The content is AMAZING! Brands that come to EMS are not just
representative of the best of the best but also come ready to engage with
others.
At the same time, everything is intimate in size and very
accessible.
So why doesn’t Classic Exhibits have a booth at EMS? That’s a very fair question. 😊
We Did Exhibit at EMS
Classic participated as an EMS exhibitor in the past, and it was great. But it also created uncomfortable conversations… while still providing good leads.
Why uncomfortable conversations? As you know, Classic does not sell direct. Countless times, we would engage Brand “X” in a productive dialogue in our booth… and then we would ask where their marketing office was located so we could connect them with one of our Distribution Partners. Now insert the previously mentioned “uncomfortable pause.” It was then followed by a deflated, “so we cannot work directly with you and your team?”
After explaining more, they understood and were willing to
connect with a Classic Distributor Partner, but the energy and enthusiasm of
the end-user wasn’t as palpable. I would say “bummer” often described the
end-user’s mood.
We Encouraged Others to Exhibit
Starting last year, we opted NOT to exhibit at the show, but
rather heavily encourage our Exhibit House Distributor Partners to consider
exhibiting. Many of which have taken our advice and will exhibit at EMS.
That “direct” connection with the audience at the Experiential Marketing Summit made so much more sense frankly… and has reaped great rewards.
So even if you are not exhibiting, I encourage you to
consider sending 1 or 2 of your company’s representatives to this event. Like I
said before, the content is AMAZING, and the engagement with top brands is
invaluable.
Let us know how we can assist you with any EMS-related
project opportunities.
Thanks and good luck to everyone attending in the Experiential Marketing Summit!
— Kevin Carty (kevin@classicexhibits.com)
Who We Are
For over 30 years, Classic Exhibits has been designing and building creative custom solutions for our Distributor Partners and their clients. As North America’s largest private-label exhibit manufacturer, we have the unmatched capability, capacity, and creativity to create 3D projects ranging from 10 x 10 inline displays to 60 x 80 double-deck islands.
Lots of questions, speculation, and intrigue are swirling
around tariffs and all things tariff related. Even if you try to avoid the news,
you’re still hearing about tariffs along with inflation, gas, and eggs.
Kevin Carty, Classic Exhibits
So the big question is — “Will this affect Classic’s prices?” Which is a fair question since Classic, like other builders, uses a lot of aluminum, which is tied to the 232 tariff on steel and aluminum.
Short and simple answer is prices will increase on selective items. No companies can absorb the ongoing increases along with those in March. Some suppliers have intimated that these increases will not impact their pricing. Frankly, that’s foolish to say or to believe.
Classic’s History with Imports
Allow me to share some history (and to cushion the overall
message). Years ago, we (Classic) moved several profiles from China due to the
ADD law/ruling (see definition below).
We “onshored” those profiles to domestic extruders, then made secondary dies for about 12 common profiles for a supplier in Vietnam. As a result, the original China tariffs were negligible, but the ADD fees on our containers from Vietnam have continued to increase.
So, what about the price increases? Over the past few years, we have absorbed some of the increases rather than implementing across the board price changes. Instead, we made targeted increases based on those materials. It made no sense to increase an entire kit design by 25% when the laminated wood components and graphics weren’t affected.
Starting in March, if you purchase aluminum components from us or a Gravitee Modular Frame, it will be a bit more. Ranging from 8% to 15% depending on the profile and where we have it pressed.
Now, here’s where the tariffs get a bit more complicated. For example, why would any of the profiles you press in the US be increased? Well, the “devil is in details.” Most of the aluminum billets used at USA extrusion plants come from offshore locations. As their prices increase, they pass those prices along to us.
Are you still with me? I know this isn’t a sexy topic. Bear with me a little longer as I share some tariff background.
Engineered Aluminum Extrusion
Background Information about 232 and 301 Tariffs
Rob Cohen from DSL and I have represented our industry, via EDPA Advocacy, on all things tariff related for the past 6-7 years now. We speak monthly with other industries and to countless elected officials in and around DC.
