Click the logo to visit ARMO's website.

ARMO Column in SEMA Member News
Read ARMO's column featured in the May/June issue of SEMA Member News by clicking here.

ARMO Select Committee Elections
Select Committee election ballots are in the mail and due to SEMA by Friday, June 13. If you have any questions about the election, contact Jan Desma at 909/396-0289, ext. 134, or jand@sema.org.

For more information about ARMO, contact Jan Desma at jand@sema.org.

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Click the logo to visit HRIA's website.

HRIA Column in SEMA Member News
Read HRIA's column featured in the May/June issue of SEMA Member News by clicking here.

For more information about HRIA, contact Jan Desma at jand@sema.org.

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Click the logo to visit TORA's website.

TORA Column in SEMA Member News
Read TORA's column featured in the May/June issue of SEMA Member News by clicking here.

Select Committee Election Update
Select Committee Nominations are now closed. The list of nominees will be reviewed by the TORA election task force, and a ballot will be mailed to all TORA members in the next few weeks. Please keep an eye out for this mailing, and above all, VOTE!

For information about the TORA, contact Jim Skelly at jimsk@sema.org.  

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Click the logo to visit MPMC's website.

New Chair-Elect
Kyle Fickler of Aeromotive Inc. was elected to the position of MPMC chair-elect during a Select Committee meeting held on January 25, following the annual MPMC Media Trade Conference. Fickler is a current member of the MPMC Select Committee and will take over duties as Chair-Elect on July 1. On that same date, current chair-elect Bill Floyd becomes chairman of MPMC when Lisa Chissus’ two-year term as MPMC chairperson ends.

MPMC Column in SEMA Member News
Read MPMC's column featured in the May/June issue of SEMA Member News by clicking here.

For information about MPMC, contact Jim Skelly at jimsk@sema.org.

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Click the logo to visit MRC's website.

MRC Column in SEMA Member News
Read MRC's column featured in the May/June issue of SEMA Member News by clicking here.

MRC Select Committee Elections
Select Committee election ballots are in the mail and due to SEMA by Friday, June 13. If you have any questions about the election, contact Jan Desma at 909/396-0289, ext. 134, or jand@sema.org.

For information about MRC, Jan Desma at jand@sema.org.

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Click the logo to visit PRO's website.

Annual Project Planning Meeting
Make your reservations now for the annual PRO Project Planning meeting. The annual gathering is once again being held in Detroit at the Crowne Plaza Hotel. The hotel is airport adjacent for easy access, and SEMA has blocked rooms at only $123 per night.

When: Thursday and Friday, June 12–13
11 a.m.–5 p.m. (Thursday)
8 a.m.–1 p.m. (Friday)

Where: Crowne Plaza Hotel
8000 Merriman Road
Romulus, MI 48174
734/729-2600

All PRO members are encouraged to attend this meeting. In these changing times, the restyling industry needs your input more than ever. Please plan to attend!

Select Committee Election Update
Select Committee nominations are now closed. The list of nominees is being reviewed by the PRO elections task force, and a ballot will be mailed to all PRO members in the next few weeks. Please keep an eye out for this mailing, and above all, VOTE!

PRO Column in SEMA Member News
Read PRO's column featured in the May/June issue of SEMA Member News by clicking here.

For information about PRO, contact Jim Skelly at jimsk@sema.org.

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Click the logo to visit SPC's website.

New Council Name

The SEMA Board of Directors has approved Street Performance Council (SPC) as the replacement for the Sport-Compact Council (SCC) name. The council’s current Select Committee recommended the change to better serve its members in the extremely diverse street-performance industry. The council is committed to maintaining its mission statement and current objectives—to provide market information, education and support members concerning new and emerging trends. This council name represents a broader market and provides new growth and educational opportunities for the diverse council membership.

SPC Chairman Eric Breslow remarks, “As SEMA itself has expanded to include different facets of the automotive aftermarket, the street-performance parts manufacturers and distributors didn’t have an exclusive council representing their interests. Some gravitated to the Sport-Compact Council, but with our new name, member benefits and initiatives, we welcome those diverse companies with open arms.” 

A Message From SPC Chairman Eric Breslow

Dear SPC Member:

In today's volatile economy, member companies must exploit every opportunity to get product messages in front of the end consumer and drive that all-important purchase dollar to their coffers. All levels of commerce have unprecedented access to product knowledge via the Internet. Take advantage of another exclusive SEMA-member benefit and attend the 2008 Internet Symposium, July 25, 2008, in Irvine, California.

