Trade fairs in Germany: a busy trade fair summer creates problems

Dusseldorf The Cologne exhibition halls are filling up again. More than 1,000 suppliers and around 25,000 trade visitors came to Anuga Foodtec, the supplier fair for the food industry, at the end of April. “I consider it a success that we were able to achieve two-thirds of the exhibitor numbers and half of the visitor numbers straight away,” says Gerald Böse, head of Kölnmesse. It was the second leading global trade fair on the Rhine this year, after the ISM confectionery trade fair in January.

For two years, the German trade fair industry was almost completely paralyzed by the pandemic – apart from a few months. In the first quarter of 2022, only 20 of the 150 planned trade fairs could take place. At the end of March, the last official restrictions were lifted. “Exhibitors are really hungry for trade fairs,” says Hendrik Hochheim, Head of Trade Fairs Germany at the Association of the German Trade Fair Industry Auma.

The trade fairs are now untypically concentrated in the summer. For example, the Hannover Messe industrial show will not take place in April as usual, but from May 30th to June 2nd. The International Crafts Fair in Munich was moved from March to July. 150 of the 250 trade fairs still planned will run between May and September. Traditionally, holiday periods for trade fairs were actually taboo.

“The networked worldwide trade fair calendar has gotten into a massive mess,” states Böse. There are two reasons for the concentration in the warm season: On the one hand, a number of events, some of which have been canceled several times, are now being made up for. On the other hand, many organizers and exhibitors are worried about a new wave of corona infections starting in autumn. For example, Messe Frankfurt is considering bringing the book fair forward from October to September from 2023.

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“Even if a new wave of corona rolls up again in autumn, trade fairs are certainly feasible,” emphasizes Hochheim. A current study by Messe Frankfurt and RWTH Aachen shows that the air in exhibition halls does not spread any infections.

“Fortunately, blanket bans on trade fairs that have brought trade fair venues, organizers and service providers to the brink of existence through no fault of their own are off the table,” says Hochheim. More than 70 percent of the around 380 trade fairs that were planned in Germany in 2021 could not take place. The second corona year was even harder for the industry than 2020 (68 percent failure). Auma estimates the damage to the German trade fair industry and the closely related sectors such as trade fair construction and hospitality at more than 54 billion euros.

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However, the concentration of trade fairs in summer presents the industry with new problems. “The planning uncertainty in the trade fair industry, for which politics is responsible, has caused many employees to migrate from service providers to other sectors,” says Hochheim. Due to the postponements caused by the corona, many trade fairs are taking place in parallel, making it difficult to serve them all, according to IG Messewesen.

Staff shortages among exhibition stand builders

Cologne-based exhibition stand builder Innova Neo, for example, only has 11 of 24 permanent employees. Many self-employed people, on whom the seasonal trade fair business depends, have also left the crisis industry. Innova Neo had to cancel orders for May due to staff shortages. “I’m losing a good six-figure turnover as a result,” said company boss Ralph Ebben, who now often steers one of his eight trucks himself.

The densely planned trade fair summer is also challenging for exhibitors. The medical technology manufacturer Pajunk from Geisingen otherwise exhibits at more than 300 trade fairs, congresses and events a year. Now the events overlap. “We have to prioritize and move some of our stand staff to the next trade fair a day earlier,” says Mikolaj Bledzki, Head of International Marketing at Pajunk.

Exhibition stand of the medical technology manufacturer Pajunk

Many contacts are made by chance when visitors stroll through the halls between appointments, according to Pajunk’s experience. At digital events, on the other hand, most people switch off their laptops during breaks.

(Photo: Pajunk)

There are also logistical difficulties. Flight connections were canceled or severely thinned out during the pandemic. “Now our people often have to fly in earlier, otherwise the stand construction will become critical,” says Bledzki. That increases the expenses. The costs for wood and stand construction have also risen sharply. Trade fair builder Ebben, for example, has already increased its prices by 35 percent.

For Bledzki from the medium-sized company Pajunk, presence trade fairs are indispensable for customer contact. “After two years of the pandemic, everyone is hot for local trade fairs and events,” observes Bledzki. A survey by the German Chamber of Industry and Commerce in January found that 56 percent of companies active abroad felt particularly burdened by the cancellation of trade fairs and events.

Virtual events could not replace face-to-face trade fairs on an equal footing. “Exhibitors and organizers have tried out a lot digitally, but noticed that a virtual format is less suitable for making contacts, for chance encounters and acquiring new customers,” sums up Hochheim vom Auma. “The interpersonal cannot be simulated at digital events,” agrees Bledzki.

Digital trade fairs: “Additional costs without much added value”

“For us as a medium-sized company, digital events were not worthwhile,” sums up the Pajunk manager. Participants in digital events hardly used chat rooms or live conferences for exchange. And because of strict data protection rules, exhibitors rarely find out the addresses and function of the digital visitors for the important maintenance of contacts afterwards. “We have additional costs without much added value,” says Bledzki.

A survey by Messe Frankfurt of around 59,000 companies in 2021 showed: Only three percent are in favor of purely digital formats. Two thirds of the companies, on the other hand, would like to see trade fairs that are purely face-to-face.

“Where it fits and is accepted by our customers, the future belongs to hybrid formats,” says Gerald Böse from the Cologne trade fair. “But we will have to take the time to implement this evolution.” There is no question that trade fairs are changing. “The stands are getting smaller and require less showroom for exhibits. For this, retreats, space for discussions and networking are becoming increasingly important,” expects Hochheim.

Organizers do not expect the industry to recover before 2024, especially since many guests from abroad are still missing, especially from China. Participants from Russia have been banned from trade fairs in Germany since the war in Ukraine. Both countries are not of crucial importance for the German trade fair industry. “But a war in Europe puts a strain on the entire economy and global economy and thus also on trade fairs,” says Hochheim.

The spring dates for trade fairs will come back, says Kölnmesse boss Böse. They are important in order to serve the innovation cycles and marketing deadlines of the industries.

Nevertheless, the 70 German trade fair sites are looking forward to the winter with concern. The local hotspot regulations from the Infection Protection Act could take effect in the event of another corona wave and make trade fairs more difficult or impossible again.

Hochheim from the trade fair association therefore demands: “Politicians must ensure that the reawakened trade fair industry gets through the winter in a stable manner.” After all, 230,000 jobs depended on the trade fair business.

More: Sluggish consumption dampens the restart of the crisis sectors retail, gastronomy and events.

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