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From Subzero to Boiling Hot. What’s the Industry’s Temperature?

July 23rd, 2013 Mel White 2 COMMENTS
Shooting from the Hip (trade show tips)

Shooting from the Hip by Reid Sherwood

Summer is great for golf. Not so much for trade shows.

If there was an exhibit and event thermometer measuring the hot and cold temperature of the industry, it would go from subzero to boiling hot several times a year.

Now before you think this is just my opinion, let me qualify it. I have talked with dozens of distributors and custom houses over the past six to eight weeks, and they all agree. Through May, life was not just good, it was pretty great. We had record months along the way. Sales figures were as good as or better than 2012. I have also spoken with our vendor partners (by vendor partners, I mean wholesalers who do not sell direct). The same thing was true. January to May — WOW!! Then came June and the sound of crickets was deafening.

Let’s look at some potential reasons/excuses for the June debacle.

  1. Many distributors said that they do not have a pipeline of work coming because the pace over the first five months kept them from prospecting. They filled orders, but did not have time to find new clients. That pace required some deep breathing in June. The upside is July, and the pipeline will fill quickly with fall projects and shows.
  2. Cuts in defense spending. Some larger summer shows, such as Inter-Solar, are scaled back. One of our partners said, “We had 13 different projects there last year but only two this year.” You don’t need to be a math major to see the impact.
  3. The harsh reality is that golf is still the fastest growing sport in the world by over 50% and is being played by record numbers of people every day.

Of those three statements only two are true. You can decide which one isn’t. But suffice to say, if you haven’t figured out how to diversify and offer different products or services to your standard customer base or repackage your standard products to other industries or tangent markets, it’s not too late. It is late, but not too late.

Now that the gloom and doom is over, here is the bright side (yes, there is a bright side).

VK-5105 Hybrid Island

We are ALREADY seeing exhibitors planning for the fall show season. Our Design Department requests were up 72% in June over LY. Budgets are freeing up, and businesses are finally realizing that the most important time to market is during “Less than perfect economic times.” Again, don’t just take my word for it. After speaking with various industry vendors from graphics to labor, flooring to furniture, and other exhibit manufacturers, we all think this fall will be very strong.

There is a return to the islands. We are seeing healthier, more realistic budgets for bigger projects, expecting “Wow Factor” design. And if you can deliver, there is success to be had. Nothing is more thrilling to a trade show exhibit salesperson, manufacturer, or other industry vendor than to know that design matters more than ever and that price has finally become the third factor after design and service. One labor company told me they are up 11% in overall business, but 19% in island installs. This may be the best fall ever. And I have lived through some incredible fall seasons.

Even our budget-priced kits (Magellan, Sacagewea, and Perfect 10) are seeing people pushing the design envelope so they perform beyond the norm. That’s refreshing.

Here is a little tidbit in talking with my good pal Mike Sandler at Atlantic Exhibits about the start of the fall season. The topic of technology in shows came up. Not the kind of technology that requires compressed air, but technology to deliver a bigger, faster, stronger more eye-inspiring message than a flat static graphic. Here is the statistic that Mike gave me: “Reid, we walked a small show one day last week. Out of 105 booths 103 had technology in some form to deliver their message.” That is what makes Classic’s solutions so attractive is the ability to incorporate technology at every turn. From iPad kiosks to cell phone charging stations to 70 inch monitors.

Sooo . . .  it is mid-July. The summer doldrums are just about over. Get one more round of golf in before it all breaks loose. It is going to happen fast. It always does.

Let’s make it the best fall ever.

Reid Sherwood
reid@classicexhibits.com

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Based in Portland, Oregon, Classic Exhibits Inc. designs and manufacturers portable, modular, and custom-hybrid exhibit solutions and engineered aluminum extrusions (ClassicMODUL). Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100.

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Your EDPA VIP Pass Courtesy of Classic Exhibits Inc.

November 16th, 2011 Mel White COMMENTS

Access 2011 in Las Vegas

Be sure to enter the discount code “seVIP11.” Please visit us in the EDPA Product Showcase to see examples of SEG aluminum extrusions and iPad counter solutions. Kevin Carty, Jim Shelman, Reid Sherwood, and Mel White will be attending the event.

Access 2011 VIP Pass from Classic Exhibits Inc.

