ATTACHMENT: Future of FENCETECH Task Force Recommendation

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July 9, 2012

TO:

AFA Suppliers and FENCETECH Exhibitors

FROM:

Bob Burton, AFA President

Rick Church, AFA Executive Vice President

REGARDING: UPDATE ON AFA AND FENCETECH ACTIVITIES

ATTACHMENT: Future of FENCETECH Task Force Recommendation

Since FENCETECH ’12 in Miami, we have been very active to put plans in place that will

make FENCETECH ’13 in Houston a success. We have also been hard at work to find ways

to evaluate the cost (and value) of AFA’s service providers in attempts to find as many ways

as possible to reduce overall expenses without sacrificing value delivered to our

membership.

This communication will serve as a report on those activities. This will be the last formal

report of the actions AFA has taken regarding these issues. However, our work will not

stop and we will continue to keep you updated on AFA and FENCETECH activities through

many vehicles (Across the Fence, Fencepost, and Exhibitor newsletters to name a few).

At AFA’s recent Midyear Meetings, all AFA committees and task forces reported to the

Boards of Directors and Governors. Included in those reports were the final reports from

the Future of FENCETECH Task Force and the Management Fee Benchmarking Task Force.

AFA’s Future of FENCETECH Task Force members were: Paul German, Nebraska Plastics,

chairman; Joe Sallemi, CFP, Anzalone Fence; Doyle Jefcoat, CFP, Jefcoat Fence Company;

Kent Bailey, Bailey Fence Company; Mike Hale, Little Beaver; David Stewart, Delgard; Chris

Loftus, Calpro Fence; Sid Isenberg, CFP, Medallion Fence; Bob Burton, CFP, Poly Vinyl

Creations, AFA President; Lyle Buchanan, Buchanan Access Systems, FENCETECH Chair;

Rick Church, AFA Executive Vice President; Maria Prior, AFA Trade Show Director.

American Fence Association, Inc.

800 Roosevelt Road, Bldg. C, Ste. 312

Glen Ellyn, IL 60137

(630) 942-6598; (800) 822-4342

Fax: (630) 790-3095

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The Task Force held several conference call meetings between February and June. As a

result of their discussions, the attached recommendation was developed and presented to

AFA’s Boards. The AFA Board of Directors discussed each and every recommendation of

the Task Force. As a result of the recommendations and the Board’s discussions, the

following actions were taken:

1. Free educational seminars will be offered to AFA members during FENCETECH.

2. Fence Industry Week was established and will be offered as the new full convention

package. (Fence Industry Week will include opportunities for people to participate

in AFA’s many training schools)

3. AIA approved CEU seminars will be offered to architects.

4. FENCETECH will remain an annual tradeshow.

5. Show hours will be shifted to encourage more local participation. (Hours in 2013

will be Noon to 6 pm on Wednesday and Thursday, 9 to Noon on Friday) For future

shows, the show days will be shifted to Thursday, Friday, Saturday.

6. AFA will focus its resources to attract more contractors (large and small)

7. Exhibitors will be encouraged to help make the show floor more energetic by

offering prizes, new products and show specials.

8. Discounted membership will be offered to non‐members attending the show. Free

admission to the show will be offered through exhibitor invitations and to

companies that have not been AFA members in the preceding two years.

9. More marketing emphasis will be placed on local drive‐in traffic and to companies in

related trades.

10. Information regarding the promotion of FENCETECH will be included on each AFA

Director and Governor agenda. It is expected that each Governor will promote

FENCETECH at his or her chapter meetings.

11. AFA’s FENCETECH staff will attend more AFA chapter events to promote

FENCETECH annually.

12. Promotional tools will be made available to all chapters.

13. In the future, AFA’s site selection committee will be tasked with finding affordable

venues in which to hold FENCETECH.

14. Marketing of future FENCETECH shows will begin annually at the current show.

Beyond the recommendations from the Future of FENCETECH Task Force, the 2013

FENCETECH committee is planning several new activities in Houston. Below is a list of

some of them:

1. Show floor activities will include the Fence Olympics (there will be a competition at

the show to find the very best of the best at post hole digging, post spacing, chain

link inserts and more); AFA theatre; deck demos; and outdoor demos.

2. The Houston convention center is hosting a BBQ for the first 1,000 people to sign up.

The BBQ will be on the second show day following the conclusion of the show.

3. AFA has secured a new marketing firm. FENCETECH ’13 marketing pieces will all

have new designs, and focus will be placed on targeted messages to allied trades and

local contractors. Following is a list of the marketing efforts being utilized: save the

date mailers; attendee brochures distributed with Fencepost and World Fence

News; online advertising with builder and pool and spa associations; print ads in

Fencepost, World Fence News and other related industry publications; exhibitor e‐

vites; social media; fax and email promotions; Fenceweek blog postings; Five

minutes with FENCETECH in Fencepost and more.

