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Tuesday, September 16, 2008

Trade Shows Start to Decline

According to Folio there has been a 6% drop in B2B revenues in the last half year in the US. No surprises there. The most significant aspect of this report is that trade show revenue declined by 1%. When a downturn hits, there is a lag in trade show deterioration. This years events are based on last years sales. But now we seeing the crunch begin to bite. Unlike publishing where the decline is the reuslt of a perfect storm of cycle and paradigm shift, for shows, this is just about the cycle. Nevertheless high profit margins from shows in the good times mean rapid falls in profits when the downturn bites.

All those companies, (UBM?) smugly congratulating themselves on not being exposed to too much publising because of the strength of the events business shoudl take note and start taking actions now. Conferences will also feel the pinch. Don't hold your breath on the Informa deal.

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