The Value of Trade Associations

I’ve been spending a lot of time thinking about Trade Associations over the last few months, and have developed a newfound appreciation for the work they do. Not just the big ones that you have probably heard of, but the thousands of small specialist trade associations that support and represent businesses across the economy.

I’ve been really struck by the importance of the work they do, and the lack of recognition they receive. In particular, I think that Trade Associations are undervalued by policy makers. They should be listened to more readily and with more urgency.

Trade Associations see problems way before they hit the desks of Ministers, they are an effective early warning system. Pick an issue .. HGV driver shortages? The RHA has been warning about this for years.. Brexit supply issues? Trade associations understood the specific challenges of making the negotiated agreements work in practice and the impact they would have too. On most issues, trade associations are way ahead.?

Trade Associations make policy workable – without trade associations, the Government would have a really hard job implementing policy. Not only do they spend huge amounts of time working on the details of regulation and guidance, but they then push it out to their members and drive compliance too.

Trade Associations drive up standards that protect consumers and support public sector inspection regimes. Trade associations are often driven by a group of businesses that want to differentiate themselves from those in their sector who are cutting corners on regulation, taxation or using low quality materials. They self organise, set standards, change culture and drive innovation. They prevent a race to the bottom and protect us all in the process.?

Trade Associations deliver investment in the skills that businesses actually need. They put in place accreditation programmes, run regular training sessions, develop routes to entry through apprenticeships and vocational learning, support continued professional development, share best practice and reward excellence.?

Yet despite their value they are often dismissed as vested interests, and whilst some, clearly do represent a small section of an industry, the best trade associations represent the interests of their entire sector, they know that its success and growth is dependent on maintaining standards and quality and ensuring healthy competition between their members.??

Trade Associations are full of impressive people driven by a passion for their sector. The vast majority are small businesses employing under 10 people. The skills required to lead a trade association are a complex mix that require speedy transition from sector champion, to regulatory expert, to event organiser, to marketing manager to PR guru and much more besides, there are a lot of spinning plates, entrepreneurial spirit and oodles of ingenuity that keep all the parts in motion.?

Trade Associations have had a tough time during the pandemic. For many, the business model relies on generating surpluses from events, awards and training to cross subsidise core functions. These activities have been hit hard, there is still a lot of uncertainty and not a lot of resilience in the sector. The UK needs strong, well supported, well functioning trade associations to help the commercial sector through the economic shock of Brexit and the pandemic.?

So, given their value to the economy, why is there not more support from policy makers to help establish trade associations and build their capacity too. A bit of pump priming could really help fast track the establishment of new Associations and support those that are having to rework their budgets, forecasts and plans to develop a new commercial operating model, whilst also having to service members that are relying on them more heavily than ever before.