SEMA News—June 2020

FROM THE HILL

By Eric Snyder

Getting to Know Your Lawmakers

SEMA-Member Relationships With Elected Officials Are Key to Protecting the Industry

Warn Industries Director of Manufactur­ing Operations Jack Hooper (left) and U.S. Rep. Kurt Schrader (D-OR, center) conversing during the factory tour.

The presidential election is just a few months away and the balance of power in Congress and state capitols is up for grabs. Now is the time for the specialty automotive aftermarket to mobilize and make our voices heard. Although SEMA’s next Washington Rally will be in May 2021, it is still possible to meet your elected officials in their local districts this year. SEMA government affairs staff can help you forge a relationship with the men and women who make decisions that impact the industry by inviting an elected official to tour your business or arranging a community meeting with your lawmaker.

One of the key benefits SEMA provides to its members is legislative and regulatory advocacy. In fact, one of the main reasons that SEMA was founded was to protect the industry and enthusiasts from unreasonable laws and regulations. Accordingly, SEMA maintains a government affairs office in Washington, D.C., to review and influence the actions of state and federal lawmakers and regulators in a way that is favorable to the industry.

SEMA staff works closely with members of Congress and state legislators who are interested to learn about the automotive specialty-equipment aftermarket and the issues of importance to SEMA members. SEMA maintains a state caucus of more than 700 legislators who are automotive enthusiasts, and the association’s federal caucus includes more than 70 members of Congress who support the industry and hobby. Visit www.semasan.com to see if your lawmakers are caucus members. SEMA has developed these connections over many years as a result of member-company relationships, outreach to elected officials and their staffs, and by the fact that some lawmakers are gearheads themselves. In fact, many state and federal lawmakers modify their own vehicles and have been to the SEMA Show.

Tray Smith (right), U.S. Rep. Steve Womack (R-AR) and Herman Smith (left) chat in front of H&H Classic Parts’ mobile warehouse.

In order to be prepared to address any public-policy matters that may arise in the future, from zero-emissions vehicle mandates to data access and cybersecurity, it is important that we continue to identify new lawmakers to defend the industry and strengthen existing relationships. Lawmakers and their staffs are always interested to learn about the SEMA members they represent. SEMA members also play a critical part in helping lawmakers who do not have a personal connection to the auto industry understand the role that aftermarket businesses and their workers play in the communities they represent.

During the weeks that Congress and state legislatures are not in session, lawmakers meet with their constituents and visit local businesses. SEMA encourages its members to invite their elected officials to tour their businesses. If you would like to host your elected officials at your facility, SEMA’s government affairs office will arrange the event. Please feel free to contact SEMA’s Director of State Government Affairs and SEMA PAC Christian Robinson at christianr@sema.org.

SEMA members can also visit their lawmakers’ local offices or participate in a live or telephone town hall. When contacting your lawmakers, you will frequently interact with a member of their staff. These staffers can be a great resource, as they are gatekeepers for elected officials.

U.S. Sen. Gary Peters (D-MI) chats with Dart Machinery founder Richard Maskin (left) and Jack McInnis (center).

Your customers are also invaluable advocates for the industry. Recognizing the passion that automotive enthusiasts have for protecting their hobby, SEMA formed the SEMA Action Network (SAN), a nationwide partnership of car clubs, individuals and industry members who are dedicated to protecting their passion at the state and federal levels.

The SAN makes it easy for automotive enthusiasts to email their state and federal lawmakers. In the two decades since the SAN was formed, it has successfully made its voice heard—and swayed the vote—on a wide range of issues, including vehicle scrappage (“clunker”) laws, equipment standards, registration classifications, emissions-test exemptions, and hobbyist rights.

If you and your employees are not already SAN members, it takes less than a minute to join for free at www.semasan.com. You can also help spread the word by promoting the SAN across your business’s social-media channels.

