CHICAGO — Mergers and acquisitions are on the rise in the trade show industry. Many independent and for-profit show organizers are acquiring brands that are part of their existing and emerging portfolios. In some cases, consolidation is aimed at increasing the reach of companies and events. As independent organizers make big moves, event industry associations are beginning to look at consolidation as a solution to emerging challenges and a changing landscape.
The nonprofit sector has faced new challenges coming out of the pandemic, including decreased interest among young professionals in joining professional associations, financial instability due to lower retention rates during the pandemic, and overlapping services, resources, and events with other associations in the same sector. This has led to many groups working toward the same goals and vision, but with less power than a single, unified voice.
In Australia, research showed that business events associations wanted a single organisation to represent the industry to government and the wider business community. The Australian Business Events Association was formed to provide better education, networking, advocacy and development opportunities, and to create fundamental change in the country’s business events association sector.
Related. A new Australian business events association seeks to meet and unite the needs of industry professionals in the country
“An industry of this size and importance needs a strong and robust industry association to commission research, create policy, train its people, address sustainability, develop career pathways, connect with domestic and international business opportunities and vigorously advocate for its interests with government. Our challenges require us to work together,” Peter King, who has been appointed independent chair of the board, said of Australian industry.
Less transformatively, the U.S. trade show industry as a whole has recognized the importance of joining forces to advocate and lobby during the pandemic, with the creation of Go LIVE Together and the Exhibitions & Conferences Alliance (ECA) to encourage the government to provide needed aid to the industry. The ECA continues to bring together industry leaders to advocate on Capitol Hill.
“Although Go LIVE Together was not originally intended to be a permanent organization, the group’s leaders recognized the need and benefit of having a permanent unified voice for advocacy, and so Go LIVE Together evolved into ECA,” said Tommy Goodwin, ECA Vice President.
There are many ways for associations to consolidate and join forces, whether through legal consolidation, joint venture, strategic alliance or partnership, and steps have already been taken in this direction.
Related. PCMA sparks ideas at Convening Leaders 2023
The Professional Convention Management Association (PCMA) outlined the organization’s strategic acquisition plans in early 2023 and has implemented them through the acquisitions of the Event Leadership Institute, the Event Marketing Association-UK, and partnerships and alliances with the American Geophysical Union, the National Coalition of Black Meeting Professionals, the Events Industry Council, and the American Society of Association Executives (ASAE), among others.
Using convergent approaches and strategic partnerships to produce large-scale events also creates greater value, as the PRINTING United Alliance, the organization behind PRINTING United Expo, has found. In its 2022 edition, the expo brought together all segments of the printing industry under one roof, earning a satisfactory 9/10 rating from a third-party research firm, and saw growth in participation from professionals with purchasing power and influence.
Related. United Expo’s convergent approach proved successful in its 2022 edition
Given the benefits and solutions that consolidation offers to associations in the events industry, the trend in M&A and consolidation activity shows no sign of slowing down.
Contact Peter King at Unite@abea.org.au; Tommy Goodwin at tommygoodwin@exhibitionsconferencesalliance.org