Back in form

The upturn in the German trade fair industry is in evidence across almost all sectors, with around three-quarters of trade fairs reporting growth.

Back on the path to growth: In 2005 the German trade fair business at last bottomed out. The figures for the first months of 2006 have confirmed this trend. International fairs in Germany are actually registering a slight increase in exhibitor figures and for the first time in years organisers are observing a rise in visitor numbers again. "This upturn is proof of the strong position of German exhibition companies in the face of international competition", says Thomas H. Hagen, chairman of the Association of the German Trade Fair Industry (AUMA), Berlin. He's optimistic about the future, too: "The underlying positive mood in the industry should help to stabilise this growth for the entire year." He expects a slight increase in rented space. Over 2006 as a whole, his projections forecast around 175,000 exhibitors (an increase of 2 to 3 %) and 9.95 million visitors (an increase of 1 %), and a rented surface area of around 6.6 mio m2 which also translates into a slight increase. "That would put the exhibitor figures a little higher than in the bumper year 2000." Hagen also pointed to the improved investment and consumer climate in Germany which is expected to accelerate growth in the sector a little more - particularly as trade fairs rate very highly, Hagen confidently proclaimed at the association's annual press conference.
The number of exhibitors registered by the 141 international trade fairs on which the AUMA bases its statistics grew by 2.6 % in 2005 over preceding events. 2004 saw a fall of 0.7 %. This recovery in the German trade fair industry is being felt across almost all sectors, with around three-quarters reporting growth in their exhibitor figures. All were surprised to see the number of German exhibitors stabilise. As recently as 2004, that figure had gone down by 4 %. But 2005 saw a slight bounce-back of + 0.5 % in the number of domestic participants. "In an uncertain economic climate the search for new customers becomes particularly important", Hagen pointed out. More than ever, companies need to show profile. "Potential customers and the media use attendance at sector meeting places like trade fairs as a general measure." Hagen, again: "Anyone shying away from direct comparison with their competitors is easily overlooked." And another observation: "As a trend scout I can make out where technology is headed." So, in the medium term, growing competition in all industrial and service industries will mean trade fairs are used.
The rented square-metrage which determines the domestic turnover of trade fair organisers is up 0.6 % over prior events for the first time since 2000. Visitor figures have not yet reached their previous level. At -2.2 % compared with -1.4 % in 2004, the negative trend has actually continued. But Hagen does not interpret this drop as a lack of interest in the trade fair as a medium. To him it is proof of the slow but sure reduction in the average length of stay at trade fairs. This is currently placed at 1.5 days. Many companies are cutting down on overnight stays in an attempt to reduce travel costs.
Overall 6.24 mio. m2 of stand space was rented at international trade fairs. The total number of exhibitors recorded was 158,060, including 74,058 from Germany and 84,000, that is 53 %, from abroad. 9.59 million visitors attended these 141 trade fairs.
Provisional results cite a turnover of EUR 2.35 billion for German organisers compared with 2.45 billion in 2004. The main reason for this reduction is lower rented square-metrage due to fair frequency. Thomas Hagen again: "With the strong international character of their domestic trade fairs and the growing success of the foreign trade fairs, German organisers are among the beneficiaries of globalisation."

m+a report Nr.4 / 2006 vom 15.06.2006
m+a report vom 15. Juni 2006