Chicago Meeting Matters

International Manufacturing Technology Show Re-Commits, Bringing more than 250,000 Attendees and Nearly $600 Million in Spending Back to Chicago

Mayor Daley, Convention Leaders Announce Latest Successes for Chicago’s Convention Industry

International Manufacturing Technology Show Re-Commits, Bringing more than 250,000 Attendees and Nearly $600 Million in Spending Back to Chicago

CHICAGO – Mayor Richard M. Daley joined Chicago’s convention and tourism leaders today in announcing the latest success story resulting from convention reform legislation recently enacted by the Illinois General Assembly. The International Manufacturing Technology Show (IMTS) is re-committing to Chicago for 2012, 2014 and 2016. IMTS, one of the country’s largest and most prestigious tradeshows, will deliver a total of more than 250,000 attendees and nearly $600 million in estimated direct expenditures to the City and the State over that three-year period.

Mayor Daley cited the IMTS announcement as further proof that the reform legislation has had a “profound and positive” impact, making Chicago’s convention industry as competitive as ever. “We’ve taken important steps to reform how we conduct our convention business, but we have to keep our momentum going. We intend to stay the course with these successful efforts and grow Chicago’s convention and tourism industry,” said Daley during a news conference held at McCormick Place.

Peter Eelman, Vice President, Exhibitions and Communications for the Association of Manufacturing Technology, said IMTS re-signed as a direct result of the convention reforms. “We are thrilled to be in Chicago because it is the best place to do business. Never before has that ever been clearer than right now, with the implementation of the historic McCormick Place reforms,” Eelman said. “The City, State and industry's commitment to the customer is unparalleled, and we are confident it will ensure our continued success in Chicago.”

In addition to IMTS, six current tradeshows have re-committed to host their shows in Chicago and three shows have signed on as new pieces of business. Collectively, this convention business now represents $1.6 Billion in estimated direct expenditures for Chicago and Illinois for future years.*(See list below.)

Eelman, Mayor Daley and other convention leaders spoke from the floor of the Orgill Fall Dealers Market, the first McCormick Place tradeshow to benefit from the new reforms. “Our move-in went extremely well and our exhibitors have already commented how much easier it was for them to set-up their booths under the new work-rule changes,” said Ron Beal, Chief Executive Officer of Orgill. “They’re also seeing a number of cost savings. These are tangible improvements at McCormick Place that we appreciate and we expect other tradeshows will too.”

“We are very pleased with the feedback regarding the early stages of Phase One implementation,” said David Causton, McCormick Place General Manager. “These changes were designed to provide the greatest flexibility and cost effectiveness to our show organizers, exhibitors and attendees.”

"Today, we began a new era at McCormick Place, which will positively impact hundreds of thousands of Chicagoans whose livelihoods depend upon the convention industry” said Jim Reilly, Trustee of the Metropolitan Pier and Exposition Authority (MPEA), owner and operator of McCormick Place and Navy Pier. “The convention reform legislation has allowed us to make substantive changes, resulting in decreased costs and increased flexibility for our customers. This should allow us to retain tradeshows and win back convention business for Chicago."

“Over the next 60 days, the Bureau expects to confirm more new and returning pieces of business representing more than $700 million in estimated direct expenditures to the city and state for future years,” said Tim Roby, President and CEO of the Chicago Convention & Tourism Bureau.

About the Convention Legislation Reform:

Legislation passed on May 27 brought sweeping changes to Chicago’s convention industry, lowering prices for customers and improving service for exhibitors and show management.

Phase One of implementation started August 1 and covers:

-

In addition to reduced crew sizes, there is a new standardization of Straight Time, Overtime, and Double Time Provisions for all show work completed by workers represented by a labor union.

-

Expanded Exhibitor Rights, which allow exhibitors or their full-time employees to complete a wide range of tasks which were previously prohibited. The rights are extended to all exhibitors regardless of the size of their show floor booth.

-

Significant changes to Focus One operations (the in-house electrical contractor), including a new name (Exhibitor and Technical Services), and changes to pricing and service delivery.

-

New pricing plans for banquet services, and cash sales provided by Chicago Restaurant Partners. Food and beverage will be sold with no commission to McCormick Place.

-

A new Automobile and Small Utility Vehicle policy that allows exhibitors to deliver, unload, and reload certain exhibits, equipment, and materials without paid assistance.

About Chicago’s Convention Industry:

Conventions and trade shows at McCormick Place are a vital economic resource for the City of Chicago and State of Illinois, generating more than 65,000 jobs and $8 billion in economic impact for the City and Sate.

