Business associations mirror struggles of members

By John T. Slania

There’s an old adage in the business association industry: You’re only as successful as your members.

Thus, area associations and trade groups are suffering from the dismal economy as much as the businesses they represent. Declining membership, lower attendance at trade shows and seminars, and a drop in advertising and sponsorships are among the areas where revenues have fallen for business associations.

Trade groups are trying to combat the problem in a variety of ways, including offering more business development and strategy seminars, spending more time visiting and counseling members, and relying more on the Internet to communicate and share information.

Scott Grams, executive director of the Illinois Landscape Contractors Association in Oak Brook, has seen a 10 percent drop in membership despite a year-long campaign that has added 84 new members. (Photo by Dietrich Wolfframm)

Additionally, business associations are freezing the cost of their annual dues to retain members, and in some cases are allowing members to delay payment rather than lose them.

“What’s happening to associations is no different than what’s happening to companies all across this economy. They’re all trying to figure out ways to survive,” said James McCambridge, a business association consultant with Ian Ryan Interactive Inc. in Des Plaines.

The recession has had its most measurable impact on the memberships of area business associations, which report an average 8 percent to 10 percent drop in members, mirroring national trends. In lean times, trade association dues are often one of the first items companies cut.

“Whether it’s my association or any association, members are looking to see what you did for them the year before. When times are tough, they take a hard look at their membership costs,” said Scott Grams, executive director of the 700-member Illinois Landscape Contractors Association, headquartered in Oak Brook.

Grams has seen a 10 percent drop in membership, even with a year-long campaign that has so far added 84 new members. The trade group has seen the largest drop in membership among small landscape companies that mow lawns and trim bushes, while larger landscape design firms have been more stable, Grams said.

To add and retain members, Grams and his staff have been more active in visiting landscaping companies, listening to their troubles and offering survival tips.

“We’re trying to take a more personal approach,” he said. “We’ll take a road trip and visit four or five companies, learn about their business and find out how they’re doing.”

The landscape contractors association has not raised its annual membership dues. Other area trade organizations have taken a similar tact, and in some cases are allowing members to delay the payment of dues in order to keep them.

“We’re working hard, one-on-one, with our members because we know it’s not been easy. If they can’t pay their dues, we’ll work with them to retain their membership,” said Mark Denzler, vice president of government affairs and COO of the 4,000-member Illinois Manufacturers Association, based in Oak Brook.

Business associations also have reported lower revenues for their annual trade shows, which traditionally are big money makers. Groups have reported a decrease in trade show attendance, in the number of exhibitors and in the amount of companies sponsoring the events.

Nationally, the most recent figures available indicate trade show attendance down 10 percent in the second quarter, while the number of exhibitors fell 13 percent, according to Trade Show Week, an industry publication based in Los Angeles.

The Oakbrook Terrace-based Coin Laundry Association witnessed a 30 percent drop in attendance and a 20 percent drop in exhibitors at its June trade show, the Clean Show, held in New Orleans, said Brian Wallace, president and CEO.

Membership has slipped 5 percent to 7 percent in the 2,500-member organization, and advertising has softened for The Journal, its monthly print magazine, Wallace said.

“The performance of a trade association mirrors the industry,” he said. “When money is tight, there is a reduction in the number of new stores, ergo, a reduction in the number of new members.”

Anticipating a need for education, information and communication, the Coin Laundry Association has increased its profile on the Internet, specifically through its Web site, PlanetLaundry.com. The site features industry news, educational information, equipment sales, a bulletin board and blogs, among other features.

“PlanetLaundry.com offers our members a place for up-to-date, relevant information and education, and a place to communicate,” Wallace said. “It also is available to non-members, who may see the value in what we offer and decide to join.”

The Fox Valley General Contractors Association also is sharpening the focus of its online information and educational seminars to address the current needs of its 165 members. Its Web site is filled with news and information about current building trends, new legislation affecting the trades, and safety information and instruction.

This online information, coupled with monthly seminars focused on topics such as green building trends and how to use social media in marketing, help keep members informed in a convenient way, said Michael Hampson, executive director of the Geneva-based organization.

“Contractors are busy trying to find news business and survive,” Hampson said. “So you have to find ways to provide them with information and education that is easy to access and relevant to their needs right now.”

Posted on Thursday, October 29, 2009 (Archive on Thursday, November 05, 2009)
Posted by jstoltz Contributed by jstoltz

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