Messen als Knotenpunkt für Menschen und Wirtschaft: Wolfgang Marzin, CEO Messe Frankfurt - 78

Hello, I'm delighted. The view from here shows the Frankfurt skyline with many banks. The highest building is the Messeturm, but it's not part of the fairground. The banks exist because trade fair business has been here for 800 years. That led to a stock exchange in 1523. The ECB is also here because of the economic encounters. This view is wonderful, even after 15 years.

I just discussed with my three sons. My hobby is my job. I love bringing people together and seeing honest business. When I'm not on the fairground, I enjoy being with my family in nature. Work-life balance is a term I can't stand. If you're lucky to love your work, there doesn't need to be a separation. But you need some balance.

We have 2500 employees. Our goal is to have happy faces every day. We offer flexibility and remote work. The recent trend is that we need to work more. But it's about mixing and doing good together. Our job at trade fairs is to be around people who want to do business. It's not just about hours. We need to think collectively, not just individually. Everyone is responsible for their own luck.

I was very lucky. My father was a displaced person, became head of the Munich fairground. I grew up on the fairground. I always recommend going to trade fairs; they are full of positive people. Then I was a bad student, did military service, studied, became a freight forwarding merchant, discovered trade fair logistics, started as a manager at a small organiser, built booths, took a risk at 30 with two young children to go to America for a troubleshooting job. That paid off. Then I was called for the Leipzig fair, and then the market leaders called me. It's a mix of chance, luck, and passion.

Before that, I had military service. I initially avoided it, then went at 23. I was in the air force. I was elected as a trusted person for a company of 150 soldiers, dealing with food, beds, even suicide attempts. That was my first time out of my comfort zone. It brought advantages, but it only worked because I had friends around.

It mixes society and reduces prejudice. Wearing a uniform today is sometimes frowned upon. A social service would be a boost for society, both psychologically and financially. It also helps people discover new career paths.

The unique selling point is the 800-year tradition. Frankfurt is a hub with excellent transport links. As globalization began, Messe Frankfurt decided in 1987 to follow industries to Asia, like Interstoff Asia. Now we have 28 subsidiaries worldwide, including in Saudi Arabia and India. We can adapt to new trade barriers and serve customers where they need us. We are a long-term partner with both physical and digital encounters.

The state of Hesse is a 40% shareholder of Messe Frankfurt, similar to Fraport. They push us to grow. That's good.

After WWII, Germany rebuilt and created the 'Made in Germany' brand. Under Ludwig Erhard, the economic miracle led to investment in infrastructure, including fairgrounds. Every state prime minister has at least one fairground. Germany became an export champion. But now, not all world-leading fairs stay in Germany. They have life cycles. Some industries move to Asia. The economy decides where a world fair takes place. We now see more continental leading fairs.

World trade fairs have always assumed visa freedom, no tariffs, no trade barriers. We had that partly in the 70s and 80s. Politically, India wants to be at the top, China wants the top, the USA is top, Europe is a huge power. We need to be careful. I've been in the business too long. I started as a small assistant and then CEO. People say 'You from Germany? Great country, great education, you're so friendly, so fast.' We must protect our reputation. Recently, there's been doubt: 'I'm sorry, I don't know what you guys are doing. Are you sure you're on the right track in Europe?' That's my feeling, not criticism. The power we still have in Europe is enormous. I believe that if we achieve a balanced world trade with competition, innovation will happen at trade fairs, and that's why I feel I'm in the right place.

Many leading industrial nations learned from Germany and Europe, especially trade fairs. China built huge exhibition spaces and developed its economy. India under Modi is doing the same, building fairgrounds in Ahmedabad, Mumbai, Delhi, Chennai. The attention of events like the book fair, Gamescom, IAA, bauma goes worldwide. Politicians realize that owning the biggest fair gives influence. Here in Frankfurt, we have the largest book fair, automechanika, textile fairs, light and building technology, and meat and protein fairs. Despite global shifts, the biggest fair still says a lot. Some industries will become continental leading fairs, others will remain global. Good fairs are linked to innovation cycles—bauma every three years, IFFA for meat and protein. These fairs let the industry measure itself and cooperate. They create seismographs.

So a seismograph detects earthquakes—it's higher power. Fairs create precision. And quantum leaps in the cycle: some have four-year cycles, others three, others yearly because they always have something new. These industry meetings, when well done, secure that the industry is on the right track and that the region remains attractive.

We've seen examples like CEBIT being pulled from Hannover Messe as IT became a world fair, perhaps too late. We've filtered many fairs out of the Frankfurt model—some no longer exist because the market doesn't want them. For instance, we no longer have a beauty fair here, but the world's largest beauty fair is in Dubai. We have beauty fairs in Japan and are starting in Saudi Arabia next year. When something changes in the world, it's helpful to be able to react and make decisions with smart partners.