Even if this is the first time you’ve contacted your lawmakers, SEMA’s government affairs staff is available to answer questions and help you establish a relationship with your elected officials. Please feel free to reach out to SEMA’s Director of Congressional Affairs Eric Snyder via email at erics@sema.org.

SEMA News—June 2020

FROM THE HILL

By Eric Snyder

Getting to Know Your Lawmakers

SEMA-Member Relationships With Elected Officials Are Key to Protecting the Industry

Warn Industries Director of Manufactur­ing Operations Jack Hooper (left) and U.S. Rep. Kurt Schrader (D-OR, center) conversing during the factory tour.

The presidential election is just a few months away and the balance of power in Congress and state capitols is up for grabs. Now is the time for the specialty automotive aftermarket to mobilize and make our voices heard. Although SEMA’s next Washington Rally will be in May 2021, it is still possible to meet your elected officials in their local districts this year. SEMA government affairs staff can help you forge a relationship with the men and women who make decisions that impact the industry by inviting an elected official to tour your business or arranging a community meeting with your lawmaker.

One of the key benefits SEMA provides to its members is legislative and regulatory advocacy. In fact, one of the main reasons that SEMA was founded was to protect the industry and enthusiasts from unreasonable laws and regulations. Accordingly, SEMA maintains a government affairs office in Washington, D.C., to review and influence the actions of state and federal lawmakers and regulators in a way that is favorable to the industry.

SEMA staff works closely with members of Congress and state legislators who are interested to learn about the automotive specialty-equipment aftermarket and the issues of importance to SEMA members. SEMA maintains a state caucus of more than 700 legislators who are automotive enthusiasts, and the association’s federal caucus includes more than 70 members of Congress who support the industry and hobby. Visit www.semasan.com to see if your lawmakers are caucus members. SEMA has developed these connections over many years as a result of member-company relationships, outreach to elected officials and their staffs, and by the fact that some lawmakers are gearheads themselves. In fact, many state and federal lawmakers modify their own vehicles and have been to the SEMA Show.

Tray Smith (right), U.S. Rep. Steve Womack (R-AR) and Herman Smith (left) chat in front of H&H Classic Parts’ mobile warehouse.

In order to be prepared to address any public-policy matters that may arise in the future, from zero-emissions vehicle mandates to data access and cybersecurity, it is important that we continue to identify new lawmakers to defend the industry and strengthen existing relationships. Lawmakers and their staffs are always interested to learn about the SEMA members they represent. SEMA members also play a critical part in helping lawmakers who do not have a personal connection to the auto industry understand the role that aftermarket businesses and their workers play in the communities they represent.

During the weeks that Congress and state legislatures are not in session, lawmakers meet with their constituents and visit local businesses. SEMA encourages its members to invite their elected officials to tour their businesses. If you would like to host your elected officials at your facility, SEMA’s government affairs office will arrange the event. Please feel free to contact SEMA’s Director of State Government Affairs and SEMA PAC Christian Robinson at christianr@sema.org.

SEMA members can also visit their lawmakers’ local offices or participate in a live or telephone town hall. When contacting your lawmakers, you will frequently interact with a member of their staff. These staffers can be a great resource, as they are gatekeepers for elected officials.

U.S. Sen. Gary Peters (D-MI) chats with Dart Machinery founder Richard Maskin (left) and Jack McInnis (center).

Your customers are also invaluable advocates for the industry. Recognizing the passion that automotive enthusiasts have for protecting their hobby, SEMA formed the SEMA Action Network (SAN), a nationwide partnership of car clubs, individuals and industry members who are dedicated to protecting their passion at the state and federal levels.

The SAN makes it easy for automotive enthusiasts to email their state and federal lawmakers. In the two decades since the SAN was formed, it has successfully made its voice heard—and swayed the vote—on a wide range of issues, including vehicle scrappage (“clunker”) laws, equipment standards, registration classifications, emissions-test exemptions, and hobbyist rights.

If you and your employees are not already SAN members, it takes less than a minute to join for free at www.semasan.com. You can also help spread the word by promoting the SAN across your business’s social-media channels.

