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| McCormick Place (mpea.com photo) |
Posted: Thursday, 12 November 2009 6:28AM
High costs drive major trade show out of Chicago
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CHICAGO (CBS/WBBM) ― Chicago ditched. Tens of thousands of outsiders say it's too expensive to spend their money here; $52 million would have been pumped into our economy by some 28,000 visitors. Instead, a major trade show says it's leaving Chicago behind for good.
This week, CBS 2 reported on outrage over the hundred dollar case of Pepsi. Exhibitors feeling ripped off. Threatening not to come back.
Now, it's happened. McCormick Place electricians were the straw that broke the camel's back for one Chicagoan who says he reluctantly said "no" to bringing his convention back home.
The Tribune reports the Healthcare Information and Management Systems Society, which held its annual meeting at McCormick Place for the first time in April, is taking its 2012 show to Las Vegas instead.
Healthcare Information and Management Systems CEO Steve Lieber told CBS2 it's all because of the electricians.
"This was the only reason why," Lieber said.
It was a painful decision for the Chicago-based trade association, whose first trip here for its annual convention impressed its members, until they got the electricians' bills.
"Our costs were about $200,000 more," said Lieber. "So it went from $40,000 to $240,000 for the electrical work alone."
At McCormick Place on Wednesday, another trade group was wrapping up its show. It was a smaller convention, showcasing products to help aging seniors continue to lead independent lives.
It's worth it to be in Chicago, organizers said, despite the higher cost.
"To do something that takes one person," said Vice President Sharon Sullivan of the American Association of Homes and Service for the Aging, "...it's taking three people and that's expensive."
It is a criticism Maribel Hopgood says the Metropolitan Pier and Exposition Authority is dealing with.
"Any circumstance which would prevent attracting business into the city of Chicago is of great concern," Hopgood said.
The city got the word Wednesday that the huge medical convention wouldn't return. They're also sweating out a decision by an even bigger show.
The International Plastics Showcase has been in Chicago since 1971, but now a spokesman says: "We are looking at other options."
Like Orlando. Though the medical trade group says it's deeper than union versus non-union towns.
"It was the number of hours and the number of people it took to do the identical job," Lieber said.
"Well, what I can tell you about that is certainly we realize cost is an issue and decided to assess our operations from top to bottom including the issue you just pointed out," Hopgood said.
Lieber agrees.
"I think there's a compelling reason. Maybe $40 million compelling reasons to address this issue. You have to. Because it's a tremendous impact on us as a city in terms of that lost tax revenue that flows in," Lieber said.
And the hotel, restaurant and transportation jobs. Think about it; $50 million gone. Another $100 million hanging in the balance.
Two months ago, McCormick Place quietly fired two-thirds of its electricians, promising to bring back only the best, and only when they're needed; trying to change the work rules and work ethic that's already cost Chicago tens of millions of dollars.
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Contents of this site are Copyright 2009 by CBS 2. WBBM contributed to this report.
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