SEMA News - June 2010

John Quincy Adams, the sixth president of the United States, knew a thing or two about leadership. One of his most famous quotes was, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Those are also fitting words to describe the upcoming SEMA Leadership Days, to be held July 21–24 in Pasadena, California.

Attendees will “learn more” by taking advantage of this year’s Business Technology Symposium at the Pasadena Convention Center on Friday, July 23, from 10:00 a.m.–5:00 p.m. The topics for this full day of instruction will run the gamut from “The Future of Mobile Marketing” and “Reaching Your Customers on Forums and Blogs” to “Market Research in the Digital Age” and “Social Media for Your Business.” Your business can’t afford to stand still in a rapidly changing world. Here’s a chance to jump ahead, where the learning is tailored for our industry and the networking with industry peers alone is worth your while. Just contact Arlene Wood at arlenew@sema.org or call 909/396-0289 for details.

To “become more,” please join us for the annual Installation Banquet & Gala Fundraiser on Friday evening from 6:30 p.m.–10:00 p.m. (cocktail reception from 6:30 p.m.–7:30 p.m.), where we will salute the contributions of the outgoing members of the SEMA Board of Directors and welcome the incoming group. In addition, the three newest members of the SEMA Hall of Fame will be celebrated. The actions and stories of the industry luminaries celebrated at this event inspire all of us to become more. Meanwhile, proceeds from the Gala Fundraiser and other activities are contributed to Childhelp, which aids victims of child abuse, and the Victory Junction Gang Camp, which uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

“Dream more” is what we in the specialty-equipment industry do every day. The products manufactured, distributed and sold by SEMA-member companies are the very stuff dreams are made of, and the results of those dreams—at least a fair representation of them—will be on display at the SEMA Show ’N Shine on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center. Chip Foose, the award-winning automotive designer, fabricator and host of TLC’s “Overhaulin’,” has once again signed on to be the grand marshal of the show, which will feature a full range of musclecars, street rods, exotics and restorations.

To “do more,” take part in the SEMA Pinewood Drag Races, which will be run concurrently with the Show ’N Shine on Saturday. Help the children supported by Childhelp and the Victory Junction Gang Camp by sponsoring a pinewood dragster for less than $100, and we’ll see to it that your car is raced even if you can’t be there to watch the action in person. Contact Cindy Booher via e-mail at cindyb@sema.org for more information about this worthwhile, fun and fulfilling competition.

So much of what we do in business distracts us from the friendships we develop in our industry and the contributions we can make through volunteerism and human kindness. Join us for the activities of Leadership Days and reconnect to the great SEMA community of volunteers, leaders and industry icons. Our collective participation (that means you!) also brings out the best in our fellow enthusiasts, competitors and business associates through the actions they inspire.

Don’t miss this once-a-year opportunity to also bring out the best in yourself. 

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA News - June 2010

John Quincy Adams, the sixth president of the United States, knew a thing or two about leadership. One of his most famous quotes was, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Those are also fitting words to describe the upcoming SEMA Leadership Days, to be held July 21–24 in Pasadena, California.

Attendees will “learn more” by taking advantage of this year’s Business Technology Symposium at the Pasadena Convention Center on Friday, July 23, from 10:00 a.m.–5:00 p.m. The topics for this full day of instruction will run the gamut from “The Future of Mobile Marketing” and “Reaching Your Customers on Forums and Blogs” to “Market Research in the Digital Age” and “Social Media for Your Business.” Your business can’t afford to stand still in a rapidly changing world. Here’s a chance to jump ahead, where the learning is tailored for our industry and the networking with industry peers alone is worth your while. Just contact Arlene Wood at arlenew@sema.org or call 909/396-0289 for details.

To “become more,” please join us for the annual Installation Banquet & Gala Fundraiser on Friday evening from 6:30 p.m.–10:00 p.m. (cocktail reception from 6:30 p.m.–7:30 p.m.), where we will salute the contributions of the outgoing members of the SEMA Board of Directors and welcome the incoming group. In addition, the three newest members of the SEMA Hall of Fame will be celebrated. The actions and stories of the industry luminaries celebrated at this event inspire all of us to become more. Meanwhile, proceeds from the Gala Fundraiser and other activities are contributed to Childhelp, which aids victims of child abuse, and the Victory Junction Gang Camp, which uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

“Dream more” is what we in the specialty-equipment industry do every day. The products manufactured, distributed and sold by SEMA-member companies are the very stuff dreams are made of, and the results of those dreams—at least a fair representation of them—will be on display at the SEMA Show ’N Shine on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center. Chip Foose, the award-winning automotive designer, fabricator and host of TLC’s “Overhaulin’,” has once again signed on to be the grand marshal of the show, which will feature a full range of musclecars, street rods, exotics and restorations.

