Trade Show TalesBlog

Posts Tagged ‘drayage’

Trade Show Material Handling and Labor Rate Survey

February 16th, 2023 COMMENTS

By Jessica Sibila, Executive Director, The Exhibitor Advocate

The Exhibitor Advocate recently published a 2022 Material Handling and Labor Rate Survey. The survey is an important benchmarking tool that provides industry stakeholders with cost comparisons of average labor and material handling rates across 16 major US cities. The survey was previously conducted by Trade Show Week and then EDPA through 2017. The key data findings in the survey show that exhibitor costs continue to rise. Installation and dismantle labor, electrical labor and material handling are outpacing inflation some by more than 30%.

To most of the industry, this isn’t surprising. We’ve been feeling these increases for a while. It just happens to be that now we have the data to confirm our suspicions. Every year, exhibitors have seen prices go up, and we get more and more creative on how to manage our costs. We work with our exhibit partners to try to figure out how to stretch every dollar. We compromise on our booth size, the products we choose to bring, and the way we promote or showcase our brand. I’ve sometimes heard stakeholders say, if exhibitors don’t want to pay the increasing fees, they should walk away from the show. But it’s not that easy. Trade shows are important to our business. There are interactions that happen here that are unparalleled. We support our associations, and we want to be part of the community that naturally occurs at these events.

Download the Survey (FREE)

There is more and more scrutiny on these events and the budgets that go along with them. Are we getting a ROI? Can we return from the show and explain the value of being there even if it was the intangibles that made it successful? Rising costs are an important part of the equation, not the whole equation. We must focus on the overall value. As costs go up, so too must value. Lately, we’ve seen rising costs outpace inflation and value. It’s why The Exhibitor Advocate exists. We started this non-profit trade association to amplify the voice of exhibitors. We’re not here to tell any stakeholder what they should charge. We are here to share pain points and data in an attempt to improve this important marketing channel. Labor and material handling rates are one of those areas. As an industry, we must look at these challenges and work together to find solutions to the value equation.

Having information available to the industry, like the Material Handling and Labor Rate Survey, is just the first step. As we all know, data is power. With this information, exhibitors can more accurately budget for upcoming shows and plan their participation accordingly. Show Managers can evaluate and compare their exhibitor rates to city averages. Facilities can utilize competitive exhibitor rates to attract shows to their destination. And so much more! Having the data is one step. Taking action is the next. This only works when we come together to address these issues and balance the value equation. Share this data with your network and support exhibitors in speaking up on what they need to be successful. If the exhibitor is successful, so too is the industry.

Download your copy of the 2022 Material Handling and Labor Rate Survey at www.ExhibitorAdvocacy.com.

How Much will Material Handling Change at Post-COVID Trade Shows?

November 5th, 2020 2 COMMENTS
Unraveling the Myths about Material Handling

Let’s not sugarcoat it. Exhibitors HATE material handling charges. Mostly because drayage seems arbitrary, excessive, and unpredictable. Over the years, GSC’s have occasionally tried to justify it. Last year, CEIR released “Unraveling the Myths about Material Handling.” The report explained what’s included (which was helpful), but let’s be honest, it still felt like cheap primer painted over a dark wall. 

Recent Material Handling Policies

Recently, Fern and Freeman announced new material handling policies which eliminate most special handling fees and offer simplified per-pound charges. In addition to more flexible cancellation policies. Click on the link for a more detailed article in ECN about Fern’s new polities.

At first glance, these seem positive… but let’s examine them in greater detail.

Here are two Freeman examples (PDFs). Admittedly a simple analysis. In both cases, only crated shipments are accepted at the warehouse. Uncrated and pad wrapped ships are accepted at the show site:

  • EXHIBITORLIVE 2020 (Las Vegas)
  • VMX 2021 (Orlando)
Material Handling Form
Material Handling Form

Let’s Assume a 2000 lb. crate.

  • EXHIBITORLIVE = $2145
  • VMX 2021 = $2000

After Deadline:

  • EXHIBITORLIVE = $2685
  • VMX 2021 = $2500

Small Packages (with conditions):

  • EXHIBITORLIVE = $45 (min. 30 lbs)
  • VMX 2021 = $0 (under $10 lbs)

Surcharges:

  • EXHIBITORLIVE = Overtime, special handling, uncrated or pad wrapped fees
  • VMX 2021 = No special handling fees or overtime.

At first glance, most exhibitors won’t save much, assuming their freight arrives on time and in crates. The real savings are the surprise “special handling fees” and CWT rounding charges. This means greater predictability for the exhibitor since material handling is based exclusively on actually weight.

It’s a start, but the NAB Show Cares Program offers a much better model for exhibitors and the long-term health of the trade show industry. Now, here’s an even better question… Why isn’t EXHIBITORLIVE adopting the NAB Cares model?

NAB Show Cares

–Mel White
mel@classicexhibits.com
http://www.linkedin.com/in/melmwhite

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Classic Exhibits Inc. designs and manufacturers portable, modular, hybrid, custom, rental exhibit solutions. Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100 or www.classicexhibits.com.