# # #

*McCormick Place

List of recommitted and new business:

Re-committed pieces of business include:

-

International Manufacturing Technology Show (IMTS)

2012, 2014, 2016

Estimated delegate expenditure/year $200 million

-

International Housewares Association

March 2012 through 2016

Estimated delegate expenditure/year $79.6 million

-

American Academy of Ophthalmology

October 2010 – 2018 (even years)

Estimated delegate expenditure/year $40.2 million

-

American College of Cardiology

March 2012 ($49 million), 2017 ($55 million), 2020 ($60 million)

-

American Wind Energy Association

May 2013

Estimated delegate expenditure $34 million

-

Society for Neuroscience

October 2015- $62 million

Oct 2021- $69 million

-

Lions Club International

July 2017 - $40 million

New Business

-

ACE

April 2011, 2012

Estimated delegate expenditure/year $20 million

-

American Federation of State, County and Municipal Employees (AFSCME)

July 2014

Estimated delegate expenditure $16.3 million

-

LEGO KidsFest

October 2010

Estimated delegate expenditure $6 million

 

 

Download Mayor Daley Announces Latest Convention Successes

Mayor Daley Appoints Members to Reorganized Metropolitan Pier and Exposition Authority Board

June 25, 2010
Mayor’s Press Office
312-744-3334

MAYOR DALEY APPOINTS MEMBERS TO REORGANIZED METROPOLITAN PIER AND
EXPOSITION AUTHORITY BOARD

Must Continue to Act Boldly to Reinvent City’s Convention and Tourism Efforts, He Says

Mayor Richard M. Daley today appointed three members of the new, interim board of the Metropolitan Pier and Exposition Authority (MPEA), which was reorganized by legislation passed earlier this year by the Illinois General Assembly.

“To transform Chicago's economy so that we are creating new jobs and opportunity for Chicagoans from every neighborhood, we are working on a variety of fronts,” Daley said in a City Hall news conference.  “This year we've acted boldly -- our leaders in Springfield and Chicago working together -- to reinvent Chicago's tourism and convention efforts at Navy Pier and McCormick Place,” he said.

Under the legislation, the Mayor of Chicago and the Governor of Illinois each appoint three members of the board, a majority of whom then appoint a seventh member to serve as Chair. This interim board will serve an 18-month term after which a permanent board will be named.

The MPEA board’s responsibility is to attract trade shows, conventions and public events to Chicago and for managing McCormick Place and Navy Pier.

Mayor Daley’s appointments are:

• Roger J. Kiley, Jr., an attorney, whose primary practice areas include public law and government transactions. He served as a Cook County Circuit Court Judge from 1976-89 and as Daley’s Chief of Staff from 1995-96.

• Sarah Nava Garvey, board chair of the Shedd Aquarium and retired Vice President for Corporate Relations for the Boeing Company. She previously served as director of taxes for Boeing and as a partner in the
accounting firm of Deloitte and Touche, where she held several leadership positions in the tax and merger-and-acquisition areas and is a member of the board of the Civic Federation.

• Julian Green, who is director of media relations for MillerCoors where he is also responsible for directing the company’s external communications activities including corporate and financial communications and corporate social responsibility. Previously, he served as the director of communications and marketing for the Chicago Park District and also has experience working in government at the federal and municipal levels.

The Mayor said the McPier reorganization legislation has already had a “profound and positive impact” on the City’s convention business.

He said that in just the last few weeks, six conventions and trade shows have committed to hold their meetings in Chicago, which will result in an economic impact of more than $1 billion in spending.

“We've already taken important steps to reform how we conduct our convention business, but we’ve got to keep our momentum going,” Daley said.  “I think these individuals have the background and leadership experience to implement strong, creative solutions that will take our convention industry to the next level,” he said.

# # #

MAYOR DALEY APPOINTS CHAIR, THREE OTHER MEMBERS TO REORGANIZED MPEA BOARD

Part of Mayor's Ongoing Commitment to Restore Chicago's Competitive Edge As

a Convention and Tourism Destination

 

Mayor Richard M. Daley today re-appointed John Gates as chair and appointed

three new members of the interim board of the Metropolitan Pier and Exposition

Authority (MPEA), which was re-organized by legislation passed earlier this year

by the Illinois General Assembly.

 

“During the toughest economy that most of us can remember, we have a

responsibility to do all we can to stimulate our economic recovery. And that

means doing what's needed, now, to restore Chicago's competitive edge in the

convention and tourism industry," said Mayor Daley.

