Amidst the unremitting doom and gloom triggered by the global economic collapse, the Canadian trade-show scene is demonstrating remarkable resilience, due to a homegrown tendency to keep costs low. By Allan Lynch,
Canadian International Auto Show
Did Canadians not get the memo about the world going to hell amid economic collapse? It’s hard to avoid headlines screaming about declining consumer confidence, tanking retail sales, job losses and
plant closings, yet in Canada, banks still post profits and business continues.
Amidst all this doom and gloom, an investigation of Canadian trade-show trends reveals that producers believe the situation ain’t that bad! In fact, it’s almost frighteningly normal. Nina Kressler, vicepresident of sales and marketing at Halifax’s Trade Centre, says, “From a convention perspective, with a trade-show component, we haven’t experienced any change in trending.”
NO CANCELLATIONS
Patrick Guidote, assistant director of media relations at Tourism Montreal, reports the Montreal Convention Centre hasn’t had cancellations and is receiving inquiries for new shows. And while Detroit’s International Auto Show was a subdued event, with six of the world’s major manufacturers cancelling, the Canadian International Auto Show (CIAS) in Toronto was totally different. The only
manufacturer to cancel was Porsche, which, in refocusing its marketing, pulled out of all auto shows. As for attendance, it only dipped 17 per cent from 2008.
Tom Tonks, CIAS general manager, says, “There’s been a bigger demand for (space) this year than ever before. Initially, there was almost a deer-in-headlights freeze, but everybody has come to realize it’s all about the marketing. You’ve got to get out and show this product and how good it is.”
Laughing nervously, he says, “We did a survey of all the exhibitors — there’s 20 manufacturers — and not one asked for less space for next year. In fact, a lot of manufacturers are asking for more for 2010.”
Such positive news is almost unnerving. Tonks says, “The situation here in Canada is not exactly mirrored with what is happening in the United States. It’s become very clear that the country’s banks and economy have been well managed…so we have to be careful not to use the same yardstick to measure this economy with the American economy. There are still a lot of people working here.”
OPTIMISM
Anita Schachter, vice-president of the Canadian Gift Shows, for GLM LLC, a dmg world media business, says after her first show of the year, in Edmonton, in February, “Retailers are more cautious in their
spending habits than they were a year ago, but while this market was slightly down, there was optimism.
The environment is, I think, a little more positive than we’re feeling in the East. And that was evidenced at the show. Buying was quite strong, and even though we were down single digits (in attendance),
that was better than we had anticipated.”
Schachter’s colleague, Wes Scott, business development director for dmg’s Global Petroleum Show, is equally positive. He’s organizing the biannual GOEXPO: Gas and Oil Exposition, for June, 2009, in
Calgary, which will host 25,000 attendees and 600 exhibitors. “This is definitely going to be a more challenging year, but when we go back to our historical figures, it will fall right in the middle of our 2005 and 2007 events for size, from an exhibition point of view,” which puts it about 12-per-cent down from the goals they set in early 2008.
Scott is also organizing the World Heavy Oil Congress, in Venezuela, in November. “That one is tracking much better than we ever expected it would, which is phenomenal.”
Over at the Prospectors and Developers Association of Canada, chief operations officer Lisa McDonald is equally upbeat. Speaking just days before her annual February event, McDonald confirms another
sell-out show, with 1,000 exhibitors and 18,000 attendees. “Our numbers are looking very good. For us, in some part, timing was on our side, because we are such a large show, we start our exhibit sales at the end of July. Typically, we will sell out on the very first day. If you didn’t get your application in that day, you’re on a waiting list. Fortunately, that occurred before the complete implosion of the economy.”
WELL-POSITIONED
While she is unsure of what 2010 will bring, she feels they are well-positioned to ride out any upheaval, “because it has been so difficult to get into our show that people have kept their booth space,
because they don’t want to lose it when things inevitably start ramping back up again.”
So why are Canadian trade shows doing so well? Thrift. Canadians traditionally keep costs low, compared to other countries. McDonald says, “We resisted the urge, when things were flying high, to
jack fees up, and that is serving us well now.” Tonks credits CIAS’ seven-day set-up, versus the month plus for the Detroit International Auto Show, for keeping costs down.
While these planners aren’t panicked, they are noticing some trends. Tonks noticed about 10 per cent of exhibitors cut back on things like carpeting and lighting. And McDonald has seen a rise in early
sales of $75 day passes versus the $390, multi-day, full-delegate registration.
To help exhibitors, Scott is looking at adding value by increasing social networking opportunities for exhibitors to meet clients, asking his suppliers to sharpen their pencils and recommending exhibitors
save shipping costs by having materials printed in Calgary.
As for the future, Scott sums up the general impression among show producers. “Our events for 2010 are tracking way ahead of what you would have expected. There definitely seems to be an attitude that by the tail-end of 2009, going into 2010, that the economy is going to be right back on fire again. And they’re definitely telling us that with their chequebooks.”
Bottom line: It’s about positioning yourself for the recovery.
— Allan Lynch is a New Minas, N.S.-based freelance writer.
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