The document discusses challenges facing the trade show and exhibit industry, including flat profit margins of 1-3% and increasing costs. It identifies opportunities for companies through diversification, global expansion, and leveraging digital technology. The document advocates that companies define their business based on insights and solutions that drive client business outcomes. It provides suggestions for improving margins, such as selling more, reducing expenses, and increasing efficiencies.

1. Chris Kappes, SVP, 3D Exhibits
EDPA Access 2012

2. INSIGHTS
S.W.O.T.
OPPORTUNITIES
Chris Kappes | 3D Exhibits | EDPA Access 2012

3. INNOVATION IS THE
ONLY COMPETITIVE
ADVANTAGE
Chris Kappes | 3D Exhibits | EDPA Access 2012

4. KITZING: TRADESHOW MARKETING
GPJ: EVENT MARKETING
CONTEMPO DESIGN: BANKING PRODUCTS
SPARKS: DIVERSIFIED SOLUTIONS
3D: INTEGRATED SOLUTIONS
Chris Kappes | 3D Exhibits | EDPA Access 2012

5. PORTABLES/LIGHTWEIGHTS
OCTANORM/SYSTEMS
LEAD CAPTURE
TENSION FABRIC
ASSET MANAGEMENT SOFTWARE
ENGAGEMENT TECHNOLOGY
Chris Kappes | 3D Exhibits | EDPA Access 2012

6. • EXHIBIT SPEND $800-1B
•• 50+ MAJOR EXHIBIT COMPANIES
••• GROSS MARGINS FLAT AT 29% (+/-)
•••• NET PROFIT 1-3%
Chris Kappes | 3D Exhibits | EDPA Access 2012

7. • EXHIBIT SPEND $800-1B
•• 50+ MAJOR EXHIBIT COMPANIES
••• GROSS MARGINS FLAT AT 29% (+/-)
•••• NET PROFIT 1-3%
Chris Kappes | 3D Exhibits | EDPA Access 2012

8. • EXHIBIT SPEND $800-1B
•• 50+ MAJOR EXHIBIT COMPANIES
••• GROSS MARGINS FLAT AT 29% (+/-)
•••• NET PROFIT 1-3%
Chris Kappes | 3D Exhibits | EDPA Access 2012

9. • EXHIBIT SPEND $800-1B
•• 50+ MAJOR EXHIBIT COMPANIES
••• GROSS MARGINS FLAT AT 29% (+/-)
•••• NET PROFIT 1-3%
Chris Kappes | 3D Exhibits | EDPA Access 2012

10. Where did the profit go?
•UNPROFITABLE PROJECTS
•HIGH FIXED EXPENSES VS. VARIABLE
•NOT LINKING COMMISSION TO
PROFITABILITY
•BUSINESS DEVELOPMENT EXPENSE
•POOR INVESTMENTS
•SLOW TO REACT
•INVOICE AGING
•CYCLE RECOGNITION
Chris Kappes | 3D Exhibits | EDPA Access 2012

11. WHAT BUSINESS
ARE WE IN?
Chris Kappes | 3D Exhibits | EDPA Access 2012

12. INSIGHTS AND
SOLUTIONS THAT
DRIVE BUSINESS
OUTCOMES
Chris Kappes | 3D Exhibits | EDPA Access 2012

13. WHERE DO WE GO
FROM HERE?
Chris Kappes | 3D Exhibits | EDPA Access 2012

14. S.W.O.T.
Chris Kappes | 3D Exhibits | EDPA Access 2012

15. STRENGTHS
•STABLE MARKET
•MEDIUM EFFECTIVENESS
•NOT DEPENDENT ON ONE INDUSTRY
•TALENT DIVERSITY
Chris Kappes | 3D Exhibits | EDPA Access 2012

16. WEAKNESSES
•TOO MUCH CAPACITY
•PRICE-MARGIN PRESSURE
•MORE FOR LESS
•FLAT BUDGETS
•OVERHEAD EXPENSE
•RISING LABOR, FUEL, MATERIAL $
•BUYER EDUCATION
•SPECULATIVE COST
Chris Kappes | 3D Exhibits | EDPA Access 2012

17. OPPORTUNITIES
•BORROWING IS CHEAP
•DIVERSIFICATION
•MINORITY TRADESHOWS
•GLOBAL
•BAKED IN BUDGETS
Chris Kappes | 3D Exhibits | EDPA Access 2012

18. THREATS
•NEW BUYERS…NEW BIAS
•MEDIA PREFERENCE SHIFT
•ATTRACTING TALENT
•AGING POPULATION
•DECLINING VALUE PROPOSITION
•BUYER CONSOLIDATION
•ENVIRONMENTAL IMPACT
Chris Kappes | 3D Exhibits | EDPA Access 2012

19. FACTORS DEFINING
SUCCESS
Chris Kappes | 3D Exhibits | EDPA Access 2012

20. “A decade from now, the most
important roles for live events and
tradeshows will be the event designer,
learning architect and digital
strategist”
The IMEX Power of 10 Study-What Does the Next Decade Hold
for the global meetings industry.
Chris Kappes | 3D Exhibits | EDPA Access 2012

21. FACTORS DEFINING SUCCESS
•BLINDING SPEED… •RISK MANAGEMENT
“FAST FOOD •DIGITAL CENTRICITY
CREATIVE •MANAGING
•QUANTUM LEAP IN SURPRISES
COMPLEXITY QUANTIFYING VALUE
•FEWER SECOND
CHANCES
•INDUSTRY
CENTRICITY
Chris Kappes | 3D Exhibits | EDPA Access 2012

22. FORMULA FOR
MARGIN IMPROVEMENT
SELL MORE
+
REDUCE EXPENSE
+
INCREASE EFFICIENCIES
=
MARGIN IMPROVEMENT
Chris Kappes | 3D Exhibits | EDPA Access 2012

23. SELL MORE
•WHAT BUSINESS ARE YOU IN
•DEFINE AND LEVERAGE SWEET SPOT
•SALES TEAM DEVELOPMENT
•DIGITAL TECHNOLOGY
•GLOBAL
Chris Kappes | 3D Exhibits | EDPA Access 2012

24. REDUCE FIXED EXPENSE
•TURN FIXED EXPENSE TO VARIABLE
EXPENSE
•IN-HOUSE VS. OUTSOURCE
•COMMISSION VS. SALARY/BONUS
•OVERHEAD
•EVALUATE COST TO SERVICE
ACCOUNTS
Chris Kappes | 3D Exhibits | EDPA Access 2012

25. INCREASE EFFICIENCIES
•COLLABORATION
•ALLIANCES
•RENTAL
•REPURPOSE UNSOLD DESIGNS
•OUTSOURCE WHERE VALUE CAN’T
BE ADDED
•CONSOLIDATE PARTNERS
•TELECOMMUTING
Chris Kappes | 3D Exhibits | EDPA Access 2012

26. WHAT MARGIN IMPROVEMENT
SUGGESTIONS DO YOU HAVE?
Chris Kappes | 3D Exhibits | EDPA Access 2012

27. EXISTING MODELS DIE
AND NEW ONES MORPH
TO MARKET DEMANDS
TAKEAWAY Chris Kappes | 3D Exhibits | EDPA Access 2012