Your SPC Select Committee has been busy developing this year's Internet Symposium. Thanks to attendee suggestions from last year, the day's events have been split into two separate tracks. One for people who are seeking a broad "50,000-ft." view of understanding how the Internet impacts an individual business, and a more focused track for in-depth Internet solutions.

It is the mission of SPC to make sure that our valued members have the first opportunity to sign up. Last year we sold out in just one week. For the schedule and online registration, click here.

See you in July.

Best regards,
Eric Breslow, SPC Chairman

SPC Select Committee Election
SPC Select Committee election ballots are in the mail and due to SEMA by Friday, June 6. If you have any questions about the Select Committee elections, contact Paul Moritz at 909/396-0289, ext. 112 or paulm@sema.org.

SPC Column in SEMA Member News
Read SPC's column featured in the May/June issue of SEMA Member News by clicking here.

For information about SPC, contact Paul Moritz at paulm@sema.org.

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Click the logo to visit WTC's website.

WTC Select Committee Election
WTC Select Committee election ballots are in the mail and due to SEMA by Friday, June 6. If you have any questions about the Select Committee elections, contact Paul Moritz at 909/396-0289, ext. 112 or paulm@sema.org.

WTC Column in SEMA Member News
Read WTC's column featured in the May/June issue of SEMA Member News by clicking here.

For information about WTC, contact Paul Moritz at paulm@sema.org.

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Click the logo to visit SBN's website.

Discover the SEMA Mentoring Program—Powered by the SBN
 
“I’ll get by with a little help from my friends…” - Joe Cocker
 
Everyone needs help or expert advice from time to time, and SEMA’s Mentoring Program is an excellent resource to get answers to all your questions. Whether you need to know more about SEMA, market information for a start-up company or advice on how to approach your boss about a new position, the SEMA Mentoring Program can help.
 
“Ask A Mentor” is perfect for one-time questions. You can expect multiple SEMA mentors to provide online guidance and answers to your industry-related questions.
 
Short-term Assistance/Guidance is for help with a specific project or task. A SEMA council/committee mentor with the expertise you seek will be paired up with you to provide guidance with your project.
 
Long-Term Relationship is helpful for developing your professional career.  In this program segment you will be paired with a SEMA council/committee mentor who will provide guidance and assistance for ongoing career development or a long-term project.
 
So whether you just need an answer to a question or you want to cultivate a mentoring friendship, the SEMA Mentoring Program—powered by the SBN is available to help. After all, we can all use a little help from our friends.

For more information on the program, click here.
 
SBN Select Committee Election
SBN Select Committee election ballots are in the mail and due to SEMA by Friday, June 6. If you have any questions about the Select Committee elections, contact Paul Moritz at 909/396-0289, ext. 112 or paulm@sema.org.

Speed Networking Breakfast—Powered by SBN
Check out this video of SBN members in action during the valuable Speed Networking Breakfast—Powered by SBN held annually at the SEMA Show. Check out the video by clicking here.  

SBN Column in SEMA Member News
Read SBN's column featured in the May/June issue of SEMA Member News by clicking here.

For information about SBN, contact Paul Moritz at paulm@sema.org.

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Click the logo to visit YEN's website.

Join YEN
Did you know that the SEMA Young Executives Network has over 500 members networking in the industry and is the largest SEMA committee? If you are employed by a SEMA-member company and are under the age of 39, then you can join the SEMA Young Executives Network for FREE. If you are interested in becoming part of the team, please visit our website at www.sema.org/yen.

YEN Member of the Month Spotlight
Did you know that YEN has a Member of the Month Spotlight on the SEMA website and that anyone can be nominated? To view previous selections or to make a nomination, visit www.sema.org/yen. 

SEMA Silent Auction
Efforts for the 2008 SEMA Silent Auction are beginning NOW! To learn more about the silent auction and how it has raised nearly $150,000 for SEMA scholarships in the last two years, visit the SEMA Silent Auction website at www.semasilentauction.com.
 
YEN Select Committee Election
YEN Select Committee election ballots are in the mail and due to SEMA by Friday, June 6. If you have any questions about the Select Committee elections, contact Paul Moritz at 909/396-0289, ext. 112 or paulm@sema.org.

Discover The SEMA Mentoring Program—Powered by the SBN
 
“I’ll get by with a little help from my friends…” - Joe Cocker
 
Everyone needs help or expert advice from time to time, and SEMA’s Mentoring Program is an excellent resource to get answers to all your questions. Whether you need to know more about SEMA, market information for a start-up company or advice on how to approach your boss about a new position, the SEMA Mentoring Program can help.
 
