Circuits Assembly - March 2008 - (Page 50)

Trade Groups Table 3. Tax-Exempt Organization Expenses, 2004-06 Expenses ($ millions) Org. AEA ACI ECA EIA iNEMI IPC IMAPS Jedec SEMI SIA SMTA 2004 16.4 10.5 2.2 6.4 N/A 11.1 1.9 2.2 43.4 6.9 1.3 2005 17.0 11.9 2.0 5.0 1.6 12.1 1.8 2.1 44.5 7.1 1.3 2006 17.1 11.6 1.9 * 1.6 12.8 1.6 1.8 N/A 8.5 1.4 % Change, 04-06 5 10 -12 * N/A 15 -14 -19 N/A 24 10 Table 4. Tax-Exempt Organization Net Assets, 2004-06 Org. AEA ACI ECA EIA iNEMI IPC IMAPS Jedec SEMI SIA SMTA 2004 16.3 8.4 1.0 34.3 2.6 10.4 1.0 3.6 58.1 5.2 0.9 2005 19.2 7.7 0.7 33.0 2.8 14.3 1.0 4.0 57.7 6.9 1.0 2006 19.3 5.9 0.5 * 3.0 17.1 1.0 4.8 N/A 6.5 1.3 % Change, 04-06 18 -30 -52 * 18 64 0 32 N/A 25 48 In $ millions. Figures rounded. *EIA disbanded during 2006. N/A = Not available. This attention to the bottom line has resulted in some eye-opening jumps in assets among the surveyed tax-exempt organizations. Although ECA, which owed some $591,000 to EIA at year-end 2006, exempt organizations studied, except ACI, are primarily made up of took a step back, most saw impressive gains, with IPC and SMTA corporate members. leading the pack (Table 4). The median growth was 18% over the two-year span from 2004 to 2006. ‘Attention to Budgets’ Not surprisingly for service organizations, employee compensaAs part of our study, we looked at each organization’s expenses. tion is a leading expense (Table 5). As a percent of revenues, the range Almost across the board, revenues are rising faster than expenses, by organization was 28 to 57%, with the median 34%. Executive pay suggesting the trade groups are keeping an eye on budgets. Outliers ranged mightily. The best-paid CEO, including salary, benefits and include IMAPS, Jedec and SIA (Table 3). other compensation, took home nearly $1 million in 2006, while the low person on the scale pocketed about $215,000. One group is run by a management firm and does not break out executive compensation. Executive salaries are typically determined by subcommittees within the various groups’ boards of directors, aided by benchmarking data. Only SEMI pays its board, allocating $1,500 each in stipends to its 34 directors. Not all associations account for expenses the same way. Take bank fees and related charges. SMTA and iNEMI declared none for fiscal 2006. SIA and ECA claimed slightly • Three Days of Targeted more than $10,000 each. IPC, on the other Technical Sessions hand, reported $175,000 in banking expenses for 2006, after declaring $193,000 in 2005, • One Day Table Top the result of hefty credit card fees. The “winTrade Show ner” was SEMI at $774,662; the firm operates • Networking Opportunities entities in Singapore and Japan, which likely contribute to the sum. “We had one company • FREE Technical Sessions pay its $80,000 dues on a credit card,” says AeA’s Palafoutas, explaining the $133,000 the organization chalked up in bank fees. Likewise for consultants. Contracting to a trade group is a lucrative undertaking. The semiconductor trade groups spend heavMarch 4-6, 2008 ily, thanks in large part to their frequent www.pcbshows.com/austin forays to lobby Washington legislators. SIA expensed nearly $2.1 million in 2005, while SEMI lined consultants’ pockets to the tune Figures rounded. N/A = not available. *EIA disbanded in 2006. COWBOY UP! and REGISTER NOW! 50 Circuits Assembly MARCH 2008 circuitsassembly.com http://www.pcbshows.com/austin http://www.pcbshows.com/austin 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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