I remember September 2008 like it was yesterday.   The innervating horror stories about the financial meltdown on Wall Street:  Investment house failures, bank mergers, historic stock market plunges, industry bailouts, and collapsing ponzi schemes.   All while mysterious new terms such as, “subprime mortgages,” “derivatives” and “credit default swaps” started appearing in the American lexicon.

And while the chicken littles directed most of the dialogue, I could only understand the world through my own filter: how the trade show industry was affected.  Suddenly there were fewer attendees at conventions, fewer exhibitors, lost jobs, lost revenue, and fear – lots of fear.  In fact, my employer – Freeman – the most reputable face-to-face marketing company in the US, had to reduce our full-time workforce between the fall of 2008 and the end of 2009.

To make matters more stressful personally, I’d just been tasked with starting a new sales group at Freeman, charged with growing business by providing exhibitors with products and services they were in the habit of buying elsewhere.  Whew!

Well, as Winston Churchill once said, “When you’re going through hell, keep going;” and while there are still plenty of signs the economy is not perfectly healthy, there are reasons for optimism.  Recently, I asked some of my direct reports – front line account executives at Freeman who work directly with exhibitors – if they think the economy is improved.  When they unanimously reported in the affirmative, I asked why:

1. Exhibitors are coming back. Exhibitors who dropped out of shows are returning.  Even in hard-hit industries such as the automotive industry.  According to Kristal Harris, some of the National Automobile Dealers Association (NADA) exhibitors she worked with in 2008 dropped out in 2009 and 2010, but came back to exhibit at the recent 2011 show.
2. Budgets are increasing. Exhibitors have slightly bigger budgets this year.  According to Kimberly Allie, some of her Intl. Health and Racket Sports Assoc. (IHRSA) clients are increasing their budgets over the levels of the past few years.  “If you picked an industry that you think would be down, it’d be fitness,” says Kimberly, “Because it isn’t a necessity.”  However, Kristal cautions, “Exhibitors are targeting their efforts and trying to make the most of every dollar.  They’re being smarter with their money.”
3. Bigger is better. Exhibitors are getting larger spaces for 2012 shows.  “My 10’ x 20’s who spent $18,000 this year, are buying 20’ x 20’ spaces for next year’s show,” reports Kimberly.  And Kristal reported, “Some clients who exhibited in 20’ x 20’ islands in 2009, dropped out in 2010, came back with a 10’ x 20’ this year, and bought a 20’ x 20’ space for 2012.”
4. Creativity is back in demand.  “Exhibitors are becoming willing again to pay for the extra fluff,” says Audra LeBeau, who recently worked with over forty exhibitors at the Intl. Air Conditioning Heating Refrigerating Expo (AHR).  Two years ago, exhibitors were spurning luxuries such as lighting.  “Now demand is picking up,” says Audra.   “One of my clients recently asked for a Twitter-Wall and didn’t even flinch when I told them it costs $8,000,” she said.  Even for utilitarian goods such as carpet – many exhibitors are upgrading to higher quality choices.
5. One-stop shopping. “The last two years, budget-crunched exhibitors were shopping every show-need out to individual specialists (construction, rentals, transportation, carpet, etc.) to eliminate service/handling fees,” says Audra.  However, exhibitors are trending back toward convenient one-stop-shopping for all their exhibit needs.
6. Staffing up. According to Courtney Bell, often during the past two years, exhibitors had a single marketing employee who shouldered all the logistical duties getting not only the exhibit essentials secured, but also the exhibit staff to-and-from conventions.  “This year, they have assistants and graphics experts and more internal resources to access,” says Courtney.  Moreover, exhibitors are sending more people to the shows and increasing their staff size in the booths.
7. Double-duty. Budgets may be improving, but exhibitors are using the exhibit space for more meetings as well as entertainment.  In the wake of the early recession fallout, President Obama frowned on business-entertainment, but exhibitors at the Healthcare IT Conference (HIMSS) are leveraging their convention-floor investments by designing in more beverage bars and meeting space.  “They’re keeping staff and attendees in their booths doing business instead of entertaining at hotels and bars,” says Courtney.

I’m not kidding myself:  the “new normal” will continue to exert pressure on everyone in this industry for years to come.  While exhibitors may be loosening up a bit with budgets, they are more demanding than ever about service and performance.  Call me, cautiously optimistic.

-Jay James is the Vice President of Exhibitor Sales for Freeman.

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