I recently had to research a particular subject about the mining industry and, as one does these days, I hit the internet and used a few search engines to track down a source. I was amazed by how many searches of this kind refer you to an industry association and it got me thinking about the added value these associations provide.
Let me start by saying I am referring to an association from a supplier perspective, and not necessarily a professional association.
There are literally hundreds around the globe and several in Australia, and one has to wonder how many offer and or provide similar or the same services.
To add justification to my review I really need to identify only a couple, and in doing so I don't wish you to think I favour one more than another. That is simply not the case.
Now we have that clear, let's begin. For the exercise I have picked Austmine and MESCA (Mining Equipment & Services Council of Australia).
The way I see it, Austmine's primary focus is to promote the interests of Australian-owned or -based companies that bring in export dollars from international mining associated programs, specifically manufacture, services and technology.
Austmine works closely with Austrade, a division in the Federal Government's Department of Foreign Affairs and Trade. Its mission is simple: to promote Australian companies and Austmine members as the first choice in supplying mining equipment, technology and services, and to increase the export power of its members year-on-year.
On the other hand, MESCA is an industry body with the vision of creating a dynamic, competitive and unified Minerals and Energy sector in Australia. Among other things it facilitates the exchange of ideas between major industry players and its members, and it also assists green and brownfield projects by assessing the best technology.
Members include capital equipment providers, service and project contractors, engineering and specialty service providers and so on.
So a quick pass of these two associations indicates a clear and concise difference. One looks after the industry exporting and one looks after the industry within. No doubt when suppliers assess and evaluate which organisations they should join, these parameters would provide guidance, but some would fit both.
So the question is, how does the supplier measure where they can get the best bang for their buck?
The majority of such associations develop programs to provide value-added components through seminars, trade shows, networking meetings, trade and press articles, membership bulletins, trade delegations and the like.
The membership fee is not significant, especially when weighed into the sales and marketing budget equation. Add this to the everyday cost of doing business and it is small change in anyone's pocket. Given that I would endorse membership of such associations specific to your core business activities and company direction.
The challenge to supply companies comes when associations or organisations lobby for their membership, which are more industry-specific or state-based, such as a state minerals council, or a specific commodity association such as a coal or gold body.
Despite the low fees there is only so much money in anyone's budget that can accommodate membership of such bodies, and again it has to be evaluated on the contribution you feel it can offer your business.
The way I see it is that joining such associations is all part of doing business, and the key is to ensure that, within your supply company, you engage staff to cover any associations.
I believe there are several supply companies who, for all the right reasons, are members of a variety of associations which could have cross-over effects.
But this isn't a problem. These companies can simply direct different core departments or personnel to represent the company at these. But above all, these companies need to ensure the staff disseminate the information they get from attending association events throughout the company on return.
In that way everyone will get a better understanding and realise the benefits. It's all to do with communication.
I have only targeted supplier organisations in this review. It is essential the total industry supports professional associations and organisations, as these fuel society and Governments to ensure a strong and long-term future for the industry in years to come.
