Industry Trade Groups Forced to Cut Costs

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Industry trade associations are having to "tighten their belts," The Hill reports. Member companies responding to "new competitive pressures in a global marketplace" are insisting their representatives in Washington keep their costs down - a demand that "continues to reshape trade groups in town." For example, the American Chemistry Council lost member companies and saw its head fired because chemical industry executives were "frustrated by what they saw as the slow pace of the cost cutting" at ACC. Trade associations are adopting a "value-based dues system," focusing more heavily on lobbying, and looking for ways to generate non-dues revenue, like charging for white papers, conventions and membership in special consortia. "Though not necessarily a revenue raiser for trade associations, spin-off coalitions are an increasingly popular lobbying device," The Hill reports.