 

The Mayor of Chicago appoints the chairman and three members of the new 7-

member interim board and the Governor of Illinois appoints three members.

Previously the board, which is responsible for attracting trade shows,

conventions and public events to Chicago and for managing McCormick Place

and Navy Pier, had 13 members.

 

The interim board will serve until a new permanent board is created by the

General Assembly. The board will issue a report to the General Assembly’s

newly established Joint Committee on the Metropolitan Pier and Exposition

Authority by April 30, 2010. The Committee is co-chaired by the President of the

Senate and the Speaker of the House.

 

Mayor Daley’s appointments are:

John S. Gates, chair. Gates was appointed chair of the previous MPEA

board by Daley October 15, 2009, and had served as a board member

since 2007. He is Chairman and Chief Executive Officer of PortaeCo, a

private investment company. In addition, he serves on the boards of

several public sector, private and not-for-profit institutions.

André Rice, board member. Rice is president of Muller & Monroe Asset

Management, which he founded in 1999. He is a board member of the

Chicago Metropolitan Agency for Planning, to which he was also

appointed by Daley.

Bruce V. Rauner, board member. Rauner is Chairman of GTCR Golder

Rauner, a venture capital and private equity firm. He serves on the boards

of civic and philanthropic organizations including the Renaissance Schools

Fund. He is Chairman of the Education Committee of the Civic Committee

and Chairman of the Chicago Public Education Fund.

Sheila O’Grady, board member. O’Grady is president of the Illinois

Restaurant Association a non-profit trade association representing the

industry. She also serves as the President of the Board of Directors of

SOS Children’s Villages of Illinois and is a former chief of staff to Mayor

Daley.

 

“The worst economic recession in seventy years has brought into focus the

competitive disadvantages of the Chicago convention industry. We must act --

and act now -to change the way we do business so that Chicago is a premiere

destination around the world for the convention, trade and tourism industry,"

Daley said.

 

“We've already taken important steps to reform how we conduct our convention

business to make us more competitive, but we must do even more and I think

these individuals have the background and leadership experience to implement

strong, creative solutions that will take our convention industry to the next level.”

Download Mayor Daley MPEA Interim Board Appointments

Mayor Richard M. Daley Remarks on MPEA Proposed Labor Reform

REMARKS BY MAYOR RICHARD M. DALEY

Metropolitan Pier and Exposition Authority Proposed Labor Reform

Monday, January 11, 2010

Good afternoon.

 

Chicago's convention industry is one of the backbones of our economy.

If it isn't healthy, it costs us jobs, revenue and other economic activity.

 

As everyone knows, the recession alone has hit the nation's convention business hard, with revenue down at least 20 percent in cities across the country.

 

Unfortunately, for a variety of reasons, today Chicago's convention industry is struggling to remain competitive with other cities, including Orlando and Las Vegas.

 

To be honest, conventions were lost that shouldn't have been.

 

That's why, in the last few weeks, I’ve met with the Governor, with leaders from the Metropolitan Pier and Exposition Authority, with local labor leaders and others about what we must do to attract and retain conventions in Chicago as well as restore Chicago's competitive edge and position us as the nation's leading convention destination.

 

We've also formed a task force of Chicago convention leaders, labor leaders, show contractors, hospitality industry leaders and representatives from the City, the Governor’s Office and the General Assembly to address customer concerns and find solutions to our problems.

 

During the toughest economy that most of us can remember, we have a responsibility to do all we can to stimulate our economic recovery.  And that means coming up with creative strategies – and acting now – to help boost the convention and tourism industry.

 

The economic situation has sharpened the competitive disadvantages of the Chicago convention industry.

We face a clear choice: leave things the way they are and lose more conventions or we stand up to the challenge and act now to make fundamental changes in the way we do business.

 

Some important steps have already been taken, but we must do even more.

 

Today, the Governor and I are joining to support legislation that will be introduced in Springfield to make major changes in the way the MPEA operates. The legislation has three components:

 

First, it looks to reform labor relations and work rules by giving MPEA control of operations at Navy Pier and McCormick Place and getting rid of work rules that only add costs without providing any benefit to the customer.

The legislation also would establish the MPEA as a public employer and – as with other public employers – prohibit strikes against it.

 

This is a critical step that must be taken if we are to remain competitive in the convention field and provide jobs now and in the future for thousands of hard-working Chicagoans.

 

But, changing the way we do business at McPier does not begin and end with Labor. There must be shared sacrifice. 

