AMC Institute News Releases
11-12-02
Association management industry fuels U.S. economy
NEW YORK (Nov. 12, 2002) — The association management business
continues to grow rapidly, according to a just released report from
the AMCinstitute. With 147,000 associations in the United States
and as many as 1,000 new associations formed each year, the economic
impact of associations in the United States is surprisingly dramatic.
In the aggregate, association annual budgets now exceed $21 billion,
translating into billions of dollars more in indirect benefits to
the U.S. economy. The estimated impact on the economy represented
by non-profit trade associations and professional societies is 10-12
percent of the GDP.
Possibly due to their non-profit nature, the financial significance
of associations often goes unnoticed. Yet associations employ nearly
260,000 full-time and another 35,000 part-time. Although largely
tax-exempt entities, associations pay more than $1.1 billion annually
in local, state and federal taxes. Additionally, associations spend
nearly $5.6 billion annually on printing and publishing, and another
$2.2 billion annually on technology.
The hospitality industry relies heavily on associations and trade
organizations for revenue generated through meetings and conventions.
Association-sponsored meetings and conventions now account for more
than 26 million overnight stays in hotels each year, pumping billions
of dollars into the hospitality industry.
For example, according to the San Antonio Convention and Visitors
Bureau, thousands of conventions take place in San Antonio every
year, a high percentage of which are annual association meetings
and conventions. In 2001, $472 million delegate expenditures poured
into the local San Antonio economy through the hospitality industry.
With such significant budgetary concerns largely dependent upon
membership dues and voluntary contributions, associations find themselves
especially vulnerable to economic conditions. It is no surprise
that many associations are hiring professional association management
companies (AMCs) to manage their daily affairs. By taking advantage
of the best practices established by such companies and sharing
resources with other associations, significant aspects of their
organizations can be improved and enhanced.
In fact, according to the AMCinstitute, since 1995 the number of
AMCs has increased by 25 percent, bringing the current number of
AMCs to 527. Servicing over 3,000 associations, AMCs manage nearly
4,000 meetings and conferences a year, generate revenues of $291
million, and employ 4,126 people across the country. AMCs in the
United States now manage budgets exceeding $2 billion collectively.
The average AMC-managed association budget is $677,000 and the range
of budgets for AMC-managed associations is anywhere from $50,000
to more than $16 million annually.
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for a copy of the press release in Word format.
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