Tag Archive | "drayage"

Sweeping Changes at McCormick Place

Sweeping Changes at McCormick Place

The following memo is from David R. Causton, General Manager, McCormick Place.  The memo outlines some important changes to how work is done at McCormick.  The question is, will it be enough…

On behalf the Metropolitan Pier and Exposition Authority, I am proud to announce that a new day has dawned in the Chicago convention industry. On May 27, 2010, the Illinois General Assembly enacted historic legislation in response to your demands for a sweeping transformation in the way business is conducted on MPEA premises. As a result of this legislation, show management, contractors and exhibitors will realize immediate and long-term benefits, and Chicago will become an even more competitive and attractive destination for conventions, trade shows, expositions and meetings.

While this legislation is effective upon enactment, the implementation process has only just begun. Preliminary preparations have long been underway, and the Authority will soon finalize a full-scale implementation plan in cooperation with its key partners. Certain changes will be implemented promptly. Other changes are wholesale modifications to the way business is conducted on our premises and thus will require a lengthier implementation period. The following examples illustrate the myriad complex tasks now required:

  • While the legislation expands the type of work that exhibitors may perform in their booths, it directs the Authority to develop rules and regulations to ensure that these new exhibitor rights are exercised consistent with the training and safety requirements for such work.
  • Exhibitors may now unload and load privately owned vehicles using non-motorized hand trucks and dollies in areas designated by MPEA for such purposes. The Authority must evaluate the logistics of this new policy and identify the areas where such unloading and loading may occur safely.
  • The legislation establishes new rules governing when show managers and contractors may charge exhibitors for labor services on a straight-time, time-and-one-half or double-time basis and how such services must be billed. The implementation of this provision will require an audit of current wage structures and a new communications piece regarding labor costs and billing practices.
  • While the legislation eliminates “stand-by labor” and requires all union stewards to be “working stewards,” it authorizes the Authority to exercise its discretion to determine whether more than one working steward may be necessary depending on the building or show at issue. The Authority will develop protocols for evaluating when more than one working steward may be required.
  • The legislation establishes a new Advisory Council to represent the interests of all stakeholders and regularly advise the Authority on critical operations issues. To illustrate, the Authority now has the legal right to determine the work jurisdictions of “show labor” and crew sizes when appropriate on MPEA premises. The Authority may only, however, exercise these rights after consultation with the Advisory Council. For this reason, the Advisory Council will be established as promptly as possible to facilitate a resolution of these important policy considerations.
  • At present, MPEA’s FOCUS One is the exclusive provider of electrical services to show managers and exhibitors. By virtue of the legislation, MPEA may no longer serve as the exclusive provider, and customers may now choose either an in-house electrical contractor or an outside electrical contractor approved by the Authority. The Authority will begin to develop a list of approved electrical contractors and modify the FOCUS One model to accommodate this change.
  • The legislation requires itemized billing statements for utility services provided by MPEA and establishes pricing guidelines for food and beverage contracts. An audit of current practices and new communications pieces are necessary to implement this change.
  • The Authority is solely responsible for administering and enforcing these new legislative requirements and must now establish the necessary governing regulations and enforcement mechanisms, including procedures for audits and contract reviews.

As the above issues and others are resolved, the Authority and its partners will then be required to amend current agreements and substantially revise existing MPEA policies and procedures, including, but not limited to, the following:

  • License Agreements
  • Registration Agreements
  • Right of Entry Agreements
  • MPEA Meeting Planners Guides
  • Exhibitor Manuals
  • MPEA Facility Protection Guidelines
  • McCormick Place Exhibitor and Utility Ordering Guides
  • Informational Publications on the MPEA Website

Undoubtedly, a great deal of work remains to be accomplished. MPEA and its partners embrace this challenge and reaffirm their commitment to implement this historic legislation in the most expeditious, efficient and communicative manner possible. Until further notice, you should continue to rely on existing agreements, arrangements, practices and policies. In the meantime, the Authority will continue to finalize the full-scale implementation plan and will communicate with you promptly upon its completion.

As has been said before, we are truly grateful for your support and diligence in this important endeavor and appreciate your insight and patience as we continue this collaborative venture. The future of Chicago’s convention industry is bright, and the best is yet to come thanks to your dedication and commitment.

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Drayage Counterpoint:  It’s the Labor Costs!

Drayage Counterpoint: It’s the Labor Costs!

In the post Drayage Debate: Chicago’s McCormick, we highlighted a local Chicago news report that investigated the seemingly outrageous costs of drayage. Ostensibly, these non-transparent costs seems to be hiding a lot of profit. All of this is underscored by the fact that Chicago has lost some major tradeshows in the past year and is in danger of losing more.

Trade show contractors have commissioned a study to look into why and are blaming labor. The following is from an article by Kathy Bergen at the Chicago Tribune: Read the full story

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Drayage Debate: Chicago's McCormick

Drayage Debate: Chicago's McCormick

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No wonder exhibitors are upset.

Jay Levine did a segment on (Chicago’s) McCormick Place losing tradeshow business.

Labor is shooting back at the idea that it’s them that’s making all the dough. Their evidence? Drayage bills.

They showed that an exhibitor can send a piece of equipment from China to LA for $4,000. Another $1,800 for truck to McCormick Place from LA. Cost to get it from the dock at McCormick Place to the exhibitor’s booth space? Just $17,000!!!

Then they interviewed the Gen.Mgr at McCormick Place and he said, “No question about it, the contractor for the show is making very big profits.”

Looks like labor and McCormick Place management is so tired of being made the scape goat that they’re both willing to point the finger at the show organizers.

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Free eBook: Exhibiting Green

Free eBook: Exhibiting Green

Going green in a booth design may seem like a luxury, particularly in today’s economy.  Rogers eBook Exhibiting Green offers some tips on booth strategies that are good for the planet and also save time and money.  Download the PDF to read more… Read the full story

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Drayage: An Inside Look at How It Works and How You Can Save (Part I)

Drayage: An Inside Look at How It Works and How You Can Save (Part I)

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Jeffrey Blackwell, president of The Rogers Company and B.J. Enright, president of TradeshowLogistics offer tips and strategies for saving money exhibiting at a tradeshow. They also speak about ways the industry can work together to make live events more effective selling and marketing opportunities. They also answer the age old question “What exactly is drayage and why does it cost so much?” This is part I of II.

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