Second Tier, With Gusto

Talk about a turnaround. Despite analysts' oft-repeated warnings that too many secondary cities had built too much convention space, many are finding shows to fill those halls.

The smaller cities are benefiting from stronger overall show attendance. A survey of show organizers by Frost Miller Group and Jacobs Jenner & Kent found that 94 percent of all domestic trade shows saw steady or increased crowds in 2004, up from just 40 percent in 2003. But while demand for show space in second-tier markets had been rather soft prior to 2004, exhibition space growth continued: The U.S. will see 3.7 million square feet of new space by July 2007, according to Tradeshow Week.

"Not long ago, the supply of space coming on board was certainly increasing faster than the number of new show launches and the growth of existing shows," which caused some concern, explains Doug Ducate, president of Chicago-based Center for Exhibition Industry Research. However, he says, the timing on new builds and upgrades turned to be just right, especially in markets like Pittsburgh. "With the strengthening economy, we're seeing major show companies announce launches for '05 and '06," he says, adding that he expects to see more specialty and regional events that favor small or midsize cities.

And because of the zeal some years back to go ahead with construction, many venues in secondary markets are now well suited for even demanding shows. "The technology and infrastructure of the new projects makes many second-tier cities as attractive as first-tier cities," says Ducate.