Even if this is the first time you’ve contacted your lawmakers, SEMA’s government affairs staff is available to answer questions and help you establish a relationship with your elected officials. Please feel free to reach out to SEMA’s Director of Congressional Affairs Eric Snyder via email at erics@sema.org.

SEMA News—June 2020

FROM THE HILL

By Eric Snyder

Getting to Know Your Lawmakers

SEMA-Member Relationships With Elected Officials Are Key to Protecting the Industry

Warn Industries Director of Manufactur­ing Operations Jack Hooper (left) and U.S. Rep. Kurt Schrader (D-OR, center) conversing during the factory tour.

The presidential election is just a few months away and the balance of power in Congress and state capitols is up for grabs. Now is the time for the specialty automotive aftermarket to mobilize and make our voices heard. Although SEMA’s next Washington Rally will be in May 2021, it is still possible to meet your elected officials in their local districts this year. SEMA government affairs staff can help you forge a relationship with the men and women who make decisions that impact the industry by inviting an elected official to tour your business or arranging a community meeting with your lawmaker.

One of the key benefits SEMA provides to its members is legislative and regulatory advocacy. In fact, one of the main reasons that SEMA was founded was to protect the industry and enthusiasts from unreasonable laws and regulations. Accordingly, SEMA maintains a government affairs office in Washington, D.C., to review and influence the actions of state and federal lawmakers and regulators in a way that is favorable to the industry.

SEMA staff works closely with members of Congress and state legislators who are interested to learn about the automotive specialty-equipment aftermarket and the issues of importance to SEMA members. SEMA maintains a state caucus of more than 700 legislators who are automotive enthusiasts, and the association’s federal caucus includes more than 70 members of Congress who support the industry and hobby. Visit www.semasan.com to see if your lawmakers are caucus members. SEMA has developed these connections over many years as a result of member-company relationships, outreach to elected officials and their staffs, and by the fact that some lawmakers are gearheads themselves. In fact, many state and federal lawmakers modify their own vehicles and have been to the SEMA Show.

Tray Smith (right), U.S. Rep. Steve Womack (R-AR) and Herman Smith (left) chat in front of H&H Classic Parts’ mobile warehouse.

In order to be prepared to address any public-policy matters that may arise in the future, from zero-emissions vehicle mandates to data access and cybersecurity, it is important that we continue to identify new lawmakers to defend the industry and strengthen existing relationships. Lawmakers and their staffs are always interested to learn about the SEMA members they represent. SEMA members also play a critical part in helping lawmakers who do not have a personal connection to the auto industry understand the role that aftermarket businesses and their workers play in the communities they represent.

During the weeks that Congress and state legislatures are not in session, lawmakers meet with their constituents and visit local businesses. SEMA encourages its members to invite their elected officials to tour their businesses. If you would like to host your elected officials at your facility, SEMA’s government affairs office will arrange the event. Please feel free to contact SEMA’s Director of State Government Affairs and SEMA PAC Christian Robinson at christianr@sema.org.

SEMA members can also visit their lawmakers’ local offices or participate in a live or telephone town hall. When contacting your lawmakers, you will frequently interact with a member of their staff. These staffers can be a great resource, as they are gatekeepers for elected officials.

U.S. Sen. Gary Peters (D-MI) chats with Dart Machinery founder Richard Maskin (left) and Jack McInnis (center).

Your customers are also invaluable advocates for the industry. Recognizing the passion that automotive enthusiasts have for protecting their hobby, SEMA formed the SEMA Action Network (SAN), a nationwide partnership of car clubs, individuals and industry members who are dedicated to protecting their passion at the state and federal levels.

The SAN makes it easy for automotive enthusiasts to email their state and federal lawmakers. In the two decades since the SAN was formed, it has successfully made its voice heard—and swayed the vote—on a wide range of issues, including vehicle scrappage (“clunker”) laws, equipment standards, registration classifications, emissions-test exemptions, and hobbyist rights.

