Visiting IMTS? Get pre-approved financing

As we continue to navigate what has been a very difficult 2022, and with the world slowly returning to normal, we are approaching one of the manufacturing industry’s main events: IMTS 2022. I thought this month it would be relevant to discuss why attending this show is a very productive use of time and how to get the most out of the experience.

The International Manufacturing Technology Show (IMTS) is one of the largest industrial trade shows in the world and is held every two years in September at McCormick Place in Chicago. This year is the show’s 33rd edition after a COVID-19 hiatus in 2020. It will occupy more than 1.4 million net sq. ft. of exhibit space and feature an estimated 1,300 exhibitors and 129,000 buyers and sellers from more than 100 countries.

It is not just sheer size that distinguishes IMTS from almost every other show held in North America, either. Unlike regional shows like the Montreal Manufacturing Technology Show (MMTS), the Western Manufacturing Technology Show (WMTS), and even the Canadian Manufacturing Technology Show (CMTS), where the booths are focused predominantly on local representation, IMTS is arranged by the type of equipment that the exhibitors manufacture.

Visitor Experience

From a visitor’s perspective, this means that not only will you find exhibitions of the latest technology, the individuals working the booths are a combination of the smartest and most experienced employees from both the equipment manufacturer as well as their distribution network.

It is contact with these individuals that makes the trip to Chicago worth the time for anyone interested in learning about and potentially installing the newest technologies.

Also, in many cases the exhibited machinery is manufactured on the other side of the globe, so visiting the factory may not be time- or cost-effective. However, attending IMTS in Chicago, which is easily accessible, provides an opportunity to see the latest technology without leaving the continent.

To exhibit at a show the size of IMTS requires a lot of time, planning, and, of course, money. In most cases, this investment runs well into the millions of dollars. With such a large investment, there is a huge amount pressure to sell product to justify the expense.

This creates a unique opportunity to negotiate a great deal on a piece of equipment. I can tell you from first-hand experience working this show as an equipment dealer that sellers spend many hours in their hotel rooms at night preparing quotes and finalizing pricing for prospective buyers.

The city of Chicago also provides equipment dealers with world-class dining options to spend time with customers after hours. It is one of the greatest cities in the U.S. with many first-class hotels and restaurants (plus some fantastic shopping if you have the time). On top of that, most of the large equipment manufacturers host special lunches, dinners, and cocktail parties.

Regardless of your extracurricular activities, there is no doubt you will spend a few days in Chicago and, in today’s world, even a few hours away from the shop comes at a significant cost. If you are going to make this trip, having a plan in place is paramount.

Buying at the Show

It should also be noted there is much more to the show than just machine tools. IMTS also provides a showcase for software, measuring equipment, and tooling developers.

Before COVID-19, the most common theme a potential buyer came across at one of these exhibitions is the “show special.”

These days, however, the challenge for both manufacturers and equipment suppliers is availability. If your purpose in attending the show is to finalize the purchase of a new piece of equipment, it is important to ensure funds are available for your potential purchase.

It’s a good idea to take some time to work with your lender to get a pre-approval in place before you leave. Normally to get a pre-approval, particularly if you are dealing with a financial institution where you have an existing relationship, all that is required is providing some current financial information for review. Even in cases where a new relationship is being explored, an efficient leasing company can review credit applications in 24 to 48 hours and provide a pre-approval for a specific amount.

Regardless of whether the funds are being pulled from working capital or supplied by a financial institution, attending IMTS provides an opportunity to buy a machine that is in inventory right from the booth. If this is part of your plan, getting a pre-approval in hand allows you to secure a new piece of technology more easily, which, I can assure you, is a very productive use of time.

Ken Hurwitz is vice-president of Equilease Corp., 416-499-2449, ken@equilease.com, www.equilease.com.