To “do more,” take part in the SEMA Pinewood Drag Races, which will be run concurrently with the Show ’N Shine on Saturday. Help the children supported by Childhelp and the Victory Junction Gang Camp by sponsoring a pinewood dragster for less than $100, and we’ll see to it that your car is raced even if you can’t be there to watch the action in person. Contact Cindy Booher via e-mail at cindyb@sema.org for more information about this worthwhile, fun and fulfilling competition.

So much of what we do in business distracts us from the friendships we develop in our industry and the contributions we can make through volunteerism and human kindness. Join us for the activities of Leadership Days and reconnect to the great SEMA community of volunteers, leaders and industry icons. Our collective participation (that means you!) also brings out the best in our fellow enthusiasts, competitors and business associates through the actions they inspire.

Don’t miss this once-a-year opportunity to also bring out the best in yourself. 

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA News - June 2010

John Quincy Adams, the sixth president of the United States, knew a thing or two about leadership. One of his most famous quotes was, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Those are also fitting words to describe the upcoming SEMA Leadership Days, to be held July 21–24 in Pasadena, California.

Attendees will “learn more” by taking advantage of this year’s Business Technology Symposium at the Pasadena Convention Center on Friday, July 23, from 10:00 a.m.–5:00 p.m. The topics for this full day of instruction will run the gamut from “The Future of Mobile Marketing” and “Reaching Your Customers on Forums and Blogs” to “Market Research in the Digital Age” and “Social Media for Your Business.” Your business can’t afford to stand still in a rapidly changing world. Here’s a chance to jump ahead, where the learning is tailored for our industry and the networking with industry peers alone is worth your while. Just contact Arlene Wood at arlenew@sema.org or call 909/396-0289 for details.

To “become more,” please join us for the annual Installation Banquet & Gala Fundraiser on Friday evening from 6:30 p.m.–10:00 p.m. (cocktail reception from 6:30 p.m.–7:30 p.m.), where we will salute the contributions of the outgoing members of the SEMA Board of Directors and welcome the incoming group. In addition, the three newest members of the SEMA Hall of Fame will be celebrated. The actions and stories of the industry luminaries celebrated at this event inspire all of us to become more. Meanwhile, proceeds from the Gala Fundraiser and other activities are contributed to Childhelp, which aids victims of child abuse, and the Victory Junction Gang Camp, which uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

“Dream more” is what we in the specialty-equipment industry do every day. The products manufactured, distributed and sold by SEMA-member companies are the very stuff dreams are made of, and the results of those dreams—at least a fair representation of them—will be on display at the SEMA Show ’N Shine on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center. Chip Foose, the award-winning automotive designer, fabricator and host of TLC’s “Overhaulin’,” has once again signed on to be the grand marshal of the show, which will feature a full range of musclecars, street rods, exotics and restorations.

To “do more,” take part in the SEMA Pinewood Drag Races, which will be run concurrently with the Show ’N Shine on Saturday. Help the children supported by Childhelp and the Victory Junction Gang Camp by sponsoring a pinewood dragster for less than $100, and we’ll see to it that your car is raced even if you can’t be there to watch the action in person. Contact Cindy Booher via e-mail at cindyb@sema.org for more information about this worthwhile, fun and fulfilling competition.

So much of what we do in business distracts us from the friendships we develop in our industry and the contributions we can make through volunteerism and human kindness. Join us for the activities of Leadership Days and reconnect to the great SEMA community of volunteers, leaders and industry icons. Our collective participation (that means you!) also brings out the best in our fellow enthusiasts, competitors and business associates through the actions they inspire.

Don’t miss this once-a-year opportunity to also bring out the best in yourself. 

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA News - June 2010

John Quincy Adams, the sixth president of the United States, knew a thing or two about leadership. One of his most famous quotes was, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Those are also fitting words to describe the upcoming SEMA Leadership Days, to be held July 21–24 in Pasadena, California.

Attendees will “learn more” by taking advantage of this year’s Business Technology Symposium at the Pasadena Convention Center on Friday, July 23, from 10:00 a.m.–5:00 p.m. The topics for this full day of instruction will run the gamut from “The Future of Mobile Marketing” and “Reaching Your Customers on Forums and Blogs” to “Market Research in the Digital Age” and “Social Media for Your Business.” Your business can’t afford to stand still in a rapidly changing world. Here’s a chance to jump ahead, where the learning is tailored for our industry and the networking with industry peers alone is worth your while. Just contact Arlene Wood at arlenew@sema.org or call 909/396-0289 for details.

