Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
January 29, 2021 11:08 AM

NPE exhibitors question handling of deposits for canceled trade show

Catherine Kavanaugh
Staff Writer
Steve Toloken
Assistant Managing Editor
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Plastics News photo
    The Plastics Industry Association announced last week it would not be able to return the first half of deposits paid by exhibitors after canceling its NPE2021 show.

    After canceling the NPE2021 show because of the worsening coronavirus pandemic, the Plastics Industry Association says it will not be able to return the first half of deposits paid by exhibitors and has decided not to have a virtual NPE2021 show.

    The Washington-based trade group, which owns the NPE trade show, disclosed those developments in an email that went out to exhibitors late in the afternoon Jan. 22.

    Some companies that planned to exhibit are wondering what will happen regarding the rest of their deposits, which were due Jan. 8. Some made the payment as a 2020 business expense, but others withheld it when the show was canceled.

    Conrad Bessemer, president and CEO of Novatec Inc., said the auxiliary equipment maker put $50,000 down on a $100,000 booth but didn't pay the balance. He and other trade group members are upset about the timing of the event's fee schedule and cancellation, which was announced Jan. 5.

    "The criticism of many members is that this was a freight train, which was predictable, and the organization seemed to avoid final judgment until the last possible moment — when the next deposit was due," Bessemer told Plastics News. "And, it is still unclear as to whether the organization is holding exhibitors to the next payment or not."

    The association canceled the show after it became apparent that the COVID-19 situation in the U.S. was worsening and it would not be possible to hold the May trade show. In the email to exhibitors, the group said it made the decision quickly.

    "Once it became apparent that there would be no path forward for the live event, we quickly made the decision to inform all of our exhibitors of this decision, in order to minimize any further expenses to you," according to the Jan. 22 email from association CEO Tony Radoszewski.

    In its email, the association acknowledged questions from companies about paying the second 50 percent deposit.

    "We have heard from our members and exhibitors asking about the status of their deposits for the show," the association said. "We understand that it's hard for companies to justify paying the second 50 percent due, given the circumstances."

    Bessemer called the communication "artfully worded" and he described NPE exhibitor contracts as "absolutely in favor of the organization and not to the favorability of the members of the very organization they represent."

    The trade group told exhibitors that because there are "significant ongoing expenses" that it incurs in planning the huge triennial trade show, it cannot return initial deposits paid.

    "The first 50 percent of exhibitor deposits have been invested in the myriad expenses required in the advance planning stages of the show, as well as to support ongoing operations for [the association], and therefore cannot be returned," the group said in its email.

    Association leaders had been saying for several weeks that they may not be able to return deposits.

    The show had been scheduled for May 17-21 at the Orange County Convention Center in Orlando, Fla. The next one is scheduled for 2024.

    "Our stated objective was to apply our deposit to the 2024 show. We will see if that happens or not. Ethically it should, but much remains to be seen," Bessemer said.

    Peter Gardner, vice president of sales and general manager of the LS Mtron plastic machinery division of Daiichi Jitsugyo (America) Inc., shares many of Bessemer's concerns. He said the South Korea-based company paid its first installment of $42,500 for an $85,000, 3,500-square-foot booth, but withheld the second half.

    "We are also trying to confirm about the remaining portion due by the contract," Gardner said in an email. "Although the [trade group's] letter states they understand why we would be reluctant to pay it, it does not specifically say they won't be asking to collect it by the contract terms."

    DJA officials also would like to know more about any steps taken by the association to minimize or recoup losses, Gardner said.

    "For example, is there any insurance coverage in place for business losses? What are the expenses which cannot be recovered?" he asked.

    The Jan. 22 email from Radoszewski also said that the trade group's leadership decided not to have a virtual version of NPE2021. It had previously planned a virtual version to run alongside the in-person portion.

    "The member-run NPE sales & marketing and executive committees and the officers of the ... board of directors, after evaluating all the factors and commitments involved in staging a virtual event, decided not to pursue a virtual show in 2021," Radoszewski wrote. "We will, of course, continue to explore all feasible options for an industry event that would serve to help strengthen the industry, our members and the association."

    Gardner called that announcement a surprise.

    "I would have thought it would be at least a way for them to justify keeping the funds paid," he said.

    NPE exhibitors are also looking at their options. Challen DeMartino, spokesperson for SI Group, isn't sure just yet what that will be after all the effort that had gone into event planning.

    "SI Group has been preparing for NPE2021 since attending NPE2018 and securing its booth location for NPE2021 in early 2020," DeMartino said in an email. "However, SI Group has been cognizant of the current global conditions and the health and safety of our employees remains our top priority. While NPE2021 has been a key event for SI Group for many years, we are planning to seek alternative meeting opportunities and other marketing initiatives in lieu of NPE2021."

    Bessemer said marketing and customer outreach need to be a constant and consistent approach, not limited to a triennial trade show.

    "Many of us were already questioning the value of this event and the extreme expense associated with it and this situation will only accelerate that as we all look at new ways of reaching customers," Bessemer said.

    Webinars and video conferencing have proved beneficial, he added.

    "Many machinery manufacturers increased revenue during 2020 without much business travel, without customer visits and without in person events," Bessemer said. "Many of us are increasingly focused on new ways of reaching our customers in this new normal and increasingly question the long-term value of a once-every-three-year event when our organizations need customer reach every day of the week."

    RECOMMENDED FOR YOU
    Australian startup Samsara to commercialize its enzyme recycling
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Top-dollar deals, repeat buyers highlight 2022 M&A
    2
    This is the year the reality of plastics EPR arrives in the US
    3
    Prices on the rise for PP, PVC
    4
    Auto supplier Seoyon E-Hwa to invest $76M, add 740 jobs in Georgia
    5
    Illinois AG sues 14 firms over PFAS contamination
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified