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ASSN OF EQUIPMENT MFGRS MOVES AHEAD ON ITS STRATEGIC PLAN
Association of Equipment Manufacturers (AEM) reports:

The AEM Board of Directors held its final meeting for this year on November 9, approving a number of strategic initiatives and activities for 2013 implementation to expand and strengthen services. These actions including the following:

1) Received a report on the progress to achieve the 2012 objectives of the Key Result Areas (KRAs) of the Strategic Plan. The objective was to achieve 16 of the KRA Goals in 2012. The report identified that 16 KRA Goals had been completed and another 9 KRA Goals are underway this year.

2) Reviewed the next Strategic Plan initiatives to be developed and implemented in 2013 to achieve KRA Goals. These initiatives are in 1) member engagement, 2) market information and content, and 3) global business development. These plans are in addition to the initiatives implemented this year.

3) Supported a report explaining the impact of revenue initiatives to achieve the objectives of the new financial model, including member dues rate increases and proposed statistics fees. The initiatives are budgeted to achieve $870,750 in new financial model revenue in 2013. The initial revenue goal for 2013 was $700,000.

4) Approved a proposal to establish statistics fees as part of the revenue initiatives of the new financial model. Statistics program participants will receive a base number of reports at no cost. Fees will be charged for reports received over the base amount of 25. A total of 37 of the 127 participants will be charged fees. Individual reports explaining the impact of the fees and dues rate increases were sent to Directors before the meeting.

5) Received and supported progress made to achieve the objectives of Strategic Plan initiatives implemented this year for advocacy and membership. Advocacy achievements to date for the two-year plan include the "I Make America" campaign and increased Ag advocacy. For membership, the plan being implemented in response to the membership survey results was explained, including improved or additional services in market intelligence, technical services, advocacy, statistics, exhibitions and global business development.

6) Approved the proposed 2013 AEM Goals, which continue the implementation of the Strategic Plan approved in August 2011 and initiated in 2012. The objectives of the proposed goals for 2013 are based on the priorities identified in the 6 Key Result Areas (KRAs) of the Strategic Plan. These are: 1) Financial Model, 2) Advocacy, 3) Products, 4) Membership, 5) Partnerships & Collaboration and 6) People. The Board also received the "2012 dashboard" showing the progress made by staff to achieve these goals this year.

7) Approved the 2013 AEM legislative priorities recommended by the Government & Public Affairs Committee (GPAC), including immediate action to support "fix the debt" initiatives. 2013 priority issues include support for infrastructure investment, farm bill passage, a comprehensive energy policy, tax reform and trade.

8) Approved the proposed 2013 AEM budget as recommended by the Finance Committee. The proposed budget includes a net operating income of $1,804,000, including $870,000 from the revenue initiatives of the new financial model. (It was noted that the approval of the Latin America trade show was not included in the budget since it was not approved until the meeting. It may reduce net operating income by about $35,000.)

9) Accepted the 2012 budget results, including the year-end forecast of a net operating deficit of $1,860,230. The forecast is $309,870 better than the budgeted deficit of $2,170,100 and reflects current projections for AEM exhibitions, a lower CONEXPO Russia loss and favorable budget variances for personnel, occupancy and G&A spending. While the deficit is substantial, it was covered as planned by the 2011 net operating income of $2.3 million. The CE Restricted Fund ended September with a $15.3 million market value as compared to $14.5 million at the beginning of the year.

10) Agreed with the recommendation of the AG and CE Sector Boards to continue to explore the role of AEM to support members for REACH chemical management compliance. The Boards support AEM involvement as a resource for training (awareness), education (certification) and development of a common reporting format, but are unsure of AEM's role in developing a REACH database for the industry. The Boards directed staff to complete additional research to determine how suppliers are complying today and any actions taken by industry associations in Europe (CECA, CEMA, and VDMA) to respond to the issue. The Sector Boards will hold a conference call in January to review the research results and determine the direction to take.

11) Approved the staff recommendation to establish "regional management committees" in priority international markets to respond to member and industry needs for services in these regions. These committees would follow the model used today for our CE Latin America Advisory Committee. The AG and CE Sector Boards would approve the establishment of these committees and direct their activities.

12) Approved the CE Sector Board recommendation of the Latin America trade show plan, which includes launching an exhibition in Peru in fall 2014 and Chile in 2015.

13) Received a report on the results of research completed indicating a positive future for exhibitions as a marketing tool in the future. The presentation also explained that AEM exhibitions are well-positioned for success as market leaders or events with "unique value" in the marketplace. The research was conducted as part of the Financial KRA to develop realistic financial projections for AEM exhibitions.

14) Approved a policy resolution for state dealer legislation as recommended by GPAC and amended to include Canada. The resolution states in part that "AEM opposes dealer legislation that could interfere with the contractual relations between equipment manufacturers and dealers, but recognizes that circumstances in a state or province may lead to the introduction of dealer protection legislation". In such cases, "consideration on a state by state or provincial basis should be given to the 'uniform state dealer legislation' in states or provinces where existing statutes or proposed legislative changes are more onerous to manufacturers".

15) Received a report on AEMPAC activities and success in 2012. With the successful AEMPAC Gala at the Annual Conference, we have achieved our goal of $66,000 and 100 donors for 2012. AEM disbursed $103,500 to 36 candidates in the 2011-2012 election cycle with contributions strategically coordinated with AEM legislative priorities.

16) Received a report on the new leadership, responsibilities, and activities of the Small Enterprise Committee to support small and medium-sized members. Activities included trades missions, export support work with ExIm Bank and other federal agencies, and grassroots involvement in I Make America.

17) Received the Membership Committee Report, which explained the accomplishment of achieving the all-time high of 888 members. 2013 priorities will focus on member engagement and retention instead of recruitment and the decision to require members to verify sales levels on their annual membership renewals.

18) Received the Associate Member Group Report, which explained the restructuring of AMG governance to involve more members in activities, increase participation on AEM boards and planning committees and increase engagement between Associate and Full/Mid-level members.

19) Received a report on the Annual Conference & Education, which highlighted the 10% increase to 415 attendees for the Annual Conference and the gains in attendance for AEM education programs.


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