 

That’s why the second component of the legislation will hold the contractors at McPier more accountable by allowing MPEA to audit them. This additional oversight will ensure that overall costs are being held to a reasonable level and that any contractor savings are passed on to the customer.

 

Finally, the third part of the legislation focuses on debt restructuring.  We need to ensure that MPEA has the financial tools its needs to respond to a changing economic environment. Just as a homeowner is able to refinance a home, MPEA needs to have flexibility to take full advantage of market conditions. 

 

By supporting legislation to restructure debt, MPEA will be in a stronger financial position in the short term and emerge from the recession in a position to grow and compete for future business.  In short, if we’re going to improve what Chicago offers the convention customer, then MPEA has to be able put together the most efficient and skilled work force possible and operate with a focus on customer satisfaction and value.

 

And in order to make that possible, the legislation we’re talking about today must be passed.

 

I want to thank the Governor and those in the tourism and hospitality industry for working together with us to change the way we do business at McPier. If these steps are enacted by the legislature, we'll save jobs, create new ones and bring much needed new revenue and other economic activity to Chicago and our region.

 

As I have said before, everything is on the table regarding tourism and conventions in Chicago.

We can and will be more competitive, but we need this legislation to make sure the convention industry again achieves its potential and again becomes the nation’s leading convention destination.

Thank you.

 

Download Mayor Richard M Daley Remarks - MPEA Proposed Labor Reform - January 11 2010

MAYOR DALEY, GOVERNOR QUINN, MPEA OFFICIALS SUPPORT LEGISLATION TO HELP CONVENTION INDUSTRY REMAIN COMPETITIVE AT MCCORMICK PLACE, NAVY PIER

 

Mayor Richard M. Daley, Governor Pat Quinn and officials of the Metropolitan Pier and Exposition Authority (MPEA) today joined in support of legislation to be introduced in the Illinois General Assembly aimed at holding contractors more accountable and giving MPEA the authority for debt restructuring and for changing work rules.

“Chicago’s convention industry is one of the backbones of our economy. If it isn’t healthy, it costs us jobs, revenue and other economic activity. If we’re going to improve what Chicago offers the convention customer, then MPEA has to be to able put together the most efficient and skilled work force possible and operate with a focus on customer satisfaction and value,” Daley said in a new conference held at City Hall, 121 N. LaSalle St.

“We must act now and take these steps to restore Chicago’s competitive edge and position as the nation’s leading convention destination. And to make that possible, the legislation we’re talking about today must be passed as soon as possible,” he said.

Daley pointed out that the travel and tourism industry supports 132,000 jobs in the Chicago economy. Without these jobs generated by domestic and international travelers’ spending, Chicago’s 2008 unemployment rate of 7 percent would have been more than double that – or 16.9 percent of the labor force.

In the last few weeks, he has met with the Governor, with leaders from the Metropolitan Pier and Exposition Authority, with local labor leaders and others about what must be done to attract and retain conventions in Chicago.

Daley acknowledged that even though the recession alone has hit the nation's convention business hard, with revenue down at least 20 percent in cities like Orlando and Las Vegas, the nation’s economic situation has also sharpened the competitive disadvantages of the Chicago convention industry.

“We face a clear choice: leave things the way they are and lose more conventions or we stand up to the challenge and act now to make fundamental changes in the way we do business,” Daley said.

The Mayor noted that in recent weeks, some important steps have already been taken including the formation of a task force of convention leaders, labor leaders, show contractors, hospitality industry leaders and representatives from the City, the Governor’s Office and the General Assembly to address convention customers’ concerns. “But, we must do even more,” the Mayor said. The proposed legislation is comprised of three components:

First, it holds the contractors at McPier more accountable by allowing MPEA to audit them. This additional oversight will ensure that overall costs are being held to a reasonable level and that any contractor savings are passed on to the customer.

Second, it ensures that MPEA has the financial tools it needs, like debt restructuring, to respond to a changing economic environment by having flexibility to take full advantage of market conditions. This will allow for the MPEA to be in a stronger financial position in the short term and emerge from the recession in a position to grow and compete for future business.

Third, it gives MPEA control of operations at Navy Pier and McCormick Place and gets rid of work rules that only add costs without providing any benefit to the customer. It also would establish the MPEA as a public employer and – as with other public employers – prohibit strikes against it.

“If these steps are enacted by the legislature, we'll save jobs, create new ones and bring much needed new revenue and other economic activity to Chicago and our region,” said Daley.

###

Download Richard M Daley - News Release - January 10 2010

Download MPEA - News Release - January 10 2010