“Ask A Mentor” is perfect for one-time questions. You can expect multiple SEMA mentors to provide online guidance and answers to your industry-related questions.
 
Short-term Assistance/Guidance is for help with a specific project or task. A SEMA council/committee mentor with the expertise you seek will be paired up with you to provide guidance with your project.
 
Long-Term Relationship is helpful for developing your professional career.  In this program segment you will be paired with a SEMA council/committee mentor who will provide guidance and assistance for ongoing career development or a long-term project.
 
So whether you just need an answer to a question or you want to cultivate a mentoring friendship, the SEMA Mentoring Program—Powered by the SBN is available to help. After all, we can all use a little help from our friends.

For more information on the program, click here.

YEN Column in SEMA Member News
Read YEN's column featured in the May/June issue of SEMA Member News by clicking here.

For information about YEN, contact Paul Moritz at paulm@sema.org.

 

Filler for eNews

Despite a tightening of household budgets, the SEMA Performance Parts and Accessories Demand Index (PADI) for April 2008 revealed that more than 15 million households, or 15% of aftermarket buyers, plan on purchasing industry products within the next three months.

Specialty accessories and appearance products were the most popular aftermarket items consumers were likely to purchase (10% or 10 million households), with wheels, tires and suspension components coming in second (8% or about 8 million households), followed by racing and performance products (7% or 7 million households).

When aftermarket buyers were asked what form their vehicles would take after customization, the most common answer in April was “general personalization” (41%), trailed by “off-road” (15%), “restoration” (13%) and “street performance” (13%).

SEMA began developing the PADI in January 2007. The SEMA PADI is designed to track anticipated demand among Americans for performance parts and accessories and is a weighted composite index set to an initial value of 100 based on demand levels between January 2007 and March 2007. During those months, between 25%–30% of consumers reported plans to purchase performance parts and/or accessories during the next 90 days.  In April 2008, the index improved by 15 points, or 35%, going from 42 in March to 56 the following month.

For more original SEMA market research, visit www.sema.org/research. 

During the first four months of 2008, pickup sales have dropped 17% compared to the same time period last year. The specialty-equipment industry has long revered the pickup segment as opportunities for profits due to its growth in the past, but hikes in gasoline prices have taken a toll on recent sales.

AutoPacific, an automotive industry consulting firm, predicts that small or compact pickups will drop to 503,300 units sold for 2008, a decrease of 8% from 2007. Large-pickup sales will endure an even more drastic decline of 20%, according to forecasts, ending 2008 with about 1,700,300 units sold. Overall, pickup sales will drop 18% in 2008, according to AutoPacific data.

The table below shows the top-20 selling pickups from January–April 2008, in addition to how they sold last year. 

In addition to declining pickup sales, SUV sales have also dropped compared to last year. During the first four months of this year, overall sales have dropped 27%, and total sales are forecasted to decline 25% in 2008 compared to last year.

The table below shows the top-20 selling SUVs from January–April of this year.

Although consumers are buying fewer pickups and SUVs, crossover utility vehicles (CUVs) are becoming a more popular choice. Overall, sales have increased 5% from last year, and the 2008 year-end forecast for this segment is expected to remain at this percent.

The table below shows the top-20 selling CUVs for 2008 through April.

Pickups and SUVs have become a mainstream vehicle choice for consumers not necessarily in need of the towing and hauling capabilities that these trucks provide. However, as the U.S. economy experiences a downturn due, in part, to high gas prices, consumers have shifted their buying preferences. While drivers still seek the family hauling capabilities and utility of pickups and SUVs, they now find similar attributes in CUVs, which also offer improved fuel economy and handling compared to their body-on-frame counterparts.

For more original SEMA market research, visit www.sema.org/research.

Sales of new vehicles for 2008 are expected to drop below 15 million units. J.D. Power and Associates forecasts sales to reach 14.95 million, and AutoPacific predicts 14.8 million. This represents a 7.5%–8% decline compared to new-vehicle sales for 2007. High gas prices have hit the light-truck segment even harder—overall sales are expected to decrease by about 11.8%, whereas car sales are expected to drop by only 3.4%. Despite these declines, the specialty-equipment industry may not be too severely impacted by declines in new-vehicle sales.

