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Word on the Street — December 6th thru December 10th

December 12th, 2010 Mel White COMMENTS
2011 Trade Show Predictions

Word on the Street by Kevin Carty

Industry Predictions 2011 — Part 2

First let me say, “Hello!” With vacation and the holiday, I have been gone recently and have not blogged for several weeks. But I am back in the office now, and I would like to dovetail on Mel’s entry back in mid-November regarding 2011 industry predictions. So here are my thoughts . . .

To say that the past two years have been a bit nutty would be a gross understatement. At Classic, we have seen strong months that have been off the charts followed up by months where I was left calling the local phone company just to see if the phones were broken.

But this fall (September thru November) has left me very hopeful for 2011. November, for example, was our best November ever. And the quoting activity in September, October, and November has left me very optimistic. People are “planning” rather than “reacting.” We’re seeing people preparing weeks and months in advance rather than holding onto their dollars until the last possible minute and buying in a reactivate mode weeks before their show. This is a great sign!

Islands are back! They are not back to 2008 levels, but we are seeing a normal mix in our quoting and sales process. Most are more than simple islands that carry little detail or flash. They are more elaborate, and the budgets have been healthy. All in all, we’re witnessing the “first-steps” in the rebuilding of exhibit programs for corporate exhibit clients. In early 2011, we will be introducing a series of modular island concepts which we’re very excited about. As this market expands, we want to ensure that Classic Distributors have the tools to capture more than their share.

SEGUE Sunrise VK-1905

Hybrids, Hybrids, Hybrids . . .  they are not going anywhere and are clearly here to stay for years to come. As a company, we are equipped more than ever to handle all requests. Whether it is for a starter client that has $3000 to spend on a 10 x 10, $15,000 to spend on a 10 x 20, or a seasoned client that has $10,000 for a 10 x 10 or $25,000 for a 10 x 20.

We have seen business increase across our entire hybrid lines from Sacagawea to Visionary Designs. We expect the SEGUE line to be particularly strong over the next 12 months as Silicone Edge Graphic solutions become even more popular. The SEGUE Sunrise, introduced in this week’s Design Monday, is a great example of how you can compete at the entry level with a portable, well-engineered, and smart “no tools” hybrid solution. It’s unlike anything else on the market, and we expect Classic Distributors will find an enthusiastic audience for these portable hybrid kits.

Sustainable (Green) Exhibits. This was treated as a clever marketing term two to three years ago. A fad if you will. But believe me when I say that eco-friendly exhibiting is not a fad. It is real, and there is a large market for it. We have seen the price for materials adjust down. The exhibits are now a financially viable option for those companies with green exhibit initiatives. The Eco-systems Sustainable brand experienced solid sales increases in 2010  as companies have increased their marketing budgets. The potential leading into 2011 is larger than ever.

The ClassicMODUL Aluminum Extrusion team has spent a lot of time, energy, and resources reaching out to alternative markets over the past two years. Those efforts have begun to payoff as budgets have slowly started to come back. I expect that the ClassicMODUL division will experience significant growth in the retail, POP, and architectural markets in 2011.

At the end of the day, I am more than hopeful for 2011. Will there be an immediate return to 20 to 30 percent annual growth? No, and it would be foolish to expect that. There have been significant and permanent changes in the exhibit market that will make it difficult to return to the “glory days.” Rather, we will all be catering to a new type of market that will force us to be creative, adaptive, and responsible. With that will come smaller growth than we have seen in the past. But positive growth all the same.

What do you expect for 2011? Please share your thoughts and opinions with other Classic Distributors.

Hope you had a great and restful weekend.

Be well

–Kevin Carty

http://twitter.com/kevin_carty
http://www.linkedin.com/pub/kevin-carty/3/800/32a

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It’s Between This or That — Choosing the Right Trade Show Display

December 10th, 2010 Mel White COMMENTS

Choosing the right trade show display is rarely straightforward. Most of the time, you are selecting between two similar but slightly different displays. Sometimes it’s about the price. Other times it’s about a personal design preference. Many times, it comes down to weight and assembly.

