EDPA Portable Modular Survey2011 Results

December 2011

EDPA ACCESS 2011

New Systems and the “Hybrid” Trend Session

Las Vegas, NV

Survey SectionsSurvey is broken into 9 sections• Section 1: Products & Pricing

– 15 questions targeted at the Portable / Modular supplier / reseller• Section 2: Design

– 6 questions aimed at Portable / Modular design• Section 3: Sales

– 17 questions directed towards Portable / Modular sales• Section 4: Accessory Suppliers

– A list of suppliers typically used by participants• Section 5: Selected Operating Data

– 15 questions regarding Portable / Modular Operations• Section 6: Effects of the Recent Business Conditions

– 4 questions based on comparisons for 2011 as compared to prior year• Section 7: Effects of the 2009 Recession

– 3 questions based on the 2009 recession against 2011 performance

• Section 8: Environmental Impact – 4 questions sustainability within the Portable / Modular segment

• Section 9: Training & Associations– 3 questions regarding industry association and participation

Survey Sections

The following presentation is a sampling of some questions that can be found within this survey.

• Results are based on responses for the FYE 2010

• Full surveys can be purchased from EDPA HQ (www.edpa.com)

• Participants receive a copy of the Survey for free

How you can Participate:• Entry is On-Line (survey typically comes out before end of each May)• Data is stored Year over Year (thus you can compare your results)

Contact EDPA HQ to participate in the 2011 P/M Survey

Participant Distribution (19 respondents)

% Participation

37%

37%

16%

5%

Associate Member

Designer/Producer - Custom

Designer/Producer - PortableModularPortable Modular Distributor

Section 1: Products & Pricing

• What percentage of your 2010 display sales volume came from your primary display manufacturer?

(The average for 2009 was 49.3%, Low 10% and High 98%)

Percentage

48.20%

7%

98%

0.00%

50.00%

100.00%

150.00%

Average Low High

Section 1: Products & Pricing

• What was your rate for handling (receiving, inspecting, repacking) newly-purchased displays?

Average

$70.00 $65.40 $55.20

$95.20 $70.20 $75.23

$0.00

$50.00

$100.00

Per Hour Per UPS-able Case

Per MoldedTub

Per WoodenCrate

Per Skid Per TotalOrder

Section 1: Products & Pricing

• What was your monthly rate (and method) for warehousing/storage of client’s assets?

• Please note that other methods and results were in the report but were not included in this presentation

Method Average Low High

Per Cubic Foot $0.30 $0.16 $0.65

Per UPS-able Case $19.61 $7.50 $35.00

Per Molded Tub $45.00 $25.00 $60.00

Per roll of Carpet $31.00 $20.00 $50.00

Section 1: Products & Pricing

• What was your rate for coordinating show services and transportation to shows?

• Please note that other methods and results were in the report but were not included in this presentation

Method Average Low High

Per hour $80.30 $60.00 $125.00

Per Show $708.00 $300.00 $1,800.00

Section 1: Products & Pricing

Payment Terms

• 50% of Respondents required a 50% deposit from the client in advance of the order, with the balance due prior to, or at the time of delivery

• 74% of Respondents did not offer their client’s a further discount with a 100% full pre-payment

Section 2: Design

• # of Opportunities in 2010 involving designing a new exhibit?– Average – 104 designs/yr (compares to 69 in

2009)

• How many of these opportunities converted into a sale?– Average – 55% (compares to 56% in 2009)

Section 2: Design

• If you did in-house Design, what rendering software did you use?

2% of respondents do not offer in-house design (vs. 6% in 2009)

• Please note that other software was listed by those used by less than 10% of the participants were not listed in the above listing

Software Percentage

Illustrator 18%

In Design 12%

MiniCad / Vectorworks 12%

Photoshop 18%

Software Percentage

Illustrator 18%

In Design 12%

MiniCad / Vectorworks 12%

Photoshop 18%

Software Percentage

Illustrator 18%

In Design 12%

MiniCad / Vectorworks 12%

Photoshop 18%

Section 3: Sales

• List your total Sales revenue related to the reselling and servicing of P/M displays

Year Average %

2005 $3,123,634

2006 $2,498,475 -20%

2007 $2,475,523 -1%

2008 $2,740,404 10.70

%

2009 $2,023,992 -26%

2010 $2,339,181 15.60

%

Section 3: Sales

• What was the percentage breakdown of your P/M sales revenue in 2010?

