The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Large Conventions Moving Out of Chicago Citing City and Union Gouging

Posted by iusbvision on November 24, 2009

Why do I say gouging? By moving their convention to Orlando the plastics industry trade show saved $20 Million.

WGN:

CHICAGO – The loss of a second trade show that meant big business for Chicago is putting quick and powerful pressure on McCormick Place, the city’s showcase convention center, to combat the impression that the Second City costs too much to visit.

The plastics industry trade show on Tuesday said it is moving to Orlando, Fla., for 2012 and 2015 after nearly four decades in Chicago. The announcement follows a decision by the Healthcare Information and Management Systems Society last week to move its 2012 annual meeting to Las Vegas. Both shows cited the high cost of doing business in Chicago.

The plastics show said much of the savings in moving to Orlando will be derived from travel expenses, but officials say the high cost of union labor to assemble anything at McCormick put a crimp in exhibitor’s willingness to bring along their sophisticated machines. Seeing those machines in action is critical to buyers.

“With the cost structure in Orlando, we can put on a more high-quality event,” Carteaux said.

By moving to Orlando’s Orange County Convention Center, average exhibitor costs would drop by 48 percent for utilities, 19 percent for on-site hauling and rigging, 23 percent for lodging and 11 percent for travel, the trade group determined in an in-depth study this year.

The group examined detailed bills from the 2009 show, and compared them to projected costs in Orlando in 2012. For example, one exhibitor with a midsize booth paid $6,167 for utility service at McCormick Place, but would see that cut by 43 percent, or $2,648, in Orlando due to lower labor charges, the group determined.

Union work rules are another issue.

The extra labor expense of putting on a show in Chicago is often due to union rules that require certain levels of staffing and don’t permit exhibitors to perform many of the tasks required to build exhibits.

 

One Response to “Large Conventions Moving Out of Chicago Citing City and Union Gouging”

  1. j said

    Do people realy deserve 100k a year to set up a stupid booth … it is a stupid union scam screwing society.. good ridance if privatized.

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