The Jet Set Case Study: ASME masters a biennial Overseas event
By Cathy Chatfield-Taylor
As economic conditions in developing countries continue to improve and new trade agreements among the world's superpowers become more commonplace, it's not hard to see that growth for the future means looking to international markets. But for many show organizers, taking an event overseas can seem a daunting task - an overwhelming logistical nightmare and expensive undertaking with high risk. Not for the International Gas Turbine Institute (IGTI) of The American Society of Mechanical Engineers (ASME), Atlanta-based organizers of ASME Turbo Expo - Land, Sea & Air. A $25 billion world market for gas turbine products propels the annual Gas Turbine and Aeroengine Technical Congress, Exposition and Users Symposium from North America to Europe and back every other year, a holding pattern this event has maintained since 1982.Since its first European event in Zurich, Switzerland, in 1966, ASME has moved swiftly across the continent, identifying and developing new markets by changing destinations every other year. Long-term market research and cooperation from local industry associations have eased the group's entry into more than 13 European cities in 30 years. Developed in 1939 to fly jet airplanes for World War II, the efficient gas turbine now dominates commercial and military aircraft engine sales and produces power for commercial and industrial power plants, marine vessels, oil and gas industry operations, and micro applications. ASME established IGTI in 1947 and staged the first ASME Turbo Expo in 1956 in a Washington, D.C. hotel. Today the event contributes about 80 percent of the gross revenue for this non-profit institute. The only event focused solely on gas turbine power generation, ASME Turbo Expo differentiates itself on the strength of its Technical Congress, which is designed for engineers, specialists and managers who work in gas turbine design and manufacturing, operations, R&D and education. "Since the 1960s, every major advancement in gas turbine technology has been presented first at ASME Turbo Expo," says David Lindsay, CAE, Director of Planning & Program Development.Last held June 7-10, 1999, at the Indiana Convention Center in Indianapolis, ASME Turbo Expo's next engagement is May 8-10, 2000, at the M,O,C, Sports & Fashion Center, Munich, Germany. Preparing to take the show overseas every other year requires the teamwork of more than a dozen IGTI staff members, a cadre of member volunteers and local liaison committees in the host cities. Though past experience and standard procedures help with site selection, budgeting, attendance promotion and exhibit sales, "Everywhere we go, it's going to be different," says Scott Moore, CEM, CAE, Director of Expositions. Site selection Where the gas turbine market is growing is the primary consideration in site selection for the European events. IGTI commissions an annual study that projects market growth for the next 10 years. "Our philosophy has been to take the show to the market, rather than bring the market to us," says Moore. "We try to position ourselves ahead of the procurement curve so that we're there when the demand is peaking." ASME Turbo Expo started conservatively in the European market back in 1966, returning every fourth year until 1982, when it began alternating continents every year. "The market developed faster in Europe, and it was more lucrative to take the show overseas," says Lindsay. "The European shows tend to be larger in size, drawing from 6,000 to 7,000 attendees." In comparison, the U.S. event draws from 5,000 to 6,000 attendees. Once IGTI has identified candidate cities based on the market for users, suppliers and academia, it looks at exhibit and meeting space availability. "They may have a large conference facility or exhibit facility, but not usually both in close proximity," says Moore. "Because of that, the number of cities where we can go is limited." Other criteria include: accessibility and affordability for participants; hotel availability, cost and location; convention center cost; economic and political stability; consistency with organization goals; venue interest and cooperation; and local support from engineering societies.Because of its role in developing international mechanical engineering standards, ASME has cooperative agreements with more than 100 engineering societies worldwide. "We meet with local engineering societies during the first site inspection to make sure we're not interfering with something they're planning," Lindsay says. "This is a key to our success overseas. Wherever we go, we develop participating society agreements that give us free promotion and access to their members, and in turn we give them discounts to our events and prominence in our programs. Instead of being seen as Americans coming into a non-U.S. market, we're seen as partners with the local market."To help pave the way for the show, IGTI also appoints a Local Liaison Committee representing the local industry, academia and government. The committee advises show management on local issues and cultural norms, as well as identifies contacts for potential presentation topics and panelists. "They help us reach the key players in the market," says Moore. Budgeting more Budgeting for the European show requires anticipating both normal and unexpected charges, projecting exchange rates and adding value-added taxes (VAT). Kay Bryan, Manager of Financial Services, says, "In the United States, you pay for the exhibit hall, and the meeting rooms are blocked at no cost. In Europe, you pay for everything. You get charged for meeting rooms per day, per hour, and sometimes by the number of chairs set, and for water provision. It forces you to be detail oriented."IGTI makes budget projections about three years out but develops a working budget two years prior to the event. At that time, an advance site inspection team works out the details with the facility. "We've developed a list of questions that would seem ridiculous in the United States," says Moore. "Then we ask them if there are any other additional costs we can expect to incur. Even after that, something will surprise us on site."Overall costs in Europe can be as much as 10 times higher than in North America. "We've paid more than $400,000 for an exhibit hall that would have cost $45,000 in the States," Bryan says. As a result, exhibit rates for ASME Turbo Expo's European events run about 35 percent higher than its U.S. events, excluding VAT. IGTI collects VAT and forwards it to the local government for both exhibit space sales and paid registrations. In addition, IGTI must pay VAT on hall rental and on-site services. VAT varies from country to country and runs from 8 to 25 percent. Because both IGTI and exhibitors can often recover part of this tax, the institute retains a local accounting firm with expertise in show management VAT. "Our VAT representative is provided space at the show and can be hired by exhibitors to file VAT returns for them," says Bryan.
