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:

…the average straight-time labor cost in Chicago is $66.30 an hour, compared with $42.62 in Las Vegas and $26.83 in Orlando, according to the study by two major trade show contractors at McCormick Place: Freeman and GES Exposition Services, which is being renamed Global Experience Specialists. Those figures reflect the cost to the contractors and include benefits and payroll taxes.

These stark differences and others were outlined in a report shared with the Metropolitan Pier and Exposition Authority, the state-city agency known as McPier that owns and operates McCormick Place and is trying to cut exhibitor costs there. A copy was obtained by the Tribune.

The analysis examines pay and rules for the four unions that have contracts with Freeman and GES, including the Teamsters, riggers, carpenters and decorators. And while these cost elements grate on many trade shows and exhibitors, there are other complaints as well, ranging from the in-house electrical service to the price tags on food and beverages.

Still, the analysis shows some big labor-cost gaps between Chicago and its top rivals, which have fewer unions doing the same work. A couple of snapshots:

•Chicago requires the presence of four non-working union stewards for the duration of the show, including setup and tear-down days. The cost for 12 days, in two halls, is an estimated $50,915. In Las Vegas, only one non-working steward is required, at a cost of $8,183; in Orlando, none is required.

•Chicago contracts require a standby labor pool of 10 tradesmen during the event, which can cost at least $40,333 per day for a four-day show in two halls. Las Vegas and Orlando require standby pools of two, at an estimated daily cost of $5,455 in Las Vegas and $3,434 in Orlando.

So which is it? High profits from the presenters or high labor costs? Or both?

For more perspective, we recommend our own look at the topic in Drayage Debate, Part I and Part II.

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.