If you and your employees are not already SAN members, it takes less than a minute to join for free at www.semasan.com. You can also help spread the word by promoting the SAN across your business’s social-media channels.

Even if this is the first time you’ve contacted your lawmakers, SEMA’s government affairs staff is available to answer questions and help you establish a relationship with your elected officials. Please feel free to reach out to SEMA’s Director of Congressional Affairs Eric Snyder via email at erics@sema.org.

SEMA News—July 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

Wisconsin—Collector and Hobbyist Vehicles: SEMA-opposed legislation in Wisconsin to restrict eligibility and raise fees for collector and hobbyist vehicle registrations failed to pass the Assembly prior to a required legislative deadline. Currently, those vehicles must be more than 20 years old, and owners are required to pay twice the normal registration fee. If passed, the bill would have further limited each designation to vehicles 30 years old and older, expanded seasonal use restrictions, and increased the registration fees to three times the normal rate. In Wisconsin, a collector vehicle is defined as being at least 20 years old, preserved because of historical significance, and having had no body alterations. Vehicles eligible for hobbyist plates include street modifieds, replica vehicles, reconstructed vehicles and homemade vehicles.

COVID-19 Webpage: SEMA continues to update the www.sema.org/coronavirus webpage daily to provide members with valuable resources for addressing COVID-19. The information gathered is comprehensive and ranges from industry best practices for protecting employee health to tracking the states as they allow nonessential businesses to reopen. Members are encouraged to bookmark the page and visit often.

Small-Business Loans: This spring, the U.S. Congress increased the amount of money available to be lent to small businesses through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Both programs are funded through the U.S. Small Business Administration (SBA), with PPP loans being processed by a bank and EIDL loans being issued directly by the SBA. The PPP was scheduled to end on June 30, 2020, unless funds were depleted sooner or Congress extended the program. The EIDL program ends on December 31, 2020 (or when funds are depleted). Of primary concern is whether the federal government will sufficiently fund the programs to cover the needs of millions of small businesses across the United States. A PPP loan equals up to 250% of a company’s monthly payroll (capped at $10 million), which can be used to cover payroll, mortgage, rent and other specified expenses. It is a two-year loan at a 1% interest rate with no payment due for six months, and the SBA will forgive that portion of the loan used to cover payroll, rent and utilities for the first eight weeks of the loan. The EIDL is a loan of up to $2 million at a 3.75% interest rate to be used to pay workers, rent and other bills. The first $10,000 of the loan is a grant that does not need to be repaid.

Tariffs: The Americans for Free Trade Coalition, of which SEMA is a member, asked that companies be provided comprehensive tariff relief during COVID-19. The coalition called on President Trump to temporarily suspend tariff collections, including those imposed on metals and Chinese products. The request for suspended tariffs had widespread bipartisan support on Capitol Hill but was rejected by the administration. However, President Trump issued an executive order that allowed companies to defer duty payments for 45 days in March and April but only on a very limited category of products. The coalition asked the Trump Administration to apply the order to all imports, including tariffs on steel, aluminum and Chinese products, and defer collections through June so that companies can use the money to pay other expenses during COVID-19. There has been no decision on the request by the administration to date.

RPM Act: SEMA is working with members of Congress on both sides of the aisle to pass the Recognizing the Protection of Motorsports (RPM) Act in 2020. The legislation clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. The RPM Act has been subject to previous Congressional hearings and is well-positioned for consideration in the U.S. House of Representatives and the Senate. The House bill (H.R. 5434) currently has 58 co-sponsors, and the Senate bill (S. 2602) has 29 co-sponsors. To contact your lawmakers and request their support, visit www.sema.org/rpm.

STATE UPDATE

Virginia—Motorsports: SEMA-supported legislation in Virginia to create a motor vehicle racing heritage trail in order to promote tourism and economic development became law after the deadline for Governor Ralph Northam’s signature or veto passed. The law convenes a group of stakeholders, including owners of historic NASCAR and other racing tracks, to design and implement the trail.

