Associations spared pinch as economy slows down

Despite a slumping economy, area business associations report strong membership renewals surprisingly strong in some instances.

Some voice mild worry, however, that a weakening economy may spill over into their membership sales efforts.

"We anticipate 2008 will be a very strong year for membership," says Doug Kurkul, chief executive officer of Reno Sparks Chamber of Commerce.

At the Sparks Chamber of Commerce Varney Padgett, who handles sales and marketing, says membership is increasing "by leaps and bounds."

And Carson City Chamber of Commerce executive Director Ronni Hannaman says, "We have been steadily growing. Renewals are good, because Carson City is growing."

Economic development agencies, too, say membership trends are strong.

Economic Development Authority of Western Nevada Membership Development Manager Rae McElroy says new memberships have been steadily rising over the past three years.

Northern Nevada Development Authority Member Services Manager Roger Dietz says renewals this fiscal year starting July 1 have gone down just slightly.

And groups that represent specific industries such as builders and manufacturers say their membership is firming after earlier softness.

Rick DeMar, chief executive officer of Builders Association of Western Nevada headquartered in Carson City says, "The downturn has generated more activity for this office."

Bambi Spahr, executive director at The Builders Association of Northern Nevada headquartered in Reno, says she's seen a good retention rate that included a spike midyear, but dipped fourth quarter, leaving the association with a stable membership compared to the year's start.

Ray Bacon, executive director of Nevada Manufacturer's Association, says the industry recession that began in July 2000 delivered a hit. And since then, some companies who dropped employee health care coverage dropped out, because health insurance discounts are one of the major benefits members glean. "Among the remaining manufacturers," he adds, "are some who are pretty soft and their business is down."

"At this stage," says Bacon, "It's holding steady, but if recession sets in, katy bar the door and all bets are off."

But business membership associations aren't taking those membership renewals for granted.

Reno Sparks Chamber will roll out new programs and educational seminars to keep members coming back, says Kurkul. The chamber will also be stepping up government affairs advocacy. And, it assigned membership representatives to work one-on-one with the members to see that they get value for their membership. Cost is $390 for a sole proprietorship.

Sparks Chamber maintains member interest through networking opportunities, says Varney Padgett, along with services such as business news flashes and seminars. He cites a new offering for 2008, a leadership program. Cost is $165 for a sole proprietor.

Carson City Chamber offers basic membership at $260. "We're rather affordable," says Hannaman.

At EDAWN, says McElroy, "Excited members are supporting our growth." Some glean value from networking, while others want to serve on committees. And the Business Builders program gets them into the community. To steer them to the right activity, she adds, the agency assigns a member liaison to talk with each company as they join, asking why they want to participate. The basic Friend level (for very small company or non profit) rate is $650. Companies can pay quarterly on request.

At NNDA, Dietz cites upcoming seminars on broadly based topics, now expanded to breakfast time slots in addition to the former lunchtime offerings.

At BAWN, DeMar says, "We are creating a remodelers council, and will ramp up the educational program so builders can make investment in themselves and their staff. We're also creating a green building program, Sierra Green, now that demand has gone mainstream."

At BANN, Spahr points to existing value- added programs such as health insurance discounts, and says the association plans to roll out an occupational health program.

However, a few clouds mar the mostly sunny outlook.

A certain number of businesses are closing their doors, says Kurkul. "They're not joining anything."

The primary softness, says Dietz, is seen in building-related businesses. "Builders, real estate, title companies are cutting back on staff, advertising and everything else."

He cites one real estate broker who said,

"I haven't sold a property in a year."

Still, he adds, "I think the worst is over because people realize they need to do something to set themselves apart. Probably the weakest, smaller players dropped out. The larger companies have the depth and breadth to weather the downturn."

However, Spahr cautions, "An association must always plan in advance for possible reductions."

DeMar adds, "Our membership increased almost 20 percent in 2007, but I'm more conservative in my projections for 2008. The selling point of any association is how can you help me as a business survive?

"The association business," says Bacon, "sells fear and promises hope."