By JAMIE SEARS RAWLINGS

Kentucky Correspondent

LOUISVILLE, Ky. — Talks that would have created an unprecedented partnership for the National Farm Machinery Show (NFMS) in Louisville have ended, according to the Assoc. of Equipment Manufacturers (AEM), which backed away from negotiations because of fundamental differences in the two groups’ goals.

AEM and the Kentucky State Fair Board, which manages the NFMS, signed a Letter of Intent and announced a verbal agreement in February to create a partnership where the AEM would assist with management and co-production of the annual February show. At nearly 1.2 million square feet of indoor exhibit space and attracting nearly 300,000 attendees, the NFMS is considered the nation’s largest indoor farm show.

“I think they saw value in us that we have a successful show already established, and we saw value in them that they are an industry leader in putting on trade shows and exhibitions,” said Steve Kelly, executive director of expositions for the Fair Board.

For AEM, the potential collaboration was a chance for it to achieve the goals of its membership, especially in the agriculture sector. “We as the AEM have a charge from our members to create meaningful engagement between their customers and equipment manufacturers,” explained Curt Blades, senior vice president, agriculture services.

“We do that a number of different ways, and one of the ways that has been proven successful over the years is through trade shows. We service five industries: construction, mining, utilities, forestry and agriculture. We have strong trade show presences in all of those areas, with agriculture being the weakest of all of those.

“Knowing the position that the NFMS in Louisville has always had with its nice attendance and certainly its strong exhibitor presence, it seemed like a really great opportunity for us to have a partnership,” he said.

According to Kelly, over the course of the nearly nine-month negotiation with several meetings and correspondences, it became clear the two groups’ goals diverged in several key areas. The first issue at odds was the gathering of demographic data from show attendees.

“If an exhibitor is going to spend the millions of dollars that they spend as a big exhibitor, even the thousands of dollars as a small exhibitor, it’s a big proportion of their marketing dollars and we feel very strongly that they need to know who is attending a particular show,” Blades said.

“With all of the AEM shows, we feel pretty strongly about having some sort of registration. Our members need leads, but they also know they are reaching the right audience and can measure their return on investment.”

The Fair Board believed this change would be a fundamental difference to the show’s core principles. “AEM’s approach to gathering that demographic data is making it a trade show where you have to register to get it,” Kelly noted. “That’s a philosophical difference in what the National Farm Machinery Show is.

“We open our doors to everyone. We don’t even charge an admission. We want to keep it open to the public.”

Additionally, AEM sought control over the show’s exhibitor floor plan in the agreement, which Kelly believed could have been to the detriment of longstanding exhibitors that had helped build the 52-year-old show.

“We felt like we needed to maintain the relationships that we’ve built over the years and not allow someone else to come in and move exhibitors around and put them where they thought they needed to be,” he said.

“There’s value to that, because we do feel that AEM, had we been able to work out a deal, would have helped us maximize our income or profits from this show by utilizing space better maybe than we do now. But at the same time, our board felt like we couldn’t do that at the expense of upsetting our current vendors.”

Both groups are hopeful that meaningful negotiations could resume in the future.

“I see the value of having a relationship and a partnership with AEM,” Kelly said. “They have an agriculture sector board that is some of the largest manufacturers that participate in the show, so obviously we would love to continue to work with them, but I think right now as far as a partnership or an agreement, we’re just way too far apart with what they would like to see with what our board would like to see.

“We do value what they bring to the table and we understand that they are great at what they do, but at this time we are just not willing to give up that control of the relationships we’ve built over the last 50 years.”

Blades echoed the sentiment. “I would love nothing more than to forge a relationship with any reputable trade show, including the National Farm Machinery Show, and I remain hopeful that there will be a chance for us to work together in the future.

“If the opportunity presents itself for us to have another meaningful conversation with the National Farm Machinery Show and the KSFB, we’d love to do that, but at this point, I don’t know that it’s in the cards, at least in the foreseeable future,” he said.