost complete flip from data that a year ago indicated only 28 percent of exhibitors were adding to their schedules.

Buckman also pays attention to his front door.

"I get 10-15 companies a day coming through the front door (asking about exhibits)," Buckman says. "We see ma-and-pa businesses, ones with $10 million or $20 million in sales, on up to the global powers. It's like a light switch went on during the first couple of days of 2010.

"Entrepreneurs are sick and tired of waiting on the sidelines. They're going back to their instincts. They know they have to market."

Consequently, Tradetec Skyline's January sales were the best in 11 years, even though, Buckman says, "nobody is going overboard." Exhibitors are more likely to "spruce up their booths" than order new ones.

If Buckman is right that increased trade show activity is an indication of a better economy, suburban businesses - especially ones that rely on the broad meetings industry - may enjoy 2010 more than they enjoyed 2009. There are cautions, however, including rather solid suggestions that meeting attendance won't increase much.

You clearly weren't alone if you opted out of the annual industry meeting last year. Travel budgets, says Pat Farrey, "were down 40 percent last year compared to 2008." Those budgets, he adds, "haven't changed for 2010."

A principal at Landon, Farrey & Associates, Inc., a trade association management firm in Naperville that manages five national associations, four in the packaging industry, Farrey knows meetings.

"The old model - meetings for golf - doesn't work any more," Farrey says. "Senior managers aren't looking to be entertained." What attendees are looking for, Farrey says, is "takeaway value."

So are their bosses. Conventions and trade shows that have "reinvented themselves" have managed to stem the drop in attendance or picked up a little, Farrey says. Even so, Farrey notes that "More levels of approval are required" to justify the cost of trade show attendance.

That may be one reason exhibitors have noticed a change in attendees.

"Attendance at shows is not up," Buckman agrees, "but the quality is up. Buying is up. There's more buying activity in the booths. The trinket gatherers are staying home."

• Questions, comments to Jim Kendall, JKendall@121MarketingResources.com.

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