Business & Professional Associations

Companies in this industry promote the business and professional interests of members. Major associations include the American Bar Association, the American Medical Association, the National Association of Realtors, and the US Chamber of Commerce (all based in the US), as well as the Architects' Council of Europe (Belgium) and the Medical Protection Society (the UK).

Many business associations generally operate within a single country or region of the world, though some have divisions abroad to promote information sharing across borders. The growing importance cross-border growth has led to increased efforts to focus on international issues. Many associations actively advocate for foreign trade policies that benefit their industries.

The US business and professional associations industry includes about 23,000 establishments (single locations and units of multi-location organizations) with combined annual revenue of about $50 billion.

COMPETITIVE LANDSCAPE

Demand is driven by business expansion and job growth. The profitability of individual associations depends on the ability to expand dues-paying membership. Large associations have economies of scale in marketing. Small associations can appeal to businesses or professionals in niche industries or serve local markets. The US industry is fragmented: the top 50 business associations account for about 25% of revenue; the 50 largest professional organizations account for about 35% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major sources of revenue include membership dues (45% of revenue); conferences, meetings, and trade shows; and program services including government fees and contracts (over 15%). Additional revenue sources may include trade, career, technical and professional development training programs, and contributions, grants, and investment income. Business, or trade, associations represent groups of businesses within an industry, whose members are typically individual companies. Professional associations represent groups of individuals within a specific field, such as law, medicine, or science. By representing large numbers of companies and professionals, both types can collectively promote group interests more effectively than can individual members. Most associations operate at regional, state, or local levels; many are affiliated with national or international group.

Program activity includes publications, conferences, seminars, and other forms of education. An organization may offer members certification to ensure proper qualifications or to designate level of expertise. Educational forums include in-person and web- or computer-based training. Many associations develop industry and ethical standards, which include environmental and safety regulations. The American National Standards Institute encourages and coordinates voluntary industry standard and guideline development.

As advocates for members, associations actively monitor government regulations and lobby for favorable legislation. While political involvement can be controversial, associations often spend a significant portion of their budgets on lobbying; such activity is reported under the Lobbying Disclosure Act. Some associations have political action committees (PACs) that raise and donate money to political groups to further industry interests. Associations also conduct industry research and gather statistics to provide information for members, government groups, and the general public. Show more