Does the current economic downturn get full responsibility? How is it that some shows booming while others decline and/or disappear?  Is there something basic changing in the way B2B attendees experience and learn about products?  Or is it all have to do with management?  How do trade shows remain vital?

In a nutshell, here is why:
1.) They made more profits selling their products in Europe and elsewhere around the globe;
2.) There was such a shortage of PV modules (concentrated in about 9-10 major manufacturers) that one vendor told me an electrical distributor and his customers would have to wait 2 years for product to be delivered for a major job;
3.) Although some companies used other channels or sold direct to installers, solar specialty distributors were good customers who had all the training and all the market presence that the vendors needed;
4.) With the market concentrated largely in California and New Jersey, there was no real need for national distribution; and
5.) Electrical distributors - with a few exceptions - were making money nicely in the traditional areas of their businesses. While a few had moved into selling solar, the obstacles to entry and plentiful traditional work provided little motivation for some.

Then several factors changed all of these things including the economic downturn worldwide, the approaching end of many of the incentives in Europe, the change in national energy leadership policy by the Obama administration along with consistently rising energy costs.

Suddenly in the last year, it appeared to have changed radically:
1.) There were now plenty of opportunity in the U.S. for profits in solar as a truly national market could be seen in development;
2.) The number of vendors had increased (especially PV module suppliers including some now manufacturing in the United States) making product plentiful and dropping prices dramatically;
3.) The national financial crisis caused new challenges to vendors selling direct to installers as well as those selling through solar distributors whose margins were squeezed as demand dropped while supply of their specialized products and competition increased for projects;
4.) Changes in government energy policy, increasing costs for energy and new power plants and popular sentiment for clean, abundant energy began to create a more genuinely national market for solar products; and
5.) Electrical distributors - looking for new opportunities in the economic downturn - turned their attention directly to renewable energy and (its natural complement) energy efficiency.

This shift has been noted clearly at the National Association of Electrical Distributors and elsewhere. PV solar vendors have been attending the last three major conferences (and the one scheduled for next month in Marco Island, Florida) as proof of this shift. Many - but not all - solar vendors are now looking to the more diversified, better financed, more stable electrical distributors with their base of customers and long standing relationships - especially with the most important segment of the new, national workforce - electrical contractors.

Another thing to consider: my contact was totally on those companies that sold photovoltaic products that integrators/contractors could specify and install and distributors could sell, so my sample was biased. These were mostly manufacturers and marketers of photovoltaic modules, inverters and mounting systems, but also included solar distributors. This made the generally positive comments more important in my opinion because attendees at this event are not just integrators/contractors and distributors for photovoltaic systems and products. A good chunk of the attendees were there to learn about the latest in machinery and equipment, chemicals and other materials and services (testing institutes, consultants, etc.) used in the manufacturing of photovoltaic products and systems. There were also some who were there to look at the solar thermal systems and products which also made up a portion of the exhibits.

My conclusion is that even in the current economy and at a show with a wide focus on things solar, this was a show where business was being done and the market for photovoltaic systems was being served well.

Attendees will:
– Practice questioning techniques for selling energy efficiency building upgrades/retrofits;
– Learn how to craft a sales presentation on the business case for energy efficiency investment based on total cost of ownership, return on investment, and payback;
– Learn prospecting techniques you can use to look for new customers; and
– Gain insight about regulatory mandates and emerging technologies in international markets soon to impact customers in the U.S.

It is a “must” for outside salespeople, branch managers, inside salespeople looking to move to outside sales, energy product specialists and others who work in electrical distribution seeking to speak the language of energy efficiency, building owners and facility managers.

Contact me ASAP for more details.

According to respondents, specific areas of planned training in the 12 months following the research are “Green Building” (22%), “Energy Use Regulations” (17%) and LEED Certification (8%). In the 12 months prior to the survey, electrical contractors that actually took training in these three areas were 13%, 9% and 8% respectively. This indicates real growth in interest in these areas and this is something that product manufacturers and others - especially electrical distributors - should note.

Since electrical contractors currently spend 75% of all the dollars for their purchases of installed products with electrical distributors, it seems imperative that electrical distributors must be able to provide electrical contractors with this needed training and these products if distributors plan to hold and grow business with this essential market segment. (Electrical contractor sales currently constitute nearly half of all electrical distributor sales volume.)

The percentage breaks down by category as follows:
Solar/Photovoltaic 11%
LEED Projects 9%
Geothermal 7%
Co-Generation 7%
Net Metering 5%
Wind Generation 3%
Fuel Cells 0.04%

This research - conducted in early 2008 - is really an indication of market activity for 2007. (The next such profile study will be done in early 2010 and will reflect 2009 activity.) How much growth do you believe there has been in these types of projects by contractors since 2007?

15 renewable energy companies (manufacturers, re-distributors and integrators/consultants for PV solar and wind) were in attendance to learn about opportunities with traditional full-line electrical distributors and these distributors were equally interested in opportunities with these product and service suppliers.  After 4 days of meetings (group and one-to-one), seminars, educational sessions and events of various kinds with the 70+ distributors in attendance, my own “vest pocket” survey of a number of both renewable energy companies and distributors showed an keen interest on the part of both groups that I have not seen in the past two years or so of my work on renewable energy.

Why is this the case?  Is it a notorious executive mindset that refuses to look beyond achieving short-term goals and profits instead of long-term growth and continuing strength?  Is it a failure to understand the values of advertising and marketing as the result of poor education and lack of real world experience by the current crop of top managers?  Do marketing and sales management need to work harder to educate and lead within their own companies to change to a more effective and practical model for making budget decisions in hard times?  Are the media and media associations not doing enough to educate all their advertisers, future advertising prospects, agencies and business schools in the fundamentals of successful marketing and advertising?   What can and should be done?