Vibrant auto show in Detroit good for Windsor businesses
DETROIT, MICH.
It ain’t what it used to be. But businesses in Windsor, Ont., are looking forward to the spillover effect from a recovering Detroit auto show.
Before the steady stream of bad news events that began with the 9/11 terrorist attacks, Thom Racovitis, owner of the TUNNELBAR-B-Q, said Friday the downtown eatery would enjoy a 20 per cent to 25 per cent jump in sales from the North American International Auto Show. Border hassles, the financial crisis, a soaring loonie and tepid economic growth have cut that figure in half to about 12 per cent.
“Going back about 10 years ago, it was a lot better than it has been,” Racovitis said.
“We had a lot of business from the show, like the press corps. Our sales are off, but that’s reflective of the overall economy. We’ll see what happens this year.”
If optimistic projections from organizers of the 2012 NAIAS bear out, the economic spin-offs on both sides of the border will reflect a bigger and bolder show.
“That’s the big story this year and you will see that,” said Bill Perkins, NAIAS chairman.
“The confidence of the car manufacturers is very high, they have a good year under their belts and they can see the market is really starting to come back. You will see that in the displays, the intros, the unveilings, the press conferences. We’re just expecting a phenomenal show this year.”
Everything, from attendance figures to the number of exhibitors, parallels the ongoing recovery in the North American auto industry, particularly the comeback of the Detroit Three.
Attendance for the public portion of the show, which begins Jan. 14, is slated to rise to 750,000, from 730,000 last year, said Perkins.
The number of journalists and industry analysts expected at the show is up to 5,500, from 5,200. A 25,000-square foot expansion at Cobo Centre is accommodating a slight increase in the number of exhibitors, including the return of Japa- nese automaker Nissan, which skipped the past few shows, to 160, from 157 last year. Press preview days have returned to their traditional two-day slot, from one.
As well, $300 million in renovations to the Cobo Centre has led to an agreement between the NAIAS and the Detroit Auto Dealers Association that will keep the event at the centre for the next five years. Detroit, said Perkins, will be able to compete with the biggest auto shows from across the globe.
The five-year deal will pump an estimated $1.75 billion US into the Detroit and southeastern Michigan economy.
“From a standpoint of it being a signature event for the City of Detroit and one that helps maintain its reputation as the automotive capital of the United States, the auto show is very, very positive,” said Gordon Orr, CEO of Tourism Windsor-essex, Pelee Island.
“Over time, the number of visitors to Windsor-essex as a result of the auto show has steadily declined. But that’s OK. As a two-nation destination, these types of events are paramount to selling the entire region.”