No matter what business you are in, be it a small retailer, an importer, an exporter or a manufacturer, you will always benefit from the support and services of a Trade Association. Simply in all fields of trade and industry in all countries you will find regional, national and international trade associations. It is estimated that there are more than 90,000 associations around the world.
By looking at the numbers, you can see their popularity, but what are trade associations and why are they so important?
In this article, you will learn more about partnerships and their role in the modern business world.
First, let’s explain what they are:
A Trade Association is a member-based organization that is funded by a group of people or companies in a specific industry to facilitate collaboration between companies. They advocate for the interests of their members by advertising, producing industry standards, lobbying, publishing magazines or newsletters, producing exhibitions or conferences, networking, finding new potential customers or suppliers for companies. member companies by organizing trips and meetings and, last but not least, education by offering educational materials or courses. Trade associations are governed by statutes and are managed by officers who are usually members.
Now let’s talk about the history of trade associations and review their evolution throughout history.
The first Society, the Academia Secretorum of Naples was born in 1560. During the following century, other societies spread across Europe in London, Paris, and Italy.
In the 16th century, the first associations in the United Kingdom were born with the name Guild, to protect the interests of merchants and craftsmen. The well-known Royal Society of London, which was founded in 1662, is one of the examples. They set rules for wages and hours of work and also offered education through skills training. In 1800, the guilds worked closely with local governments.
The first surviving Association was formed in 1768 by 20 New York merchants and called it the New York State Chamber of Commerce. Another example is the American Seed Trade Association, which was founded in 1883. After this time, more regional associations emerged throughout the country, but most of them were local associations. After the civil war and the great expansion of the country’s industrial capabilities, many local and national Associations were formed so that manufacturers could find new markets and expand their businesses. By 1900, nearly 100 national and state associations were active throughout the United States to ensure their competitiveness in the marketplace.
Although the services of Trade Associations were helping companies to stay competitive in the market, with a growing demand for products, they soon decided to take advantage of the situation and use it to create monopolies and price fixing. This matter changed with the introduction of antitrust laws and the decision of the United States Supreme Court, which ruled on the opening of price exchange information.
World Wars I and II dramatically increased the number of Associations and became a valuable resource in providing industry statistics to the government.
Today, trade associations continue to maintain their essential role as intermediaries between government and business and also help businesses expand by finding new markets and improving product quality by setting standards and educating people.