To “become more,” please join us for the annual Installation Banquet & Gala Fundraiser on Friday evening from 6:30 p.m.–10:00 p.m. (cocktail reception from 6:30 p.m.–7:30 p.m.), where we will salute the contributions of the outgoing members of the SEMA Board of Directors and welcome the incoming group. In addition, the three newest members of the SEMA Hall of Fame will be celebrated. The actions and stories of the industry luminaries celebrated at this event inspire all of us to become more. Meanwhile, proceeds from the Gala Fundraiser and other activities are contributed to Childhelp, which aids victims of child abuse, and the Victory Junction Gang Camp, which uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

“Dream more” is what we in the specialty-equipment industry do every day. The products manufactured, distributed and sold by SEMA-member companies are the very stuff dreams are made of, and the results of those dreams—at least a fair representation of them—will be on display at the SEMA Show ’N Shine on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center. Chip Foose, the award-winning automotive designer, fabricator and host of TLC’s “Overhaulin’,” has once again signed on to be the grand marshal of the show, which will feature a full range of musclecars, street rods, exotics and restorations.

To “do more,” take part in the SEMA Pinewood Drag Races, which will be run concurrently with the Show ’N Shine on Saturday. Help the children supported by Childhelp and the Victory Junction Gang Camp by sponsoring a pinewood dragster for less than $100, and we’ll see to it that your car is raced even if you can’t be there to watch the action in person. Contact Cindy Booher via e-mail at cindyb@sema.org for more information about this worthwhile, fun and fulfilling competition.

So much of what we do in business distracts us from the friendships we develop in our industry and the contributions we can make through volunteerism and human kindness. Join us for the activities of Leadership Days and reconnect to the great SEMA community of volunteers, leaders and industry icons. Our collective participation (that means you!) also brings out the best in our fellow enthusiasts, competitors and business associates through the actions they inspire.

Don’t miss this once-a-year opportunity to also bring out the best in yourself. 

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA News - June 2010

John Quincy Adams, the sixth president of the United States, knew a thing or two about leadership. One of his most famous quotes was, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Those are also fitting words to describe the upcoming SEMA Leadership Days, to be held July 21–24 in Pasadena, California.

Attendees will “learn more” by taking advantage of this year’s Business Technology Symposium at the Pasadena Convention Center on Friday, July 23, from 10:00 a.m.–5:00 p.m. The topics for this full day of instruction will run the gamut from “The Future of Mobile Marketing” and “Reaching Your Customers on Forums and Blogs” to “Market Research in the Digital Age” and “Social Media for Your Business.” Your business can’t afford to stand still in a rapidly changing world. Here’s a chance to jump ahead, where the learning is tailored for our industry and the networking with industry peers alone is worth your while. Just contact Arlene Wood at arlenew@sema.org or call 909/396-0289 for details.

To “become more,” please join us for the annual Installation Banquet & Gala Fundraiser on Friday evening from 6:30 p.m.–10:00 p.m. (cocktail reception from 6:30 p.m.–7:30 p.m.), where we will salute the contributions of the outgoing members of the SEMA Board of Directors and welcome the incoming group. In addition, the three newest members of the SEMA Hall of Fame will be celebrated. The actions and stories of the industry luminaries celebrated at this event inspire all of us to become more. Meanwhile, proceeds from the Gala Fundraiser and other activities are contributed to Childhelp, which aids victims of child abuse, and the Victory Junction Gang Camp, which uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

“Dream more” is what we in the specialty-equipment industry do every day. The products manufactured, distributed and sold by SEMA-member companies are the very stuff dreams are made of, and the results of those dreams—at least a fair representation of them—will be on display at the SEMA Show ’N Shine on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center. Chip Foose, the award-winning automotive designer, fabricator and host of TLC’s “Overhaulin’,” has once again signed on to be the grand marshal of the show, which will feature a full range of musclecars, street rods, exotics and restorations.

To “do more,” take part in the SEMA Pinewood Drag Races, which will be run concurrently with the Show ’N Shine on Saturday. Help the children supported by Childhelp and the Victory Junction Gang Camp by sponsoring a pinewood dragster for less than $100, and we’ll see to it that your car is raced even if you can’t be there to watch the action in person. Contact Cindy Booher via e-mail at cindyb@sema.org for more information about this worthwhile, fun and fulfilling competition.