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10 Basic Business Rules in a Broken Economy

August 12th, 2011 Mel White 11 COMMENTS
10 Business Rules for a Broken Economy

10 Business Rules in a Broken Economy

I Made a Wise Decision This Week

Two weeks ago, I wrote about the federal budget impasse and the inability of Congress and the President to negotiate a reasonable, intelligent, and non-partisan solution to the deficit. No doubt, you have your opinion about the final “deal,” one that is well-reasoned and not influenced by the talking heads and their simple solutions for complex problems sound bites. The market found it unsatisfactory, just as did Standard and Poor’s. For those who haven’t viewed Jon Stewart’s humorous response to the downgrade, I invite you to see it here.

I made a decision this week, akin to the ostrich sticking its head in the sand. I plan to ignore the gyrations of the stock market, the government economic reports, and anyone connected with minute-by-minute analysis on CNBC, Bloomberg, Forbes, Fortune, and WSJ. In addition, the 2012 elections, and any news related to it, are off limits until next summer.

What I’ve learned is that these distractions are not helpful to running a business in our broken economy. They are neither insightful nor enlightening. They are, in fact, counter-productive to working with customers, employees, suppliers, and colleagues and prospering in this uncertain time. It’s time to re-work, re-invent the rules. So, with all humility, here are my “10 Basic Business Rules in a Broken Economy.”

  1. Sales Trends are So Last Year. There’s no such thing as an overall sales trend anymore. Whatever happen in March and April has no bearing on sales trends in August and September. Zero. If anyone tells you the following, “Based on our sales this spring, we expect fall sales to increase by 15 percent,” they are living along the banks of D’Nile.
  2. Average Joe Has to Go. You can’t reform a hardened criminal or an average employee. You hire people for what they know. You fire them for who they are. If they are not moving the bar forward, then cut your losses NOW.
  3. Hunters and Gathers. If you define yourself as one or the other, then you should consider the convenience store business. Slim Jims would be a better career choice. For most of us, we no longer have the luxury of sales specialization. We need account executives that find new customers and cultivate existing ones. Don’t have one skill set or the other? It’s not like learning to play the violin. You can fake it.
  4. The Consultative Approach? Customers don’t want consultants. They want experts. Experts provide proven answers and solid results. Consultants offer advice, which may or may not work. Unless you are an expert in your field and have solid, proven solutions, then you are wasting your customer’s time.
  5. Good Suppliers Matter. Industry supplier relationships matter, if there’s a marketing, sales, and R&D symbiotic relationship. You would be surprised at how often they promote your business whenever they meet with their customers. Be good to them, and they will be good to you.
  6. Common Courtesy and Politeness. Go ahead — blame Twitter, email, voicemail, bad parenting, or high-fructose corn syrup on rudeness in society. Pointing fingers is just another way of not taking responsibility. Being nice doesn’t make you a “Nancy.” It means you respect others. I don’t know about you, but I enjoy working with people who treat me with respect. Do yourself a favor and learn these three powerful phrases:  “Please,” “Thank You,” and “You’re Welcome.” Rinse and repeat.
  7. Management by Walking Around (MBWA). In my humble opinion, the single best management concept to emerge in the past 40 years. It’s too easy to get disconnected from people and your business when you spend the day staring at a computer screen. Even worse, the core values that drive your business get blurred, muddied, or lost when you are not talking to others in casual, unstructured situations.
  8. Margins Matter. Yes sales matter. Yes, costs matter. But, if you obsess about one or the other, you tend to ignore margins. When is the last time you analyzed your margins? Chances are your costs have changed in the past year, but you haven’t factored how those costs affected your margins. Margin creep occurs in every business, particularly in difficult economic times. Then when sales improve, you’re scratching your head why your bottom line hasn’t improved.
  9. Vacation. Have you ever wondered why you are at your best after a vacation? Your brain needs a break. It needs to clear the rust away, just like a hot water tank, which will last longer and heat faster if you drained it several times a year. You need to flush the mental sediment to be at your best. One more thing . . . if your office can’t survive a week or two without you, then here’s something you need to understand. You suck at managing people. Good managers have good employees who can manage their workload.
  10. The 2012 Elections. The 2012 elections will have no bearing on whether your business is successful this year. Quit blaming Congress, the President, some government agency, or the teacher’s union. Turn off the TV, turn the radio to a music station, and pick up a good mystery novel. I guarantee that you’ll make smarter decisions over the next twelve months.

What did I miss? What rules do you live by in this broken economy? Please share. And be polite. 😉

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

*********************************

Based in Portland, Oregon, Classic Exhibits Inc. designs and manufacturers portable, modular, and custom-hybrid exhibit solutions. Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100.

