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For 40 years now, Bautec has been an integral part of Messe Berlin's portfolio.

But now it's over for the international industry show for construction and building technology, which took place every two years on the site under the radio tower, most recently in spring 2020 with 451 exhibitors and over 31,000 visitors.

"Unfortunately, the economic efficiency of Bautec has not been at the required level for several years", explains Karel Heijs, division manager at Messe Berlin, the end of the traditional construction fair.

I regret this decision very much.

“But we cannot assume that Bautec will achieve a substantial increase in earnings in the coming year.” Therefore, the exhibition company must act in this way in these currently economically challenging times.

Oliver Schmitt can understand that.

“So far, many exhibition companies have cross-subsidized events.

But if there are no more funds for grants, then the situation has to be reassessed ”, explains the managing partner of the trade fair strategy consultancy Agendum in the WELT interview.

For Schmitt, the discontinuation of Bautec is only the beginning of an imminent development in the local exhibition industry.

His prognosis: "The drawing of lines begins and will continue."

Loss of sales in the millions

Because the corona pandemic hit the industry hard.

According to the trade fair industry association AUMA, sales fell by an impressive 70 percent in 2020.

But no wonder: of the 355 international, national and regional trade fairs in Germany, only 114 could take place due to lockdowns, bans and travel restrictions.

4.3 million visitors and 70,000 exhibitors were registered on a rented stand area of ​​almost 2.5 million square meters.

For comparison: the previous events of the trade fairs planned for 2020 came to 15.6 million visitors and 248,000 exhibitors, and the stand area in turn totaled almost nine million square meters.

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So there is a lot of horror news from the individual exhibition companies.

The Deutsche Messe AG from Hanover, for example, reports a loss of 83 million euros with a turnover of just 100 million euros.

The shareholders of the City of Hanover and the State of Lower Saxony are now supporting the public company with a capital injection of 20 million euros and a guarantee of up to 130 million euros.

In return, the agreed rescue plan provides for the number of employees to be reduced from 738 to 525, and Andreas Gruchow, one of two board members, had to vacate his post.

At the same time, a four-day week without wage compensation is to be introduced temporarily.

The situation in Munich is not much better.

After a drop in sales of over 70 percent to just 94 million euros, the management is negotiating with the works council about solutions for shedding 170 jobs.

And the owners also have to help in the capital: Messe Berlin has received a grant in the form of a shareholder loan of around 85 million euros from the State of Berlin for the 2020 financial year, the company reports.

Photokina suspended for the time being

It cannot be ruled out that more than just Bautec will be deleted from the portfolio in the course of necessary cost-cutting measures.

"We check the economic future viability of events at different points in time, so that I cannot make any prognoses," said a spokesman.

However, he does not want to deny further wind-down plans.

But other places are also looked at and calculated.

“We are continuously reviewing and adjusting our portfolio,” says Nürnbergmesse, for example.

However, no decision is currently pending in this regard.

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Not so at the Cologne trade fair: At the end of November, the Rhinelander “suspended” the 70-year-old photo and imaging trade fair Photokina “until further notice”.

"Unfortunately, the general conditions in the industry currently do not offer a viable basis for the leading international trade fair for photo, video and imaging," says Managing Director Gerald Böse.

Since 2014, consequences have been drawn from the declining development of the market and have reacted with fundamental concept adjustments and high investments in new exhibitor and visitor segments.

The Kölnmesse now no longer wants or can afford further aid campaigns after the loss of 115 million euros in 2020 was even higher than the turnover, which was just 95 million euros.

For Schmitt, however, these are only the first dominoes that have fallen over.

“I would be surprised if a number of other trade fairs were not given up,” says the consultant.

Corona is currently only the accelerator of an already pending consolidation.

In his opinion, it will be particularly difficult for trade fairs from the second and third row.

In addition, exhibitors and visitors have a different attitude towards aspirations.

In any case, renting out square meters is no longer enough.

Data management is gaining in importance

"In the future, other standards and measurement parameters will apply," says Schmitt, referring, for example, to structural data that are recorded in the digital alternative events currently on offer - for example, who is participating in an event, what position they have in which company, where their interests lying or with whom he is already networked.

"Such data could become a requirement in the future and later also be part of the payment model of trade fairs," says Schmitt.

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The world trade fair association UFI also emphasizes the increasing importance of data management.

"At the center of the trade fair business model is the bringing together of supply and demand - before, during and between the events," explains Managing Director Kai Harttendorf.

And the marketing of stand space is just as important as lead management.

"And to the extent that trade fair organizers can serve their industries and their communities more comprehensively, the extent to which their business will grow."

Hattendorf does not rule out that not all events will be retained.

“Trade fairs always represent markets.

Accordingly, there are many trade fairs that are growing and others that are shrinking.

And the organizers keep deciding which topics and trade fairs to invest in.

That will be exactly the same on the way out of the pandemic. ”In the current situation, however, it is essential that politics grant Germany a clear opening perspective.

A fresh start is urgently needed for the industry

The German industry association AUMA is also insisting on an early restart before the upcoming next federal-state meeting.

“Companies urgently need their industry platforms,” warns AUMA Chairman Philip Harting.

Small and medium-sized companies in particular would have suffered considerable economic losses from trade fair cancellations.

Because trade fairs are instruments for initiating business, for the presentation of innovations and for cooperation negotiations, especially in medium-sized companies.

"Politicians are called upon to create reliable framework conditions," Harting demands.

"The industry urgently needs a concrete perspective."

This prospect already exists in Great Britain, coupled with certain parameters.

"Trade fair customers - especially exhibitors - need planning options," emphasizes UFI boss Hattendorf.

In any case, there is a need.

"The worldwide trade fair activity in Asia and currently in Dubai and Abu Dhabi shows: Wherever trade fairs take place, exhibitors and visitors are immediately on site." In fact, in China, for example, more than 100,000 people come to a trade fair, as happened at the furniture supplier fair Interzum in Guangzhou , behind which the Kölnmesse stands as the organizer.

Such business success and income are now urgently needed for the German tour operators, who are among the leading providers worldwide.

Because the more their balance sheets are weakened, the more investors focus on their portfolios, believes industry expert Schmitt.

"Up until now, it was always clear that they are inviolable with their public-law structures," says Schmitt, who is now expecting offers for individual events or even entire portfolio parts.

And from his point of view, it should also be thought about in order to focus and then strengthen the remaining business.

In the executive suite, however, is already being waved off.

"There are no plans or considerations for this," says Nuremberg, for example.

And the Berliners are also cautious, albeit limited in time: “This is currently not up for discussion,” emphasized a spokesman.