We spent last week in Munich and in case you missed our conversation with Phil Stoten and EMSNow...
Productronica stands out among western electronics exhibitions for a variety of reasons, but particularly this year and especially for the many American manufacturers in attendance this week. Their home market has been experiencing a significant fragmentation of industry events, making the already difficult task of optimizing exhibition marketing expenditure even more challenging.
There is a marked contrast between Productronica and perhaps any other event in our industry, certainly those outside of Asia. After 30+ years the formula in Munich is obviously still working, based upon the nearly million square feet of exhibit space once again elaborately filled by some 1500 exhibitors, and the significant numbers of visitors again present, even in spite of a transit strike on Thursday.
Once again this year, there were more American manufacturers exhibiting than ever before.
So while electronic industry shows elsewhere in the west have been shrinking, fragmenting, moving, (or all three), why does Productronica continue to thrive? Part of it is undoubtedly due to its location. Munich remains an appealing venue for a variety of reasons. It is certainly a hub of high tech activity in Europe as well as offering cultural and culinary specialties that so many find very appealing. And it’s a solid transportation hub in good proximity to the central and eastern European locations to which much of the electronics industry has relocated. American manufacturing counterparts relocated considerably farther away. Stefan Techau, Central European General Manager for DEK, offers an experienced point of view: “Productronica is still the place to go and in 2007 we expect even more people from CE to visit us here in Munich. Our customers say that it's the professionalism of the show facilities, the exhibitors and the opportunity to meet and consult industry experts from all areas of the business. A place to visit key players as well as spotting trends and opportunities.”
Techau added, “But it is also the flair of Munich around Christmas time and the surrounding mini events and parties and other social elements which further encourage people to come, in spite of their always too-busy schedules.”
I spoke with a variety of American exhibitors about Productronica in the context of the situation in their home market. Many have interesting perspectives and opinions about this increasingly unique event. Most shared the feeling that overall they are dealing with “too many shows.” Some are anxiously looking forward to a couple month break after what they explained has been an extremely exhibition heavy 2007. Nonetheless, even the least sanguine of them are upbeat about this week’s activities and prospects.
Tom Seratti is Vice President of OK International, manufacturer of a wide range of soldering, BGA rework and fume extraction equipment. Indirect distribution channels are a significant element of their market connection and worldwide sales organization. Tom made the point that of the myriad events he attends globally each year, “This is the one that none of my channel partners in the region would ever miss.” He also echoed some of Techau’s point of view. “It’s not just another exhibition for several reasons, but especially because it’s been able to maintain a level of “Event Magic” that so many others have lost.”
Another unique characteristic of Productronica that numerous exhibitors commented upon is its every-other-year schedule, believing it provides an effective marketing rhythm and another reason that the show has been able to sustain its appeal while many others have not. Several that we spoke with felt that such a schedule that should be given serious consideration in North America. Ross Berntson, VP Solder Products for Indium Corporation, elaborated. “I like the every other year format of this event. The numerous regional technical conferences across America will assure that the speed of technical innovation does not suffer. I believe the industry needs a substantive international gathering in North America - this would be more possible with an every other year format.” In fairness, this is a complicated task to accomplish, particularly without ultimate control of a venue. But should next year’s APEX event slide further into also-ran status after testing the lights of Las Vegas in April, it might become a format idea that bears revisiting.
For production equipment manufacturers, exhibition costs are higher than for materials and consumables providers because of the additional freight, drayage, logistics and support engineering required to set up and operate equipment on an exhibition site. And overlapping global events force a compromise in what can be exhibited or an inflation in finished goods inventories in order to be in numerous places at once. Soldering equipment manufacturer Vitronics Soltec’s Sales Director Marc Dalderup believes that the globalization of the industry over the past 10 years has reduced the presence of truly global events and changed them into more regional events. He contends that the same holds true for Productronica, which he characterized as “more of an EU event now than it was in the 90’s.”
Dry Cabinet manufacturer Totech World Group rates Productronica as “perhaps the best of any” of the shows they attend all over the world. One reason for that preference is that their products are utilized across a broad spectrum of electronics manufacturing disciplines. Indium’s Berntson shares a similar view. “The benefit of Productronica versus other conferences is that the entire electronics supply chain is represented. Indium benefits from this gathering because we have such a diverse offering of products, process knowledge and alloys for Semiconductor Packaging; Advanced Hermetic Packages; PCB Assembly and Thermal Management.”
Asymtek founder and Vice President Alec Babiarz’ comments summarized many of the thoughts expressed by the American manufacturers I visited with. He also offered some substantive suggestions for the future.
Alec’s opinion is that Productronica is both one of the most important and the last of the “big” shows for the electronics industry. In a very telling move, Asymtek targeted the launch of their most significant new product to begin at Productronica. As he went on to explain, “The timing and scope of the show allows Asymtek to start our global introduction in Europe, move to Japan for Semicon in December and Internepcon in January. We’ll follow with Nepcon Korea in February, Semicon China in March and wind up our introduction at Apex and Nepcon China in April.”
Babiarz further contended that Productronica is a successful show that has been able to remain international, and went on to offer some forward thinking on the state of play in America. “Speaking as an individual,” he said, “An alternate strategy for US tradeshows would be a consolidation of IMAPS, SMTAI and IPC/Apex into one large exhibition for equipment and process demonstrations. The other regional shows could then focus on local table top events that would emphasize technical symposiums rather than equipment expositions.”
“This approach would minimize expenses for capital equipment suppliers and provide an efficient venue for our customers. A single large show would draw more new product introductions from suppliers and the concentration of equipment that would draw more attendees from USA and internationally. After all, our customers are looking to minimize travel expenses and would appreciate making one trip a year rather than three."
It's certainly a logical idea, and one that Alec was careful to point out as his personal opinion. It's perhaps easy to oversimplify some of the politics and vested interests involved in the transition to such a scenario. But at the end of the day it's exhibitors that ultimately attract visitors...and they can vote with their feet as they did in Anaheim a few years ago and are doing now in the UK.