We can’t cover every scenario, but we can review some of the more common “this or that” portable/modular choices. You gotta make a decision . . . which one will you choose?

Briefcase Table Top vs. Full-size Table Top

Briefcase Table Top

This comes down to price, presentation, convenience, and assembly. Briefcase table tops tend to be smaller than traditional pop up, fabric, or hybrid table tops. There’s no assembly, unless you have a header, which may add another minute to the setup time. They are functional, convenience, and durable. Pop up, fabric, and hybrid table tops are almost always larger than briefcase table tops and may include options like backlit headers, lights, seamless graphics, and literature holders. Price varies  from $400 to $2000 depending on accessories and design.

Insider Tip:  College recruiters love briefcase table tops. Pharmaceutical reps like pop ups or hybrid table tops.

Full-size Table Top vs. Banner Stand(s)

Banner Stand

This one is tough. Full-size table tops on a 6 ft. table make a great backdrop to any 10 x 10 space. The graphic area is large enough to convey one or two messages and your display will probably look different than your neighbor. Banner stands are lightweight, easy to assembly, and can be placed at the back of the booth or on the aisle. It’s not uncommon to see three banner stands placed side-by-side to create a semi-uniform large image.

Insider Tip:  Why choose one or the other . . . Get both! It’s affordable and gives you the ability to take advantage of a table and the fill the booth space without adding clutter.

Banner Stand vs. Fabric Pop Up Display

Fabric Pop Up

This one depends on how many banner stands you want. One or two banner stands in a 10 x 10 space is not a display, and frankly it looks cheap and ridiculous. Two banner stands with a case to counter conversion is much better. A fabric pop up like Xpressions fills the backwall and takes about the same time to setup as multiple banner stands. The difference is price and design. Fabric pop ups are more expensive, but offer more visual impact.

Insider Tip:  Both a banner stand and a fabric pop up give the ability to change your graphics frequently. In general, changing the graphic on a fabric pop up is easier than changing the graphic on a banner stand.

Fabric Pop Up vs. Pop Up Display

Pop Up Display

This is really a matter of taste. Fabric pop ups require less assembly time since the graphics are attached to the frame. Fabric pop up graphics are a series of tension fabric images attached to a visible straight frame. Pop up panels are unrolled and then hung on the frame. Pop up graphics are usually mural lambda or inkjet graphics attached to a curved frame. Pop up systems generally have more accessories such as shelves, literature holders, and monitor mounts.

If you want a seamless, single graphic, go with a pop up. If you want a series of images which create a unified theme or message, got with a fabric pop up.

Insiders Tip:  You’ve heard it before, but you get what you pay for. The prices for these systems are all over the board. Ask lots of questions and less than you need or more than you’ll use.

Pop Up vs. Portable Hybrid Display

Portable Hybrid

Pop up displays have been the mainstay of the portable exhibitor for over 20 years. Portable hybrids are the interlopers, offering more design options but at a higher price. You can’t go wrong with a pop up display, but you aren’t going to win any design awards. Walk any trade show and you’ll see a pop up display on every aisle. They are effective but not sexy anymore. Portable hybrids come in a variety of design flavors and options. The large format graphics are tension fabric, making them lightweight and durable. The downside . . . portable hybrids rarely ship as compact as pop ups and the setup time can be double. Most portable hybrids require some tool assemble, although newer systems like the Perfect 10 and Sacagawea are either tool-free or mostly tool-free.

Insiders Tip:  Portable hybrids come in all price points, from $3500 to $13,0000 for a 10 x 10 display. This is one of the few instances where the price point corresponds directly with the options, design flair, and graphic elements. More money means more curves, larger graphics, more accessory options (and often better packaging).

