06 Jun 2013
PHILADELPHIA (June 5, 2013) – The Board of Directors of the Pennsylvania Convention Center Authority (PCCA) today approved the selection of SMG to privately manage and operate the Pennsylvania Convention Center as part of a coordinated effort to improve the customer experience and reduce costs at the Center with the goal of attracting additional conventions, meetings, and trade shows to the Philadelphia region.
SMG will assume responsibility for managing the operations of the Pennsylvania Convention Center within the next three to four months. By bringing in a private management firm with extensive experience managing and operating convention centers across the country, the Authority is looking to SMG to implement industry best practices, achieve operational cost savings, and enhance the Center's ability to compete with other major facilities in the increasingly competitive trade show and convention industry.
“The Pennsylvania Convention Center Authority looks forward to working with SMG to enhance the experience of our customers and increase the number of events we host on an annual basis, which will have a significant impact on the Philadelphia region's economy,” said Gregory J. Fox, Chairman of the PCCA Board of Directors. “The meetings and convention industry has become much more competitive in recent years which is why we are undertaking a number of strategic initiatives designed to improve our ability to compete with other venues on a national and international level.”
SMG is a recognized leader in the facility and convention center management industry, with more than 30 years of experience at more than 200 facilities and 70 convention centers. SMG currently manages significant centers in some of the nation's largest cities, including Chicago, Columbus, Denver, Detroit, San Francisco and Salt Lake City as part of a portfolio that represents more than 14.5 million square feet. In addition, SMG has extensive experience working with organized labor in Pittsburgh, Providence, Chicago and Detroit. Fox said SMG will work closely with the Philadelphia Convention and Visitors Bureau to increase bookings at the Center by developing new business and bringing back past customers.
Fox said the decision to bring in a firm to privately manage and operate the Pennsylvania Convention Center is the first step in a targeted effort to modernize operations, reduce costs, and improve future bookings at the Center. The four strategic initiatives identified by Fox include:
- Hiring of a reputable firm to privately manage and operate the Center, a firm that can use its experience in other cities to implement industry best practices, reduce operational costs, and utilize its relationships with customers at other venues to help increase future bookings at the Pennsylvania Convention Center. This initiative was achieved today with the selection of SMG.
- Reviewing the Center's existing labor supplier model in conjunction with the private management firm to identify opportunities to reduce costs and improve the delivery of labor services. Fox said this initiative would begin shortly after the contract with SMG is finalized, which should occur within the next 30 days.
- Reviewing the Center's existing work rules to identify opportunities to enhance the Center's ability to compete with peer facilities across the country and increase future bookings at the Center, which will generate additional work hours for labor and generate a positive economic impact for the region. Fox said this initiative would begin next week when the Center starts its initial discussions with unions and other stakeholders to review and identify opportunities to improve the current Customer Satisfaction Agreement.
- Implementing a strategy to increase billing transparency for customers so that costs are clearly identified and explained in a timely and efficient manner. Fox said his goal is to work with SMG to identify industry best practices and strategies in place at other venues that can be implemented at the Pennsylvania Convention Center.
“The Board of the Pennsylvania Convention Center Authority is committed to doing what is necessary to ensure that this building fulfills its promise as an economic engine for our region by enhancing our ability to compete effectively with other venues through the highest level of customer service, competitive pricing and delivering the best possible customer experience,” said Fox. “The hiring of SMG to manage the Center's operations is a first but significant step in modernizing our operations and improving our ability to rebook our existing customers while attracting new events, meetings, conferences and trade shows.”
Fox said the current timeline calls for negotiating terms of the contract with SMG over the course of the next 30 days with an effective start date 60 to 90 days after the contract has been finalized.
About the Pennsylvania Convention Center
The Pennsylvania Convention Center is located in Philadelphia, the “cradle of liberty” and the birthplace of the United States. Located in Center City, the Convention Center is situated at the center of the city's many cultural offerings and world-class dining and entertainment scene. A $787 million dollar renovation and expansion of the Center, which received a Gold level certification from the U.S. Green Building Council, was completed in 2011, increasing the size of the Center by 62 percent. The Center is now the 14th largest facility in the nation and features the largest exhibit space and ballroom in the Northeast. The newly renovated Center has won numerous awards and recognition, including a designation as the Best Government/Public Building of 2011 by the Engineering News Record of New York. For more information, visit www.paconvention.com.
Contact:
Deirdre M. Childress, Strategic Communications Manager
215-418-4754
dchildress@paconvention.com
Pete Peterson, Bellevue Communications Group
215-893-4297
ppeterson@bellevuepr.com
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