ISC West 2020 Removes China Pavilion, No Plans To Cancel Or Postpone

By John Honovich, Published Feb 17, 2020, 08:52am EST (Info+)

ISC West plans to go on next month, amidst concerns over coronavirus. However, the Asia / China Pavilion has been removed, show organizers confirmed to IPVM.

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Inside this note, we examine:

  • ISC West input on how the show is handling concerns over coronavirus
  • Exhibitors impacted by the coronavirus
  • Other technology shows canceling or shrinking due to coronavirus
  • The potential impact on manufacturers exhibiting

[Update: Now over 100 China manufacturers have dropped out / been removed, including ~40 from the main show floor.]

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Comments (100)

This might turn out to be a positive thing. While 30 percent less attendees would be bad for the presenters, it would be great for those of us that go to the event. Last year, there were too many people. The food service in the area was overwhelmed and we couldn't get a table anywhere.

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Trying to eat in the hall is a mad house, try grand lux or other spot a few minutes outside. For dinner make reservations or schedule parties ahead of time and it will make it much easier.

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While 30 percent less attendees would be bad for the presenters, it would be great for those of us that go to the event.

That's a good point though it depends on who does not attend. If it's mostly attendees who do not attend, that will be great for the attendees who do come (though still a big issue for exhibitors who pay a premium for ISC West).

What would be worse for attendees is if certain exhibitors do not show or key people from those companies do not show, reducing value for attendees.

Hard to tell how it will play. And to be clear, maybe 30% down is too pessimistic, hard to know how applicable the results for ISE will be for ISC West.

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Update/Correction: ADT has 2 booths this year, keeping the ADT Authorized Dealer Program and adding a second 40 x 50 booth for ADT Commerical.

Also, Nissan is not exhibiting this year (last year 40x50), though the truck booths typically have low traffic anyway.

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I have often wondered how much value the truck companies get out of the show. Relative to their overall marketing budget, this is probably not a big spend. While it is nice for integrators to be able to see multiple vehicles at once, I would think part of a buying decision for them would also be based on local dealer presence. If the local Nissan dealer, for example, is too far away, that might affect buying decisions if it would not be easy to have warranty and service work done.

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will Norton or McAffe be attending?

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Hmm... Are you genuinely wondering or are you making a joke about antivirus?

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i'm genuinely joking :)

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As en exhibitor i'm worried on decline of visitors but we have not other choice other to be there since no one will give us a refund if we don't.

We prefer overwhelmed attendance than empty halls.

It's weird reed won't admit who has cancelled if any, floor plan seems to be unchanged.

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Will the cancelled booths cause refunds to vendors? Curious how the booth contracts are worded.

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I promise you that no refund will be given...I recall when Sandy hit NYC about a week or so before the ISC East Show...We were notified that we had 3 days to arrange for our booth and equipment that was at the Javits Center to be collected. This of course was on our dime..They then rescheduled the event and with the city still a mess we decided to cut our losses and not attend...Several of our partners did go and reported to my that not coming was the best decision. Fact of the matter is, if the contract does not cover a refund even if there is a "Declared State of Emergency" then this virus will not result in you a refund...

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Rodney, Rick, thanks! I asked Reed to respond.

Generally speaking, I am curious about the applicability here of force majeure ("chance occurrence, unavoidable accident" is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties ... prevents one or both parties from fulfilling their obligations under the contract.). For example, numerous Chinese companies are invoking force majeure, reports Xinhua.

Whether or not they can for ISC West, I am not clear but hopefully, Reed can comment on that aspect.

Interesting about Hurrican Sandy and ISC East, Rick!

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Here is a link to the ISC West Contract if anyone wants to take a look...

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Rick, thanks, interesting.

Below, I've excerpted the force majeure section:

I am not an attorney and we are looking to hire one full-time.

That said, the way I read it is that this clause gives the right to the show but none to the exhibitors. It is consistent with what Rick explains happened in 2012 with the rescheduling.

What I don't understand is what, if any rights, this gives to exhibitors that are impacted by the coronavirus lockdown?

I did ask Reed to comment on this. They are off for the Federal holiday but I expect a response tomorrow.

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this is totally dependent on the good will of the organizer.

if the Chinese don't come, ISC can choose no refunds, or refund some of the money, or allow to roll over to next year, whatever is possible for them.

you need to remember that ISC also have expenses, the Venetian will not refund them for the space not used, so their ability to refund is also limited.