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Staff is working on obtaining audio for the Greater Houston CVB power presentation given

at the Mid‐Year Meeting. Staff will distribute the power point presentation within the next

few weeks to all chapter presidents to promote at the local level. Staff is also coordinating

a site visit in late August for any exhibitor who is interested in getting a tour of the city and

convention center. Travel would be each participant’s responsibility; the CVB is looking

into discounted housing for one night; and FENCETECH will provide lunch for all

participants. More information will be sent to you as it becomes available.

AFA’s Management Fee Benchmarking Task Force also held several meetings and

conducted significant research between February and June. Members of the Management

Fee Benchmarking Task Force were: Susan Colson, Chair; Bob Burton, Sid Isenberg, Santo

Pernicano, Nate Prewitt, and Tony Thornton.

The process followed by the task force was as follows:

1. Identify associations similar to AFA

2. Determine how to independently obtain financial information on like associations

3. Analyze financial information

4. Develop recommendation for Board of Directors

Review of the financial information revealed that associations with their own employees

spend on average 55% of their total revenues on management fees; associations managed

by management companies spend on average 56% of their total revenues on management

fees; over the last ten years, AFA has spent on average 28% of its revenues on management

fees.

These findings coupled with the fact that AFA’s Boards have indicated they are satisfied

with the work of AFA’s management company, led the Task Force to the unanimous

recommendation that AFA should continue with its current management company.

Thank you for your continued support of AFA. We welcome any feedback or comments you

have on these findings and look forward to continuing to partner with you to make this

industry even better.

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Date: June 1, 2012

To: AFA Board of Directors

From: Future of FENCETECH Task Force

Re: Recommendation to the Board of Directors

INTRODUCTION

The purpose of the FENCETECH Task Force is to evaluate the future of FENCETECH and develop a recommendation to the Board of Directors for any changes that may be necessary to ensure the longevity of the show. Task Force Members are Paul German, Nebraska Plastics, chairman; Joe Sallemi, Anzalone Fence; Doyle Jefcoat, Jefcoat Fence Company; Kent Bailey, Bailey Fence Company; Mike Hale, Little Beaver; David Stewart, Delgard; Chris Loftus, Calpro Fence; Sid Isenberg, CFP, Medallion Fence; Bob Burton, Poly Vinyl, AFA President; Lyle Buchanan, Buchanan Access, FENCETECH Chair; Rick Church, AFA Executive Vice President, and Maria Prior, AFA Trade Show Director. The Task Force has reviewed the exhibitor and attendee surveys, FENCETECH income for the years 2004 – 2012 and its impact on the AFA annual budget, historical data on surveys, and overall trends in the trade show industry. The Task Force has reviewed several shows that transitioned from an annual event to a bi‐ annual event. They have listened to suggestions and comments from others in our industry and reviewed other pertinent information to form their recommendation. The Task Force main purpose has been centered on the 2013 show in Houston. The following represents their recommendation for 2013 and beyond. NOTE: Since the late 1970s the Center for Exhibition Industry Research (CEIR) has researched and promoted the importance of exhibitions in the business environment. In 2011 findings reveal the staying power of the use and perceived value of the exhibitions despite the influx of new, digital media tactics. Exhibiting at business to business exhibitions came in second next to company websites.* *CEIR Changing Environment of Exhibitions Study

American Fence Association

800 Roosevelt Road, Bldg. C, Ste. 312

Glen Ellyn, IL 60137

(630) 942-6598; (800) 822-4342

Fax: (630) 790-3095

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TASK FORCE RECOMMENDATIONS

EDUCATION

FENCETECH 2013 Education: All of the Task Force members have determined that education is important to both the installer and the manufacturer. The Task Force members recommend that FENCETECH be used as the vehicle to disseminate the industry specific education of our trade schools and certified installer program. While the association can’t subsidize all of the education, perhaps the FENCETECH committee would consider using the Fence Industry Week proposal as the “new” Full Convention Package offered to attendees. The current Full Convention package needs to be reassessed and should contain the best value for the membership. All members of the Task Force are in agreement that there needs to be more FREE Education at FENCETECH for members. Staff will also complete applications on AIA CEU approved seminars to be given at FENCETECH. Adding AIA CEU approved seminars to education will give the Landscape Architects more reason to attend. This effort is a way to provide free continuing education for the landscape architect and also increase their awareness of the industry and trade show. Future EDUCATION: Continue to provide more free education and hands‐on training for members of the AFA. The Task Force Members all agree that: 1. Fence Industry Week, comprised of Sales Training School, Fence Installation School’s CI modules, and sections of Operator Installer School should always be held in conjunction with FENCETECH and should always end with the seminar program times during show days to encourage attendees to walk the show floor. 2. Continue to provide free education for members and hands on training 3. Continue to add AIA CEU approved seminars to attract the Landscape Architect

