The document discusses the trade show supplier ecosystem, both currently and looking towards the future. It defines an ecosystem as companies working cooperatively and competitively around new innovations to support products and customer needs. The US trade show ecosystem has evolved over time from local service firms in the early 1900s supporting fairs and expositions. Today's US $263 billion ecosystem includes over 11,000 annual trade shows across 10 broad supplier categories. Global ecosystems are more fractured and varied, though consolidation is occurring. Emerging challenges like technology, generational shifts, and demonstrating value will impact how the ecosystem functions going forward.

1. Session # T218
The Trade Show Supplier
Ecosystem –
Today and Tomorrow
Chris Kappes, SVP, Strategic Alliances
3D Exhibits

2. Chris Kappes is a senior-level business builder and difference-
maker. Over three decades, he has led national sales/marketing
organizations for George P. Johnson, Sparks, Contempo Design
and was president of Matrex Exhibits. He is presently SVP at 3D
Exhibits where he has a one-word job description: Growth. Chris
writes a popular blog (http://exhibitionpro.wordpress.com), is
recipient of many industry awards and co-author of a new book:
"The Noise of Business. How To Make Trade Shows Work." M121
The Trade Show Supplier Ecosystem –
Today and Tomorrow

3. Table of Contents
• What is an ecosystem……………………………………Page 2
• Tradeshow ecosystem …………………………………..Page 4
• US Ecosystem vs. Global ecosystems ……………….Page 6
• Genesis of the US tradeshow ecosystem……..……...Page 7
• US GDP drives exposition growth……………………...Page 13
• Ecosystem member roles………….……………………..Page 15
• Environment challenges impacting
ecosystem (US. and global) ……………………………..Page 19
• Future ecosystem models ……………..………………...Page 21

4. ELC#1
• What is an ecosystem: The concept first
appeared in Harvard Business Review in
May/June 1993.
• What is an ecosystem?
• How does it function and
• why does it serve a vital role in the
industry?

5. Defined by HARVARD BUSINESS REVIEW, 1993
A company viewed not as a member of a single industry but as
part of a business ecosystem that crosses a variety of
industries.
In a business ecosystem, companies co-evolve capabilities around
a new innovation: they work cooperatively and competitively to support
new products, satisfy customer needs, and eventually incorporate the next
round of innovations.

6. Business Ecosystems

8. ELC#2
• Tradeshow ecosystem. Learn about the
10 broad service categories that comprise
the ecosystem and produce 11,000
tradeshow in the US per year. Who are
members and what do they do?

9. Tradeshow Ecosystem Today

10. By the Numbers
• US hosts most number of tradeshows
• 1.8M corporate and business meetings per
annum
• 11,094 meetings with conventions
• 10,000 BTB tradeshows
• Largest % hosted by hotels
• $263B in spending
• 1.7M US jobs
• $106B contribution to GDP
Source: The Economic Significance of Meeting to the US Economy

11. ELC#3
• US Ecosystem vs. Global ecosystems:
Learn about the different global models;
fractured and varied, consolidation is
difficult but underway..

12. Global Expansion

13. Ecosystem Challenges in
Emerging Countries
• Economic strength
• Currency stability
• Convention facilities
• Available square foot/meter capacity
• Infrastructure
• Ease of attendee travel
• Transportation system
• Corruption
• Security
• Tax rates and regulation
• Work ethic

14. ELC#4
• Genesis of the US tradeshow
ecosystem: formalized in the mid-1900’s
as local service firms, created graphics,
props, floats and decorations for national
fairs and expositions. This system has
evolved with business needs, wants and
expectations.

15. Four distinct stages:
1.Birth expansion
2.Leadership
3.Self-renewal – or,
4.If not self-renewal, death.

16. Trade Show Birth (pix)
Marketplaces
Mercers
Trade routes western europe
Payment system
Guilds
Steam shipping vessels
First World’s Fair, 1851, London
machine assisted production
rail transportation

18. Guilds flourish

19. 1851 Worlds Fair: Paris

20. First Auto Show: 1900

21. Trade Show Expansion
(1900-1950s) (pix)
Interest in sample fairs wane
Shows reformed to narrow product/visitor base
Tradeshow name coined to discern from consumer shows
Trade associations form
Mass manufacturing
Unions formalize
Commercial flights, 1930’s
Interstate highway, 1956
General contractors proliferate

22. 1st
Trade Association, 1883

23. Trade Show Leadership
(1950-1980) (pix)
Manufacturing and middle class
Product Innovation
Las Vegas launches new rotunda and 90,000 sf. Hall
McCormick Place, 1st
purpose built, 500,000
Tradeshow methodology
TODAY: 1197 exhibition venues globally
32.6 million sq. m of indoor exhibition space

24. Original Las Vegas Convention
Center

25. Original McCormick Place

26. ELC#5
• US GDP drives exposition growth:
shows grow exponentially in the 1940’s
due to industrial production expansion,
product innovation, new distribution
channels, faster and affordable modes of
transportation, growth of middle class and
consumer affluence and demand.

28. Tradeshow Renewel
(video)

29. ELC#6
• Ecosystem member roles: once distinct
roles are now blurring. Discover why? Is
your tradeshow program aligned with the
proper partner?

30. Big sea, many supplier fish
Our Industry: Past

31. Big sea, shrinking supplier population, several big fish
Our Industry: Present

32. Our Industry

33. Company Landscape

34. Trends
Exhibitor: Quantifying and reporting value
Ecosystem impact: tools to demonstrate/prove
value
Exhibitor: budgets flat at 39% of BTB Marketing Budget
Ecosystem impact: doing more for less
Exhibitor: aligning event portfolio
Ecosystem impact: diversification
Exhibitor: budget shift to rising operational expenses
Ecosystem impact: service bundling a
challenge

35. Exhibit Partner Trade-offs
Small ($25M or less) 34-companies
+ -
Big fish in a small pond Single location
AE-centricity Resources
Owner engagement Financial strength
Buying power

36. Exhibit Partner Trade-offs
Medium ($50-100M or less: 9 companies)
+ -
Large client pond/diversity AE Exclusivity
Team approach Consumption of resources by
large clients
Multiple offices
Scale & Resources

37. Exhibit Partner Trade-offs
Giant ($100M+: 6 )
+ -
Resource breadth and depth Overhead burden/expense
Management structure Lots of balls in air
Multi-location Large clients focus
Buying power

38. ELC #8
• Environment challenges that will impact the
ecosystem (US. and global): The list of
challenges is long: Technology, Aging
Population, Generational expectations, Security,
Economic Strength, Security, Ease of attendee
travel, Environmental impact, Transportation
system, Sufficient housing , Corruption, Tax
rates and regulations, Work ethic, Cost vs.
value. Learn about how the ecosystem is
adapting today and for the future.

39. Challenges Ahead
Cost vs. value
New buyer predispositions and expectations
Quantifying and reporting value
Buyer base consolidating
Technology
Aging Population
Generational expectations
Environmental impact
Shift of key shows to emerging markets
Shows smaller and more personalized

40. Where do we go from here?

41. Proper Alignment
* B2B Expert Series: The Rise of the Digital Native
1980
Digital Immigrants Digital Natives

42. ELC #9
• The future ecosystem models: a hypothesis of
what the future will bring to tradeshow
ecosystems.

45. Appendix
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