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Concrete Giant Tames Jungle

CONEXPO-CON/AGG exceeds previous levels for size, attendance

By Heidi Genoist -- Tradeshow Week, 4/4/2005

Las VegasCONEXPO-CON/AGG 2005 broke a couple of its own records and came close to surpassing its highest attendance number ever.

The triennial tradeshow for the construction equipment industry, collocated with the fluid power industry show IFPE 2005, drew an estimated 124,200 industry professionals to visit 1,968 companies occupying 1.9 million net square feet of exhibit space at the Las Vegas Convention Center, reported co-organizers the Assn. of Equipment Manufacturers and the Intl. Concrete and Aggregates Group. The attendance figures will be audited.

The show nearly met its 1999 attendance record of 124,261 professionals. Still, organizers were satisfied with the turnout. A concerted effort to draw international buyers paid off, with 21,220 attendees coming from 130 countries outside the United States — 29 percent more than in 2002.

There were also a record 44 official foreign customer delegations, including one comprised of about 40 private-sector business people from Iraq.

The show's owners (AEM, the Natl. Ready Mixed Concrete Assn. and the Natl. Stone, Sand and Gravel Assn.) are counting on it. Rossi Ralenkotter, president of the Las Vegas Convention & Visitors Authority, reported that CONEXPO is booked through 2023.

He estimated the non-gaming economic impact of the 2005 show at $160 million.

By the show's next staging, March 11–15, 2008, the LVCVA plans to have completed the first phase of a $400 million upgrade of the convention center. The project will add about 300,000 sq. ft. of space — mostly for meetings and general sessions.

When asked whether the show planned to expand to other venues in Las Vegas, Peter Vlahos, co-managing director of CONEXPO-CON/AGG for ICAG, said, "That will be up to show management."

Vlahos was referring to the consolidation of the show's management under one roof at AEM, a change that took effect after this show and led to the elimination of ICAG's office in Maryland, including the positions of Vlahos and his staff.

Vlahos reported that he was still planning his next career move.

Meanwhile, sole production responsibilities fall on the managing director of AEM's Show Management Services division, Kenneth Snover, formerly a CONEXPO exhibit manager for Ingersoll-Rand for nearly two decades. The 2005 show was Snover's first on the show management side.

He said, with the management consolidation, some of his existing staff would take on new responsibilities and some new people might be hired. However, he stressed, "the transition will be seamless. The attendee will not even know the difference."

Exhibitors are aware of the change, but not concerned about it. "I don't think anything will change, because the core (membership) will remain the same," said Linda Page, sales promotion and tradeshow coordinator for construction equipment manufacturer Link-Belt. She pointed out that major industry players have participants who stay active in AEM, so "we always know what to expect."

She and other exhibitors that spoke with Tradeshow Week were pleased with traffic at the show. "It seems like there are more people coming through here every time," she noted. "The association has joined with a lot of smaller groups, and that keeps new buyers coming in."

AEM Chairman Gerald Shaheen, group president of Caterpillar, noted that nine other organizations collocated their conventions with CONEXPO.

Still, when it comes to expanding the show's focus — into, say, materials — organizers balk.

"Those discussions are constantly taking place, but there's a right size and right focus for any show," Vlahos said.

 

Korean I&D Firm Riles Union

When J-Design decided to use Korean workers for the I&D of Daewoo Heavy Industries & Machinery's 20,240 square foot exhibit at CONEXPO-CON/AGG 2005, the I&D contractor got more than it bargained for: an exhibit full of irritated Teamsters and show organizers wondering why the company was breaking labor rules.

Daewoo Marketing Manager Jeff Wolfe said the corporation, which has exhibited at CONEXPO for many years, was aware of the show's rules, and thought it had communicated them clearly to J-Design, headquartered in Seoul, South Korea.

Nonetheless, the I&D house brought a large group of workers from South Korea (also Daewoo's home base) and paid them a lower rate to set up the exhibit than the minimum established in the agreement between Las Vegas general contractors and the Teamsters Local 631 union.

Wolfe believes it was a case of cultural misunderstanding. J-Design has worked on bauma in Munich and Intermat in Paris and believed the American CONEXPO would follow these European models.

Milan Dobrijevich, business agent for the union in Las Vegas, said the real problem was that the workers "weren't legal, by facility or association (show management) rules, because they weren't company employees."

He explained that standard rules require companies supplying their own workers to furnish basic information about them to the union, as the major supplier and overseer of labor.

"If you have an individual working illegally and they get hurt, it's a bad situation for everybody," he said. "Nobody wants that."

Wolfe said Daewoo was "terribly embarrassed" by the situation, which required show managers, the Assn. of Equipment Manufacturers and the Intl. Concrete and Aggregates Group, to step in and mediate.

Ultimately, Wolfe said, the situation was resolved by Daewoo hiring enough union labor to achieve about a 3-1 ratio of nonunion to union labor.

Dobrijevich said the union's goal was to have most of the specialized work handled by trained operators. The independent Korean force was put on less risky finishing work.

That was better than the alternative, said Kenneth Snover, managing director of CONEXPO-CON/AGG Show Management Services.

"If they hadn't come to a resolution, they weren't going to get that exhibit up," Snover said. "By the time the attendee gets here, they shouldn't know that anything has happened."

To make sure that was the case, Snover and other organizers, including AEM President Dennis Slater, worked closely with the Teamsters and general contractor GES Exposition Services.

Dobrijevich said, "We would like to work with everybody. The Teamsters want shows to succeed, because then they get bigger for everybody."

"Dennis and his team were great," said Wolfe. "We're truly sorry this happened."

However, he added a suggestion — not just for CONEXPO, but for any show with a large contingency of foreign exhibitors: "It would be helpful in the future to have a handbook of work rules translated into other languages."

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