So much of what we do in business distracts us from the friendships we develop in our industry and the contributions we can make through volunteerism and human kindness. Join us for the activities of Leadership Days and reconnect to the great SEMA community of volunteers, leaders and industry icons. Our collective participation (that means you!) also brings out the best in our fellow enthusiasts, competitors and business associates through the actions they inspire.

Don’t miss this once-a-year opportunity to also bring out the best in yourself. 

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA News - June 2010 

How Does Your Business Compare?

By Megan McKernan

	The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry.

The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry. Industry-specific key performance indicators are reported that can then be used by participants to improve or grow their businesses. 

The program provides business owners and managers information, such as: how their year-to-date sales compare with other specialty-equipment companies; how their shipping costs compare to those of other companies; and what other companies spend on advertising.

How the Process Works

Data is collected each month from three different market segments: manufacturers, distributors and retailers. This data is collected, anonymously, by Hedges & Company, through a SEMA Financial Benchmarking questionnaire that is e-mailed to participants. Those companies who participate receive a free copy of the SEMA Financial Benchmarking Report for their specific segment. The report includes sales tracking and sales forecast data as well as average gross margin, quick ratio, operational overhead, shipping costs, R&D, customer returns, advertising/marketing expense and inventory turns.

All information collected is kept confidential. The data is tabulated and tracked in aggregate. For those who might be familiar with the program, the questionnaire was recently redesigned to be faster and easier to complete by allowing participants to provide data based on ranges selected from a pull-down menu.

How It Benefits Companies That Participate

	Year-to-date sales comparison for manufacturers.

So, you might be asking yourself, how can this program benefit my company? For starters, the reports themselves are very beneficial, providing data that you can use to compare your business to others in the specialty-equipment market.

Companies that participate in the program are the first to receive the most recent financial information. They also receive the reports at no charge. The reports become available approximately one month after they have been released to Financial Benchmarking Program participants. SEMA members who do not participate in the program can download the reports for $50 each, while non-members can download the reports for $99.95 each.

To expand on the usefulness of the program, and subsequent reports, let’s take a look at some of the data contained in the reports. Again, there are three different reports, targeted at three different market segments.

	Year-to-date sales comparison for retailers.

In December 2009, 36.5% of participating manufacturers indicated that their sales were up compared to December of 2008. Conversely, 39.7% indicated sales were down. If you are a manufacturer, and you experienced a sales increase in December compared to the previous year, you did better than almost 40% of the manufacturers in the specialty-
equipment market.

Here is what regular participants in the program have said:

“Eastwood participates in SEMA Financial Benchmarking because it lets us see how the industry is doing at a glance instead of resorting to hearsay and rumor. This is a great service organized by SEMA to get real industry numbers published in a confidential manner. That’s what I look for a trade association to do for its members, help its membership—especially in these current economic conditions.
—Curt Strohacker,
Owner, Eastwood Company

	Year-to-date sales comparison for distributors. In December 2009, more distributors than manufacturers and retailers reported that sales were up compared to December of 2008. A decrease in sales compared to previous years was felt more by manufacturers than by either of the other two groups.

“We participate in SEMA Financial Benchmarking because it lets us confidentially compare how we’re doing vs. the rest of the industry. It doesn’t take much time to participate and it’s a great benefit offered by SEMA.”
—Sheryl Melendez,
California Car Cover Company

“We use it to get a true sense of where the industry’s heading. It’s a difficult industry to get a handle on since it’s so fragmented. I think it’s a great report.”
—Aron Beach,
Vice President of Finance,
Prestolite Performance 

The data presented here are just examples of what is contained in the reports each month. The more companies that participate in the program, by providing anonymous information, the better the data will be. If you are interested in participating in the program, please contact Julie Hedges at 234/380-1650 or Julie@HedgesCompany.com.  

SEMA News - June 2010 

How Does Your Business Compare?

By Megan McKernan

	The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry.

The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry. Industry-specific key performance indicators are reported that can then be used by participants to improve or grow their businesses. 

The program provides business owners and managers information, such as: how their year-to-date sales compare with other specialty-equipment companies; how their shipping costs compare to those of other companies; and what other companies spend on advertising.

