April 2005
Marketwatch: Most show organizers expect contractor budgets to stay the same in 2005
By Danica Tormohlen

Show organizers plan to spend an average of $259,500 on general service contractor services and receive an average value of $80,500 in comped services for a show with an average of 528 exhibitors in 2005, according to the 141 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in February 2005. Fifty-six percent of show organizers report that their general service contractor budgets stayed the same from 2004 to 2005, while 32 percent report their budgets increased an average of 11 percent.

When choosing a general service contractor, show organizers report the three most critical factors are customer service (70 percent), exhibitor pricing (67 percent) and show experience (31 percent). The least important factors are financial stability, staffing and international capablities.

Most show organizers (56 percent) report that contracts with a general service contractor are 3-5 years, while 24 percent report contracts are 1 year, and 16 percent report contracts are two years. When does the selection process begin? For most, it begins 6-18 months out, with 33 percent reporting the process begins 6-12 months out and 32 percent reporting the process begins 12-18 months out.

Independent show organizers report a larger average contractor budget ($331,500) and a lower value of comped services ($62,300), while associations report a lower average contractor budget ($200,400) and a higher value of comped services ($105,400).

Contractor budgets
Did your contractor budget increase, decrease or stay the same in 2005 vs. 2004?


By what percentage?


Verbatim
What’s your biggest frustration with general service contractors?
“Ambiguity in pricing … Material handling or drayage cost vs. perceived value from the exhibitors … Lack of imagination toward solving my problems … Trying to give show management too many discounts — the exhibitors end up paying for show management's services … Rising exhibitor costs … Can't seem to control quality or cost of teamster labor in union negotiations … Exhibitor issues that affect how customer service is perceived of show management (reflects on us) … Freight costs, freight costs and freight costs.”

Most critical factors for selection
When selecting a general service contractor, what are the three most critical factors?

1. Customer service	70%
2. Exhibitor pricing	67%
3. Show experience	31%
4. Show management comps or discounts	28%
5. Relationship with salesperson/company	21%
6. Extent of exhibitor services available (including freight handling procedures, custom exhibit services and signage)	19%

Length of contract
What’s the length of your general service contractor contract?

Contract lead time
How far in advance do you begin the selection process?

Association vs. independent
Average contractor budget


Value of comped services