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Posted in Mel White, Uncategorized, Word on the Street | 11 Comments »

Exhibit City News Article about Aluminum Extrusions

July 6th, 2011 Mel White COMMENTS

Engineered Aluminum Extrusion

Aluminum Extrusions Offer Few Limitations
Written by Exhibit City News

Not all aluminum extrusions are equal. Some have limited uses, flexibility and structural weight tolerance. But no matter what vision an exhibit designer has for the layout of the booth, there is an engineered aluminum extrusion that can help bring it to life.

Exhibit City News recently interviewed three trusted sources in the extrusion industry to get a comprehensive look at the benefits, trends, and technology that make up this growing segment of exhibit design.

Speaking on behalf of ClassicMODUL, a supplier of aluminum extrusions that offers comprehensive design and engineering support, is Mel White, vice president of marketing and business development.

Representing Octanorm USA, a leader in the extrusions market since the company was founded in 1968, is Norm Friedrich, president.

Our final industry professional, Xavier Decludt, is the president of AGAM Group, a worldwide supplier of aluminum modular display systems.

ECN: What are the benefits of using an extrusion-based exhibit construction system?
Mel White, ClassicMODUL: Unlike a traditional portable/modular system or custom (wood-based) exhibit, extrusion exhibits have few, if any, limitations in construction, appearance and modularity. Plus, they play nice with existing “systems” or custom-built displays as either a component or as structure. Most engineered extrusion systems include hundreds of aluminum profiles, from square to ovals, and from round to rectangles. The sheer flexibility allows designers to create large architectural structures that either showcase or minimize the aluminum structure.

Norm Friedrich, Octanorm: The benefits are numerous and depend on each company’s individual needs. Over the past 20 years, these aluminum systems have developed into design programs rather than construction elements. The variety of angles, curves, connections and accessories are so extensive it allows for custom design even when budgets are tight.

Xavier Decludt, AGAM Group: Extrusions can be used to implement any design or feature element can be imagined and recent design trends are making it a sought after solution for the modular industry. Extrusion can be integrated into existing material and be added on for a larger booth. Another major benefit of extrusions is a much lower operating cost for material handling, labor and freight.

ECN: How has the integration of fabrics/graphics changed over the last five years?
Friedrich: We’re not fabric experts, but we certainly know that the print quality on fabric has improved dramatically over the years, making it an excellent choice for large format graphics. What was once dull and grainy is now crisp and clear. Aluminum extrusion provides an ideal framework for fabric and has become the material of choice for many of those who are searching for a large dynamic presence with reduced weight and cost.

Decludt: Many conventional graphics are being replaced by silicone edge graphics (SEG) and new extrusions are always in development. Fabric is lightweight, durable and portabe, which reduces the amount of metal that is visible. When fabrics are folded, they take up less storage space. When this is combined with the slim profile of extrusions, exhibits become a lot easier to handle.

White: There have been two significant trends, both from Europe. Fabric graphics are getting bigger and those graphics are increasingly SEG. There has been a gradual shift toward showing less aluminum without losing the benefits of aluminum structures, particular in island exhibits. The same trend can be seen in signage. Whether backlit or non-backlit, event and tradeshow signs are shifting to fabric. It’s lighter, more durable, and as color vibrant as direct print.

MOD-1276 iPad Kiosk

ECN: What new products and design solutions is your company offering?
White: You can’t be on the cutting edge right now without a variety of SEG profiles and SEG designs. We offer 15 unique profiles that allow clients to build anything from small signs to large islands using silicone edge graphics. Our new SEGUE design line includes over 30 exhibit designs, which shows that SEG can be affordable, sexy and portable/modular.

We’re seeing the integration of traditional custom components into extrusion designs in trade show, retail and event applications. Retail applications are booming, and retailers are looking for answers that allow for modular flexibility where they can redefine the space every six months rather than every five years.

Kiosks integrating iPads, cell phones, readers and other technologies have been in demand. We’ve created extrusion solutions for all these.

Decludt: Pliko is a no-tool folding frame that features a minimalist design and clearly defined edges. The 108-inch by 92-inch graphic area maximizes graphic exposure and the slim frame structure virtually disappears.

We also have a new FH 1490 extrusion system that can accommodate graphics inside and outside the cubes. If you hang such cubes, you double your graphic exposure without any additional hardware costs, and if you suspend such cube, your free valuable floor space is available for product presentation and customer interaction.

We have also developed the FH hybrid system, which has the ability to use a fabric frame or convert it for to a hard panel without acquiring new aluminum.

Friedrich: Extrusion systems in general have evolved tremendously over the years and we are all busy creating new solutions to keep designers on the cutting edge. At Euroshop and Exhibitor this year, we introduced 21 new products. These include new and innovative ways of providing shelving, attaching LCD monitors, creating walls, building lightboxes, etc.

