Figures picking up
Slight growth in 2005, recovery this year, and a satisfactory 2007 - that's the prognosis for Germany's fair contractors.
For Claus Holtmann, exhibitions and events are "key industries". One sixth of the communication expenditure of German companies - in 2005 that amounted to EUR 67 billion - was spent on that item, declares the president of FAMAB. His figures are based on surveys conducted by Deutsche Post AG, AUMA and the projections of his organisation. What this means: In 2005 German companies spent around EUR 10.3 billion on trade fair participation and marketing events. Around 378,000 companies invested in trade fairs and events in 2005. Average expenditure increased from EUR 24,300 to EUR 27,300. About EUR 4 billion and therefore the largest share of communications expenditure is attributable to the manufacturing industry. At 37 %, spending on B2B oriented communication was highest. Although the retail industry boasts more users (35 %) than the manufacturing sector (30 %), higher average expenditure of EUR 43,300 demonstrates that manufacturing invests considerably more in its exhibition appearances and marketing events.
Holtmann is convinced that FAMAB represents a total turnover of around EUR 2.5 billion, which constitutes around half of all outgoings to exhibition and trade fair contractors, marketing event agencies and trade fair architects and designers.
According to estimations by AUMA and FAMAB, around 70 to 75 % of this expenditure is channelled into trade fairs and around 25 to 30 % into marketing events, explained Holtmann at a press conference in Frankfurt, where the renaming of FAMAB to Verband für Direkte Wirtschaftskommunikation (association for direct business communication) was also announced. He also pointed out that the specialised forums had not been abolished as a result of the new name. Slight growth in 2005, recovery this year, and a satisfactory 2007 - that's the prognosis for Germany's fair contractors. These figures are the result of a survey of the members of Forum Messe und Ausstellung (FMA) in FAMAB in September. The signs of slight recovery mean that FMA members can look more optimistically into the future. Their assessment of the prospects for the sector is satisfactory (2.9), whereas they give their own companies "two minus" (2.7). "The forecast for 2007 sounds almost euphoric after the last five years, so members appraise the situation in their own companies with an average "good" (2.3)", Holtmann is happy to report. FMA members are a little more pessimistic about the sector as a whole (2.7). Our members believe in their own success."
A look at the turnover of FMA members shows that it grew from EUR 1,625 billion in 2004 to EUR 1,712 billion in 2005; for 2006 a conservative estimate of EUR 1,750 billion is expected. FMA members no longer rely on exhibition contracting alone. Members now perform nearly one sixth of their services outside trade fair venues, for example, at roadshows or marketing events. The trend towards internationalisation is not to be ignored either, the president explains: FMA members now turn over one quarter of their sales with foreign clients, another 18 % is earned from contracts abroad. By comparison: Five years ago, it was 15.3 % of turnover with foreign clients and 11.6 % from abroad.
In 2004, billings of FME members totalled EUR 334 million, 30 % of this sum was gross income. This corresponds to EUR 110.2 million. In 2005, agencies belonging to FME recorded growth in billings and gross income of around 20 %. This does not reflect the sector average, which is lower. Proudly the president observes: "This shows once more that the best in the industry are organised in the FME." Sales figures for 2005 are therefore EUR 405.1 million billings and EUR 119.84 million gross income. For 2006, figures of EUR 527 million billings and EUR 156 million gross income are expected, fuelled largely by the extra economic activity generated by the World Cup.
The number of events staged in 2005 was 4,350, exactly the same figure as for the previous year. Whereas in 2004, 3,750 events were counted in Germany, in 2005 that number was only 3,600. 750 marketing events took place abroad in 2005 (2004: 500). For 2006, a massive increase in the number of events held in Germany is expected due to the major sports event held there this summer. An analysis of event types shows that corporate events at 54 % still account for the main share of turnover of event agencies. This is followed by public events with just under 20 %, and, thirdly, employee events/incentives at around 10 %. Further down the scale come promotional events (7.1 %), exhibition events (2.8 %) and other events (7.9 %). Holtmann was not able to present figures for the areas exhibition architecture/design and event catering: detailed data are not yet available.
m+a report Nr.8 / 2006 vom 08.12.2006
m+a report vom 8. Dezember 2006