At the beginning of the year, McCormick Place was in trouble. As the first months of 2010 passed, the Chicago venue took multiple hits from shows threatening to leave.
One such show was the International Housewares Association’s (IHA) International Home and Housewares Show (IHHS), whose organiser announced it would consider moving to Las Vegas or Orlando for the 2012 edition unless costs at McCormick were reduced.
At the time, association president Phil Brandl said: “Our exhibitors are critically concerned about the costs involved in exhibiting at or attending the show at McCormick Place.”
To halt the exodus, the venue’s interim board recommended a series of changes to the venue. Under suggested policies show organisers and exhibitors would be able to contract out their own electrical services and catering to companies outside the venue.
Because the venue is co-owned by the municipality – the city-level government – and the state, any changes to its governing structure have to go through the legislature, namely the House of Representatives, the state senate and Illinois governor Pat Quinn. In May, the senate approved the cost-cutting bill with a vote of 51 to six. MPEA chairman John Gates said: “This is a victory for our customers, our economy and the working people of Illinois.”
However, all was not as perfect as it seemed. After meeting several of Chicago’s major exhibition organisers, Gov Quinn stopped the bill in its tracks with a veto.
Although Quinn would not say so explicitly, media speculated his veto was in part due to the unprecedented power the bill would hand Jim Reilly as interim trustee.
On 27 May, the Illinois state legislature overrode Quinn’s veto of the sweeping reforms.
The long-awaited signing of the bill appeared to bear fruit quickly. The board of directors of the IHA voted the next day to begin negotiations with the MPEA on a long-term contract to keep the IHHS at McCormick Place beyond 2011.
The Exhibition Services and Contractors Association (ESCA), at first protested the proposed bill and cautioned against impulsive action that it felt would have far-reaching consequences.
Speaking to EW after the legislation went through, ESCA executive director Larry Arnaudet said: “From the very beginning, ESCA has wholeheartedly supported any changes that will reduce the cost of exhibition participation for all involved parties, short of any forms of exclusivity. It will be some time now until the various changes will be put into motion, and likely a gradual evolution will take place.”
McCormick GM David Causton tells EW: “With this new legislation we seek to better align ourselves with other convention cities like Las Vegas and Orlando. As these changes are implemented, you may see other venues following our lead to lower costs in this area due to industry trends and overall market demands.”
Also speaking to EW after the legislation had passed, Philip Brandl, president of the IHA, said: “It was purely a cost consideration. The costs of doing business in Chicago weren’t competitive with either Orlando or Las Vegas. The bill will lower our exhibitors’ costs, especially as it relates to set-up and dismantling, as well as food costs.
“I have no doubt that it will help in the short and long term,” he added.
