- Apr 24 2014
It all began in 1963 when a group of small manufacturers who were suppliers of performance equipment for early hot rods organized their fledgling industry and called it "Speed Equipment Manufacturers Association" (SEMA).
The mission was practical and straightforward: develop uniform standards for certain products used in motorsports competition; promote the industry as a supplier to consumers involved in constructive activities of recreational and hobbyist value; develop programs to encourage improved business practices among member companies; and hold regular meetings to achieve unity as a business organization. In those days, all of the members were founders of companies that produced speed equipment exclusively (hence, the organization’s title).
At the outset, the pioneering companies operated free of the constraints that come from governmental regulations and their attending restrictions. They were as aggressive and progressive as their imaginations would allow, and the mostly small businesses flourished. Today, many of the original companies are very large, successful corporations, and some, such as Edelbrock, Ansen, B&M and Offenhauser, are known internationally for their product lines. Today, more than 40 years later, the small group of entrepreneurial operations has been joined by thousands of companies, designers, producers and suppliers of specialty products that span the gamut. From performance products for street and race applications to appearance accessories for late-model automobiles and light-duty trucks, SEMA-member companies contribute to the vitality and strength of a $29.9-billion-a-year retail industry.
SEMA eventually became the Specialty Equipment Market Association, embracing within its ranks all businesses in the distribution chain: manufacturers, warehouse distributors, jobbers, independent retailers, volume retailers, specialty stores (speed shops), sales agents, subcontractors and publishing companies. The membership categories even include racing teams, car clubs and special service organizations. The SEMA membership roster has steadily grown and continues its upward climb. Today there are more than 6,382 corporate members. Products supplied by the industry are in demand not only in the United States, but also throughout the world.
In the recent past, membership in SEMA has been increasingly important to businesses active in producing and/or marketing specialty and performance products. The founders in 1963 could not have imagined the eventual scope of SEMA as a guardian and leader in industry affairs. Since the introduction of California regulations in the ’60s, federal and state governments and regulatory agencies have proposed, introduced and promulgated a variety of restrictive measures. Although they were sometimes introduced in the name of clean air and improved safety standards, the laws and regulations are too often overly broad in scope and fail to consider less obvious repercussions and detrimental effects on businesses.
So, in addition to its pursuit of new markets and helping to cultivate them, SEMA must simultaneously maintain a relentless "watchdog" posture on behalf of all industry sectors. The association has staffed up to do so, maintaining a government affairs office in Washington, D.C., and key locations worldwide to help association members in their pursuits of new markets abroad.
Said Chris J. Kersting, SEMA president and CEO: "Working together as a coalition, members of SEMA have the benefit of proficient legal representation. It would at least border on being prohibitively expensive for a company to individually tackle the problems involved with legislation and regulations by governmental agencies, in particular those that cause hardship among small- to medium-size business entities. More than ever, membership in SEMA carries with it a benefit that far outweighs the annual fee paid by a company to be an active member."
SEMA's efforts and successes on behalf of its members in the legislative and regulatory arena are of critical importance, not only to the specialty and performance segment of the aftermarket, but also to everyone in the industry—hobbyists and motorsports participants included.
An overview of SEMA's role as a force in the aftermarket can't overlook the annual SEMA Show. From humble beginnings in the late ’60s (about 100 booths at the first show), the SEMA Show has grown not only in size, but in scope and international reach. Over the past few years, the SEMA Show features more than 2,000 exhibiting companies.
SEMA's services to member companies fill the full spectrum of unique and sometimes exclusive benefits, including attention to highly specialized segments of the industry. The council system within SEMA includes the Automotive Restoration Market Organization (ARMO), the Motorsport Parts Manufacturers Council (MPMC), the Manufacturers' Rep Council (MRC), the Professional Restylers Organization (PRO), the Hot Rod Industry Alliance (HRIA), the Light-Truck Accessory Alliance (LTAA), the Wheel & Tire Council (WTC) and the Street Performance Compact Council (SPC) as well as the Young Executives Network (YEN) and the SEMA Businesswomen’s Network (SBN). The SEMA Show itself focuses on still more diverse markets, including individual sections for Racing and Performance, Wheels and Tires and Mobile Electronics.
The advent of specialized segments in the SEMA membership mix brings with it the need to monitor a wider range of proposed and pending legislative and regulatory issues. Old-car scrappage programs have obviously been of concern to collectors, and the ARMO section of SEMA has been at the forefront of efforts to assist states and municipalities with the design of acceptable collector and recycling programs. Instead of scrappage regulations, SEMA stresses the merits of inspection and maintenance programs, of importance not just to ARMO, but critical to general automotive parts and service sectors.
Old-car protection, specialty-vehicle registration, NHTSA regulations and other considerations have an impact on members of the HRIA, a growing section of SEMA that has its roots in the organization's rich hot-rodding heritage.
Restyling, as represented by the PRO section of SEMA, is an area of unprecedented growth. Pickups and SUVs are included as targets in this market, which encompasses everything from ground effects to special trim packages and from interior alterations to sunroofs. In current lexicon, the movement is referenced as "personalization," and SEMA manufacturers and suppliers are again responsible for "ingenuity in action" in the design and development of products.
Of immediate value to SEMA members is the Research and Information Center in the headquarters office. The research center promptly responds to members' requests for market data and information on trends and anticipated developments worldwide. "It is a pacesetter achievement for our sector of the aftermarket," stated Jim Spoonhower, SEMA's vice president of market research and information. "Use of the research center alone by some companies has more than offset their annual dues, emphasizing the value of membership in the organization." He said that the work done by the research center on the Mexico market is unmatched anywhere in the world. As a consequence, SEMA members preparing to export to Mexico are armed with research data that gives them a distinct edge over their competitors.
The educational services department at SEMA features a training center at the headquarters office. In addition, periodic live and web-based seminars are held on a variety of business- and operations-enhancement subjects. "So valued are some of the seminars that member companies send in representatives from distant locations to participate," according to Spoonhower, “and the Internet has provided an even broader and more easily achieved access to these valuable information sessions.”
Said Kersting in a recent statement: "The bottom line at SEMA, as it shall always be, is a combination of quality and service. The ingredients for a successful trade association are performing to the satisfaction of its member companies and accommodating industry growth and diversification. SEMA attempts to set the pace for others to follow. That's why our membership roles continue to increase in number."
Market data—sales and trend projections included—are critical in today's competitive arena. SEMA's trade journal, SEMA News, provides monthly updates and insights on business and consumer trends. Unlike the publications of most organizations, the monthly SEMA News is circulated throughout the aftermarket and is immediately archived online, reaching beyond the SEMA membership to keep key principals apprised of developments in the specialty and performance segments of the automotive industry.
As the complexion of the automotive specialty-equipment market changes, driven by consumer buying habits and trends, products offered by the SEMA constituency take on a new appeal and value.
Membership in SEMA today carries with it the prestige of a progressive trade organization that represents the most vibrantly dynamic sector of the global aftermarket—suppliers of specialty and performance products.