Society of Manufacturing Engineers Reports on The Importance
of Expositions During an Economic Downturn
DEARBORN, Mich., Aug. 1 It's a common reaction to trim
marketing and trade show budgets during a downturn in the economy, but how
will potential customers learn about your products and services that fit their
needs? They won't. That's why maintaining a presence in trade shows is
critical to a company's growth and success.
Gary Mikola, director of Expositions, Society of Manufacturing Engineers
(SME) has seen many of SME's exhibitor companies utilize an economic downturn
to their advantage. "While their competition is cutting marketing expenses,
many of our customers are utilizing their sales teams and trade show dollars
to gain market share by increasing visibility and establishing their stability
with current and potential clients."
"The top reason for exhibitors to take part in a trade show," continued
Mikola, "is that it is the most efficient way to make multiple customer
contacts in a short period of time."
According to the Center for Exhibition Industry Research (CEIR), "Nearly
two-thirds (63 percent) of exhibition attendees, employed by manufacturers,
authorized or approved the purchase of products or services. In fact 31
percent purchased products or services while at the show. These buyers spent
an average of $78,888 on these purchases."
Lee Hersey, president of Fayscott, a machine-tool manufacturer, was going
to cut his trade show exhibiting budget; however, he found that staying the
course brought him results. "With the changes in the economy in the
manufacturing industry, I was going to cancel our involvement in the (upcoming
SME) Detroit 2001 APEX show, but I had a great show at SME's EASTEC (in May in
Springfield, Mass.). Normally we have 40 or so inquiries. We had over 70, so
I'm going to stay in the game."
This reinforces the results of a study conducted by Getzler & Co., a New
York-based corporate turnaround firm, which showed that most organizations
experiencing a downturn in cash flow are better off reducing operating costs
rather than cutting sales and marketing budgets.
According to further research, 88 percent of decision-makers agree that
shows help them decide what products or services to purchase by bringing many
vendors under one roof at the same time.
"Trade shows provide a look at state-of-the-art equipment under one roof,"
said SME trade show exhibitor and attendee David Swirk, project coordinator,
Pioneer Valley Railroad. "A sales associate can't bring a multimillion dollar
machine along on a sales call."
Although SME has not canceled or trimmed any of its Advanced Productivity
Expositions for machine-tool manufacturers, Mikola acknowledged that
attendance numbers are declining slightly. However, research conducted by SME
indicates that this creates an even more favorable marketing opportunity for
remaining exhibitors. During economic downturns, show attendees are a more
focused group of individuals. They are the key individuals, the ones who make
the buying decisions. "Companies will send only one or two people to a show
instead of five or six. The individuals who are sent, carry the
responsibility to scout out and compare products and services that will
enhance their company's productivity."
"I send my folks to benchmark what it is that we do versus what the
industry is doing," said Don Schneider, president, Cambridge Valley.
"Attending trade shows gives my company a two-fold advantage. My employees
have an opportunity to look at machine tool methodologies and troubleshooting
for our factory, and it gives me an opportunity to kick the tires on possible
capital purchases. I am invited to open houses four and five times a year,
but I rarely go. A trade show gives me the opportunity to see it all at one
time."
"Companies that stay the course and maintain their presence in trade shows
will maintain or increase their market share along with their reputation for
stability in the manufacturing community," said Mikola. "And that is a
position all companies want to be in regardless of the economic climate."
DID YOU KNOW ...
The Society of Manufacturing Engineers manages four of the Nation's top
200 trade shows according to Tradeshow Week. It is the only association to
rank in the top ten for number of shows organized.
Among the shows managed by SME are: Rapid Prototyping & Manufacturing,
FABTECH*, Finishing, and the Advanced Productivity Exposition series which
includes Cleveland, Dallas, Detroit, EASTEC*, HOUSTEX, Nashville, Orlando,
SOUTH-TEC*, Twin Cities and WESTEC*. These shows feature machine-tool
manufacturers and regional distributors displaying and demonstrating the
latest machine tools, metalworking technologies and manufacturing processes.
Technologies include: machine tools and accessories; cutting tools and
inserts; milling; grinding and deburring; drilling and tapping; EDM; CAD/CAM;
machine controls (NC, CNC, DNC); flexible manufacturing systems; waterjet
cutting; finishing; laser systems and more.
* Four of the top 200 according to Tradeshow Week.
THE MYTHS AND REALITIES OF TRADE SHOWS
The Society of Manufacturing Engineers, which manages four of the world's
top 200 trade shows, exposes the myths behind why companies eliminate trade
shows from their budget and the realities of why maintaining a presence in
trade shows is vital to a company's future.
Myth: Buyers don't attend trade shows.
Reality: The truth is, 85 percent of trade show attendees are buyers of
one or more products or services exhibited. This percentage actually
increases during a tight economic market.
Myth: My current clients know what we sell. I need to build new
relationships.
Reality: You need to do both. Meet with your current clients. It gives
you an opportunity to expand relationships and sell more products and
services. Trade shows also give you an opportunity to meet new customers and
other purchase influencers employed by your current customers -- people that
you wouldn't otherwise meet. At the same time, 77 percent of trade show
attendees find at least one new supplier.
Myth: My sales team makes more contacts from field calls than at a
trade show.
Reality: Actually, a sales person makes an average of 20 to 30 contacts
per day at a trade show with existing and potential customers versus 3 to 4
sales calls in the field. And studies show that 88 percent of trade show
attendees would not otherwise have any direct contact with your company.
Myth: It's easier to close a sale after a field call than after
exhibiting at a show.
Reality: Approximately 48 percent of trade show leads require no sales
calls to close. And for those sales that do require calls to close, trade
show leads require 1.3 calls to close a sale versus 3.7 calls for field sales.
Myth: It costs more to close a sale from a trade show than a field
sale.
Reality: On average, it costs 45 percent less to close a trade show sale
than a field sale. (The average field sales call costs $1,117. An average
trade show lead costs $625. You can save $492 per sale.)
The way business is conducted is ever-changing. With the metamorphosis of
electronics and telecommunications devices, it is harder than ever to reach a
person "live." Instead of leaving endless voicemails and/or e-mails, smart
companies continue to utilize trade shows as a rare opportunity to interact
with buyers and influencers.
The Detroit 2001 APEX, co-sponsored by the Society of Manufacturing
Engineers (SME), the American Machine Distributors' Association (AMTDA), and
AMT - The Association For Manufacturing Technology, will be held September 25
through 27 at Cobo Center, Detroit, Mich. For more information, contact SME
Customer Service at 800-733-4763 or (outside the U.S. and Canada)
313-271-1500, ext. 1600. Or log onto the website at http://www.sme.org/Detroit .
Hours of operation are: Tuesday, Sept. 25, 9 a.m. to 5 p.m.; Wednesday,
Sept. 26, 9 a.m. to 6 p.m.; and Thursday, Sept. 27, 9 a.m. to 4 p.m.
Media Contact: Jennifer T. George-Robinson, SME Public Relations,
+1-313-271-1500, ext. 1858, robijen@sme.org