How the Process Works

Data is collected each month from three different market segments: manufacturers, distributors and retailers. This data is collected, anonymously, by Hedges & Company, through a SEMA Financial Benchmarking questionnaire that is e-mailed to participants. Those companies who participate receive a free copy of the SEMA Financial Benchmarking Report for their specific segment. The report includes sales tracking and sales forecast data as well as average gross margin, quick ratio, operational overhead, shipping costs, R&D, customer returns, advertising/marketing expense and inventory turns.

All information collected is kept confidential. The data is tabulated and tracked in aggregate. For those who might be familiar with the program, the questionnaire was recently redesigned to be faster and easier to complete by allowing participants to provide data based on ranges selected from a pull-down menu.

How It Benefits Companies That Participate

	Year-to-date sales comparison for manufacturers.

So, you might be asking yourself, how can this program benefit my company? For starters, the reports themselves are very beneficial, providing data that you can use to compare your business to others in the specialty-equipment market.

Companies that participate in the program are the first to receive the most recent financial information. They also receive the reports at no charge. The reports become available approximately one month after they have been released to Financial Benchmarking Program participants. SEMA members who do not participate in the program can download the reports for $50 each, while non-members can download the reports for $99.95 each.

To expand on the usefulness of the program, and subsequent reports, let’s take a look at some of the data contained in the reports. Again, there are three different reports, targeted at three different market segments.

	Year-to-date sales comparison for retailers.

In December 2009, 36.5% of participating manufacturers indicated that their sales were up compared to December of 2008. Conversely, 39.7% indicated sales were down. If you are a manufacturer, and you experienced a sales increase in December compared to the previous year, you did better than almost 40% of the manufacturers in the specialty-
equipment market.

Here is what regular participants in the program have said:

“Eastwood participates in SEMA Financial Benchmarking because it lets us see how the industry is doing at a glance instead of resorting to hearsay and rumor. This is a great service organized by SEMA to get real industry numbers published in a confidential manner. That’s what I look for a trade association to do for its members, help its membership—especially in these current economic conditions.
—Curt Strohacker,
Owner, Eastwood Company

	Year-to-date sales comparison for distributors. In December 2009, more distributors than manufacturers and retailers reported that sales were up compared to December of 2008. A decrease in sales compared to previous years was felt more by manufacturers than by either of the other two groups.

“We participate in SEMA Financial Benchmarking because it lets us confidentially compare how we’re doing vs. the rest of the industry. It doesn’t take much time to participate and it’s a great benefit offered by SEMA.”
—Sheryl Melendez,
California Car Cover Company

“We use it to get a true sense of where the industry’s heading. It’s a difficult industry to get a handle on since it’s so fragmented. I think it’s a great report.”
—Aron Beach,
Vice President of Finance,
Prestolite Performance 

The data presented here are just examples of what is contained in the reports each month. The more companies that participate in the program, by providing anonymous information, the better the data will be. If you are interested in participating in the program, please contact Julie Hedges at 234/380-1650 or Julie@HedgesCompany.com.  

SEMA News - June 2010 

How Does Your Business Compare?

By Megan McKernan

	The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry.

The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to help measure and compare their business operations with others in the industry. Industry-specific key performance indicators are reported that can then be used by participants to improve or grow their businesses. 

The program provides business owners and managers information, such as: how their year-to-date sales compare with other specialty-equipment companies; how their shipping costs compare to those of other companies; and what other companies spend on advertising.

How the Process Works

Data is collected each month from three different market segments: manufacturers, distributors and retailers. This data is collected, anonymously, by Hedges & Company, through a SEMA Financial Benchmarking questionnaire that is e-mailed to participants. Those companies who participate receive a free copy of the SEMA Financial Benchmarking Report for their specific segment. The report includes sales tracking and sales forecast data as well as average gross margin, quick ratio, operational overhead, shipping costs, R&D, customer returns, advertising/marketing expense and inventory turns.

All information collected is kept confidential. The data is tabulated and tracked in aggregate. For those who might be familiar with the program, the questionnaire was recently redesigned to be faster and easier to complete by allowing participants to provide data based on ranges selected from a pull-down menu.

How It Benefits Companies That Participate

	Year-to-date sales comparison for manufacturers.

So, you might be asking yourself, how can this program benefit my company? For starters, the reports themselves are very beneficial, providing data that you can use to compare your business to others in the specialty-equipment market.

Companies that participate in the program are the first to receive the most recent financial information. They also receive the reports at no charge. The reports become available approximately one month after they have been released to Financial Benchmarking Program participants. SEMA members who do not participate in the program can download the reports for $50 each, while non-members can download the reports for $99.95 each.

To expand on the usefulness of the program, and subsequent reports, let’s take a look at some of the data contained in the reports. Again, there are three different reports, targeted at three different market segments.

	Year-to-date sales comparison for retailers.

In December 2009, 36.5% of participating manufacturers indicated that their sales were up compared to December of 2008. Conversely, 39.7% indicated sales were down. If you are a manufacturer, and you experienced a sales increase in December compared to the previous year, you did better than almost 40% of the manufacturers in the specialty-
equipment market.

Here is what regular participants in the program have said:

“Eastwood participates in SEMA Financial Benchmarking because it lets us see how the industry is doing at a glance instead of resorting to hearsay and rumor. This is a great service organized by SEMA to get real industry numbers published in a confidential manner. That’s what I look for a trade association to do for its members, help its membership—especially in these current economic conditions.
—Curt Strohacker,
Owner, Eastwood Company

	Year-to-date sales comparison for distributors. In December 2009, more distributors than manufacturers and retailers reported that sales were up compared to December of 2008. A decrease in sales compared to previous years was felt more by manufacturers than by either of the other two groups.

“We participate in SEMA Financial Benchmarking because it lets us confidentially compare how we’re doing vs. the rest of the industry. It doesn’t take much time to participate and it’s a great benefit offered by SEMA.”
—Sheryl Melendez,
California Car Cover Company

“We use it to get a true sense of where the industry’s heading. It’s a difficult industry to get a handle on since it’s so fragmented. I think it’s a great report.”
—Aron Beach,
Vice President of Finance,
Prestolite Performance 

The data presented here are just examples of what is contained in the reports each month. The more companies that participate in the program, by providing anonymous information, the better the data will be. If you are interested in participating in the program, please contact Julie Hedges at 234/380-1650 or Julie@HedgesCompany.com.  

SEMA News - June 2010 

Prescription for Trouble or What the Doctor Ordered?

By Dan Sadowski

On March 23, President Barack Obama signed the “Patient Protection and Affordable Care Act” into law, completing a year of contentious debate and creating the largest government mandate in recent history. Given the sweeping nature of the legislation, it will take some time for the ramifications of this historic action to be fully understood. However, some facts are immediately known.

The new health care law is designed to provide coverage to 32 million uninsured Americans and bring the total insured population to 95%. The law is complex and will eventually impact everyone—but not immediately. Many of the more significant changes will be phased in between 2014 and 2018. As will be described, there are some provisions that SEMA supports while others are inconsistent with the association’s stated positions.

The law includes a SEMA-endorsed measure to establish insurance “exchanges.” Under these exchanges, small businesses and individuals will be offered a selection of private health plans that have been established under common rules regarding the offering and pricing of insurance. Consumers will be provided with transparent information to help understand the options and differences between the plans (covered benefits, deductibles, premium costs, etc.). The exchange has the ability to pool a large number of potential consumers and thereby help organize a more competitive marketplace, especially if cost is a primary issue.

The exchanges will be called the Small Business Health Options Program (SHOP) for companies and the American Health Benefit Exchange for individuals. Each state will begin operating them in 2014, if not sooner. States may also form regional exchanges or allow more than one exchange to operate in a state as long as each exchange serves a distinct geographic area. The federal government will contract with private insurers to offer at least two national or multi-state plans in each exchange.

The SHOP exchange will be open to all companies with up to 100 employees. Beginning in 2017, states will have the option of allowing companies with more than 100 workers to participate as well. SEMA has been advocating for this model of health insurance coverage for many years and will work with other trade associations and government officials to make the program viable for its members.

The new law also provides an immediate tax credit to small employers that purchase insurance if they have no more than 25 employees and average annual wages of less than $50,000. The credit varies according to size, wages and the amount of employer contribution for the premium. Beginning in 2014, small businesses that purchase through the SHOP exchange will be eligible for a two-year tax credit, based on firm size and average annual wages. 

While these measures are steps in the right direction, the new law fails to address certain key points of importance to SEMA members. The bill does not address options to limit costs for both businesses and individuals, and it places an unfair financial burden on employers. Additionally, the legislation does not address meaningful tort reform, which may result in frivolous lawsuits and even higher costs for business owners.

			"SEMA remains committed to pursuing meaningful reforms to protect and advance the industry in a difficult economic and political environment. Overhauling the nation’s health care system did not end with the new law. The groundwork was laid for further improvements."