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you need to remember that ISC also have expenses, the Venetian will not refund them for the space not used, so their ability to refund is also limited.

Correct, this is why "the show will go on", even if there is nobody there to exhibit or attend. We are too close to make any major changes at this point (IMO).

I am looking forward to it.

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“I am not an attorney and we are looking to hire one full-time.”

John’s gonna get a leash lol

seriously though, a good idea which should help with additional viewpoints (legal interpretation) and add clarity

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Response: Credits For China Manufacturers

The show says that they are offering credits to future shows to China manufacturers that cannot attend:

For any sums already paid, ISC is offering a credit (for ISC West 2021, or ISC East 2020 or 2021) to customers who are unable to travel from mainland China due to the travel restrictions.

I think that's the right thing to do and probably better for business long-term. As a practical matter, very few of these China companies exhibit at ISC East so this effectively means rolling over / crediting towards ISC West 2021.

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It's up to each business to plan for their financial risks with suitable insurance. It's not the show sponsor's mandate.

The performing arts and professional sports industries all purchase hazard insurance to cover loss of revenue in scenarios such as this. There are many types of specialized Property & Casualty insurance to cover almost any risk.

Loss of revenue due to unforeseen reasons is a standard risk.

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If I were Verkada I would pull out of the show for marketing purposes. They have so many people calling end users that a boxy little booth is unlikely to help them much. Then when the corona virus infects the remainder of the industry they can proclaim:

"The dinosaurs are all dying off!"

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For context, 90%+ of Verkada's sales and marketing is done online. Even at ISC West, they only have a 10 x 20 booth.

If health concerns about traveling continue or rise, that would certainly be a benefit for Verkada.

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Also, Verkada loves referring to everyone else in the security industry as dinosaurs. We are boomer heavy, but not necessarily dinosaurs.

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I literally searched for 'boomer dinosaur meme', top result:

Image result for boomer dinosaurs mem

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you need to remember that ISC also have expenses, the Venetian will not refund them for the space not used, so their ability to refund is also limited.

If I were Verkada I would just put two inside sales people in the booth, doing their usual day job, along with the sales leaderboard. Eg: have them calling on customers, closing deals, etc. Let everyone watch the numbers tick up. In between calls they could sign people up. It would be a spectacle, in the best way for them.

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A smart non asian manufacturer should be giving out masks with their logo on it. Security + Protection.

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We actually joked about this in our staff meeting this morning. However someone in our supply chain brought up 2 problems with this ...

1) The masks are all made in China

2) They're sold out

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Notwithstanding the potential health and marketing benefits of mask giveaways, I think most Americans are going to be unpleasantly surprised about how uncomfortable and annoying wearing masks are, especially when trying to have a business conversation.

To be clear, not arguing against wearing them, just pointing out that they could help address one problem but increase another one.

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I am going to bring a gas mask that I keep in our bug out bag at home to wear at the show. I think the Darth Vader voice effect it has will add some gravitas to our booth demos. Stop by and say hello.

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...and come wrapped in bubble wrap...

I DARE you to pop the bubbles

rofl

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A smart Asian manufacturer would bring their video intercom line, with the employees behind a plexiglass barrier. Do all exhibit interactions through the intercom as part of the demo.

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I never saw much activity in the Chinese section when walking through, them being gone will not detract from my show experience. I hadn't even slightly considered the health implications of the show, I have so many meetings on the schedule too, this made me think about it.

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With 200 votes, our poll indicates that only a minority, but significant minority, have concerns about coronavirus:

Interestingly, when looking at the breakdown of integrator vs manufacturer segments votes, integrators have significantly more of a concern than manufacturers. That is consistent with people that I have spoken with anecdotally. My hypothesis about that is that manufacturers have more invested in the show (literally in paying for the show as well as opportunity to get deals). Integrators, on average, likely do not have as much to lose from not attending. Thoughts?

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I'm also going to posit that small to medium integrators have much more to lose if a few of their most important people get sick. I know if my company lost our top two guys (who usually attend) for a week or two, there would be absolute mayhem. They do most of the project management, scheduling, estimating, problem-solving, meeting with prospective clients, etc. It would be bad.

