Business & Professional Associations

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 22,100 business and professional associations in the US provide services to and promote the interests of their members and industries. Business associations include chambers of commerce, real estate boards, and manufacturers’ and trade associations. Professional associations include healthcare professional and bar associations.

Employment Affects Membership

High unemployment often causes association memberships to decline.

Increasing Dependence on Non-Dues Revenue

Uncertainty over dues revenue has led associations to become more reliant on non-dues programs.

Industry size & Structure

A typical business association employs 7-8 workers and generates almost $2 million annually, while a typical professional organization employs 12 workers and generates $3-4 million annually.

    • The business and professional association industry consists of about 22,100 organizations that employ about 198,300 workers and generate about $53 billion annually.
    • Business associations include chambers of commerce, real estate boards, and manufacturers' and trade associations.
    • Professional associations include healthcare professional and bar associations.
    • Most organizations are small and operate out of a single location.
    • The median board size for associations is 15, according to the ASAE.
    • Large associations include the National Association of Realtors, National Association of Manufacturers, American Medical Association, and the National Education Association.
                                  Industry Forecast
                                  Business & Professional Associations Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 9, 2022 - Business Travelers Expect To Attend More Conferences
                                  • About 84% of American business travelers expect to take at least one trip to attend conferences, conventions, or trade shows in the next six months, according to Meeting Professionals International's Q1 2022 survey. Business travelers expect to resume traveling at a slightly slower pace compared to pre-pandemic levels, averaging about 1.6 trips per month (compared to 1.7 monthly trips pre-pandemic).
                                  • New COVID-19 case rates increased in late April, with the seven-day rolling average increasing to roughly 72,300 on May 7, up from 58,000 on May 1 and 30,000 cases per day on April 8, according to a New York Times COVID-19 case tracker. Experts note that the American population has different vaccination rates, levels of previous exposure to the virus, and degrees of underlying health conditions, so the trajectory of new cases could vary. Analysts note that the data regarding new cases are getting less reliable as the public testing infrastructure continues to wind down and home test results are less likely to be reported to officials. Several variables — including relaxed precautions against viral transmission, vaccination rates, the availability of antiviral medications and natural immunity acquired by previous infection — may affect the course of any surge in the US.
                                  • The US Travel Association forecasts that US business travel spending and the number of trips won’t top 2019 levels until 2024. A 2022 travel outlook report by Deloitte concluded that corporate travel this year is unlikely to reach or be near 2019 levels even assuming the best possible COVID-19 outcomes.
                                  • The pandemic is expected to have long-term impacts on business travel. Digital workarounds such as Zoom meetings have made some businesspeople conclude that their pre-pandemic levels of travel were not worth the expense and time away from families. Even given the most positive possible COVID-19 scenarios, 2022 business travel is not likely to reach 2019 levels, according to an outlook by Deloitte. As of January 23, tickets sold through US travel agencies for business trips were 63% lower than they were at the same time in 2019, according to Airlines Reporting Corp.
                                  • The American Society of Association Executives (ASAE) asked lawmakers at the beginning of the coronavirus pandemic for additional assistance for associations that suffered financial losses when events and meetings were canceled, access to Small Business Administration loans to maintain payroll, and the creation of a federally-backed pandemic risk insurance program. The first federal allocation for Payroll Protection Program (PPP) loans were only available to 501(c)(6) groups if lobbying accounted for less than 10% of their activities. The second round of stimulus relief was passed in December 2020. The second allocation made for forgivable PPP loans and increased the threshold for lobbying activities from 10% to 15%, but only organizations with less than $1 million in lobbying spending were eligible. The $1.9 trillion American Rescue Plan Act (ARPA), which included an additional $7.25 billion for PPP which made the loans available to nonprofit entities that employ 300 or fewer employees per physical location. The ARPA’s provisions regarding lobbying were the same as those in the prior stimulus package passed in late December 2020.
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