Oil Prices Fuel Furnishings Hikes
Staff -- Tradeshow Week, 9/26/2005
While the price of telecom and computer equipment rentals drops, rising petroleum prices are being felt in the cost of carpeting, a substance that covers exhibition floors from coast to coast.
Carpet experienced the largest hike of the categories tracked in Tradeshow Week's 34th annual survey of furniture and accessory rates. This year, average prices rose in 10 categories, dropped in 17 categories and stayed the same in one category.
Designed to help exhibitors prepare realistic budgets, the survey is compiled using information solicited in the spring and summer of each year from show managers, general service contractors and venues. When available, discount rates are calculated in averages.
A show's size and complexity, time of year, required service level, distance from a warehouse and need for subcontractors all affect furniture and accessory pricing.
David Crockett, general manager of furnishings at GES Exposition Services, said labor cost increases have historically been a key driver of furnishings prices. But the cost of petroleum — which affects everything from raw materials through transportation — is now an increasingly visible component.
"We're getting increases from our suppliers in the teens. Over two years, we're seeing increases of over 30 percent," Crockett said.
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