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Firstword - Inside Your Association
Your Association Finances: Budget and Appropriations Process Promote Efficiencies, Services
Commentary by Emmett Barker and Dennis Slater, 2002 AEM Co-Presidents
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| Emmett Barker and Dennis Slater, 2002 AEM Co-Presidents |
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A major goal in the formation of AEM was to create cost efficiencies for the membership, while still providing
enhanced member services and contributions to member-related industry actions. An important tool to help achieve this
goal is your Association's annual budget.
We'd like to highlight some of the types of member and industry services funded by the Association, outline the
philosophy behind AEM's budget and appropriations process and provide a look at future operations.
Advancing Industry Issues
AEM not only appropriates funds to other organizations but also assigns funds to subsidize member programs and
activities.
Creating a stronger industry voice for members, especially in the area of public policy, is an important AEM activity.
Appropriations this year target state as well as national initiatives impacting members' ability to produce and
sell equipment.
On the state level, for example, AEM is actively addressing onerous legislation affecting dealer-manufacturer
relations as well as lighting and marking regulations for agricultural equipment.
On the national level, AEM has committed funds to address a variety of issues. These include “clean air”
emissions rulemaking covering agricultural and construction equipment, the passage of a farm bill that stabilizes
farm income to promote future machinery purchases, and assurance of adequate transportation legislation and funding
mechanisms.
The number of standards and regulations affecting construction and agricultural equipment continues to increase,
making technical and safety-related initiatives a key action area for your Association (and an integral part of the
budget). We anticipate broadening our interaction, especially in the international arena, to provide input to these
non-tariff trade barriers that adversely affect the global competitiveness of members.
Education is another strong component of AEM activity. The budget includes appropriations supporting workforce
initiatives such as the ConstructMyFuture.com construction-careers website, AEDF educational foundation and
accreditation of post-secondary construction curriculum.
In the international arena, AEM's pavilion subsidy program allows members greater access to overseas trade show
participation.
Prudent Management
It is a guiding principle of AEM to be “cash neutral” in its operations – that annual operating
revenues from dues, services and trade shows will be used to meet annual operating expenses.
Previously, appropriations and grants were drawn from our non-operating reserves. In the past, these appropriations
and grants have been in the $900,000-$1,000,000 range annually. Using efficiencies gained in the consolidation, now
appropriations will be built into the annual operating budget. Our reserves will be set aside for additional
industry-enhancing projects.
As a result of these additional expenses, we are working to better structure operations to continue to provide
services in the most cost-effective manner possible to achieve our aim of break-even or better in the annual
operating budget.
We are also examining new ventures that will help fund additional programs for members. A major focus here is
exploring development of trade show services for industry segments beyond construction equipment and establishing
international alliances for overseas shows. We are already moving forward in China to organize construction equipment
shows for the benefit of our members.
It is a challenge – but our commitment to you – to continue to provide our high level of services at a
minimum cost to members.
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