Circuits Assembly - March 2008 - (Page 48)

Trade Groups Trade Secrets Mike Buetow includes such entities as business leagues, chambers of commerce, and real estate boards. The exceptions, ACI and IMAPS, are listed as a 501(c)(3), Public Charity, a classification for organizations founded to support a host of practices involving religion, education, charity, science, or testing for public safety, among others. Only one, SIA, publishes an annual financial report, although SEMI includes a report on its annual finances in its member magazine, and SMTA makes its report available at its annual member meeting or upon request. AeA follows a novel approach: It breaks its membership into 17 regional councils, with a director assigned to each council. Three times a year, AeA provides revenue, expense and asset information to the directors, whom “we expect to keep the members up-to-date,” says AeA’s senior vice president of domestic policy and congressional affairs John Palafoutas. Going Up The past three years have been good to very good for most electronics companies. The same can be said of the trade groups. In terms of annual revenues, almost each firm grew more than 10% in aggregate from 2004 to 2006. The trade groups reaping the most benefit? IPC, up 25%, SMTA, up 18%, and the AeA, up 16% (Table 1). The median growth was 12%. Firms that failed to fare well include Jedec (down 1.5%) and the ECA (down 25%). However, each faced extenuating circumstances. Both are former units of the now-defunct EIA, which was “realigned” last summer and saw its assets split among its members. It is unclear how much of the former groups’ revenues were tied to their EIA parent; both declined to respond to interview requests. Most trade groups derive a large portion of their revenues from member dues. However, there are variations to that model. IPC, which relies heavily on revenues from trade shows and sales of standards, drew about 14% of its sales from dues. SEMI members ponied up less than 10% of the organization’s Industry tax-exempt organizations collectively take in more than $100 million a year. Where does it go? uestion: Which is the largest industry association? Answer: It depends on your definition of “largest.” If the number of members is measured, for instance, the International Microelectronics and Packaging Society is tops by a wide margin. If annual revenues are considered, Semiconductor Equipment and Materials International laps the field. And if computed by assets, SEMI and the now-split Electronics Industries Alliance leave the others in their tax-free dust. Electronics trade associations took in more than $110 million in revenues during fiscal 2006. The growth of the sector has led CIRCUITS ASSEMBLY to look at the finances of the industry’s leading taxexempt organizations. In a first-of-its-kind study, we reviewed the IRS Form 990 filings from tax years 2004 to 2006 for a variety of not-for-profits, among them the American Electronics Association (AeA), American Competitiveness Institute (ACI), IPC, IMAPS, EIA, Electronic Components, Assemblies and Materials Association (ECA), the International Electronics Manufacturing Initiative (iNEMI), the Jedec Solid State Technology Association (Jedec), the Semiconductor Industry Association (SIA), SEMI and the Surface Mount Technology Association (SMTA). (Certain other trade groups and professional societies, such as the Surface Mount Equipment Manufacturers Association, were not reviewed, either because they have been absorbed into other entities, or have not been required to file because their income is less than $25,000.) The entities, save for two, are classified by the IRS as 501(c)(6) tax-exempt organizations, which Q 48 Circuits Assembly MARCH 2008 circuitsassembly.com http://circuitsassembly.com

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Circuits Assembly - March 2008 Caveat Lector Letters Industry News Market Watch Talking Heads Focus on Business On the Forefront Screen Printing What Drives the Crowd? Mastering ESD Control in Automated Handling Systems Beating the RoHS Heat Trade Secrets True to Its Roots The Road Abroad - Strategic Alliance or Greenfield Facility? Tech Tips Wave Soldering Test and Inspection Process Doctor Pb-Free Lessons Learned Getting Lean Materials World Equipment Advances Apex Product Preview Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - March 2008

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