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HANOVER, Germany, April 27, 2004 — Although still billed as the world’s premier showcase for industry and technology, the weeklong Hanover Trade Fair, which ended Saturday, experienced a downturn in exhibitors. The microtechnology section, too, had fewer exhibitors and some are asking whether large-scale, general trade shows like this Hanover have much of a future.
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“The question comes up more and more often,” said Karsten Weilandt, an engineer with the Faulhaber Group, echoing the thoughts of several of those manning the stands in the two halls devoted to microtechnology, “Is coming to Hanover really worth it?”
Despite the doubts, Hanover still puts on an impressive show. On the massive trade fair grounds outside this central German city, 5,040 exhibitors from 61 countries presented their wares and services. The fair is made up of several different trade shows, including microtechnology, factory automation, subcontracting and energy.
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Under the microtechnology tent, the exhibits encompassed materials, R&D, production engineering and finished products. The spectrum ranged from automotive and chemical to mechanical engineering and medical technology. The microtechnology forum allowed companies to present their products and applications to other visitors.
“It is the most important and unique event in the field of technology worldwide,” said Sepp D. Heckmann, head of the fair’s management board. “Exhibitors are considerably more optimistic than last year.”
Yet fewer of them are coming. For the past two years, the number of exhibitors has been declining, from 6,470 in 2002, to 6,240 in 2003, to 5,040 this year. While some of that drop-off has to do with new changes in the fair’s structure, company sources said the downturn had much to do with the weak state of the economy. They also attribute the fact that many are reconsidering whether the return gained from the fair justifies the money spent to exhibit or even attend. The microtechnology section had 250 exhibitors in 2003. This year 210 came.
“The fair today isn’t what it used to be,” said Weilandt, whose company had a large stand that he said cost several thousand dollars. “Before, it was almost like a religious duty to attend. But I think many people today no longer feel that is the case.”
The six-day show has seen visitor numbers shrink along with exhibitors. Last year, at the halfway mark, 105,000 people had come to Hanover’s giant halls. This year, the number was below that, although fair officials would not say how much.
Demographics of the fair are changing as well, according to several employees of exhibiting companies.
“If you look around, you see students under 25 walking around and then you see people over 45, the traditional trade fairgoer,” said Willi Hempelmann, an engineer with Micro Mechatronic Technologies. “What you don’t see is the 25-to-45 age group. These are the entrepreneurs, those working on the next stage of technology, who don’t have the time or a desire for this. If they want to find out about a company, they go to the Internet.”
Hempelmann added that many feel that it is important strategically to attend, even if just to check out the competition. “If suddenly you’re not there, others are going to be thinking ‘I wonder what happened to them?'” he said. “But whether the Hanover Fair will still be around in its present form in 20 years’ time, I don’t know.”
“Fairs have to change, and I think people are looking for small, specialized fairs where they can find customers,” said Carsten Bahle of Wicht Technologie Consulting, although he said he did not think microtechnology had the mass yet to go it alone.
Still, he and others described Hanover 2004 as generally satisfactory. Several said it was quieter overall than 2003 or that the mood seemed somewhat down from last year. But almost all were quick to add that they had made good contacts that could turn into future customers.
While exhibitors were still cautious due to the overall weakness of the economy and said investors, particularly in Germany, were still wary of taking risks on young, unproven companies, a survey carried out by fair organizers found that 43 percent rated their sector’s current situation as “favorable” to “very favorable.” That is up from 31 percent in 2003.
The German government has touted the fair as an important barometer of Germany‘s general business mood and hopes it will provide a needed economic boost.
“It could,” said Thomas Stange of thinXXS Microtechnology, who said the fair for his firm had been a “pleasant surprise,” especially since the number of international contacts had picked up. He added that Hanover might well have improved the overall mood a little, which in itself makes it an important event. The German economy may be, he said, “in the drain, but we’re not down the drain just yet.”