More participation needed in trade associations

When I graduated from law school in 1999 and returned to Alaska to pursue my career, I had the fortune of meeting a restaurant owner who was interested in starting a trade association on behalf of the hospitality industry. He sought my help to organize a new nonprofit and serve as the first executive director.

Several outspoken bar, restaurant and retail owners entered the discussion. A competent board of directors formed. A few champions of the trade association model contributed money, time and effort. Their rationale was that restaurant, bar, veterans’ club, liquor store and hotel owners needed to consolidate communications to patrons and policymakers.

Educating the public on the benefits of hospitality commerce was a major goal. “We employ nearly as many Alaskans as the resource development industry” became a moniker. “We don’t condone drinking and driving nor assaults and domestic violence fueled by alcohol abuse” became a theme to patrons and the public.

Advocacy for and against government policies affecting the industry’s businesses became a fringe benefit, such as when a stifling alcohol, bed or cigarette tax proposal surfaced. The association’s political endorsements, letters to the editor and social media messaging permeated the community with empowering effect. The goals became shared information and news among businesses, positive reputation building and solidarity on political and economic issues.

So what’s the problem if the trade association system is so effective?

Whether hospitality, construction and homebuilders, marine dealers, trucking, oil and gas, medical, real estate, insurance or a plethora of other Alaska industries, these days it appears trade association membership is waning.

Business owners and managers for the most part are complacent but for a few dedicated members. Most trade associations desperately need more financial support from industry operators. Paying an annual membership fee or placing an ad in a membership directory is not enough. Serving on an advisory committee or attending a golf tournament or wine tasting event falls short.

One’s industry trade association should be the first and foremost group to join when starting a business. Liken participation in a trade association to an election. If you want to offer your opinion and advice, you really shouldn’t complain about laws or regulations or commerce unless you participate. Riding on the association’s messaging coattails is just as negligent. In the close-knit Mat-Su community, it’s pretty clear which businesses affiliate with their respective trade associations as compared to those who avoid participation.

Who comes to mind when I proselytize more involvement and the notable absence of businesses in trade associations? How about wind turbine, solar energy and recycling companies in Alaska being members of Renewal Energy Alaska Project (REAP), the renewable energy coalition of consumer and conservation businesses? How about handymen, sub-contractors, contractors, painters, asphalt repairmen, roofers, plumbers and the wide mix of other building-related businesses members joining the Mat-Su Home Builders Association? How about every restaurant and bar and liquor store in Mat-Su join Alaska CHARR and support the recent fight against a borough-wide alcohol tax vs. letting a few generous Cabaret, Hotel, Restaurant and Retailers Association (CHARR) members, some from Anchorage, do the heavy lifting?

One of the most successful Alaska trade associations is the Alaska Support Industry Alliance. Led by Rebecca Logan, a tenacious and well-informed champion of a sustainable economy, the Alliance is the signature advocacy and information source in the state for promoting responsible exploration, development and production of oil, gas and mineral resources.

When I asked Logan about expansion (or not) of the association’s membership over her three years as the executive director, she explained that the Alliance has added 150 members, with a current membership of 500 businesses who employ 30,000 people in the state. Her vision is to continue to grow and remain cohesive, noting “the potential is endless. Every business in the state could be a member because every business in some capacity supports oil, gas and mining.”

Logan has the right attitude, but we need more executive directors like her and trade associations like Alliance.

Government encroachment in Alaska is pervasive, and often unobtrusive. Consumer retaliation and the viral potential on social media when consternation of an industry arises is no less damaging. Quite often, absent an active trade association connection, a business owner will get hit between the eyes with a new law or restrictive regulation when it’s too late to counter. That goes for any industry. Conversely, a well-informed local industry generates solidarity among its employees, patrons and community members. The larger your trade association and the more engaged its members are publicly, the faster commerce and responsibility grow.

And don’t forget the enormous charitable contributions made by these organizations year after year.

If you can affiliate with a trade association, do it as soon as possible. Participate, contribute and make a difference. It will benefit you in more ways than an opinion editorial can quantify, and you may just avoid pesky consequences like downsizing or losing your business.

Tom Anderson is managing partner at Optima Public Relations and is a host on the new radio station KVNT Valley News Talk on 1020 AM and 92.5 FM.