Of particular concern for SEMA members is the so-called “employer mandate,” which imposes significant requirements on midsize to large businesses but spares small businesses. Employers with 50 or fewer employees are not required to provide health insurance. While there is no direct mandate, however, businesses with 51 or more employees must offer qualified coverage by 2014, as they will be penalized as soon as any full-time employee receives a government subsidy as part of the individual mandate.

If the penalty is triggered, the government will impose a fee of $2,000 for each fulltime employee (30 hours or more a week), minus the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of
$42,000 annually.

The law imposes a variety of restrictions on the insurance industry. It prohibits individual and group health plans from placing lifetime limits on the dollar value of coverage or annual limits on the dollar value of coverage. It provides dependent coverage for children up to age 26 for all individual and group policies and prohibits pre-existing condition exclusions for children. The law establishes a national high-risk pool to provide health coverage to other individuals with pre-existing conditions. It also provides grants for up to five years to small employers that establish wellness programs, and it allows companies to offer employee rewards to participate, such as premium discounts.

It is clear that the legislation signed into law does not provide sufficient reform. It also has the potential to impose new burdens on American employers. As described above, it will have both positive and negative impacts on SEMA members, and those distinctions may vary based on company size or other demographics.

SEMA remains committed to pursuing meaningful reforms to protect and advance the industry in a difficult economic and political environment. Overhauling the nation’s health care system did not end with the new law. The groundwork was laid for further improvements.

 

Patient Protection and Affordable Care Act Timeline for Major Provisions

2010

• Tax subsidies for very small businesses that provide coverage.
• Children permitted to stay on parents’ policies until their 26th birthday.
• Insurance companies barred from denying coverage to children with pre-existing illness   

2011

• Businesses must begin reporting the value of health care benefits on employees’ W-2 statements.

2012

• New information reporting is required for businesses making payments in excess of $600 over the course of a calendar year to corporations.

2013

• A new 0.9% surtax will be tacked onto the 1.45% Medicare payroll taxes paid by individuals earning more than $200,000 per year or joint filers earning more than $250,000 per year. A new 3.8% Medicare surtax will also be imposed on these same individuals/couples. It will be the lesser of: (1) net investment income; or (2) any modified adjusted gross income over the threshold amount.
• The threshold for claiming medical expense deductions rises from 7.5% of adjusted gross income to 10%. (The threshold will remain at 7.5% for individuals 65 or older until 2016).
• Contributions to health care flexible spending arrangement will be limited to $2,500. The cap will be indexed to inflation beginning in 2014.

2014

• SHOP exchanges for small businesses take effect (if not sooner). Subsidies will be available to participating small companies based on wages and number of employees.
• Large companies (more than 50 employees) must provide affordable coverage or risk a fine of $2,000 per employee, excluding the first 30 employees.
• All individuals must now have minimum insurance or pay a $95 penalty.

2015

• Penalty for individuals that don’t have minimum insurance rises to $325.

2016

• Penalty for individuals that don’t have minimum insurance rises to $695 and is thereafter tied to inflation.

2017

• Businesses with more than 100 workers may buy coverage through the SHOP exchange, if state permits.

2018

• A 40% excise tax on high-cost health insurance plans takes effect. Paid by insurers, the tax is on the amount in excess of $10,200 for individuals and $27,500 for families.  

 

 

SEMA News - June 2010 

Prescription for Trouble or What the Doctor Ordered?

By Dan Sadowski

On March 23, President Barack Obama signed the “Patient Protection and Affordable Care Act” into law, completing a year of contentious debate and creating the largest government mandate in recent history. Given the sweeping nature of the legislation, it will take some time for the ramifications of this historic action to be fully understood. However, some facts are immediately known.

The new health care law is designed to provide coverage to 32 million uninsured Americans and bring the total insured population to 95%. The law is complex and will eventually impact everyone—but not immediately. Many of the more significant changes will be phased in between 2014 and 2018. As will be described, there are some provisions that SEMA supports while others are inconsistent with the association’s stated positions.

The law includes a SEMA-endorsed measure to establish insurance “exchanges.” Under these exchanges, small businesses and individuals will be offered a selection of private health plans that have been established under common rules regarding the offering and pricing of insurance. Consumers will be provided with transparent information to help understand the options and differences between the plans (covered benefits, deductibles, premium costs, etc.). The exchange has the ability to pool a large number of potential consumers and thereby help organize a more competitive marketplace, especially if cost is a primary issue.

The exchanges will be called the Small Business Health Options Program (SHOP) for companies and the American Health Benefit Exchange for individuals. Each state will begin operating them in 2014, if not sooner. States may also form regional exchanges or allow more than one exchange to operate in a state as long as each exchange serves a distinct geographic area. The federal government will contract with private insurers to offer at least two national or multi-state plans in each exchange.