West Virginia—Military Vehicles: West Virginia Governor Jim Justice signed into law a SEMA-supported bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are available for vehicles that are more than 25 years old and owned solely as collector’s items.

SEMA News—July 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

Wisconsin—Collector and Hobbyist Vehicles: SEMA-opposed legislation in Wisconsin to restrict eligibility and raise fees for collector and hobbyist vehicle registrations failed to pass the Assembly prior to a required legislative deadline. Currently, those vehicles must be more than 20 years old, and owners are required to pay twice the normal registration fee. If passed, the bill would have further limited each designation to vehicles 30 years old and older, expanded seasonal use restrictions, and increased the registration fees to three times the normal rate. In Wisconsin, a collector vehicle is defined as being at least 20 years old, preserved because of historical significance, and having had no body alterations. Vehicles eligible for hobbyist plates include street modifieds, replica vehicles, reconstructed vehicles and homemade vehicles.

COVID-19 Webpage: SEMA continues to update the www.sema.org/coronavirus webpage daily to provide members with valuable resources for addressing COVID-19. The information gathered is comprehensive and ranges from industry best practices for protecting employee health to tracking the states as they allow nonessential businesses to reopen. Members are encouraged to bookmark the page and visit often.

Small-Business Loans: This spring, the U.S. Congress increased the amount of money available to be lent to small businesses through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Both programs are funded through the U.S. Small Business Administration (SBA), with PPP loans being processed by a bank and EIDL loans being issued directly by the SBA. The PPP was scheduled to end on June 30, 2020, unless funds were depleted sooner or Congress extended the program. The EIDL program ends on December 31, 2020 (or when funds are depleted). Of primary concern is whether the federal government will sufficiently fund the programs to cover the needs of millions of small businesses across the United States. A PPP loan equals up to 250% of a company’s monthly payroll (capped at $10 million), which can be used to cover payroll, mortgage, rent and other specified expenses. It is a two-year loan at a 1% interest rate with no payment due for six months, and the SBA will forgive that portion of the loan used to cover payroll, rent and utilities for the first eight weeks of the loan. The EIDL is a loan of up to $2 million at a 3.75% interest rate to be used to pay workers, rent and other bills. The first $10,000 of the loan is a grant that does not need to be repaid.

Tariffs: The Americans for Free Trade Coalition, of which SEMA is a member, asked that companies be provided comprehensive tariff relief during COVID-19. The coalition called on President Trump to temporarily suspend tariff collections, including those imposed on metals and Chinese products. The request for suspended tariffs had widespread bipartisan support on Capitol Hill but was rejected by the administration. However, President Trump issued an executive order that allowed companies to defer duty payments for 45 days in March and April but only on a very limited category of products. The coalition asked the Trump Administration to apply the order to all imports, including tariffs on steel, aluminum and Chinese products, and defer collections through June so that companies can use the money to pay other expenses during COVID-19. There has been no decision on the request by the administration to date.

RPM Act: SEMA is working with members of Congress on both sides of the aisle to pass the Recognizing the Protection of Motorsports (RPM) Act in 2020. The legislation clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. The RPM Act has been subject to previous Congressional hearings and is well-positioned for consideration in the U.S. House of Representatives and the Senate. The House bill (H.R. 5434) currently has 58 co-sponsors, and the Senate bill (S. 2602) has 29 co-sponsors. To contact your lawmakers and request their support, visit www.sema.org/rpm.

STATE UPDATE

Virginia—Motorsports: SEMA-supported legislation in Virginia to create a motor vehicle racing heritage trail in order to promote tourism and economic development became law after the deadline for Governor Ralph Northam’s signature or veto passed. The law convenes a group of stakeholders, including owners of historic NASCAR and other racing tracks, to design and implement the trail.

