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Rate Fluctuations: Never Ever on a Sunday

By Rachelle Crum -- Tradeshow Week, 6/26/2006

According to the 26th annual Tradeshow Week Survey of U.S. Labor Rates, things are looking good for show managers that avoid Sundays for moving shows in and out of venues. For those who are stuck with Sundays, that's another story.

The survey indicates that the average hourly cost of a general decorator working during regular time declined ever so slightly to $68.14, down 0.8 percent from $68.69 in 2005. During overtime hours, the average hourly rate for general decorators decreased even further, by 2.2 percent, from $109.93 in 2005 to $107.52 this year. However, averages for work on Sunday this year increased from $122.57 to $129.04, a 5.3-percent jump.

In the survey, the situation looks the same for this year's average rates for general drayage. During regular time, the average hourly rate is $65.13, 1.6 percent less than the $66.22 average rate in 2005. For overtime, the average hourly rate also decreased, from $101.74 to $99.03, a 2.7-percent difference. But on Sundays this year, the average hourly rate for general drayage is $121.72, 8.2 percent more than the $112.48 rate in 2005.

Jeff Quade, executive vice president of sales and marketing for GES Exposition Services, said it surprised him that any category in the survey saw decreases, because he sees wages and benefits increasing.

George E. Fern Co. spokesman Doug Briscoe said he's seen similar trends this year in his firm's agreements.

"I've seen where they've all increased about 2 to 3 percent ... based on the cost of living," Briscoe said.

Quade said show organizers shouldn't despair over fluctuating rates. When evaluating whether such national averages will impact their specific shows, he advised, they should consider several factors, including the size and scale of shows, the facility used, the days move-in and move-out occur, and show requirements.

"Certainly, venue has a tremendous impact on the efficiency of the move-in of a show and the price," Quade said. And if a show has extensive requirements, he added, "those exhibitors in that particular show are going to be paying above average rates."

In two other categories — electricians and forklifts with operators, both in the highest and lowest weight ranges — the Sunday rate increased for 2006, according to the survey. For riggers, the average hourly rate on Sunday in 2006 decreased 4.3 percent to $137.38, and the Sunday average hourly rate for plumbers remained essentially the same at $126.26.

Across the board, drayage costs appear to be lower in 2006 than last year. The largest decrease for drayage rates per hundred weight is 4.5 percent for direct crated shipments to exhibit halls.

Stephen Schuldenfrei, president of Trade Show Exhibitors Assn., pointed out that averages can be deceiving. Still, he welcomes any decreases in costs for the industry's exhibitors.

"There are some things that have gone down, and we appreciate it," he said. "I'm pleased to see the average is going down, but they are averages."

Schuldenfrei said age-old common sense would help show managers save their exhibitors money.

"Don't move in on Sunday, or don't move out on Sunday," he added. "Try not to move on the weekend. That's hardly something new."

Other 2006 average hourly rates measured in the survey include those of carpenters: $68.75 for regular time, 1.4 percent more than in 2005; $104.78, for overtime, 0.8 percent more than last year; and $128.14 on Sunday, 3.5 percent higher.

By city, the highest hourly rates charged to exhibitors in 2006 for general decorators are in San Francisco ($99.46), Milwaukee ($94.75), San Jose, Calif. ($94.54), Boston ($93.76), and Philadelphia ($85.73), according to survey results. The lowest hourly rates for general decorators in 2006 are in Mobile, Ala. ($18.31), Spokane, Wash. ($45), Des Moines ($51.25), Louisville, Ky. ($52) and Orlando ($53.66).

Some of the highest average hourly rates for general drayage in 2006 are in San Francisco, San Jose (both $99.46) and Boston ($94.42). The lowest rate in this category for 2006 is in Mobile ($18.31).

 

How the Survey Was Compiled

Tradeshow Week faxed or mailed letters requesting copies of exhibitor manuals and rate sheets to show organizers, general service contractors, facilities and other companies that supply tradeshow labor. Their responses are the basis for the city-by-city and nationwide averages included in the survey. This year, more than 175 parties responded to the survey. The rates published are those charged to exhibitors, not the wages paid to laborers. Many shows offer discount rates for advance orders and premium rates for at-show orders. This survey uses the discount rate where given.

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