Tuesday 13 March 2012

Usetec, Cologne - thriving despite the Eurozone crisis

I have just returned from the USETEC exhibition in Cologne, Germany, where Riley Surface World exhibited as part of a UK Pavilion of industrial machinery dealers and publishers. There were evident signs of the Eurozone crisis, with both exhibitor and visitor numbers down on previous years. However, this did not stop the mercenary hoteliers of Cologne from doubling their tariffs during the show week.

USETEC exhibition
Cologne, Germany
This is not to say that the event was unsuccessful. USETEC attracts a global audience, with visitors from nearly 100 countries, so there was sufficient diversity to find opportunities for business. Another reason to be happy is that the priority for our company has recently switched from selling to buying, the reasons for which I will explain.

The traditional role of the sales person in the surface finishing industry, along with most other forms of manufacturing, has evolved alongside the growth of digital marketing. The old concept of the commercial traveller, with company car and expense account has become rather outdated as our ways of communication become more sophisticated.

Companies that wish to expand their market share now invest a great deal more in online marketing than they do in direct sales. The power of Google in particular means that there are always plenty of buyers in the market, and those buyers will now find you, rather than you looking for them. The secret is to express clearly the products and services they are seeking in a way which the search engines understand.

The quality of company websites, the functions they provide and the usefulness of downloadable material means that prospective customers are brought much closer to the buying decision than was the case with traditional marketing practices. This means that subsequent telephone conversations and meetings with buyers are less to do with sales and much more to do with technical issues. And once the customer becomes involved in the ‘nitty-gritty’ of the project, he or she is well on the way to making a purchasing decision.

At Riley Surface World, we have invested heavily in the structure and content of our website, so that prospective customers will always find what they are looking for, providing we have it in stock. This brings me back to our new emphasis on buying.

Our experience of marketing used surface finishing machinery internationally is that there are plenty of buyers around the world, but not enough sellers and insufficient machinery. This problem is not confined to the surface finishing sector, as dealers in all forms of industrial machinery are reporting the same problem. This is why events such as USETEC are vitally important.

There is a misconception about trade shows, reinforced by the old John Cleese sales video. It is that they are dominated by men in suits standing in booths and waiting for buyers to come along. The reality of USETEC is that it is a dynamic networking forum, where we can identify buying opportunities from other international dealers, create factory clearance events and match up buyers with sellers. This process sometimes involves complete process lines being moved across to the other side of the world.

Even in the digital age, it is still necessary to set aside time for trade shows, trade association events and conferences. This is where it is possible to meet with your counterparts from other countries, discuss industry issues, identify opportunities and do deals. And here’s the good news: the government actually gives you some money for making the effort!

The USETEC show enabled us to buy some significant items of plant and machinery from other dealers that would otherwise be difficult to acquire. We were also able to get our message across to the wider European market that we are buyers first and sellers second. These efforts by us and our colleagues from other metalworking sectors told the world that the UK is serious about developing its manufacturing.