Exhibition World Issue 3 — 2019 | Page 49

Analysis Where are the German organisers? Matthias Baur reviews what triggers growth in the exhibition industry “Where are the German organisers?” could be a question that springs to mind when you look at the growth rate of the top exhibition companies over the last 15 years. With most of the world-leading tradeshows taking place in German venues, Germany was seen as the leading host country of exhibitions for decades until the millennium change. Still today, the industry looks up to German organisers when it comes to putting together world- leading, high-quality shows. In fact, the German tradeshow industry drives standards to a higher level and no one could say that Germany doesn’t deserve its ranking within the tradefair ‘Champions League’. However, when it comes to profitability, the current top-ranking positions are not occupied by German companies. This could be down to the fact that German organisers are not registered on the stock market, but are predominantly owned by local cities and states. As a result, the regional economic impact of a large- scale tradeshow is given just as much importance as making money. This is different to a purely profit-driven model, for example in the UK. You only need to look at the hugely positive effect a tradeshow can have on a region to understand why German organisers have adopted this ‘dual goal’ approach. Other countries, such as China, are also well aware of the regional knock-on effect of tradeshows, and have been increasing venue space for years. So why are cities like London closing down venues? Does the UK government not understand and w w w.exhibitionworld.co.uk appreciate the impact tradeshows can have? Does London really need another block of ‘luxury’ apartments instead of space to do business? As a fellow German, I heartily support German exhibition organisers with this ‘dual goal’, however, we can’t ignore the obvious – German exhibition organisers are far behind the international benchmark when it comes to overall growth rate. In 2005, Germany held three of the top five places when it came to sales revenue generated by tradefairs. However, in 2017, this number slipped from three to one, and the majority of German organisers moved down the Top 10 list from being in the first five to being in the last, which begs the question: “Where are the German organisers?” Above: Growth rates: CAGR 2005- 2017, based on the top 31 tradefair organisers, according to AUMA Why are Germans slowly losing their hold on the top positions they have historically and categorically dominated? Why now have they started to lag behind? Won’t a slower growth rate and lower profitability inevitably result in less power to invest in tradeshow quality and product development? Failing to invest in their product in this way could trigger a change whereby German organisers start losing their position in the global industry at an even faster rate than during the last 15 years. A key contributing factor is most likely the fact that the exhibition environment is changing and Germans appear to be adapting slowly to this change. Exhibitors are more selective and have more choices in their B2B strategy than ever before. Issue 3 2019 49