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It could be due to manufacturers are used to traveling or travel all the time. Also likely to travel internationally. Integrators, typically travel much less if at all.

I’m on multiple domestic flights a week, every week. No concern for me. Not to diminish the impact of the virus, but fear spreads further.

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Reed, is providing one of these for the attendees cheaper than cancelling the show?

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Dell announced today they’re selling RSA for over $2 Billion, so they may have had other motivations not to cancel. :)

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IMO, Reed needs to move the remaining booths in that little ballroom area, or give those people a refund. It's 3 dozen no-name companies (several with "Shenzen" in the name, so they are going to be no-shows) that nobody has heard of. It's going to have all the vibe and energy of a funeral home in there.

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That's an interesting idea. Once the various China companies on the main show floor officially cancel / are removed from the floor, they likely will have room. It could solve two problems - holes on the main show floor and the handful of companies in the ballroom area.

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Interesting email from SDM:

SDM has a post on this. That newsletter title is going to scare...

One thing worth clarifying on that post:

The ban is not expected to affect the overall attendance of the ISC West show, which is typically around 30,000 attendees. As Wise states, “It’s really been more of the exhibiting companies that were coming from China, not the attendees.”

ISC West typically has, as they call it, "over 30,000 security professionals", not 30,000 attendees. The 30,000 number they report consists of ~20,000 attendees and ~10,000 exhibitor staff. The exhibitor staff number is going to be down because there are easily hundreds from China that normally come.

And our poll indicates that there are going to be some drop in attendees as well. What percentage remains to be seen and how the coronavirus risk reduces or increases in the next month.

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Now, Security Sales has an ominous newsletter and post:

By contrast, SecurityInformed has a more optimistic tone:

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2 new large booth got canceled.

30070 and 22117 are now empty as of this morning.

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Both booths were Chinese manufacturers I believe. 31073 just cancelled too and the one next to it 32072 has to be next (it is also Chinese).

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It seems today is the day or something, 2 more 20x20 6097 and 4097 got cleared out.

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Thanks for pointing that out, we have asked Reed / ISC West for clarification.

On the Shenzhen list in the post, on Monday it had 14, now it is down to 8, compared:

There are many other China manufacturer booths, that is just a sample from the ones with Shen in their listed names.

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Yep, and it continues... 30064 which is another big 30x30 got cleared out.

Was occupied by Tiandy Technologies CO.,LTD

Also just happend 27103 Wanjiaan Interconnected Technology Co.,Ltd gone

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Was occupied by Tiandy Technologies CO.,LTD

Yep, actually, 5 minutes ago when I checked it was there:

Now, for $71,620, it can be yours:

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Today is the day apparently since there's a wave of cancellation.
I assume today is the day Reed is putting into the system all the cancellations since there are 2 more 20x20

YTOT 12121

www.raysharp.cn/en 11127

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The big Chinese keeps dropping

23099 Qualvision TechnologyCo., Ltd

But many small ones too

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23099 Qualvision TechnologyCo., Ltd

Qualivision had a 20 x 40 right behind DMP:

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Reed confirmed that booths are being updated today, as Dori has well reported. They said that at the end of this week they will provide a summary report of changes. We will add that then.

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Just talked with them, no discount, no moving until the very last minute to better locations.

They say people are "booking" last minute...

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I don't know what Reed / ISC West approach to this is but my thought is that if you start offering discounts now, what happens to your existing customers who paid full price a year ago? Is it fair to them? Will they complain?

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This year we will have all our booth staff wear Purple mSD uniforms. These are proven to prevent no virus but does limit the number of people that will approach you.

Kudos to IPVM for pointing this one out last year. You were way ahead of this.

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Sounds like a great time for getting a DEAL on ISC booth!! I smell some last minute sale!

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great time for getting a DEAL on ISC booth!!

Lol, serious question, what type of discount would close the deal? 25%? 50%?

Those bigger booths are really tough to fill at the last minute since it requires a lot of logistics to set up a booth like that less than a month away from the show.

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Somehow i got the feeling they will move the edges in and that's it, no discounts whatsoever.

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We are based in San Diego and LA... We can turn around a booth setup and drive it in in 24 hours!

I'll consider making the effort if offered 75% discount!

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Updated back half of the show floor plan. There are now 12 new vacant booths, shown in light blue, including quite a number of sizeable ones:

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I predict ISC West is going to have plenty of "meeting areas" and "coffee spots".

