Expanding and Contracting

Lisa Plummer -- Tradeshow Week, 2/15/2008 11:21:00 AM

It’s good to be a tradeshow general service contractor. Despite a softening economy, the contracting business is booming, especially in Las Vegas. Outside companies are opening local offices, while those with a longer history in town are beefing up operations and expanding their capabilities. The signs of growth are clear.

Shepard Exposition Services recently opened a Las Vegas location, Champion opened a second one and The Expo Group has built up its managerial staff. The trend continued most recently with Hargrove, a GSC based in Washington, D.C., opening a Las Vegas office last month on Howard Hughes Parkway.

According to CEO Tim McGill, the Las Vegas location marked the beginning of a West Coast growth pattern for the 8-year-old company. He said Hargrove has seen more of its customer base rotating through Las Vegas than ever before and believes the new location will provide leverage in the thriving market. “We’ve reached a point with a large enough business base to start servicing from different geographical locations,” McGill added. “We’ve got so much business booked on the West Coast for ’08 and future years, it seemed like a perfect opportunity.”

So where does all this activity and extra competition leave long-time Las Vegas veterans Freeman and GES Exposition Services?

According to Detra Page, GES spokeswoman, the company is unfazed. She attributed the increased activity to plain and simple growth. “Las Vegas has grown and, as a result, the (tradeshow) client base has grown, so it makes sense,” Page said. She added, “It’s something to put in perspective, such as what are the size and staffing of those (new) offices?”

An established presence in the Las Vegas tradeshow scene for more than five decades, GES’ operations facility spans 850,000 square feet. Some of the new local companies may be coming into town with very small staffs, Page added. In line with industry growth, GES recently consolidated its marshalling facility onto a 17-acre site, with another eight acres reserved as additional convention space comes online.

Larry Arnaudet, executive director of the Exhibition Services & Contractors Assn., concurred that general service contractor growth is the result of a booming Las Vegas tradeshow market. “Attendance continues to grow in Las Vegas, and a lot of our members had record years last year,” he said. “Although the economy has tightened, we seem to be a year or two behind … with a lag between the economy and the exhibition industry. I don’t think anyone would be opening an office if they thought they’d have to close it in a few years.”

Michael Hughes, TSW associate publisher and director of research services, said it’s no secret that GSCs are growing. “I'm just surprised we haven't seen this sooner,” Hughes added. “If you’re going to expand or open a new office in Las Vegas, that either means you’re trying to stay competitive or you’re going where your clients want you to be.” Hughes gave a positive five- to 10-year outlook, especially for tradeshows and conventions.

Though corporate meetings may soften along with the economy, the healthiest part of the industry will become more vital and competitive, he said. Strong economy or weak, signs point to a healthy period for general service contractors. “As the saying goes ... ‘Build it, and they will come,’” Arnaudet said. “In the case of Las Vegas ... it is working.”

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