Here are some Cliff Notes that I think are important as you absorb the news regarding tariffs. Specifically, the 232 and the 301 tariffs:
232 – Steel and Aluminum Tariff
301 – Finished Goods Tariff – electronics, machinery, toys, plastics and much more
1. Tariffs are apolitical
Trump 1.0 Tariffs added to China
Biden renewed the tariffs as they were set to expire and was working on and implementing increases and expansion to tariffs during his 4-year term
Trump 2.0 tariffs
Tariffs have generated over $300 BILLION in revenue for the US government. (do you think they want to see that go away?)
2. Section 232 and 301 tariffs are two different categories of tariffs on top of tariffs that already existed
3. No Exemptions
Under the new additional proposed tariffs (going into effect in March 2025) – there is no right to file for any exemptions or exclusionary language.
This is the HUGE detail that gets overlooked by many. Basically, even if you are a top 10 business in the US economy, after March 12, 2025 all tariffs in place, existing, additional or reciprocal, will affect ALL US Businesses bringing items in from offshore
4. Congress has no authority to legislate tariffs! None.
The US Trade Representative (USTR) has this authority and is guided by the Executive Branch (President) only
5. As of today –
Tariffs are to be imposed on goods from ALL countries that apply tariffs to the importation of goods from the US
6. We get asked all the time.
“Can’t you just get the materials you need in another country?” NO, all countries are now “likely” to subject to the tariffs in the coming weeks/months and varying percentage rates.
It’s very expensive to get new safety listings (UL) for electrical parts – New molds for extrusions…items like this must be created new when you change factories let along countries. And even in the US you cannot use the same molds or listings from one factory to the next
We have not even discussed the subject of the cost of mfg in the USA
7. General matters to consider:
The HTS code assigned to a product impacts the amount of the tariff to be paid
Companies cannot stop innovating because of the imposition of tariffs. We must continue to still be creative and develop products that will enhance face to face marketing
We are all in the same “boat” professionally and personally
There is a workforce development challenge in the US. Even if we were to move all manufacturing back to the US – the workforce does not exist to handle the additional manufacturing load
Last 12 months have shown a decline in the number of people who are members of unions.
Many of the NEW tariffs coming are not “replacing” the existing ones, they are being layered atop the existing ones
Port fees go much further than just the tariffs you hear daily about today in the news. With aluminum for example you have the ADD fees (Anti-Dumping fees) which can range from 25% to 125% of the invoice value of the material you are bringing in depending on which country it is coming from. This determination is made by CBP (customs) at the port based on your manifested items
A BIG note worth mentioning is the specifying language now in the ADD documentation. It specifically includes “tradeshow display fixtures and framing”
This is all a moving target so be watchful of “reciprocal”
tariff talk. It could be even more impactful on us all, again personally and
professionally.
In Simple Terms
Let’s look at Indonesia. Indonesia charges approx. 37%
tariff on all US imports. So, if the current administration decides to apply a
reciprocal tariff to all things coming from Indonesia, then we would need to
consider the impact. Look at the volume of plywood (various species) used in
the US for home building, exhibit building, and more. Many retailers and lumber
brokers source from Brazil, Indonesia, Vietnam, Canada and Europe for our sheet
goods (wood).
I don’t say this to scare anyone. Rather you need to be
prepared should the reciprocal tariffs take effect in any meaningful way in the
coming months.
Again, my apologies for this long-winded update/post, but I
wanted to give you some context to the “why” when it comes to any price
increases you may see not only from Classic but also from all suppliers.
I thank you all for your ongoing partnership for the past 33 years. We are grateful for your trust in us as your private label manufacturer.
— Kevin Carty, Executive Vice President
For over 30 years, Classic Exhibits has been designing and building creative custom solutions for our Distributor Partners and their clients. As North America’s largest private-label exhibit manufacturer, we have the unmatched capability, capacity, and creativity to create 3D projects ranging from 10 x 10 inline displays to 60 x 80 double-deck islands.
On July 8, 1994, 30 years ago, I was offered a job by a friend (now my brother-in-law) to work for his father’s new business. At the time, I was working overnight shifts at a supermarket from 11 pm to 7 am. Then I’d head to college until about 3 pm. It was summer break from college, but I jumped at the chance for a normal work schedule and shift to evening classes in the fall.
