It wasn’t a bad year, but it wasn’t a particularly good year. The typical exhibit builder’s sales volume declined less than just under 2% to $5,630,182.54, according to the 2007 Exhibit Builder Economic Survey.

But averages are often deceiving and can be the result of the mix of responses. Specifically, 52.38% of respondents said their sales volumes were higher this year over 2006 and 34.92% said they were lower. In fact, all categories of respondents (custom builders, modular dealers and distributors, design-only firms, structural systems manufacturers, and those involved in other exhibit-related fabrication) said their volumes were higher than last year. Thus, while the overall volume was lower, it is probably accounted for by more responses coming from smaller companies than in last year’s survey.

Still, the picture painted by the survey results doesn’t show much forward motion, even if things aren’t moving backwards.

The typical responding custom exhibit builder had total sales revenue of $7,073,155.17. Modular and portable dealers and distributors reported an average of $3,932,083.33. Exhibit design-only firms came in at $3,607,000. System and structural manufacturers reported average total sales volume of $11,325,000. And those involved in other parts of the business (architecture, point-of-purchase, exhibit materials supply, and full-service marketing, all of which are involved in exhibits) showed average exhibit-related sales volumes of $2,071,000.

It does appear that there were overall declines between 2006 and this year for responding modular and portable dealers and distributors.

The smallest sales volume reported was $300,000 for the year and the largest was $35 million.

There was an average 6.39% increase for those respondents whose sales were better than the year before. Those who suffered sales declines experienced an average drop of 3.13%. The increases were less than last year, but so were the decreases. The structural manufacturing segment had the highest percentage increase in sales volume, averaging 8.33%, while the modular sector had the largest average decline of 3%.

About two-thirds of respondents believe sales will increase in the coming year and 3.17% expect some declines. The number expecting declines is down about 2% from last year and down about 10% from the 2005 survey.

The cautious optimism is reflected, too, in responses about whether the exhibit industry is suffering from an economic recession. Nearly 40% said it is, but this is down from last year, when two–thirds of respondents said the industry was in a recession.

The typical number of employees has remained fairly steady in recent years. This year, the average respondent had 34.75 full-time employees and 8.08 part-time employees. The number of full-timers is down slightly, while the number of part-timers jumped nearly 28%.

Nearly half of respondents, however, plan to add staff in the coming year, up from 18.20% in last year’s survey. The number planning to reduce staff, though nearly doubled to 12.70%.

As would be expected with there being fewer employees but higher sales volumes, the average sales per full-time employee were higher. This year it was $162,687.17, as compared with $134,659.98 last year.

The average sales per full-time employee was virtually unchanged from last year, at $162,019.64. With the increased number of part-time employees reported, per-employee productivity probably remains about the same as last year.

The typical responding custom exhibit builder had total sales revenue of $7,073,155.17. Modular and portable dealers and distributors reported an average of $3,932,083.33. Exhibit design-only firms came in at $3,607,000. System and structural manufacturers reported average total sales volume of $11,325,000.

Trade shows, of course, remain the bread and butter of the typical responding exhibit builder. Nearly three-quarters – 73.52% – of their sales volumes come from trade show-related work. This is an increase over last year. Museum-related projects accounted for 22.06% of sales volume; mobile exhibits were 7.67%; special events were 6.96% of the responding companies’ sales mix; and other types of work were 13.58%.

The percentage of companies doing work internationally declined yet again, down some 10% to 63.50%. There is no clear reason for this decline, other than possibly increased transportation costs. Certainly the horrendous foreign currency exchange rates that make the dollar very cheap for many industrialized nations ought to have made the adjusted prices of American-made products attractive.

Canada was the largest export market, with 52.08% of those respondents who do business internationally reporting some exports to that country. Asia was next, with nearly 40% selling there, followed by Australia and New Zealand with 37.5%. Non-European Union countries in Europe were also relatively strong markets, with 35.42% of respondents reporting doing business there.

Along the lines of what Darren McGavin said of the wine in the movie “A Christmas Story,” it’s not a bad year; it’s not a good year, but it’s not a bad year.

Exhibit builders are not reporting notable challenges to doing business. Their challenges remain about the same as they’ve been reporting in recent years: speculative design, inexpensive pop-up displays sold via the Internet, transportation costs.

So it would appear they’re dealing with the same problems as usual, they’re just doing business and remain ever optimistic that next year will bring increased revenues (and maybe that bb gun).

The percentage of companies doing work internationally declined yet again, down some 10% to 63.50%. There is no clear reason for this decline, other than possibly increased transportation costs. Certainly the horrendous foreign currency exchange rates that make the dollar very cheap for many industrialized nations ought to have made the adjusted prices of American-made products attractive.

How The Survey Was Conducted

The Exhibit Builder Economic Survey is mailed to potential respondents who are selected from a master database. Three-hundred and fifty potential respondents were selected to receive the survey. Over the years, the size of the database has varied from between approximately 750 and 1,500 records. While the selection of individual companies is random, the database itself has been maintained to reflect the national statistical segmentation of the exhibit design and fabrication field.

The regional distribution of companies that receive the survey and, thus, which respond, is determined by the relative frequency with which they appear in the total base of potential respondents. The regional distribution of the database is roughly approximate to the regional distribution of exhibit designers and builders. Generally, builders from between 35 and 40 states receive the Exhibit Builder Economic Survey questionnaire each year.

Responses from each category of exhibit design and construction generally represent their distribution in the larger population. It is important to note, however, that respondents are able to list themselves under multiple categories. For example, a custom builder might also be a modular dealer and/or a structural system manufacturer. Companies in the database are categorized according to what the researchers know their primary business operations to be. So, for example, a company whose primary business is custom construction, but which also handles a modular system, is considered to be a custom builder for the purposes of categorization in the master database.

Responses are analyzed using a variety of descriptive and inferential statistical techniques, as appropriate, along with tests to determine the reliability and validity of the data. Results reported have at least a 95% level of confidence.

Comprehensive Results

A report of comprehensive results of the Exhibit Builder Economic Surveys from 1991 - 2007 is available for $425. The report contains detailed tables about a variety of economic trends in the industry, including analysis of its various segments. eb