By Andreas Weber and Morten B. Reitoft 

We received voices that make us very thoughtful. 

On the one hand, there are the following considerations: Are we not bringing the print industry, which has been under considerable pressure for a long time, even more discredited if we show publicly that we cannot solve the drupa dilemma confidently and effectively? 

On the other hand, what happens seems to be a shame for Germany as a impactful marketplace. After the Second World War, drupa, in particular, brought Germany back to the fore as an economic nation, which promptly brought many visitors from abroad to Düsseldorf. From a historical perspective, with its brilliant success, drupa in 1951 made Germany acceptable again as a mechanical engineering nation and has given it a leading position to this day. 

Quite a few see Messecenter Düsseldorf here as having a special responsibility to shine through clarity and reason, rather than through delaying tactics and unreliable communication according to the motto: "Everything is good ...". 

After all, trade fair companies in Germany are leaders in the world and serve as role models. With a market share of around 60% at trade fairs in the B2B sector. 

Brief excursus 1: B2B trade fairs as the number 1 economic driver

Made in Germany has also become a global seal of quality in the exhibition and trade fair sector. Not least because of Germany's outstanding role as a national and global driver of trade fair events and a marketplace for economic success in many fields. All the major German trade fair organizers export their know-how and skills to all parts of the world. Be it through own formats or in partnerships with local institutions.

The Association of the German Trade Fair Industry AUMA collects all data relating to trade fair events. And documents that in the past few years, up to the COVID-19 pandemic, business was on the upswing. On average, € 14.5 billion was raised by exhibitors and visitors in Germany (sales with visitors make up almost a third of this) with production effects of around € 28 billion. 

For around 75% of companies, B2B trade fairs were of central or important importance for marketing communication in 2019. In the marketing mix, trade fairs are almost on a par with websites – and far ahead of other measures such as direct mailings, online sales or (secondary) advertising. In addition to Germany as the largest market for trade fairs, German trade fair organizers have strong international business and, according to AUMA, generate around 60% of global sales. 

Messe Frankfurt is consistently the market leader in terms of turnover (over € 700 million) and area (halls with almost 4,000,000 square meters) in Germany. Depending on whether drupa takes place or not, Messe Düsseldorf ranks 5th to 7th with around € 300 million to over € 400 million. If you look at the balance sheets of Messecenter Düsseldorf, drupa has had an estimated average turnover of € 100 million and more since 2004 (drupa turnover is not explicitly shown in the balance sheet). 

Messecenter Düsseldorf's net profit for the 2016 drupa year was over € 132 million (total sales in 2016: around € 442 million). However, the corona crisis will put a colossal brake on the trade fair business in terms of growth. Deutsche Messe Hannover was the first trade fair organizer to announce a drop in sales of around € 80 million for 2020 in October 2020, which corresponds to a share of sales of almost 25% compared to previous years.

According to experts, drupa is one of the B2B trade fairs with the highest turnover in terms of sales at the trade fair with a low double-digit billion amount. 

If you add the follow-up business if the machines sold at drupa and go into operation for many years, the sellers / manufacturers can generate additional sales through services / maintenance, consumables and updates of all kinds. Which at least will convert the actual investment value over a period of four years can to increase revenues by a factor of five to ten. 

But it is not only the exhibition companies that earn well in a team with their exhibitors. There are hundreds of specialized service providers who have to design tens of thousands of trade fair stands and appearances every year and who award many subcontracts for this purpose. 

Excursus 2: INKISH Exclusive Research

These subcontractors in particular face enormous challenges when trade fairs and exhibitions are canceled at short notice. One could say: Exhibition construction companies are in free fall, as a description from INKISH shows from practice.

Daniel B. (name known to the INKISH editors) has been a member of the management team at service provider of trade fairs, exhibitions, VIP and customer events across Germany for over 25 years. Like many others, he employs less than 15 permanent employees and a whole pool of freelance, qualified specialists. Then there is the vehicle fleet, warehouses and equipment. 

"In principle, we are on the brink of abyss or have to tackle what we are doing from scratch," says Daniel B. His company, like everyone else, has been on short-time work since March 2020. "Some colleagues have already specialized completely in offering virtual trade fair presentations." 

Most of the time, you would already have the equipment, as this is normally used for customer projects at trade fair stands. Likewise, the know-how how to design digital presentations and film recordings. "But before that succeeds, the damage must first be limited," continues Daniel B. Like his company, many others would not have designed their contract / terms and conditions for crisis scenarios such as the corona pandemic and ban on events. The result: "Preliminary work and expenses /costs for signs, lettering, advertising material, logistics, procurement of building materials etc. will not be reimbursed for due to the event cancellations, in the last few weeks at extremely short notice up to three days before the planned date. 

Especially if you are a sub-supplier to another trade fair construction company that has the main contract.“ — That is all the more reprehensible if his client receives cancellation fees himself, but does not pass this on to him as a sub-supplier or share it. In the first months from March to August, business had sunk to zero. “Our order books for 2020 were well filled. But it wasn't until September that the first events were added again, which are often smaller, finer and with high safety / hygiene requirements”, Daniel B. stated. And adds that he cannot yet estimate how things will go on in 2021. 

“Our chance to stay in business must always be to work directly for exhibitors and adapt our offer to what is feasible. Prepayment and precisely defined default clauses are essential in order not to be left with costs that ruin us”, summarizes Daniel B. How his role in virtual events will be designed has yet to be evaluated, as this is new territory for everyone. 

Conclusion

It shows that only clarity, confident handling and proactive communication with the trade fair crisis in COVID-19 times can be productive and avert damage to the trade fair location Germany. As the leading B2B trade fair, drupa and Messecenter Düsseldorf and its partners have a special responsibility. Not just for Germany as a leading marketplace / trade fair location, but for the national and international print industry and its reputation. This particularly affects printing companies from Germany with their very high export business share.