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        Business & Professional Associations Industry Profile

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        Excerpt from Business & Professional Associations Industry Profile

        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 ...

         
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