Data from SEMA’s Automotive Lifestyles Study shows that only about one-third of enthusiasts purchased their vehicles new. The majority (67%) of those surveyed indicated that they purchased their vehicles, which they then accessorized, used. Back in 2005, only 46% of enthusiasts surveyed purchased their vehicles used. Even more compelling is the fact that used-vehicle owners spent 14% more on specialty equipment over the last year compared to new-vehicle owners—about $5,000 versus $4,400, respectively.

Performance parts heavily dominated the list of specialty-equipment parts purchased by used-vehicle owners. Performance air filters (45%), exhaust kits (43%), ignition wires (38%), tires (36%) and wheels (35%) were among the top products purchased. In addition to improving performance of their vehicles, used-vehicle owners were also well in tune to maintaining their vehicles. Performance lubricants (39%) and polishes/waxes (38%) also topped the list of specialty equipment purchased.

Automotive enthusiast magazine subscribers were surveyed during September–November of last year, and a total of 3,354 complete responses were collected. The average age and household income of those surveyed was 44 and $96,000, respectively.

For more original SEMA market research, visit www.sema.org/research.

The surging do-it-yourself trend resulted in a 21% increase in the number of car-cleaning and care products at the 2007 SEMA Show.

Nearly two-thirds (62%) of U.S. consumers are washing their own car to save money—or having someone in their household do it—and 33% are doing the detailing themselves, according to a recent survey commissioned by 3M Car Care.

Research from SEMA coincides with 3M’s survey findings. There were 21% more new car-cleaning and care products at the 2007 SEMA Show than the year prior, showing that this do-it-yourself trend is growing in popularity. Other findings from 3M’s survey:

• 57% of car owners are tackling other repair jobs that include repairing or replacing windshield wipers or headlights
• 17% using fuel additives to improve fuel efficiency
• 16% using at-home tune-up kits instead of paying for tune-ups
• 11% making repairs to their car's exterior

Commodity price increases are causing lifestyles to change. The price of food was up 6% for the first quarter of 2008. In only three months, food has surpassed the average total increase per year for goods and services. This is causing Americans to feel the strain to perform basic maintenance on their own vehicles.

This “reconnect” that the average consumer is having with their vehicle could be an opportunity to advertise personalization. According to Southern California AAA, Southern Californians drive on average 300 million miles daily. This is a lot of time spent in the car, so it is no wonder why people have a drive to customize their vehicles according to their tastes. This is probably a reason why the market segment for custom accessories and appearance modifications is generally the largest compared with racing/performance or wheels/tires/suspension. SEMA research shows that the custom accessory and appearance market segment is worth $21.4 billion, according to 2006 figures. This accounted for 57.5% of the specialty-equipment retail sales in 2006.

More time spent working on a vehicle can lead to consumers and enthusiasts thinking about how they want their vehicle to feel. Modern amenities attract customers who want to be comfortable in their vehicles. For example, 192% more GPS and 180% more cell phone accessory products were introduced in the New Products Showcase during the 2007 SEMA Show than the year prior. This could indicate that mass consumers are accounting for more specialty-equipment purchases.

Check out the original SEMA research reports and information located at www.sema.org/research.  

Despite higher gas prices, the off-road market for 2007 showed 1.462 billion dollars in retail sales.

Off-roading is an important niche for the specialty-equipment industry. Not only are there specific vehicle parts that are sold, but also supplementary goods. According to a SEMA survey of its members, 61% of the respondents have some portion of their business come from the off-road niche, and 40% of these members predict 2008 sales growth to head in the positive direction. In addition, of the business that Off-Road Business interviewed, 69% of the businesses expect to meet or exceed their 2007 sales goals. SEMA members can take confidence in knowing that the off-road industry can take a stand during economic hardship.

Despite higher gas prices, the off-road market for 2007 showed 1.462 billion dollars in retail sales. This is up 6% from the 2006 retail sales figures. The growth in this niche of specialty equipment could be in danger from fuel prices. The sales for light trucks have declined over the past two quarters, with light-truck sales for last April declining to 14% of the new-vehicle market share. This is down from 16.4% in April one year ago.

Modifications for off-road suspension and tires also affect gas mileage. According to howstuffworks.com, “All-season tires produce less friction and therefore roll more freely to the benefit of fuel economy. They're generally lighter than all-terrain or off-road tires, and less weight means better fuel economy. They also ride more quietly, handle better and wear longer.” Data from SEMA’s Automotive Lifestyles study confirms this: New off-road tires were the top accessorization choice among off-road enthusiasts, followed by air intakes and exhausts.

