Trade Show Rejects McCormick Place Over Concerns About Costs
CHICAGO (CBS) -- Not long ago, most of the headlines about McCormick Place touted its revival, following a series of sweeping reforms that altered some of the work rules that had meant huge expenses for exhibitors.
But with those reforms now being challenged in court, exhibitors are once again refusing to hold their trade shows at the lakefront convention center due to concerns about high labor costs.
The latest trade show to reject McCormick Place is the Car Care World Expo, which has elected to hold its 2013 show elsewhere.
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Crain's Chicago Business reported Tuesday that International Carwash Association chief executive officer Eric Wulf said the uncertainty of the work-rule reforms due to the court challenge made Chicago a no-go for the convention.
The expo was last held in Chicago in 2002, and it has been held in Las Vegas for the past five years.
The decision comes on the heels of a three-month investigation by Crain's, which concludes that even though lawmakers pushed through work-rule changes and wage cuts, exhibitors still experience exorbitantly high costs at McCormick Place.
In particular, Crain's says the contractors that handle most of the shows – Freeman and Global Experience Specialists Inc. – still charge rates higher than many convention centers.
Back in January, the news coming from McCormick Place seemed to be good. Two years after bolting over high costs, the Healthcare and Information and Management Systems Society decided to return to McCormick Place in 2015 and 2019.
Healthcare Information and Management Systems met for the first time at McCormick Place in 2009, drawing 27,000 attendees and generating an estimated $55 million in spending. The show was supposed to return in 2012, but instead chose Las Vegas for cost reasons.
In addition to the Healthcare Information and Management Systems convention, the International Plastics Exposition announced in the fall of 2009 that it was moving to Orlando, Fla., after being held in Chicago since 1971. Championship Auto Shows Inc. also moved its O'Reilly Auto Parts World of Wheels Show from McCormick Place to the Donald E. Stephens Convention Center in Rosemont.
In addition to the high union fees, exhibitors complained that there were too many different unions, jurisdictions and work rules involved in the setup process.
The resulting outrage resulted in the state-mandated overhaul. State lawmakers passed a bill that cut labor costs by allowing exhibitors to do their own setup, and also by letting them use outside electricians and bring in their own food, bypassing convention center unions. It doubled the ground transportation tax charged on trips to and from Chicago's airports to boost tourism spending.
The overhaul survived a veto by Gov. Pat Quinn, and then-Mayor Richard M. Daley credited the changes for keeping McCormick Place alive.
McCormick Place officials asked that the reforms remain in place while the case is on appeal, but right after the ruling, several exhibitors – including the International Housewares Association and the American College of Surgeons – said they may take their business elsewhere.
