Exhibition News May 2020 | Page 31

Feature without the build, where will the follow-on suppliers work? “The contracting sector has been in decline for far too long. The companies have no meat on their financial bones, we have been servicing our cash flow from show to show on very low margins for far too long. There are now just to many agencies, companies and people all taking their living from the organisers pot. “I think it is going to take its course and we can only run with it. Everybody is suffering from the large to the small, it has been a buyers’ market for the last 20 years. There is definitely going to be a shortage of stock as the third quarter was an issue in normal years. Are we expecting contractors to put large amounts of capital expenditure into their business for one quarter, I think not! This will be issue in every country in the world. Can the larger contracting company’s put large investments into stock and buy all the larger contracts (that they do not already have) for the next few years, not at present margins.” Jason Stead, MD, GES “Any industry problem won’t be supply driven as I believe demand will return gradually. It’ll be economically and socially informed - government action/rules/support and through the public feeling comfortable at mass gatherings again. We can deliver the demand however it returns using the approach of creative pragmatism. We Mark Jones actually have a brilliant opportunity to rewire how we deliver events as industry – let’s not waste it. “The concept of the socially distanced show is at odds as to what we deliver – socially connected shows. The concept however does need building into everyone’s thinking. We can do this effectively but also with a degree of subtlety. Reinventing the show floor is something we should all look at – normally we run at pace - now we have a window to reset. “GES is also considering how to use this window to accelerate our sustainability programs. Virtual events are still in their infancy and will be a useful tool to augment physical events and it will be interesting to see the take up, client response to them and how they develop over the longer term.” Mark Jones, CEO, Giant iTab Pretty much all of our suppliers have agreed a 50 percent now and a 50 percent later plan. This gives us significant breathing space and enhanced short term cashflow while we undertake to secure a small business grant fund allowance (SBGF) Miriam Sigler as a business rates rebate. Sadly, it seems our industry sector is only eligible for the £10,000 Grant and not the larger figures up to £25,000 available for the retail, hospitality and leisure sectors who have a dedicated SIC code. One positive thing we can do is to share knowledge, ask questions and plan for the future. This could start with the sharing of different lists of events that are being rescheduled to give supply chain members the heads up of those events that are potentially going to happen so they can align themselves accordingly. It was suggested by Andrew Harrison that they will be collating and posting such a schedule on the ESSA members board. The scale and impact of that crisis is yet to be known but with due diligence and hard work, which the events industry is known for, most of us should be able to pull through and meet together on the other side at events across the UK, Europe and worldwide once the summer starts to come to a close. Miriam Sigler, director, Ways& means Events “Like many other suppliers we are playing the constant game of Tetris scenario planning both for ourselves and our clients. With the uncertainty of what lies ahead in terms of tenancies, stock levels and staffing. We all known that this industry will do whatever it takes to make it happen and everyone is raring to go as soon as we are let of the leash. “However, one of the biggest issues I think the industry is going to face is the gap between the end of government support and the events/cash flow recommencing. Many suppliers have been burnt badly by not being paid out for events they did just prior to the shut down or events that were cancelled with little notice, but work had been done. “This will have the knock on effect of staffing shortages as people look for other work, meaning we lose some of our best people, shorter lead times if contractors are not able to purchase supplies and build until they have had payment and with more events cramming into the shorter season there are some major safety concerns with build times, mental health May — 31