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The bad press will certainly hurt next year.

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Now South Korea is seeing a big spike in cases

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I said it long ago, why would anyone voluntarily attend ISC West or go to any crowded places for the time being. China and the surrounding countries (who do a ton of business with China) will be at the show. Its good that the pavillion is closed (which I also said it should be done) but there are big booths that have asian ties on the main floor.

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The silly disagrees here. They must have to go to the show.

It is in the wild. It is not contained. Again, WHY VOLUNTARILY go to ISC West???

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Here is good info on how the virus spreads.

Coronavirus Disease 2019 (COVID-19) | CDC

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ISC West provided a list of 39 China exhibitors that have dropped from the main show floor:

  • BOSMA Inc
  • Hangzhou Jufeng Technology Co.,Ltd.
  • Systech Electronics Ltd
  • Shenzhen Domenor Technology Co., Ltd
  • TOPLOCK INDUSTRY CO., LTD
  • Zhuhai Raysharp Technology Co.,Ltd.
  • C-Tech Intelligence & Technology
  • Dongguan YuTong Optical Technology Co., Ltd.
  • Stonkam
  • Union Optech (HK) CO., LTD
  • Zhongshan YiHongDa Electronic Technology Co., Ltd.
  • Shenzhen CSE technology Co.,ltd
  • Anviz Global Inc.
  • Qualvision TechnologyCo., Ltd
  • Shenzhen Wanjiaan Interconnected Technology Co., Ltd.
  • TIANDY TECHNOLOGIES CO LTD
  • Hanwang Technology Co.,Ltd
  • UNIPOE IOT Technology Co., Ltd.
  • Hangzhou Xinai Elec Co., Ltd
  • Shenzhen Hi-Net Technology Co.Ltd
  • Shenzhen Fushi Optical Co., Ltd.
  • Shenzhen Ealink Technology Co.,Ltd
  • Fibocom Wireless Inc
  • Shenzhen Sresky Co., Ltd
  • Shenzhen Baichuan Security Technology Co. Ltd
  • Shenzhen Kingthrive Electronics Co., Ltd
  • Secukey Technology Co., Ltd.
  • Shenzhen QOHO Electronics Co., Ltd
  • Dongguan A-Grade Lock Manufacture Co., Ltd
  • Fujian Forecam Optics Co., LTD
  • Wuhan Fanso Technology Co., Ltd
  • FOCtek Photonics,Inc.
  • Eve Energy Co LTD.
  • SHENZHEN TRACE OPTICAL CO.,LTD
  • HCB Battery Co., Ltd
  • THINK-FORCE
  • Beijing Landwell Electron Technology co.,ltd
  • Huizhou Huiderui Lithium Battery Technology Co., Ltd
  • Milesight Technology Co., Ltd.

Those are in addition to the ones that dropped from the side Ballroom / China Pavilion.

Notably, Dahua, Hikvision, TVT, and Uniview are all among ones still exhibiting.

The show added:

We are continuing to bring new exhibitors in and we’ll be looking at consolidation and any needed layout adjustments as we get closer to the show. As that occurs we’ll provide you a summary/insights.

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They would send them to neighboring countries, say Mexico, and fly to Vegas.

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Unrelated, but I do have a question. Why do Chinese companies frequently declare their province in their brand name? Is it a PRC requirement or just some mark of regional pride (like Texans)?

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Is it a PRC requirement or just some mark of regional pride (like Texans)?

Our understanding is that there is a legal requirement from the PRC State Administration for Industry and Commerce. Article 9 specified a company's name shall start with an administrative area with a few exceptions. Article 13 says you can choose not to have an area name if you fulfill one of the 4 conditions:

  • Authorized by the State Council
  • Registered at the central bureau of the State Administration for Industry and Commerce
  • More than 50m yuan in incorporation capital
  • Under other regulations of the State Administration for Industry and Commerce
That said, ISC West does not require companies to use that format and China manufacturers with more International experience will drop the formal name (e.g., Hikvision is technically the Hangzhou Hikvision Digital Technology Co. Ltd.).
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Milestone has now cancelled the APAC/EMA MIPS show scheduled for this April, saying:

The well-being of employees, partners and other stakeholders always take priority at Milestone

The Americas MIPS was held this past week in Dallas.