Portable Hybrid vs. Modular Hybrid Display

Modular Hybrid

What is a hybrid? In short, it’s a display that incorporates engineered aluminum extrusion, tension fabric graphics, and other stuff (which varies by design and manufacturer). Portable hybrids pack in roto-molded wheeled cases. Modular hybrids pack in roto-molded tubs or small wood crates. Portable Hybrids, such as Magellan are lightweight, economical, and attractive, but may not have all the bells and whistles such as extensive storage, large screen monitor capability, puck lighting, and multiple graphics. Modular Hybrids, like Visionary Designs, allow you to create whatever you want. The only limitation is your budget.

Insiders Tip:  The terms modular hybrid and custom hybrid are often used interchangeably. Frankly, there are not enough differences to quibble.

Modular Hybrid vs. Modular Laminate Exhibit

Modular Laminate Hybrid

Bear with me on this. It’s a little esoteric. If you read the previous section, you know what Modular Hybrids are all about. Modular Laminate exhibits are are primarily modular laminate panels rather than aluminum extrusion and tension fabric. That said, Modular Hybrids may have some laminate components, and Modular Laminates may have some aluminum and fabric components. It’s just depends on which material is the primary building block. Why choose one over the other? Some people love the the look of laminates. Others prefer large format fabric graphics. It all comes down to personal tastes and the image you are attempting to project.

Insiders Tip:  I’m a snob when it comes to modular laminate systems. I have a right to be. I’ve seen every variation over the past 15 years. The best ones are lightweight, durable, two-sided, and simple to install. The worst ones have taken a simple idea and created a mechanical Rubik’s Cube with springs and funky locks. Simple and durable are always better in this case.

–Mel White
http://www.linkedin.com/in/melmwhite
mel@classicexhibits.com

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Kevin Carty Elected to the EDPA Board of Directors

December 10th, 2010 Mel White 1 COMMENT

During the 2010 EDPA ACCESS meeting, Kevin Carty, Vice President of Sales for Classic Exhibits Inc., was welcomed as a newest elected member to the EDPA’s Board of Directors with an initial two-year term. Kevin and Classic Exhibits/ClassicMODUL are very active within the exhibit industry as members of not only EDPA but also TSEA (Trade Show Exhibitors Association) and HCEA (Healthcare Convention and Exhibitors Association) .

The Exhibit Designers and Producers Association (EDPA), founded in 1954, is an internationally recognized national trade association with more than 400 corporate members from 18 countries that are engaged in the design, manufacture, transport, installation, and service of displays and exhibits primarily for the exhibition and event industry. Its purpose is to provide education, leadership, and networking for the advancement of its members and the exhibition industry. The mission of the EDPA is to advance the interests of members engaged in the design, production, and service of exhibits, events, and experiential environments. The success and integrity of our industry will be enhanced through advocacy, communication, education, and good works.

EDPA leadership and guidance comprises of an Executive Board and a Board of Directors (a total of 24 volunteers from within the industry), one of whom is the Executive Director of the Association. Only qualified individuals who are representatives of members in good standing of EDPA are eligible for nomination. Board members are elected by the membership at large through an electronic balloting process with newly elected members being announced at EDPA’s annual ACCESS Conference and Showcase. Nominations are brought forth by the Executive Committee, contacted and vetted by the Vice President of Administration then presented on a ballot to the membership.

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Shooting from the Hip — 15.10 (I am Thankful)

November 24th, 2010 Mel White COMMENTS
Shooting from the Hip (trade show tips)

Shooting from the Hip by Reid Sherwood

Things for Which I am Thankful

It has been a few weeks since my last blog post. It wasn’t that I didn’t have anything to say, but I didn’t have anything to say that mattered. Since tomorrow is Thanksgiving, I will reflect a bit on those things for which I am truly thankful. These are in no particular order except the last one.

I am thankful for volunteer firefighters — Many of you know the Sherwood clan had house fires in both October of 2008 and 2009. Nobody was hurt. We are grateful. Last Monday, our garage  burned to the ground. Right now, we are a bit shell-shocked and  scared to death of fire. But because of the quick work of a small volunteer department, the house was saved with only cosmetic damages.

