Characterizing the U.S. Cultural Heritage Management Industry with Independently Collected and Analyzed Data

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Characterizing the U.S. Cultural Heritage
Management Industry with Independently Collected
and Analyzed Data

• Donn R. Grenda, Ph.D., RPA1
• Michael Heilen, Ph.D., RPA1
• Teresita Majewski, Ph.D., RPA, FSA1,2
• 1Statistical Research, Inc. 2Statistical
  Research, Inc. and president, American Cultural
  Resources Association
• European Association of Archaeologists
• 19th Annual Meeting
• Pilsen, Czech Republic
• 2013

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American Cultural Resources Association

• National trade organization for CHM firms in the
  US
• Promotes common interests of CHM firms
• Prioritizes political advocacy and education
  regarding best practices

3
Industry Surveys

• ACRA recently conducted two industry surveys
• A rapid survey to gauge overall industry size
• A detailed survey of firms to understand their
  composition and operation

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Industry-Size Survey

• The industry size survey sampled CHM firms
  (within and outside ACRA) to collect data on
• firm size (numbers of FTEs)
• employee educational levels, and
• firm revenues

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Industry-Size Survey

• A comprehensive list of more than 1000 CHM firms
  was developed
• The survey obtained responses from 230 firms
  (more than 20 of invited firms)
• Several cases had to be removed from analysis
  because of anomalous or contradictory information
  that skewed metrics
• Statistical techniques were applied to reduce the
  effects of bias and obtain estimates

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Industry-Size Survey

• Sources of bias
• Large firms better represented than small firms
• Several firms had unusually high revenues per FTE
  (removed likely pass-through firms)
• A few firms had revenues far in excess of other
  firms and likely were including non-CHM revenues
  (removed)

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Industry-Size Survey

• To account for bias in making estimates, industry
  metrics were calculated using
• Bootstrap analysis with outliers removed (20
  sample, 10,000 iterations, 95 confidence
  interval
• Survey weights (0.5 for large firms, 0.75 for
  medium-sized firms, 1.0 for small firms)
• Range of estimates of number of operating firms
  (1000 to 1300 firms)

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Industry-Size Survey

• These firms generated over 1 billion in revenue
  in calendar year 2012

Estimated Firms 2012 Gross Revenue for Industry (billion ) 2012 FTEs 2012 FTEs w/ graduate degree 2008 FTEs 2008 FTEs w/graduate degree
1000 0.84 0.04 7978 339 4605 166 8381 350 4536 176
1100 0.93 0.04 8776 373 5065 182 9219 384 4990 193
1200 1.01 0.04 9574 407 5526 199 10057 419 5443 211
1300 1.09 0.05 10372 441 5986 215 10895 454 5897 228
Minimum 0.805 7,639 4,439 8,032 4,361
Maximum 1.131 10,813 6,201 11,349 6,125
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Industry-Size Survey

• These firms generated over 1 billion in revenue
  in calendar year 2012

• The analysis results were used to support the
  following statistics (1300 firms was considered
  the best estimate)
• 1300 firms employ some 10,000 CRM professionals
  nationwide
• These firms generated over 1 billion in revenue
  in calendar year 2012

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Industry-Size Survey

• These firms generated over 1 billion in revenue
  in calendar year 2012

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Detailed Firm Survey

• The detailed survey collected data from ACRA
  member firms on
• annual sales
• firm composition
• business practices
• employee benefits and compensation, and
• how ACRA can benefit the industry

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Detailed Firm Survey Services Offered
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Detailed Firm Survey - Employees
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Detailed Firm Survey - Wages
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Detailed Firm Survey Biggest Challenges
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Detailed Firm Survey ACRA Activities
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Detailed Firm Survey Member Benefits
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Detailed Firm Survey Ways for ACRA to Grow
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Conclusions

1. Provided the first industry-size estimates for
   law makers
2. CHM is strong in the USA but it has been flat
   over the past few years.
3. The industry employees over 10,000 professionals
   and generates over 1 Billion in revenue
4. ACRA now has a detailed understanding of how to
   support the industry

Lessons Learned

• Start the survey early
• Have multiple people review the potential
  questions
• Hire an outside firm to conduct the survey (cost
  about 20k)
• Have various people take the survey online prior
  to starting

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• Thank You!