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Which goes to show that heavy Asian attended shows are being canceled but American aren't.

Also the extremely low number of cases in the US is interesting considering the high amount of Asian traffic to the US.

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American aren't.

Facebook cancelled its upcoming San Francisco conference.

RSA continues but AT&T, IBM and Verizon all dropped out.

I do agree with you that Asian shows are more directly impacted but there is an impact in the US already.

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ONVIF cancelled this month's meeting in Singapore:

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Axis issued a press release on coronavirus, saying that while they have "no manufacturing in China. However, some of our sub-suppliers are located in China", which will cause delays in shipping / extended lead times for certain products.

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If you are a manufacturer there is a good chance that you are somewhat effected by this virus. We have been recently as we are facing a global shortage of components. When the Chinese factories are closed the factories in other countries become overwhelmed with the demand for goods. These factories in the chip market can only produce at a certain pace and are limited in the output they can provide.

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ISC West has now pinned their Coronavirus statement on the center of their home page, shown below:

Also, their guidance they are now giving on the show's status is more conservative:

Unless otherwise advised, our events are taking place as scheduled.

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SIA and Reed are too greedy to cancel this show. Best option is to pressure the board members and force SIA staff to cancel. Board of Directors | Security Industry Association

Scott Schafer, SIA Chairman of the Board of Directors

SCOTT SCHAFER

SMS AdvisorsTerm ends 2020

PIERRE TRAPANESE

Northland Control SystemsTerm ends 2022

Scott Dunn

SCOTT DUNN

Axis CommunicationsTerm ends 2022

DENIS HEBERT​

Feenics Inc.Term ends 2020

Lynn de Seve

LYNN DE SÉVE

GSA Schedules, Inc.Term ends 2022

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I’m actually quite thrilled that I will not be going this year. One less cluster of potentially infected people I have to worry about. With cases around the world growing and immunologists saying we are on the verge of a pandemic, I can sleep easier tonight knowing I won’t be there.

to those who are attending: wear your masks!

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The WHO announced they will no longer be using the word pandemic, instead they will say "health crisis" guess what they're already calling this?

"This isn't x it's y"

Also

"X=Y"

Guess all that high school algebra finally paid off?

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My projection is that the show will be a complete bust for the manufacturers that might as well attend since they have already paid for it. As an Integrator, I see no value in sending our people or suggesting that our customers travel to see new technology that will most likely be back ordered because of component delays. For once, it may be prudent to go to ISC East.

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Not good:

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I guess I will take the blame for all of this. Over the years I have whined and cried to my superiors to attend ISC West but never allowed to go. I have been to ASIS/GSX many times but there aren't near as many vendors. Eventually I gave up on my quest to attend ISC West and then this year I was asked to go.

Sure, why not I said this should be good. Now that I am going this will probably be one of the weakest shows in ISC history.

Again my apologies in advance!!

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IMO and FTR, there is no way this show is happening.

consider this alone:

you check into a hotel.

someone tests positive for CoVID in same hotel.

hotel gets lockdown for 14+ days.

Tenerife coronavirus: 1,000 guests at hotel quarantined

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Good point. I just upgraded my room to a mini suite, just in case.

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Good point. I just upgraded my room to a mini suite...

To your health:

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I am purposely not staying at the Venetian or Palazzo for this reason.

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Now the Olympics might be cancelled. Again, why would anyone voluntarily attend ISC West?

Tokyo 2020 Olympics could face 'cancellation' from coronavirus: IOC member - Business Insider

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Poll should be reset imo, the more I learn the more I’m probably not going.

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We are running a survey right now via email and already have 300+ responses.

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I just cancelled

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Yep

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Didn't cancel yet but I did confirm I can get a refund on my hotel and flights.

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Same.

No need to cancel at this point.

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The virus scares me the least. Being quarantined in Vegas and the panic that will ensue while being across the country from my family and company for 16 days to a month.

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I’m with a manufacturer and I definitely don’t want to go. Most people I talk to are also concerned.

I hope they cancel the freaking event! They might cancel the Olympics for F’s sake.

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Already cancelled and got refunds for everything

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If ISC West cancelled, GSX would have its best year ever.

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There might be a pandemic in the USA by September. GSX will be cancelled and ASIS will miss out on a massive portion of their revenue.

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