West Virginia—Military Vehicles: West Virginia Governor Jim Justice signed into law a SEMA-supported bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are available for vehicles that are more than 25 years old and owned solely as collector’s items.

SEMA News—July 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

Wisconsin—Collector and Hobbyist Vehicles: SEMA-opposed legislation in Wisconsin to restrict eligibility and raise fees for collector and hobbyist vehicle registrations failed to pass the Assembly prior to a required legislative deadline. Currently, those vehicles must be more than 20 years old, and owners are required to pay twice the normal registration fee. If passed, the bill would have further limited each designation to vehicles 30 years old and older, expanded seasonal use restrictions, and increased the registration fees to three times the normal rate. In Wisconsin, a collector vehicle is defined as being at least 20 years old, preserved because of historical significance, and having had no body alterations. Vehicles eligible for hobbyist plates include street modifieds, replica vehicles, reconstructed vehicles and homemade vehicles.

COVID-19 Webpage: SEMA continues to update the www.sema.org/coronavirus webpage daily to provide members with valuable resources for addressing COVID-19. The information gathered is comprehensive and ranges from industry best practices for protecting employee health to tracking the states as they allow nonessential businesses to reopen. Members are encouraged to bookmark the page and visit often.

Small-Business Loans: This spring, the U.S. Congress increased the amount of money available to be lent to small businesses through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Both programs are funded through the U.S. Small Business Administration (SBA), with PPP loans being processed by a bank and EIDL loans being issued directly by the SBA. The PPP was scheduled to end on June 30, 2020, unless funds were depleted sooner or Congress extended the program. The EIDL program ends on December 31, 2020 (or when funds are depleted). Of primary concern is whether the federal government will sufficiently fund the programs to cover the needs of millions of small businesses across the United States. A PPP loan equals up to 250% of a company’s monthly payroll (capped at $10 million), which can be used to cover payroll, mortgage, rent and other specified expenses. It is a two-year loan at a 1% interest rate with no payment due for six months, and the SBA will forgive that portion of the loan used to cover payroll, rent and utilities for the first eight weeks of the loan. The EIDL is a loan of up to $2 million at a 3.75% interest rate to be used to pay workers, rent and other bills. The first $10,000 of the loan is a grant that does not need to be repaid.

Tariffs: The Americans for Free Trade Coalition, of which SEMA is a member, asked that companies be provided comprehensive tariff relief during COVID-19. The coalition called on President Trump to temporarily suspend tariff collections, including those imposed on metals and Chinese products. The request for suspended tariffs had widespread bipartisan support on Capitol Hill but was rejected by the administration. However, President Trump issued an executive order that allowed companies to defer duty payments for 45 days in March and April but only on a very limited category of products. The coalition asked the Trump Administration to apply the order to all imports, including tariffs on steel, aluminum and Chinese products, and defer collections through June so that companies can use the money to pay other expenses during COVID-19. There has been no decision on the request by the administration to date.

RPM Act: SEMA is working with members of Congress on both sides of the aisle to pass the Recognizing the Protection of Motorsports (RPM) Act in 2020. The legislation clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. The RPM Act has been subject to previous Congressional hearings and is well-positioned for consideration in the U.S. House of Representatives and the Senate. The House bill (H.R. 5434) currently has 58 co-sponsors, and the Senate bill (S. 2602) has 29 co-sponsors. To contact your lawmakers and request their support, visit www.sema.org/rpm.

STATE UPDATE

Virginia—Motorsports: SEMA-supported legislation in Virginia to create a motor vehicle racing heritage trail in order to promote tourism and economic development became law after the deadline for Governor Ralph Northam’s signature or veto passed. The law convenes a group of stakeholders, including owners of historic NASCAR and other racing tracks, to design and implement the trail.

West Virginia—Military Vehicles: West Virginia Governor Jim Justice signed into law a SEMA-supported bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are available for vehicles that are more than 25 years old and owned solely as collector’s items.