I am thankful for freedom — Our school in town just re-dedicated a plaque to the students from Newaygo High School who served in WWII. A few of the veterans were there for the ceremony, and seeing them made the ultimate sacrifice paid by so many much more tangible. It was a time to reflect and remember why we have what we have.

I am thankful for my job — I am not looking for a raise. I am not even trying to blow any smoke/sunshine up anyone’s skirt. I am simply being honest.  Classic Exhibits has been very good to me. We have a culture in the office/shop that is very friendly. There are no self-serving egos. There are just a bunch of people with a common goal:  Enjoy your job so it is not really like working.  Mel, Kevin, and Roy – Thanks a million!

I am thankful for my customers — Many of the people we deal with every day at Classic are people I have been associated with for 15 or 20 years. We have watched our industry change drastically in the past 20-some years. What hasn’t changed is how we enjoy our time together.

I am thankful for the things I have been able to see and do — A little country guy from NW Michigan normally doesn’t have the luck I have had (excluding the fires). I have been to some of the world’s greatest stadiums, concert venues, and restaurants. I have had the fortune of watching the sun set at Mallory Square several times. I have eaten in Emeril’s kitchen in New Orleans. I have had a cocktail with Michael Jordan, Wayne Gretzky, and Charles Barkley. I saw Jack Morris pitch a no-hitter against the White Sox in 1984. To some people these things mean nothing . . . to me . . . they are everything.

I am thankful for the little town I grew up in — Many of you who read this will understand. Newaygo has been so good to my family for a hundred years. It was good to my grandfather. It was good to my father. And it has been good to me. It has been a great place to grow up, go to school, raise your kids. I love this place.

I am thankful for my parents — Everything that is good and right in my life I owe to my parents. Everything that is wrong is because I didn’t listen to them.

I am thankful for my friends — They make the good times better and the not so good times a lot more palatable. I am going to name just a few: Ron A., Kevin C., Dave B., Gina P., Scott L., Scott B., Cindi C., Richie, and Raytard.

I am thankful for my family — I make more family jokes than most stand up comic . . . but they are jokes. I can’t possibly love them any more than I do. My wife is a saint. You may find this hard to believe, but I am not the dream to live with you might think. Thanks to all.

Ultimately – I am grateful for so many things. The list could to on and  on.

Have a great Thanksgiving and we will see you again Monday.

Until the next time,

–Reid Sherwood
reid@classicmodul.com

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Word on the Street — November 15th thru November 19th

November 21st, 2010 Mel White 3 COMMENTS
Why we participate in the TS2 Show

Word on the Street by Mel White

Trade Show Industry Predictions 2011 . . .

(Kevin Carty is on vacation, so Mel White has graciously agreed to substitute this week.)

As we head into the holidays, I thought I’d put on my clairvoyant hat and peer into a crystal ball. It doesn’t take a fortune teller to know that 2011 is already on your mind. You’re wondering if the exhibit industry will plod along like a Clydesdale, sprint like Quarter Horse, or remain stubborn and unpredictable like a mule.

To ensure my predictions are accurate, I’ve checked the astrological star charts, turned over the Tarot cards, and consulted the Magic 8 Ball. And to protect your sanity, I’ll spare you any doomsday or apocalyptic scenarios. Frankly, my psyche couldn’t handle it after the past two plus years.

Anyway . . . here goes.

Graphics – Many distributors survived on graphic orders in 2009 and 2010, a trend that’s unlikely to change in 2011 with 50% of your volume coming from new or replacement graphics. You will see, based on our trend the past nine months, more silicone edge graphics (SEG) in towers, inlines, and islands. We anticipate a continued downward pressure on basic systems graphics, such as pop up panels and banner stands, because there is no margin left in the hardware.

Table Tops – Oddly enough, table top orders tanked over the past 26 months, whether $400 or $2000 table tops. The budget TT’s have yet to show a pulse, but the higher priced units such as Aero are no longer on life support. We expect modest increases in TT orders with even an occasional multiple quantity order. You can’t make a living on TT’s, but when you get a multiple quantity order it’s a nice break from the Ramen noodles.