ECN: How is business and demand for your extrusion-based exhibits?
Friedrich: We have felt the effects of a weak economy just like everyone else but the demand for extrusion based exhibits seems to be quite steady. While many are re-using the properties they already own (one of the side effects of a material that lasts forever), it shows a lot of creativity on the part of business owners by making the most out of a product while keeping investment at a minimum. What better way to remain competitive than by using your existing inventory in new and exciting ways?

White: Excellent. Classic Exhibits and ClassicMODUL Aluminum Extrusions offer clients two distinct business models. This has allowed us to tap into demand from two unique avenues.

We’ve learned that location matters when it comes to ordering aluminum extrusions. As a result, we’ve established metal depots in three U.S. locations: Portland, Ore., Cheshire, Conn., and Birmingham, Ala. MODUL aluminum extrusion is also readily available throughout Europe and the Middle East.

Decludt: Based on demand for our extrusions, we can tell that the industry is turning around.

ECN: How has technology affected the extrusion industry?
Decludt: We have invested heavily during the past three years in building, machinery, equipment and software. We are one of the very few manufacturers able to offer a wide array of services to the trade, with more than 50 machines under one roof. Our customers come to us with unique design requirements to stand above the crowd, and we are able to respond quickly and efficiently to most of their challenges, giving them the competitive edge needed in today’s market place.

Friedrich: Technology has certainly has a positive impact on aluminum systems because they are so adaptable. The latest technologies in graphics, audio, video and lighting can easily be incorporated into these systems. I think it’s important for people to realize that aluminum systems are designed as a means to incorporate custom elements and technology falls into that category as well.

White: You adapt or you die. Obviously, LCD and plasma screens are commonplace in nearly every display, from table tops to islands. The trick is to create solutions that do more than simply hold a monitor. We’ve designed workstations, kiosks, counters and displays that integrate monitors into the overall visual presentation. The pace has quickened. When something new comes out, such as the iPad, for example, you can’t wait. You have to design multiple solutions, see what appeals to your customers, and then adapt and refine those solutions.

ECN: Can an extrusion system be used to build just about any design a client is looking to create?
White: No question at all!

Decludt: Extrusions are not always the best solution to a custom design, but the modularity of Aluminum Systems reduces dramatically design and engineering costs, and time to market is essential – only a modular system in aluminum achieves that.

Friedrich: I may not be the best person to answer this question, but my completely biased answer is “of course!” We see a lot of crazy concepts in our engineering department and most of the time, we can find a solution that does not compromise the integrity of the design. The only time we may run into issues is with regards to structural integrity. But as long as everyone is open to some additional support either overhead or in the form of bracing, we can usually overcome those issues as well.

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

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Happy 4th of July: Word on the Street — June 27th thru July 1st

July 3rd, 2011 Mel White COMMENTS
July is Upon Us

Word on the Street by Kevin Carty

July is Upon Us

You can always tell when we hit July. Crickets can be heard at night, but their sounds are almost louder during the day. Yes, I am referring to how slow our industry gets in July. You can almost always set your calendars and clocks to it.

Not that I don’t like busy times, but it’s nice to have some down time. Not just for business but for personal stuff as well.

Personally, July means that I can take days off mid-week occasionally without feeling like I might get behind. So I was lucky enough to take my son to his first baseball game. And our favorite team was playing just up the road. The Braves were playing an inter-league series in Seattle, so we drove up for a day game on Wednesday. And true to what I had been told by others, there is nothing  like experiencing that “first game” with your son. Pretty cool stuff! Even made the jumbo screen during the 7th inning stretch. And for those who have met my son, you know that kid has quite the melon. And seeing it on the jumbotron did not help make it any smaller. 🙂

Business-wise this is when we tend to focus on cleaning up, organization, and general housekeeping. Which also means I spend a lot of time with my head in spreadsheets. Yippee! NOT! Seriously though, I consider myself one of those weirdos who likes working on spreadsheets and burrowing into the numbers. Even though I complain about it endlessly.

In doing so, I do need to share that because of some very recent increases from vendors, some more severe than others, we will be making some selective mid-year increases over the next few weeks. We’ll send out specifics as those come to fruition.

Anyway, I hope you get some downtime over this long weekend with your loved ones. And take some time to enjoy the freedoms we have in this great country.

Take care and be well.

Happy 4th of July!

“Liberty is the right to choose. Freedom is the result of the right choice.”

–Kevin Carty

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

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