AUMA Annual Press Conference
- Rented stand space at German trade fairs has increased by 4.6 %
- AUMA Chairman Boekstegers: businesses are predominantly in favour of taking part in trade fairs
- 75 % increase in the number of trade fairs held by German organisers abroad since 2003
7.7.2008 Businesses are predominantly in favour of taking part in trade fairs. For many entrepreneurs the focus is increasingly on trade fairs, in particular in order to improve dialogue with the customer. Germany’s stable economy has also had a positive effect. As a result, exhibitor attendance at the 139 international trade fairs in Germany in 2007 rose by 3.8 % over the figures for the previous events, a fact which Hans-Joachim Boekstegers, Chairman of the Association of the German Trade Fair Industry (AUMA), underlined at the association’s Annual Press Conference on 11 June 2008 in Berlin.
Exhibitors from Germany also contributed positively towards this result. Their numbers grew by 2.1 %, whereas in recent years the figures had barely risen above the zero mark.
According to Boekstegers, it was international exhibitors who were once again the driving force behind growth. Their numbers had risen by 5.3 %. Clearly, Germany as a demand-driven market and Europe’s strongest economy was attracting more and more enterprises from around the world.
Compared with the figures for trade fairs in previous years, visitor attendance in 2007 rose by 2.0 %. AUMA Chairman Boekstegers: “The 4.6 % increase in rented stand space is particularly worth noting. That is only logical, as in order to create a positive atmosphere for talks and doing business one also needs space. Demand for space currently exceeds availability and with no major plans for enlargement one can foresee this remaining so in the years ahead.”
The trade fair industry was faring well, leading to new trade fairs being launched, in particular specialist events with a supraregional appeal. Often these were events augmenting the existing programme of trade fairs. In general, however, it was the exhibitor who determined the number of trade fairs representing a certain industry. His advice to the exhibitor was to make a critical choice of the right trade fairs for the long term. That would also help organisers. If exhibitor opinions were divided then the market could not adjust accordingly.
Trade fairs for capital goods are booming
A comparison of different types of trade fairs clearly shows that in 2007 international trade fairs for capital goods were the driving force in the German trade fair industry. Exhibitor numbers rose by 5.4 % and rented space by 7.5 %. Boekstegers: “In particular the largest trade fairs for capital goods grew at an above-average rate. For the moment at least, any speculation that the era of especially large trade fairs could be over is unfounded.” Probably due to the machinery industry sector performing well even the domestic participations had risen by 3.2 %. In addition to trade fairs for the machinery industry, events for logistics, energy and to some extent leading IT, construction and building services exhibitions had achieved above-average results. By contrast, the results for consumer goods events for the trade were below average for exhibitions overall.
The 139 international trade fairs held in 2007 were attended by a total of 165,759 exhibitors, of whom 75,944 came from Germany and 89,813 from abroad. These companies rented stand space covering 6,727,995 m². 10,579,410 visitors came in search of information at the fairs.
Clearly, for the organisers of trade fairs in Germany the days of stagnating turnover now lie in the past. According to preliminary results, in 2007 they achieved a turnover of EUR 2.65 billion, compared with EUR 2.55 billion in 2006 and around EUR 2.4 billion in the years before that. Turnover in 2008 is expected to range between EUR 2.7 and 2.8 billion.
For despite predictions of a slowdown in German economic growth, during the first half of 2008 international trade fairs in Germany achieved remarkable results. According to Boekstegers, exhibitors are manifestly unimpressed by the developments on the financial markets. Furthermore, he noted that the German capital goods industry continues to be in good health, and the retail sector appears to be on a steady course.
Growth only marginally weaker in 2008
According to AUMA forecasts, about 180,000 exhibitors will attend the 154 international trade fairs due to take place in 2008, around 3 % more than at previous events. This would be the highest number of exhibitors yet, bettering the figures for the boom years of 2000 and 2001. It is estimated that visitor numbers and the amount of rented stand space will rise by 2 %. Even if the economy slows down the trade fair industry still awaits substantially positive results.
The reason for this positive situation was that many companies had come to realise that trade fairs were at the heart of dialogue marketing, instead of campaigning by post. Boekstegers: “Rather than bombard customers with information it is more important to listen to them, and trade fairs are an excellent means to this end.”
Particularly among organisers in Europe competitors are tending to merge, especially in France. Boekstegers expressed doubts as to the usefulness of mergers: “Doubling turnover does not produce twice the amount of creativity and flexibility – if they increase at all.”
Among competing organisers the watchword is flexibility, not company size
Future contests on the trade fair market would be decided by whoever registered market changes first, and was able to respond with innovative concepts, and that meant flexibility before company size.
According to Boekstegers, in some sectors where a lot of associations were concerned the situation was becoming less and less clear. Not only were organisers sometimes competing among themselves, but associations within certain sectors also. This was not helpful in establishing leading trade fairs in Germany. The frequent calls for organisers to cooperate more closely were justified, he said. However, associations should also consider collaborating more with one another on projects.
In future AUMA aims to intensify its efforts to support its members in the fields of education and research, particularly through its new division, the Institute of the German Trade Fair Industry. In cooperation with its members it will further relations with universities and technical colleges and increase its research activities. Some weeks ago the AUMA board of directors decided to commission a survey examining the overall economic impact of the German trade fair industry.
75 % increase in the number of trade fairs held by German organisers abroad since 2003
According to Dr. Peter Neven, Managing Director of AUMA, events held by German organisers in foreign countries have become a mainstay of German trade fair involvement abroad. Between 2003 and 2007 their numbers rose to 216, an increase of almost 75 %. Exhibitor figures came close to 78,000, an increase of almost 116 %, attendance reached 4.4 million, a rise of 75 %, and rented space has now exceeded 1.9 million m².
However, growth rates have declined, and occasionally projects are being halted. Dr. Neven: “There is nothing disturbing about that, rather it shows that where involvement abroad is concerned profitability aspects are a bigger issue, whereas in the initial build-up phase establishing oneself on the market was one of the main concerns.
The main competitors, particularly in boom markets such as China, Russia, India and the United Arab Emirates, are organisers from the UK. They organise more trade fairs in these markets respectively than their counterparts from Germany.
According to the AUMA Managing Director, business conducted by German organisers abroad will continue to grow at an above-average rate, and for the foreseeable future the focus will remain on China, Russia, India and the Emirates. In 2008 India took third position, displacing the Emirates.
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Press contact:
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Harald Koetter, phone: +49/30/24 000140, fax: +49/30/24 000340, email: h.koetter@auma.de
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Copyright © 2008 AUMA_ Ausstellungs und MesseAusschuss der Deutschen Wirtschaft e.V.Last update: 7/2008