The Magic 8 Ball Says . . .

Banner Stands, Pop Ups, and Basic Curve Walls — No change. We don’t expect an increase in sales for these displays even as the economy improves. As more and more customers return to the market, we anticipate a more balanced approach between customers buying pop ups/banner stands and customers moving slightly upstream to hybrids. Many distributors have all but abandoned the entry level market where distributors (online or offline) are trading dollars. We would encourage you not to throw in the towel yet. There are still mainstream corporate clients who value quality at a fair price over the 30 feet or 30 second displays.

Until someone invents the “add one drop of water and poof you have a 10 ft. display,” many customers will still demand displays that require minimal effort even at the expense of marketing impact. If we believe the Marketing and HR Departments, the Sales AE’s at most companies are more likely to use an assembly tool for scratching and picking than for putting a display together.

Portable Hybrids and Modulars – Three years ago, there were few players in the $4000 to $8500 inline market. The field has gotten more crowded, but for inexplicable reasons, the players are repeating the mistakes of the pop up market. Lots of look-a-like displays with very little innovation. There are some exceptions in design and assembly (yes boys and girls, I’m talking about Classic), but by and large customers are being handed a bag of parts, a tool, and asked to assemble a square with two wings.

This segment will see double-digit growth in 2011, but distributors will have to decide whether to sell or to clerk. According to our distributors, sales conversations are migrating from price first and design second to a more balanced approach. We’re not quite back to the world of “I’ll find the money if I love the design,” but design is no longer playing second fiddle.

2011 Predictions

2011 Predictions

Over $10,000 Inlines – In our business, over $10,000 inlines are the “canary in the coal mine,” indicating whether there is an economic gas leak. Distributors will see more interest in >$10K designs in 2011 as clients talk more and more about what they need rather than what they can afford. Many will still decide to purchase a less expensive display, but others will invest in display solutions that more closely match their true marketing goals.

Islands – They’re back. (note the period rather than the exclamation mark) Unfortunately, islands may be the least profitable segment as the intersection between expectations and price points has shifted. Customers are willing to pay between $50,000 and $75,000 for a modular display, but they expect that to include EVERYTHING. Yikes. That’s a tough sell. More than any other segment, we’ll need to work together as partners to land these orders. Give and take is the key with both sides willing to take smaller margins or find creative solutions.

We’ve seen significant interest in SEG solutions in the past 6 months. In SEG islands, the graphics play a more dominant role in the design than the structure. Re-configurability will continue to be in the design mix, even if it compromises the overall design (sadly).

Rentals — Without question, rentals have been the biggest beneficiary of the economic downturn. We saw double-digit growth in both 2009 and 2010, particularly in island rentals. And if the past two months are any indication, this trend is unlikely to change. Customers are turning to rentals as cost-effective answers to purchasing an exhibit and to maintaining their trade show presence. We suspect that many companies have now made the decision to never own an island exhibit again. And it makes sense in many circumstances. Rental designs have gotten more flexible and imaginative. Gone are the days when a rental had all the sexiness of granny panties.

Green Displays — You may find this surprising, but requests for Green Displays never went away. Just ask our sister company Eco-systems Sustainable Exhibits. The price points may have dropped but not the interest. Companies with a green focus or with green initiatives will choose an eco-friendly display every time as long as the price is somewhat comparable. We caution you not to ignore this category. You must be able to speak the language to sell these products. These customers can spot a fraud a mile away. Now is the time to learn the language before you get schooled by a knowledgeable client.

What are your predictions for 2011? Click on the Leave a Comment link (at the top of the page) to share your thoughts with your Classic colleagues. We’d love to hear from you.

On behalf of the entire Classic Family, have a safe and relaxing Holiday.

–Mel White

http://www.linkedin.com/in/melmwhite
mel@classicexhibits.com
Classic Exhibits Network (LinkedIn)

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