SCHEDULE

FENCETECH 2013 Show Hours, Schedule, Days, Dates & Venues: This Task Force has looked at the general work schedule of the contractor and installer. It is our recommendation that the show hours be shifted to attract more of the local contractors not only on the last day but every day. It is our recommendation that the show hours be shifted to 12:00 PM – 6:00 PM or 12:30 PM ‐ 6:30 PM on the first two show days and the last show day show hours should be 9:00 am – 12:00 PM. This Task Force recommends a shift in show days as well. FENCETECH show days should be Thursday, Friday and Saturday. In 2013, we identified that there are shows before and after FENCETECH contracted for our same space at the convention center and hotel groups. It was determined that the show days could not be changed from the current Wednesday, Thursday, Friday schedule. It was also determined that the venue for 2013 must remain in Houston; the cancellation clause is extreme at this late date. Future FENCETECH Show Hours, Schedule, Days, Dates & Venues: It is our recommendation that the future show hours be shifted to attract more of the local contractors not only on the last day but every day. It is recommended that the show hours be shifted to 12:00– 6:00 PM or

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Page 3 of 5 12:30 ‐ 6:30 PM on the first two show days and 9:00 AM – Noon or 9:00 am to 1:00 pm. on the last show day. The future show days should be shifted back to Thursday, Friday, Saturday show. At this time, The Future of FENCETECH Task Force recommends keeping FENCETECH as an annual show. There are many small exhibitors who do not have a national sales force and rely heavily on the annual event for their overall revenue. If the show was moved to a bi‐annual show the smaller vendors would seek other avenues for sales and attendees would interest in the association and show. The Task Force also recommends the continuance of a strong marketing campaign to draw new types of attendees from related trades as well as our fence, deck and railing contractors. The marketing campaign along with the annual surveys to exhibitors and attendees, both member and non‐member, should be reviewed annually to identify new strategies to provide value to both groups. The Task Force recommends the following venues based on attendee and exhibitor surveys: Las Vegas, San Antonio, Nashville, Orlando and New Orleans. The Site Selection Committee should take into account that FENCETECH hotel blocks and venues need to be attractive and more affordable. Convention Center should also be affordable and a continuous floor space.

ATTENDANCE PROMOTION

2013 Attendance Building Blocks: The Task Force members were all asked what ideas they have that will add value to the current show and future shows. Below is a listing of these ideas, all are important, and in no particular order. Task Force members would like the Board of Directors and FENCETECH committee to consider:  Encourage attendance with discounted membership for the year they attend as well as possible discount on chapter dues  Help non‐member installers understand the value proposition of being an AFA member and drive membership numbers  Increase the value for members at FENCETECH by providing free entrance, education and other member perks  AFA membership committee must work harder to drive the value proposition of being an AFA member. Membership decline is a reflection of the current and stale vision of the association  Add more free hands‐on training and education for members during FENCETECH  Survey the attendees and exhibitors on the show floor on ways to enhance attendance at show, listen to their responses and implement those programs that can be implemented. Explain to the respondents why something can’t be implemented  Extend or shift show hours  Encourage exhibitors to bring something new or exciting to Houston then have staff promote these new products and giveaways in preshow marketing, onsite to attract attendees to visit their booths and post show press releases  Invite exhibitors to participate in an exhibitor sponsored reception by asking for $250 donation to be used for show floor reception and show floor giveaways or one grand prize.  Those exhibitors who hold their own giveaways should also be listed on same schedule in Pocket Guide and signage to encourage attendees to stay on show floor  Have a lower or complimentary exhibits only fee  Add seminar(s) that will qualify as CEUs for professional architects and specifiers  Create excitement on show floor with interactive giveaways, treasure hunts, contests and activities  Continue to hold Chapter Breakfast & Annual Meeting as one event

