History of Trade Associations

No matter what business you are in, whether you are a small retailer, importer, exporter or manufacturer, you will always benefit from the support and services of a Trade Association. Quite simply, in every field of business and industry in every country, you will find regional, national, and international business associations. It is estimated that there are more than 90,000 Associations around the world.

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 associations and their role in the modern business world.

First we will explain what they are:

A trade association is a membership-based organization that is funded by a group of people or companies in a specific industry to facilitate collaboration between companies. They defend the interests of their members through advertising, producing industry standards, lobbying, publishing magazines or newsletters, producing exhibitions or conferences, networking, finding potential new customers or suppliers for member companies by organizing trips and meetings and, last but not least, education by offering educational materials or courses. Trade associations are governed by laws and 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 Secretorum Academy of Naples he was born in 1560. During the following century other societies spread throughout Europe in London, Paris and Italy.

In the 16th century, the first associations in the United Kingdom were born under the name of Guild, to protect the interests of merchants and craftsmen. The well-known Royal Society of London, founded in 1662, is one example. They established rules for wages and hours of work and also offered education through skills training. By 1800, the guilds worked closely with local governments.

The first Association remaining in existence was formed in 1768 by 20 merchants in New York and called 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 sprang up across 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 in the United States to ensure its competitiveness in the marketplace.

Although the services of the Trade Associations were helping the 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 issue changed with the introduction of antitrust laws and the decision of the US Supreme Court, which ruled on the openness of price exchange information.

World Wars I and II dramatically increased the number of Associations and they 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 helping businesses expand by finding new markets while improving product quality by setting standards and educating people.