Please note that this was not all of the categories, but represents approximately 79% of total sales

Sales Category Percentage

Table-top Displays 5% (6% 2009)

10' In-Line Displays 17% (21% 2009)

Larger than 10' In-Line Displays 9% (8% 2009)

Island Displays 13% (8% 2009)

Graphics Outsourced 9% (9% 2009)

In-House Graphics production 9% (9% 2009)

Rentals From Own Stock 6% (7% 2009)

Coordination of Services and Transportation 6% (8% 2009)

Installation & Dismantle 5% (6% 2009)

Section 3: Sales

• What was the average base salary for your salespeople (among those who received a base) in 2010?

• What was the average commission rate for your salespeople (among those who received a commission) in 2010?

Average Low High

$45,127 $28,900 $80,000

Average Low High

10.03% 3% 15%

Section 3: Sales

• What percentage of your total P/M sales revenue was generated from non-commissioned (house) accounts?

Average Low High

33% (41% 2009) 5% 100%

• How much space does your company occupy?

• How much space is dedicated to your P/M display showroom?

• What do you pay annually for rent?

Section 5: Selected Operating Data

Average Low High

38,295 768 180,000

Average Low High

4,114 400 13,000

Average Low High

$196,562 $30,000 $870,000

Section 5: Selected Operating Data

• What kinds of graphics do you produce in-house?

Graphic Type Percentage

Vinyl Graphics 53% (48% 2009)

Reflective Ink Jet 42% (48% 2009)

Backlit Ink Jet 47% (43% 2009)

Solvent Printing 37% (19% 2009)

CNC Routing 11% (19% 2009)

Section 5: Selected Operating Data

• What graphics equipment do you have in-house?

Type of Equipment Percentage

Ink Jet Printer 58% (48% 2009)

Latex Printer 0% (10% 2009)

Solvent Printer 37% (19% 2009)

Cold Laminator 32% (33% 2009)

Hot Laminator 42% (43% 2009)

Vinyl Cutter 47% (43% 2009)

UV Flatbed Printer 5% (19% 2009)

Section 6: Effects of Recent Business Conditions

• How many total employees did you have on each of the following dates?

Year Average Low High

2010 19 1 100

2009 17 1 65

2008 19 1 75

2007 23 3 45

• Did your company have to layoff employees?

• If you did layoff, have you re-hired any of those laid-off workers?

Section 7: Effects of the 2009 Recession

  Percentage

Yes 47% (48% 2009)

No 53% (52% 2009)

  Percentage

Yes 58% (58% 2009)

No 42% (42% 2009)

Section 7: Effects of the 2009 Recession

• Did you have to do any of the following things to generate additional operating capital due to a decline in the business resulting from the recession?

Type Percentage

Bank Loan 62% (27% 2009)

Loan from one or more owners 38% (45% 2009)

Outside investor brought in 0% (0% 2009)

Sold assets 0% (9% 2009)

Other (Acquisition, LOC) 0% (18% 2009)

Section 8: Environmental Impact

Are your customers requesting or specifying any environmental demands?

  Percentage

Yes 37%

No 63%

Section 9: Training & Associations

• Do your suppliers offer product education / training for you and your staff?

  Percentage

Yes 95%

No 5%

In what format is this training presented?

Format Percentage

In-Person 84%

Electronic (webinars) 84%

Printed materials 63%

New Systems and the “Hybrid” Trend• Panelists:

– Scott Walode – Owner and President of ExhibitCraft, Inc. located in northern NJ, 15 miles out of NYC. Scott has 36 years experience designing and producing portable / modular exhibits and has served on the EDPA board of directors for the past 5 years.

– Jim Shelman – With over 30 years of production and product design within the industry Jim started and owned Exhibits Northwest until selling to Classic exhibits several years ago. Jim stayed on as General Manager running the Portland office and managing the Classic Exhibits rental program for their dealer network

– Mike Levi – President of ION Exhibits, located in the greater Chicago area, ION produces custom modular tradeshow exhibits, graphics and supplies I & D services within the Midwest.

– Etienne Decludt – Vice President, Western region for AGAM Group, Ltd., a Mid-Atlantic based OEM manufacturer / supplier of an aluminum modular display system used in the creation of modular and hybrid types of displays backed by over 25 years in the industry.

EDPA Quarterly Economic Pulse

• New Survey to be done on a quarterly basis

• Same 10 Questions asked each Quarter

• Results published Quarterly through EDPA Alert

EDPA New Systems and “Hybrid” Trends

• Thank you for attending and for your participation this year.