Aside from the schedule, joining the small (5 people) team at Classic Exhibits was super intriguing to me. I knew it would likely grow and that I could be a part of that growth. What I didn’t know at the time was that the decision to “get off the night shift” would have a meaningful impact on my life, both professionally and personally.
Accepting the offer from Lowell Nickens at Classic was a real tipping point for me. Not only did Lowell become my first professional mentor, to whom I still lean on at times, but he also became my father-in-law in 1999. Accepting this job set off a course of life events that 30 years later includes having met my wife, having an amazing set of 17-year-old twins, and developing many friendships in this industry.
We all often muse about wanting to work with friends in a family environment with like-minded people. I have been truly blessed when it comes to ALL of that!
I was asked recently by my mother what my favorite part has been. The answer was/is simple — the people.
All of you (you know who you are) who have impacted my life professionally and personally.
All of you who have not been afraid to tell me what I need to hear… even when I don’t want to hear it.
All of you who have spoken into my personal life along the way.
For 30 years, Classic Exhibits has been designing and building creative custom solutions for our Distributor Partners and their clients. As North America’s largest private-label exhibit manufacturer, we have the unmatched capability, capacity, and creativity to create 3D projects ranging from 10 x 10 inline displays to 60 x 80 double-deck islands.
I trust and hope that you had a great holiday season. We did… and we are excited for 2023!
2023 represents Classic’s 30th year
as an exhibit designer and manufacturer. Somehow, we made it to
30 despite multiple recessions, a tech crash, 9/11, and COVID. I’m probably
forgetting some other catastrophes along the way but who can keep count. We’ll
be celebrating a bit later in the year, including at EXHIBITORLIVE in
April, and we hope you will join our festivities.
But first, some thoughts on the past year or two.
2022 in Review
2022 was the exhibit industry’s rebound year. In basketball
terms, an effective rebound starts with “boxing-out” your opponent. We spent much of the year “boxing-out” a host
of challenges.
Challenges ranging from supply chain woes that were ever
present in the first two quarters of 2022 to exhibitors bound and determined to
participate in as many shows as possible. The result was controlled chaos. For
all.
By early July, the pricing and supply chain woes were
manageable. Are we back to pre-pandemic scenarios? NO… and we likely never will
be. BUT the “new” norm has settled in for the most part with more predictable costs,
quotes, and turn times.
The one challenge that still exists is finding and hiring
qualified employees. While it’s getting better, the jar lid did not loosen
until late Q3. Thankfully, that’s improving week by week(for reasons no one fully understands).
SALES: Grumbling
aside, 2022 was a record year for Classic Exhibits. But it wasn’t easy. The project
mix was staggering. We built FAR MORE large custom wood exhibits than in any previous
year. All while seeing a healthy increase in kit inlines and islands. Why? Exhibitors
were eager to return to trade shows and events. And they wanted to make as BIG of
a splash as possible.
Especially after the failure of virtual shows. Mind you, we were grateful for every
order.
Some Classic Specifics
We added nearly 30 new employees last year. And by “new” I
mean new to Classic and new to our industry. We are grateful to have
them in the family and excited to see their progress in their positions. And there
are more coming as we expand our production capability.
A few months ago, we returned to shorter, more predictable
lead times. The kits in EDS are now listed as ranges. Those ranges are there
for very practical reasons. It allows us to provide you with a shipping date
based on your PO and our current production schedule. This has been a welcome change
to many distributors, and we appreciate your comments.
What’s Coming in 2023? A Lot!
Q1 will be much like all of 2022. Lots of orders! However,
the trade show calendar should return to its pre-pandemic cadence by Q2 with
the normal ebbs and flows industry veterans expect. This should be a welcome
sign, allowing everyone to catch their breath and refine internal processes. Plus,
an exciting new product launch, but you’ll have to wait for more news about
that.
After the uptick in large custom builds in 2022, I expect
fewer over-the-top projects this year. And not for negative reasons. Simply
put, what was built in 2022 will be used in 2023. Instead, our Q1 plate filling with Symphony and Sacagawea
kits, lightboxes upon lightboxes, and LOTS of 20 x 20 to 30 x 40 modified islands using Gravitee Modular
Panels. We are also already seeing orders for additions/modifications to the
large custom booths we built last year.