I wouldn't generalize. It varies by industry. Some industries want to show off every three years. But from my perspective as a trade fair organizer, it must be balanced. I wish for huge stands and lots of spending, but in the long run, the controllers are there, analyzing leads and marginal costs. However, we don't make the decisions—the industry does. The help we can provide is to spread the costs of exhibitors across more than just visitors, through leads and digital extensions. Exhibitors on a good leading fair are not just visible for six days but are constantly part of the industry. And if you can offer good events, the exhibitor's three or four million euros can be spread more effectively.

And we keep coming up with new ideas, like virtual walk-throughs after the fair, so that exhibitors can still be visited weeks later. But one thing is clear: without the personal encounter, without a physical fair, you can't get the full benefit. You need the physical event with supply and demand all in one place to make the most of it. Digital, horizontal, vertical—there's still a lot to come, but not without physical.

The help we can give is to spread the costs of exhibitors—say three or five million for a large stand—across more than just visitors, through leads and digital tools. Exhibitors on a good leading fair are in contact not just for six days but permanently. If you can also offer them city events, sales meetings, incentive trips, press events, podcasts, they can share those three million more. And we as good organizers are also enabling virtual tours, so that exhibitors can still be seen weeks later.

I think it was there, but let me add: I've experienced too much already. We all lived through the pandemic, and it's not yet been fully processed—what was done right? I don't want to rule anything out. But currently, the industries we serve say that face-to-face contact was missed. We lost orientation without seeing each other, lost sight of the competition. You can't legally analyze your competitors as well as at a fair—their sales, product policy. Since the pandemic ended, I've noticed an even stronger cohesion among the exhibiting economy. CEOs said to me, 'Martin, you're our service provider, we need trade fairs.' We've come back to a stronger, more binding partnership and appreciation. They admitted that Messe Frankfurt, Düsseldorf, Munich—it was worth it. It was a shared effort. It was exhausting but created value for everyone. That's the ideal case. We must not become overconfident or arrogant. We learned humility—we are not the best at everything. But we fight to maintain that. I daily discuss with my Asia head, who has 1400 employees. He's Dutch-German, same education. We have the appreciation that Frankfurt is a reliable partner, known in China for almost 40 years. They continue to develop, they don't rest. We must constantly defend and improve our good reputation.

We have also learned humility. We are not the best everywhere.

But we must fight for that, earn it and keep it. It's a constant topic.

The successful companies we serve are not focused solely on one country. They are doing well. But you're right. Take bauma: 40 years ago, no Chinese exhibitors; now they are the number one origin of exhibitors on German fairs. In many industries, the tide has turned. We don't need to dwell on that.

About 1000 employees on permanent contracts with Messe Frankfurt. Plus a factor of 20 from support services: security, logistics, stand construction, public services. So around 10,000 own employees.

We have a factor of 20 more. We're talking about security, logistics, stand construction, up to public services. I believe the total is about 10,000.

First, you have to be a good employer. We are a leading trade fair organizer, so we have a good reputation, we pay well, we are a training company. We have very good works agreements, very flexible. We used to debate home office; now we talk about remote office anywhere in Europe as long as there's internet. We are a good employer, I think. That holds things together. We have the best canteens, security, work-life balance groups, sports teams, music bands. Beyond that, it's culture: we have written values but they are lived. We treat partners as partners, not subcontractors. Everyone is responsible for the culture. That's why I've stayed so long, and why our turnover is under 2%. During the pandemic when we had almost no revenue, we had no layoffs. We all sacrificed, from the hall master to me. That built trust. We are proud of each other. That gets recognized by shareholders and customers. It makes us an extraordinary company. Our people know they have the best opportunities internationally. My sixth assistant is leaving, but not the company—he's moving to the strategy department. We are a training company, always investing.

That's why we had no layoffs during the pandemic. We all gave up income, I personally more percentage-wise. It welded us together and built trust. We are damn proud of each other. That shows in the feedback from shareholders and customers. It's an extraordinary company.

I always find companies going through generational change interesting—second or third generation. For example, company name: Mennekes, in electrical connection, third generation. I'd recommend that to you because there's tension. The Mittelstand is our future and insurance in Germany. If they lose spirit, we're done. So you can have fantastic conversations and also learn about their needs. I'm very encouraged by how sustainable many of these companies are, though some have no succession. But I see that family businesses and their enthusiasm, if kept alive, will make Germany and Europe great.

Tschüss.