Firm Finds Its Niche in Obscure Trade Associations

By Jeffrey H. Birnbaum
Tuesday, July 10, 2007

Pop quiz: What do birthing classes, spice sellers and crematoriums have in common -- besides bracketing the cycle of life?

Give up? They all have trade associations run by the quietest and fastest-growing company on K Street, SmithBucklin.

The Chicago-based firm (with a major Washington office) is the world's largest trade association management company. Its more than 200 trade associations and professional societies include Lamaze International, the American Spice Trade Association and the Cremation Association of North America.

These are not what you'd call high-profile entities, but that's the way SmithBucklin likes it. The company has stayed in the background, helping obscure but useful organizations, since 1949.

"People say, 'My God, there's really an industry for this?' " said Henry S. Givray, SmithBucklin's chief executive. "They don't fully grasp what we do."

What it does is operate full-time trade associations on what amounts to part-time budgets. It hires professional managers -- or develops them from within -- and assigns them to run one or two trade groups. Then it backs them up with teams of experts in accounting, training, marketing, event planning, human resources and, here in Washington, government affairs.

Voila, instant trade association! And the associations' members are none the wiser. Independent associations, however, are not always pleased with the competition. "Stand-alone association execs can sometimes get a little nervous about what we do," Givray said.

But clearly it's working well. SmithBucklin has grown at a compounded annual rate of 11 percent over the past five years and has 750 employees. Its industry (yes, it is an industry) comprises 676 companies, up more than 40 percent from 10 years ago.

Washington is, of course, a major hub for associations. Of the nation's 86,000 trade associations and professional societies, 3,500 are located in the D.C. area, more than in any other locale.

So SmithBucklin has a large and growing office here. In May, it hired Russell Snyder, 45, as senior vice president for its 160-person Washington office. Snyder, who last worked at SmithBucklin's largest competitor, Kellen Co., is a third-generation association executive.

Snyder's grandfather Calvin Snyder worked for the predecessor of the National Association of Realtors. His father, Dick Snyder, was the top executive of the National Lumber and Building Material Dealers Association. Dick Snyder was also responsible for roping his son into supervising associations for a living.

Russ Snyder has had responsibility over a weird and eclectic collection of groups: the National Candle Association, the Asphalt Roofing Manufacturers Association and the Greeting Card Association, among others. He now helps oversee three floors of a building on M Street NW that house 25 associations and a six-person lobbying shop. The associations include a few that you might have even heard of: the Pet Food Institute and the Regional Airline Association, for example.

Snyder's office also conducts back-office functions for the Managed Funds Association, which represents one of the country's most controversial businesses -- hedge funds.

Snyder said he enjoys his new job and would recommend it to the next generation of Snyders. In the meantime, he has had to spend a lot of time just keeping his clients' acronyms straight.

What's Next? Ads in the Senate?

The campaign of Rep. Silvestre Reyes (D-Tex.) has asked the Federal Election Commission how far it can go to showcase its big donors.

Reyes, who chairs the House Permanent Select Committee on Intelligence, is holding a fundraiser at a golf course in September. "One of the fundraising opportunities would be to sell a sponsorship for each of the eighteen holes," the campaign wrote the FEC.

In particular, Reyes's campaign said it wants to "sell the sponsorships to individuals and allow their corporations to be recognized." When it does so, it asked, "What wording" can it use?

The commission has not said. But here's my suggestion: "Hole 18 sponsored by Corporation X: We helped you, now it's your turn."

Hong Kong's Idea for K Street

Bernard C. Chan has an idea for you. Why not allow industries and professions to elect their own representatives to Congress?

Sound crazy? Well, it might be, but that's how it's done Hong Kong. Chan, president of Asia Financial Group, is the insurance industry's representative in Hong Kong's 60-member legislative council. He was chosen by the island nation's 200 insurance companies and was in Washington the other day singing the system's praises.

"It works," he said. "It provides a good balance."

Half the legislature is selected by popular vote, and the other half is chosen by "functional constituencies." For example, there are representatives from banking, real estate, accounting and teaching, and three delegates from labor unions.

Would such in-house lobbyists work in the U.S. Congress? "It's good for us, but I'm not so sure it's good for your system," Chan said after some serious thought.

He's probably right. So you can stop salivating now.

Family Values, Detroit Style

The recent fight over fuel efficiency standards in Congress included a surprise pleader on the side of the auto industry: the Rev. Louis P. Sheldon, chairman of the Traditional Values Coalition.

The coalition generally focuses on attacking gay rights initiatives and advocating against abortion. But it chimed in with a letter asking senators to oppose a measure that would mandate improved gas mileage for vehicles. The stated reason: family values, of course.

"Families with children need larger capacity vehicles to be available, safe, reliable, and affordable," the letter stated. "The extreme corporate average fuel efficiency (CAFÉ) standards being mandated on family cars like vans, minivans, SUVs and trucks will place an unnecessary and harmful burden on America's families."

Sheldon became infamous a couple of years ago when investigators discovered that disgraced lobbyist Jack Abramoff had enlisted his group, which opposes gambling, as part of a $2 million pro-gambling lobbying campaign. Sheldon said at the time that he could not recall receiving any money as part of the Abramoff effort.

In this instance, Sheldon declined to comment. "Unfortunately, no one is available to comment due to international travel," said April Waugh, the coalition's chief of staff.

Please send e-mail tokstreet@washpost.com.