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Page 4 of 5  Bring back the farewell party or have an exhibitor sponsored reception  Promote the BBQ party sponsored by the convention center for the first 1000 registrants  Have volunteers walking show floor help attendees with questions or directions to specific vendors or products  Implement spousal activities & events  Promote a tie‐in on other activities in the area, convention center or other public events like the Rodeo, concerts and other local events  Increase marketing of show to related trades Future FENCETECH Attendance Building Blocks: The ideas listed below for future increased attendance are all important and in no particular order. Task Force members would like the board and FENCETECH committee to consider: Maintaining all of the items noted above  Increase marketing dollars to attract more small and large contractors. AFA needs to show why they need to be part of AFA. The value of membership is poorly perceived, AFA needs to turn this around quickly  Increased exhibitor participation in new product or service offering, giveaways and more show specials  Increase landscape architects & specifiers’ awareness of AFA resources, exhibitors’ products and industry standards through targeted promotional campaigns as well as AIA CEU seminars  Instead of reducing membership dues for attendance, perhaps allow for two for one pricing. This would be a saving in education costs to contractors and will increase attendance  Encourage members and chapters to bring one non‐member with a FREE exhibits hall pass  Continue a strong marketing campaign to related trades  Begin the marketing of future shows within 30 days of the current show and consistently  Consider combining or co‐locating show with other shows or venues like AFA’s without losing our identity

MARKETING CAMPAIGN:

FENCETECH 2013: This task force has reviewed the marketing plan for 2013 and would like the board and FENCETECH committee to implement all of the items to promote Houston. The Task Force, with the help of the Houston CVB has identified 28,000 industry professionals all within 10 counties or 50 mile radius of the convention center. The plan outlines targeted promotion to pool & spa installers, urban planners, landscape architect, landscape contractors, builders, remodelers, general contractors and fence, deck and railing professionals. The plan also outlines additional exhibitor tools for shared promotion. Have FENCETECH staff attend as many chapter events promoting Houston and provide chapters with promotional tools to incorporate into their standing agendas for meetings Future FENCETECH Marketing: We recommend that the FENCETECH committee continue to aggressively market to related trades to increase attendance and focus on member benefits. The FENCETECH committee should also evaluate the marketing communication mix every year to make sure that the show is promoted extensively in print advertising, direct mail, website or online advertising, social media and other viral marketing strategies as well as improved press and public relations.

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CONCLUSION:

If FENCETECH were held every other year, there would be financial as well as strategic marketplace concerns. This Task Force reviewed several industry shows that went from an annual to bi‐annual schedule. Only the American Welding Society succeeded in a co‐location to keep their show alive but there association revenue streams are just a small fraction of what they use to be. Some organizers such as the American Welding Society, Instrument Society of America, and International Dairy Food Association all concluded that they lost sight of the smaller exhibitors and realized that attendees were not budgeting to attend the bi‐annual shows. Many of the shows were absorbed by an independent show organizer or fail to exist today. Sid Isenberg, CFP who has been on the Board of Governors, Board of Directors, Show Chair, Past President and loyal member of AFA recounted that in the recessionary period of the 1970s, IFIA’s board responded to the concerns of the larger exhibitors and took the show to a bi‐annual event. “The show failed miserably and we had to cancel the second bi‐annual event” said Isenberg. Another concern with holding FENCETECH every other year is that an independent show organizer would start a competing tradeshow creating a challenge for exhibitors to participate in related industry shows other than FENCETECH. The Builders’ Show, Pool & Spa Show, Remodelers Show & Deck Expo would all eagerly soak up the void left by AFA. This Task Force will continue to research other bi‐annual shows to find out if this was successful for them and how they achieved the success. Larger exhibitors need to follow market trends just like smaller exhibitors. We all need to reduce our costs until the economy picks up. The profit realized from FENCETECH is used each year to offset the expenses AFA incurs to provide programs and services to its members and the industry including development and delivering of all certifications, Certified Installer curriculum, AFA schools, AFA publications, and more. Through industry research on associations that have gone from annual to bi‐annual shows, these associations have succumbed to the pressure of large exhibitors and have forgotten that the small manufacturer/exhibitor heavily relies on trade shows to meet their annual sales goal. In a recent membership opinion poll, respondents placed a high premium on the value of networking at FENCETECH and chapter meetings. Without an annual trade show the value that AFA provides would diminish significantly. Contractors, manufacturers and suppliers don’t see the value in AFA membership. AFA needs to survey non‐ members to find out why they haven’t joined AFA and survey former members and find out why they have failed to re‐join. AFA needs to improve their value proposition and branding of membership. AFA also needs to re‐evaluate the member benefits but especially the costs of providing those benefits. AFA needs to determine how many members take advantage of the already provided benefits. All of the AFA benefits must be re‐assessed to see if they really are a benefit to the member. This must be done by surveying members, former members and non‐members of AFA. The members of this committee recommend that the board compile a progress report of all AFA committees after the Mid‐Year Meeting into one complete document that can be sent to the membership. When the complete document is sent to all members, it should contain a brief survey that asks them for their comments and suggestions, asks them what things they see of value as a member, ask them what benefits they would like to see implemented and finally how can AFA help them? At this time, after many discussions and research done by the Future of FENCETECH Task Force we recommend that FENCETECH remain an annual event.