Here’s a Handy Drayage Calculator (and it’s FREE)

September 14th, 2018 COMMENTS

Material Handling/Drayage Calculator

Trade Show Material Handling CalculatorMention “drayage” or “material handling” to any exhibitor and it’s bound to start a conversation. And not always a pleasant one.

Over the years, I’ve learned that while the amount matters, it’s really the uncertainty that drives most exhibitors crazy. No one enjoys calling their company Controller to inform them that your company credit card was just maxed out… on Day 0 of the trade show.  

There are many ways to lower your drayage expense, such as shipping to the advanced warehouse and consolidating your freight (no small boxes or strapping items to a crate). That’s a conversation every exhibitor should have with their exhibit house or display provider. You can save a lot of money by tapping into the expert advice of an exhibit professional. 

So how do you predict your material handling expense? Use our handy Drayage Calculator. If you know the standard rate for the show, which can typically be found in your General Show Contractor forms and the weight of your shipment, enter those numbers into the calculator. Then determine if there will be any special handling charges and when you expect the freight to hit the dock (straight time or overtime). The calculator can give you a good estimate. 

It’s not foolproof, but it’s better than guessing, which is what most exhibitors do now. Give it a try. It’s free. Let us know if it prevented that ugly phone call with your Controller.

Clicking on the image will redirect you to the Drayage Calculator webpage. Be sure to bookmark it. 

Trade Show Material Handling Calculator (Drayage)  

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Classic Exhibits Inc. designs and manufacturers portable, modular, hybrid, and custom exhibit solutions, including SuperNova LED Lightboxes. Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100 or www.classicexhibits.com.

 

EDPA Exhibition and Events Industry Labor Rates Survey

August 24th, 2017 COMMENTS

EDPA2

The 2017 EDPA Labor Rate Survey tracks the advance order rates charged to corporate exhibitions in major U.S. and Canadian cities at exhibitions, conventions, and corporate events. The rate sources are general service contractors, show producers, and venue order forms. This is the Advanced Order Rates, not the rates charged after the early bird prices or day of show.

This includes rates for General Labor, Riggers, Electricians, Plumbers, Forklift Operators, and Material Handling. The highest general labor rates are in New York, Philadelphia, Boston, and Los Angeles. The lowest are in Cleveland, Louisville, Orlando, and Salt Lake City. A huge thanks to the Exhibit Designers and Producers Association for completing and publishing their results.

Executive Summary Bullet Points:

  • The 2017 Labor Rates Survey of rates charged to exhibitors at exhibitions and events has found the average hourly rate in the U.S. for General Display Labor increased by just under 1% annually over the past two years.
  • The average hourly rate has increased from $101.75 in 2015 to $103.50 this year.
  • The advance order, regular time hourly rate for Riggers decreased by 2% annually over the same two-year period, from $113.70 per hour on average in 2015 to $109.23 per hour in the new survey.
  • Material handling costs for advance shipments to the official service contractor warehouse have increased by 1.6% annually over the past two years on average in the U.S. The cost of crated shipments sent directly to exhibit halls has increased by an average of 1.1% annually from 2015 to 2017.

Click the image below for the full survey.

2017 EDPA Labor Rates Study

–Mel White
mel@classicexhibits.com
http://www.linkedin.com/in/melmwhite

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Classic Exhibits Inc. designs and manufacturers portable, modular, and custom-hybrid exhibit solutions. Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100 or www.classicexhibits.com.

Trade Show Material Handling Calculator and Infographic

May 9th, 2017 2 COMMENTS

Drayage or Material Handling

Drayage or Material Handling CalculatorIf you are familiar with trade shows, you are all too familiar with material handling or drayage. These two terms, which mean the same thing, often elicit a very strong emotional response from exhibitors.

So what is drayage? Drayage refers to the movement of your trade show booth items from your carrier’s delivery vehicle to your booth space. This service includes:

  • Unloading the trade show freight once it has arrived at the receiving dock,
  • Transporting the goods to the trade show booth space,
  • Removing empty shipping items (such as crates and pallets) from the trade show booth space,
  • Ttemporarily storing empty shipping items during the show,
  • Returning empty shipping items once the show is over,
  • Transferring the freight back to the loading dock, and
  • Loading the items into your carrier’s delivery vehicle.

Is it expensive? Yes. Is there a logical reason? No. So, rather than age six months each time you receive your material handling bill, it might make more sense to manage your freight to minimize your bill. Use this drayage calculator to estimate your charges. Note how overtime and special handling will significantly increase what you pay.

If you are not already suicidal about drayage, this blog post from three years ago might be the tipping point. It discusses the rising cost of material handling:  You Can’t Fix Stupid — Material Handling.

Helpful Advice:  Although shipping to the Advanced Warehouse is more expensive, it’s a better financial decision since you are less likely to pay for waiting time from your carrier, and you have greater control over scheduling the delivery of your exhibit to your booth space during regular straight-time hours.

For an overview of material handling, see this informative infographic by TS Crew, an exhibit-appointed contractor for installation and dismantle.

Drayage Infographic

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Classic Exhibits Inc. designs and manufacturers portable, modular, and custom-hybrid exhibit solutions. Classic Exhibits products are represented by an extensive distributor network in North America and in select International markets. For more information, contact us at 866-652-2100 or www.classicexhibits.com.

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