Survey: Chicago Remains a Work in Progress

If Chicago wants to stay in the game with other powerhouse U.S. tradeshow cities the likes of Las Vegas and Orlando, it's going to have to step up to the plate and work on some issues first, according to a recent study.

Earlier in the year, McCormick Place and Navy Pier owner and operator Metropolitan Pier and Exposition Authority commissioned independent research firm Leadership Synergies to conduct a study funded by the Chicago Convention & Tourism Bureau. Leadership Synergies surveyed McCormick Place and Navy Pier customers and compiled the results in a report titled, “Recommendations for Business Improvement.” Among the report's findings were “areas of perceived vulnerability” including: union jurisdiction and labor costs, proximity of facilities to downtown hotels, poor customer service, parking and taxi issues, the cumbersome nature of the MPEA, inadequate food services and total cost of doing business.

Meghan Risch, CCTB director of public relations, confirmed the bureau paid $65,000 for the study, but said officials there would have no comment on it.

Juan Ochoa, who's been on the job as MPEA's CEO since January, said the study was commissioned before he took his post, but felt it was important because it enabled the agency to “address anything we haven't addressed moving forward.”

Even so, he felt some of the findings were “outdated” because many of the issues brought up in the survey are already in the process of being corrected. These include food services, nearby hotel rooms, transportation, customer service and sales.

Ochoa added, “The labor issues are outdated. We have a pretty good working relationship with (the unions).”

According to show managers who hold their events at McCormick Place, although many labor issues have been resolved satisfactorily, others may be on the horizon.

Mary Pat Heftman, senior vice president of the Natl. Restaurant Assn., took part in the Leadership Synergies survey and is well aware of Chicago labor issues. Two years ago, she threatened to move the Natl. Restaurant Assn. Restaurant, Hotel-Motel Show (No. 30 on the 2007 TSW 200) out of the city if venues and show contractors didn't reach new agreements with the riggers and decorators.

A year later, a new contract was drawn up and the show stayed in town, but Heftman said that doesn't mean the labor issue is completely resolved. Next year, the carpenters' and Teamsters' contracts are up.

“We hope to have the same cooperative spirit,” Heftman said.

Peter Eelman, vice president of exhibitions for AMT – The Assn. for Manufacturing Technology, runs the Intl. Manufacturing Technology Show , No. 3 on the 2007 TSW 200 and held in Chicago since 1947.

Eelman said he wasn't surprised by any of the findings in the study, including the one about labor. “As a front-line show guy, I live this stuff,” Eelman said. “With labor, I don't think there's ever an end to the process. As time goes on, the needs of a show change. It's an ongoing thing.”

In regard to food services, the report recommended, “Improve quality, selection and service of retail food services” at McCormick Place.

A month ago, MPEA tackled that issue by awarding a new 10-year food service contract for McCormick Place, as well as Navy Pier Festival Hall, to a group called Chicago Restaurant Partners. Levy Restaurants, which held the old contract, has a 45-percent stake in the new one, along with Phil Stefani Signature Restaurants and Airport Restaurant Management.

“I can assure you we looked at everything,” Ochoa said of the new contract. “We did not grant the best contract out of financial consideration, but instead to the most capable (company) that could provide the best service.”

Eelman said he was on a committee involved with the food contract and thought the new one was definitely an improvement, but added, “It's too soon in the game to know how good they are.”

The report also recommended “complete and seamless integration of sales with MPEA and CCTB,” and that operators “consolidate Navy Pier sales with McCormick Place.”

Eelman wasn't convinced there was a need to combine sales teams, but thought the real issue might be improving the sales process in general. “There hasn't been cohesion in that area,” he added.

IMTS has been at McCormick Place for a long time, so Eelman said he knew exactly who to call when he needed something taken care of. A new show, however, might not have the same experience.

“They could start with the CCTB and then get handed off a third of the way through the process to the MPEA,” Eelman said.

As for customer service, he added, if the study found there were problems in this area, then customers obviously feel it needed to be addressed.

Ochoa said, “We are working much closer with the CCTB. In the next month or two we are going to sign a memorandum of understanding so there's no overlap (in sales).”

He added that his team was “constantly in touch with customers and willing to take input.”

All in all, Heftman and Eelman said, the study was a good thing.

“Certainly, I think the survey is a good first step toward taking a look at the organization and what needs to be changed,” said Heftman, whose show is at McCormick Place through 2011.

Eelman agreed, “I think they know they have problems. It helps Juan as a new guy to see how far they need to go.”