Jim Spoonhower, SEMA vice president of market research and information, mentions in the 2007 SEMA Market Study: “Many off-road vehicles, and the specialty equipment purchased for them, never venture off paved streets and highways.” Because of this, enthusiast looking for an off-road vehicle look may personalize their vehicle in a way that also helps to make their hobby more economical.

Manufacturers have set their time and effort on a new idea for powertrains that is yet to hit the market with high acceptance. The electric vehicle (EV) market is not a new idea or one that has never been implemented, however, until recently, the technology to make this idea feasible for mass consumers has been absent.

Lithium-ion batteries are making it possible for automotive manufacturers to produce cars that run solely on electricity. This will be a huge advance for technology, vehicle manufacturing and the specialty-equipment industry. The greatest negative consumer sentiment that has been reported by an overwhelming majority of all demographics is the cost of gas prices. According to SEMA’s most recent survey, if gas prices reach $4.94, enthusiasts will begin to curb their specialty-equipment purchases. Furthermore, many consumers are worried about the future of the environment.

Electric vehicles (EVs) seem to be the future of cars, and it is happening now. Hybrid sales have been on the rise since their introduction, hitting a total of 1 million in sales earlier this month. Hybrids were accepted by the gas-conscious consumers able to afford the hybrid premium, an acceptance that may transfer over to electric vehicles. Electric vehicles should take consumers’ desire for gas-only alternatives even further, especially with the consumers’ want to be “green” and to save money through increased energy efficiency.
This is a non-all-inclusive list of EVs and extended range EVs that are designated to be manufactured:

• Tesla Motors Roadster: A high-performance, all-electric car with an acceleration of 0 to 60 in 3.9 seconds and a 220-mile range.
• Nissan is promising EVs coming off of its production lines as early as 2010.
• The GM Volt is an extended-range, plug-in hybrid that runs for the first 40 miles purely on electric power. It has an extended range to about 600 miles.

As the technology that is being put into these vehicles is, in most cases, past the scope of backyard mechanics, performance shops will most likely produce and install parts to propel these vehicles faster. Custom accessories will see a good-size market from EVs as people customize their vehicle’s look and feel. The wheel and tire industry may have to be aware of the way their products affect EVs. Wheels will have to be lighter, and tires will need to produce less resistance to supplement the EV’s range.

Check out the original SEMA research reports and information located at www.sema.org/research.  

With online voting being offered for the first time, SEMA is making it easier than ever for members to make their voices heard during the upcoming Board of Directors election.

“As owners, we must take the responsibility to participate in helping decide who will represent us in directing how SEMA’s resources are used,” said SEMA Chairman Jim Cozzie.

Historically, voter turnout is 12%–15% of the membership. To increase voter participation, SEMA is offering the option of voting online, in addition to the traditional paper ballot. The online voting process is secure and will be handled by BigPulse, a third-party online voting service.

"We're excited to be able to offer the online voting option for the first time this year," said Linda Czarkowski, SEMA vice president of finance and administration. "We're hoping that by offering this option we are able to increase membership participation. It's really important for the SEMA membership to participate in the election process."

Starting next week, the primary contact for each of the Manufacturers category and Distributor Retailer Services category will receive their ballots and booklets in the mail, as well as a letter from Jim Cozzie that will provide a link to the online voting site.  

Whichever voting method members choose, ballots must be received by June 23, 2008. The ballot count will take place on June 26, 2008 at the SEMA office.

The candidates include:

Manufacturers (four open seats)

• Ron Funfar, President/COO of Hedman Hedders/Trans-Dapt
• BJ Leanse, North America Sales Manager of Big Country Truck Accessories
• Chris Thomson, Incumbent, National Sales Manager of AIRAID Filter Co. 
• Mark Vogt, General Manager of Classic Industries
• Bill Wagner, Incumbent, Vice President Sales and Marketing of Winfield Consumer Products
• Tim Watts, Vice President Sales and Marketing of Superlift Suspension Systems

Distributor Retailer Services (three open seats)

• Ralph Accinno, Incumbent, President of Racers Equipment Warehouse
• Luanne Brown, CEO/President of eTool Developers
• Edward H Orzetti, President/CEO of Keystone Automotive Operations
• Bob Moore, President of Bob Moore & Partners
• Dan Smith, President of Capstone Financial Group

If you have any questions regarding the voting process, contact Christine Papavero at 909/396-0289, ext. 123 or christinep@sema.org.

For all candidates’ statements and bios, click here: www.sema.org/main/semaorghome.aspx?id=59620.