Classic Exhibits will be introducing a new cloud-based ERP/CRM system in Q1. We are currently still in the testing stages and will be moving into the broader training phases through January with an expected launch in February. Once live, this will give our Distributor Partners something they have long been asking for, namely the ability to combine Rental and Purchase builds on one order with one PM. Along with that, the data metrics and analytic tools we have built into this new system will allow us to parse and share more immediate data with our internal production, customer service, and sales teams.
Classic will be purchasing new cameras for Peek-A-Booth, our online staging area cameras. The new cameras and software will come online sometime before Q2 2023. This will give you and your clients an even better, more immediate, peek into your Classic projects as they are being assembled.
Rental Island Exhibit
Classic Rental Solutions continues to thrive and grow. Not just in sales, but in the depth of their product offerings and services. 2022 was a banner year for CRS. 2023 is already off to a stellar start with a projected record Q1. This may also be a sign of how/where client spending is headed as customers weigh the possibility of a recession and its effects on their industry.
EXHIBITORLIVE 2022 and 2023 (in Louisville)
EXHIBITORLIVE is moving! THIS year’s event will be in
Louisville. Personally, I love the change. Not because of Louisville per se,
but because OUR industry show needed a change of scenery. Based on the size of
the show, I hope the EXHIBITOR Media Group continues to look at other similar
size markets for future events. Pricing is another reason. The rates for shows
in Vegas have gone up significantly and will continue to rise. The opportunity
to “take the show on the road,” if handled well, will provide a fresh
perspective and perhaps a new and growing audience.
Join The Exhibitor Advocate
If you have not heard about The Exhibitor Advocate, please visit their website: www.exhibitoradvocacy.com, Then join their mailing list (no cost), and consider making a donation. The Exhibitor Advocate, an organization led by Jessica Sibila and supported by an outstanding Board of Directors, is long overdue. Their goal is to advocate for exhibitor rights and provide hands-on assistance, with things like surprise billings and show floor service issues.
If we’ve learned anything over the years, meaningful change in our industry will only happen when exhibitors assert their rights. The Exhibitor Advocate is the right tool at the right time to make that happen. Please encourage your clients to join as well. It’s a win-win for both you and your client.
Shared Knowledge University is Back!
Shared Knowledge University
In November, we held our first Shared Knowledge University since 2019. And it was just what the doctor ordered. We hosted 35 Distributor and Vendor Partners in Portland for two full days of training. It was incredible.
We will be hosting two SKUs in 2023! The first will be in
June. Contact Jen, Tom, or Harold if you are interested. Seats fill FAST.
Awards and Other Cool Stuff
We were happy to be recognized by the industry in 2022, starting with a Find-It Top 40 Award at EXHIBITORLIVE. We also won the People’s Choice Award for the Slate Island rental project.
Katina Rigall-Zipay, our Creative Director, won the Star Award
from FIT. This award recognized her outstanding service and commitment to the FIT
Graduate Degree Program in Exhibit Design.
Lastly, there is the EDDIE Award we received at EDPA 2022 in San Antonio. This one was special. The award has historically been given to an outstanding Online or Multi-media campaign. But we were honored to win this award for our “Classic Conversations” outreach. The idea was to create a space where Classic Distributors and vendors could share ideas, struggles, and successes during and after the pandemic. Kudos to all who have participated in these ongoing conversations.
Are you interested in joining a Classic Conversations group? Let us know. We meet quarterly for an hour via Teams or Zoom. Contact Jen, Harold, or Tom for specifics. All exhibit industry roles are welcome — sales, marketing, design, production, etc. You will not be disappointed. Spending time with others in the industry is invaluable… and a lot of fun!
To all our Distributor Partner Family — THANK YOU. 2022 was
hard, and the struggle to bring an industry back to life is ongoing. YOU ALL
helped make the adjustment easier.
I often tell my friends and family the following, “Yes, we
do some really cool stuff. And it’s stressful even in the best of
circumstances. But it’s the people we get to walk this path with each and every
day that make it special. They are the reason we come to work each and every day.”
Thank you again for your ongoing support of our Classic
Family. Here’s to a prosperous 2023. I hope to see you soon.
