IMTS: Shop, negotiate, socialize

With the International Manufacturing Technology Show (IMTS) just about upon us, I thought this month it would be relevant to discuss why visiting this show could be a very productive use of time, along with how to get the most out of the experience.

IMTS is one of the largest industrial trade shows in the world, held every two years in September at Chicago’s McCormick Place. This year will be the 32nd edition of the show, it will occupy more than 1.3 million net square feet of exhibit space, feature 2,400 exhibitors, and attract 115,000 buyers and sellers from more than 117 countries.

However, it is not only the sheer size that distinguishes IMTS from most other North American shows, but also the manner in which it is organized: Manufacturers are arranged by the type of product they sell, with machine tools, software, and tooling all getting their own defined areas.

From the visitor’s perspective, this show also has the right individuals working in the booths. They are the smartest and most successful employees from the manufacturers and their distribution networks.

In fact, it is contact with these types of people that can make the trip to Chicago worth the time for anyone interested in learning about, and potentially purchasing, the newest technologies.

In many cases the machinery is manufactured on the other side of the globe, so for most buyers, visiting the factory may not be time- or cost-effective. Visiting IMTS can make that trip unnecessary.

Buying at the show

To exhibit at a show the size of IMTS takes a lot of time, planning, and, of course, money. With such a large investment, there is a huge incentive to sell product to justify this expense. When you combine the big investment with the ability to engage with actual decision-makers, the opportunity for negotiating a great deal on a piece of equipment is unprecedented.

I can tell you from working this show first-hand as a machine tool seller that I spent many hours in a hotel room at night cranking out quotes and finalizing pricing, so I was ready to continue a discussion that had started with a customer on the previous day. And I once watched Dr. Masahiko Mori, president of DMG Mori, make a phone call to wake up a plant manager in Japan in the middle of the night to rearrange the factory assembly schedule to secure a machine delivery for an important customer who was placing an order with him at that moment.

If you are visiting IMTS to make a final decision on a new piece of equipment and take advantage of a “show special,” be sure you have funds available for any potential purchase.

Get pre-approved first

If you will need to borrow money, get a pre-approval before you head to the show. If you are dealing with your current financial institution, you will need to provide some current financial information for review. A new lender can review your credit application and comment on the request in 24 to 48 hours.

A standard financing pre-approval typically is good for up to 60 or 90 days, depending on the lender. In my experience, if the client is serious, the deal will close within 30 days. But, even with an approval in place, there is no obligation to proceed.

Regardless of whether you pull the funds from working capital or borrow money from a financial institution, going to IMTS with a plan is what’s most important. It could very well provide an opportunity to negotiate a great deal on a new piece of technology, and, if that’s the case, it certainly will have been a productive use of time.

It is also hard to underestimate the opportunities Chicago provides to spend time with suppliers after-hours. It is one of the greatest cities in the U.S. with many fine hotels and restaurants, plus some fantastic shopping if you have the time. On top of that, most of the large manufactures host special lunches, dinners, and cocktail parties.

Take the time to enjoy the show and the other opportunities it provides.

Ken Hurwitz is senior account manager, Blue Chip Leasing Corp., 416-614-5878, www.bluechipleasing.com.