At Storylink, one of our core values is being proactive. Another is setting others up for success. This post is aligned with both and meant to provide context on what’s happening in the industry … as well as arm you with the data necessary to lay the foundation for budget discussions as you begin planning for 2025 and beyond.
When it comes to exhibiting, the elephant in the room is rising costs. That elephant is not new. He’s always been there. Generally speaking, agencies (and event-marketing proponents) would prefer not to acknowledge his existence. But we’re a partner, not an agency. And this elephant will wreak havoc if we’re not proactive in addressing his presence.
Here’s the truth: The price of exhibiting is increasing — in some cases at unprecedented rates. And while nobody likes to talk about it, we need to be fully prepared to have potentially uncomfortable conversations about the ramifications of those increases.
Consider the following:
During an interview with Exhibit News Now, Jeff Quade, an executive VP from GES, said raw labor costs have increased by 20 percent compared to 2020. And those increases have been matched by upticks in raw material costs, including petroleum-based plastics, diesel fuel, and more (some of which have increased 30 percent or more).
An article from Exhibit City News reported data from 16 U.S. cities showed an average 29-percent increase in display, labor, and material handling rates since 2017.
A combination of rate increases and a new 8-hour minimum in Boston resulted in one Storylink client seeing a 37-percent YOY increase in material handling and I&D labor — for the exact same exhibit the company used the previous year in Denver.
During a recent webinar hosted by the Experiential Designers and Producers Association, Jim Wurm, Executive Director of the Exhibitor Appointed Contractor Association (EACA), and Bill Muller, Regional Director of nth Degree, explained how labor union contracts were frozen for nearly two years during COVID, meaning almost all were due (or overdue) for renegotiation in 2023/24. And because a) rates hadn’t been raised in many of those contracts for a number of years, and b) most union benefit funds were depleted during the pandemic, renegotiated contracts are driving hefty increases. What’s more, Muller reported that literally all renegotiated contracts have been front-loaded, meaning an initially steep year-over-year increase followed by more moderate YOY increases (he predicts more palatable 4- to 6-percent upticks over the next three years).
Given that, it’s no wonder seven out of 10 exhibitors rated budget pressures and rising costs among their most significant challenges. And 67 percent report that exhibit-related expenses are increasing faster than other costs in their organizations, per Exhibitor Magazine’s most recent Economic Outlook survey. The truth: Even if you deploy the same exhibit as last year, your per-show costs are going to be noticeably higher — and could easily run more than 10- to 30-percent more.
Despite those stats, Storylink’s rates are not increasing. This isn’t that kind of communication. We just want you to know that a) we acknowledge this reality, b) it’s being driven by a multitude of external factors, and c) you need to plan accordingly. Furthermore, we want you to know that we are exploring all options, including ways to minimize and/or sidestep the impact these increases might have on your ROI (e.g. ways to minimize weight-related material handling fees, warehousing solutions capable of decreasing shipping-related costs, and steps we can take to control the expense of show services). But rather than waiting for you to experience the sticker shock caused by these price hikes and then proposing solutions, we want to start the conversation now and work together, proactively, to ensure the highest levels of success … while also optimizing any and all efficiencies.
As such, know that your respective account managers are on hand to discuss in greater detail how some of these increases might impact you and your invoices. They are equipped with city-specific data to help you understand precisely how exhibiting at last year’s event in Chicago, for example, might compare to this year’s cost of deploying a similar strategy in Las Vegas (and 20+ popular U.S. trade show cities). Additionally, I am personally available to discuss cost-saving strategies, as well as ways in which we can optimize your program moving forward, whether that be a one-off consultation or a half-day Strategic Business Review. For more information, ask your account manager to set up a call to discuss rising costs — as well as any other challenges you might be facing — and potential solutions we can employ to ensure ongoing success.