The SHOP exchange will be open to all companies with up to 100 employees. Beginning in 2017, states will have the option of allowing companies with more than 100 workers to participate as well. SEMA has been advocating for this model of health insurance coverage for many years and will work with other trade associations and government officials to make the program viable for its members.

The new law also provides an immediate tax credit to small employers that purchase insurance if they have no more than 25 employees and average annual wages of less than $50,000. The credit varies according to size, wages and the amount of employer contribution for the premium. Beginning in 2014, small businesses that purchase through the SHOP exchange will be eligible for a two-year tax credit, based on firm size and average annual wages. 

While these measures are steps in the right direction, the new law fails to address certain key points of importance to SEMA members. The bill does not address options to limit costs for both businesses and individuals, and it places an unfair financial burden on employers. Additionally, the legislation does not address meaningful tort reform, which may result in frivolous lawsuits and even higher costs for business owners.

			"SEMA remains committed to pursuing meaningful reforms to protect and advance the industry in a difficult economic and political environment. Overhauling the nation’s health care system did not end with the new law. The groundwork was laid for further improvements."

Of particular concern for SEMA members is the so-called “employer mandate,” which imposes significant requirements on midsize to large businesses but spares small businesses. Employers with 50 or fewer employees are not required to provide health insurance. While there is no direct mandate, however, businesses with 51 or more employees must offer qualified coverage by 2014, as they will be penalized as soon as any full-time employee receives a government subsidy as part of the individual mandate.

If the penalty is triggered, the government will impose a fee of $2,000 for each fulltime employee (30 hours or more a week), minus the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of
$42,000 annually.

The law imposes a variety of restrictions on the insurance industry. It prohibits individual and group health plans from placing lifetime limits on the dollar value of coverage or annual limits on the dollar value of coverage. It provides dependent coverage for children up to age 26 for all individual and group policies and prohibits pre-existing condition exclusions for children. The law establishes a national high-risk pool to provide health coverage to other individuals with pre-existing conditions. It also provides grants for up to five years to small employers that establish wellness programs, and it allows companies to offer employee rewards to participate, such as premium discounts.

It is clear that the legislation signed into law does not provide sufficient reform. It also has the potential to impose new burdens on American employers. As described above, it will have both positive and negative impacts on SEMA members, and those distinctions may vary based on company size or other demographics.

SEMA remains committed to pursuing meaningful reforms to protect and advance the industry in a difficult economic and political environment. Overhauling the nation’s health care system did not end with the new law. The groundwork was laid for further improvements.

 

Patient Protection and Affordable Care Act Timeline for Major Provisions

2010

• Tax subsidies for very small businesses that provide coverage.
• Children permitted to stay on parents’ policies until their 26th birthday.
• Insurance companies barred from denying coverage to children with pre-existing illness   

2011

• Businesses must begin reporting the value of health care benefits on employees’ W-2 statements.

2012

• New information reporting is required for businesses making payments in excess of $600 over the course of a calendar year to corporations.

2013

• A new 0.9% surtax will be tacked onto the 1.45% Medicare payroll taxes paid by individuals earning more than $200,000 per year or joint filers earning more than $250,000 per year. A new 3.8% Medicare surtax will also be imposed on these same individuals/couples. It will be the lesser of: (1) net investment income; or (2) any modified adjusted gross income over the threshold amount.
• The threshold for claiming medical expense deductions rises from 7.5% of adjusted gross income to 10%. (The threshold will remain at 7.5% for individuals 65 or older until 2016).
• Contributions to health care flexible spending arrangement will be limited to $2,500. The cap will be indexed to inflation beginning in 2014.

2014

• SHOP exchanges for small businesses take effect (if not sooner). Subsidies will be available to participating small companies based on wages and number of employees.
• Large companies (more than 50 employees) must provide affordable coverage or risk a fine of $2,000 per employee, excluding the first 30 employees.
• All individuals must now have minimum insurance or pay a $95 penalty.

2015

• Penalty for individuals that don’t have minimum insurance rises to $325.

2016

• Penalty for individuals that don’t have minimum insurance rises to $695 and is thereafter tied to inflation.

2017

• Businesses with more than 100 workers may buy coverage through the SHOP exchange, if state permits.

2018

• A 40% excise tax on high-cost health insurance plans takes effect. Paid by insurers, the tax is on the amount in excess of $10,200 for individuals and $27,500 for families.