Promoting attendance ASME Turbo Expo draws attendees from more than 60 countries, and only about 20 percent of attendees at the European events come from the United States. To promote international attendance, IGTI maintains a database of past registrants, purchases lists from engineering societies and industry publications, and promotes the event electronically through its Web site (www.asme.org/igti/) and an e-mail listserv. "The good part is that the number of people involved in the gas turbine industry is finite. We know who we want to be there," says Moore. "The bad part is that our promotions have to cover aircraft, ship building, oil and gas, military, etc. There are so many different applications, that our resources are stretched to reach all of the markets. It's getting so expensive to mail overseas, so you have to be selective in your lists." The European campaign is essentially the same as the North American campaign, except for cost and timing. IGTI allows double or triple its U.S. budget for European attendance promotion and begins mailings two months earlier. A total of about 200,000 direct mail pieces go out from an international remailing and distribution house. The series of six English-language mailings begins with a simple reminder postcard. Subsequent mailings include an increasingly detailed advance program. The campaign concludes with personalized invitation letters targeting specific user groups identified by exhibitors. These VIPs also get a telemarketing follow-up. For Munich, Germany, in 2000, IGTI is negotiating an agreement with a British company to act as its European representative. Although the details aren't set, this representative may assist with mailings, selling exhibit space and developing local liaisons.
Exhibit sales When ASME Turbo Expo is in North America, about 60 percent of exhibiting companies come from within the United States and 40 percent from Europe. When it's in Europe, about 60 percent come from Europe and 40 percent from the United States. "There are no heavy-hitting manufacturers out of South America, and Asia accounts for less than 5 percent," says Moore.IGTI sells 80-85 percent of exhibit space for next year's event at this year's show. To sell the remaining 15-20 percent, Moore has two sales people on staff who telemarket to IGTI's prospect list. "Because of the compact nature of the industry, we have a good handle on who the prospective exhibitors are in each market," he says. The exhibit sales cycle for North America and Europe is similar, with mailings beginning 16 months before the event. Sales open first to priority-point holders, and general sales begin 12 months out. Because nearly all the exhibitors are international companies with U.S. and European offices, IGTI provides little assistance for exhibitors going overseas. "But there are some who are new to the market, and we walk them through the exhibitor service kit and what they can expect," Moore says.In the past five years, a 50 percent fall in gas turbine engine prices was reflected in the 25 percent decrease in exhibit space sold. Prices rebounded in Summer 1998, and IGTI is projecting 3-5 percent growth for ASME Turbo Expo over the next five years. "We're subject to market volatility, but we're projecting growth based on new applications for gas turbines," Moore says. With only 15 percent of the world's electric power currently generated by gas turbines, the growth potential for the industry is huge in the coming years, and IGTI has positioned itself to capture this lucrative international market by establishing its place in Europe and, more recently, expanding its shows and educational programming to Asia and South America.
A past editor of EXPO magazine, Cathy Chatfield-Taylor writes for new and traditional media from her home in Lenexa, Kansas. Show at a GlanceOfficial show name: ASME TURBO EXPO - Land, Sea & Air; The Annual ASME Gas Turbine and Aeroengine Technical Congress, Exposition and Users Symposium Sidebar: Show organizer: International Gas Turbine Institute of The American Society of Mechanical Engineers
2000 Location: M,O,C, Sports & Fashion Center, Munich, Germany
Dates: May 8-11, 2000
Attendee Profile: Engineers in gas turbine combustion, design, R&D and production; operations personnel; equipment specifiers; purchasing specialists; maintenance and repair personnel; managers, CEOs and CFOs; educators; engineering consultants; and technical directors.
Exhibitor Profile: Suppliers of gas turbine products and services for uses including commercial and military aircraft engines; land-based industrial engines; commercial power plant applications; marine propulsion and power systems; gas turbine manufacturers/packagers; auxiliary equipment producers; industry service companies; oil and gas platforms; pipeline applications.
Show Stats:'96'97'98'99'00Birmingham, EnglandOrlando, FL, USAStockholm, SwedenIndianapolis, IN, USAMunich, Germany (projected)Professional attendees:7,7014,8614,1195,0006,000Exhibiting companies:211235168192212Net square feet:40,50044,80036,50039,80040,000 Propelled to New ContinentsWith the fastest-growing markets for new gas turbine purchases moving to Asia and South America, IGTI launched the first ASME Turbo Asia in Jakarta, Indonesia, in 1996. The event drew 1,420 participants from 35 countries and 96 exhibiting companies taking 8,900 net square feet of space. After a disappointing event in Singapore in 1997, IGTI decided to alternate this event between Asia and South America, beginning with a series of one-day seminars in Argentina, Brazil, Venezuela and Chile in 1999 and 2000. The seminars are designed to help build a supportive coalition of industry players prior to launching a full conference and exposition. "The U.S. and European markets respond in a more alike manner than the Asian market. When we go to Asia or South America, the same things don't work," says Jane Yahnke, former Manager of Congress & Volunteer Services. "Even if you're trying to be open-minded, you still fall back on your experience. It's a matter of taking the time to learn where you're going, making the contacts, and evolving the relationships."
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