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News
Executives agree economy starts climb in 2010
New Plexus poll affirms Association Pulse study on recession
 Despite association executives’ optimism in the
economy, they are budgeting cautiously for next year.
A recent poll by Plexus Consulting Group, Washington, presented three
scenarios to participants:
Scenario 1. The market is picking up with employment straggling but
catching up by summer of next year.
Scenario 2. There will be a “double dip” before the economy
picks up in 2011.
Scenario 3. These are the good times compared to what is in store for us.
The poll found that association executives are actually optimistic
about the future, with 56% believing the market will pick up, with
employment lagging at first but catching up by summer of next year.
Thirty-eight percent believe there will be a double-dip in the economy
before it gets better; that is, there will be another smaller crash
brought on by low employment and increased housing foreclosures before
2011.
It is this double-dip notion on which 47% of association executives
who responded to the Plexus survey are determining their 2010-11 budgets,
followed by 41% who are basing budgets on the idea that the economy and
employment will pick up by summer. (See chart above, courtesy of
Plexus Consulting Group.)
 38% of executives reported revenue
from credentialing was up, the only revenue stream to show a positive
change in the Plexus survey; 62% said dues are down, and 81% said revenue
from publications is down. Plexus principal Steven Worth said
associations that are less dependent on dues “are in better shape
because they have something they are selling that is valued, and if it
produces revenue, that proves its value in the workplace.”
In the Association Pulse Survey, conducted in July for Association
TRENDS, association executives were asked “When will your industry
hit bottom?” Cumulatively, 56% said by January-March 2010; 70%
April-June; 88% July-December; 97% by 2011; and 100% by 2012. The Pulse
survey also asked “Is the recession over for your members?”
77.2% of survey participants issued a resounding “no.” (See
chart above.) Details: http://www.plexusconsulting.com/; Association
Pulse Survey.
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