SEMA News—July 2020

BUSINESS

(Re)Open For Business

Three Brand-Management Strategies to Survive COVID-19 and Come Out Stronger

By Douglas McColloch

Consumers expect the business community to assume a leadership role in the fight against COVID-19, so proactive support for community initiatives outside the traditional business scope can be a big help to promote and expand your brand in the short term.

The COVID-19 pandemic caused many companies to scale back production or reduce operating hours, and it’s clear that consumers are looking for greater safety and security in their lives as the industry moves toward recovery. Based on information gathered from a variety of sources, the consensus is that the companies that are best positioned to deliver those attributes while still reliably delivering the products and services their customers depend on will have a unique opportunity to build upon and even expand their brand awareness in the coming years.

That will require many companies to make adjustments—some minor, others substantial—to their current business models and develop marketing communications initiatives that offer assurance and affirmation as well as motivation and engagement.

One data point, a market-research survey of 2,200 adult Americans conducted in late March and published by global technology company Morning Consult suggested that large majorities of consumers are forgiving of businesses in the face of the virus, with 87% expressing appreciation for companies that have remained open for business. But they also expect the business community to take a leadership role in combatting the pandemic, with 68% expressing the belief that company CEOs bear some responsibility for helping Americans during
the crisis.

With so many potential customers quarantined, there has never been a better time for companies to expand their online presence with aggressive use of social media. Facebook, Instagram and YouTube are all efficient and economical ways to stay in touch with your customers when they can’t interact with you.

Tip: Take Note of Consumer Preferences and Tailor Your Business Accordingly

According to the Morning Consult survey, consumers show a strong preference to buy from companies that provide a “clean and safe” store environment (88%). This is one action point that many companies have already begun to ramp up in their workplaces by accelerating daily and hourly cleaning schedules, making hand sanitizer and related cleaning products more widely available to customers and employees, and by offering curbside service where in-store shopping has been curtailed or is not advisable.

As an example, Pep Boys recently rolled out a new repair and installation protocol where customers can book appointments online, drop off their vehicles, pay for services via smartphone and pick up their vehicles, all without the need for any close human contact. 4 Wheel Parts, among others, has recently introduced curbside service at its retail locations. Additionally, environmental service companies such as U.S. Ecology (www.usecology.com) are among those becoming more visible to provide cleaning and decontamination instructions to aftermarket companies looking to optimize workplace sanitation.

The survey also showed a strong consumer preference for companies that treat their employees with “flexibility and empathy” (84%). This is another area where many aftermarket companies have been proactive, expanding work-from-home policies and creating greater safeguards in the workplace. Summit Racing, to name one, announced recently that it will begin requiring masks to be worn at its facilities, in addition to implementing greater physical spacing between work stations, and many aftermarket companies such as Derive Systems and Painless Performance have instituted telecommuting protocols.

Tom Shay, an author and small-business consultant, encouraged companies to reconsider how they engage with their customers.

“It’s a different game now,” he said. “The old item-and-price advertising with the list of ‘here’s our weekly specials’ isn’t going to work because that’s not what people are interested in. People are buying things that help them feel normal. They’re feeling out of control, and some of the panic buying we’re seeing is a reflection of that. There’s a great opportunity to connect with people, to help them feel good about your business and to keep your name in front of them so that you’ll be remembered when the world comes back to normal.”

By contrast, he said, “the people who went to shut-down mode to a large degree have got to start all over with building their name from ground zero.”

As more sales are generated online, it’s a good idea for companies to be flexible in offering multiple payment options for consumers. PayPal, Apple Pay and Amazon Pay should be considered as essential going forward in addition to traditional credit and debit cards.

Tip: Consider the Future Consequences of Decisions Made Today

This can be a difficult subject, particularly in a business climate in which layoffs, furloughs or reduced business hours may be unavoidable. While consumers are overwhelmingly sympathetic as companies adjust their operations, actions such as layoffs, besides being disruptive, can lead to poor business outcomes. Nearly half of all Americans surveyed by Morning Consult said that they were less likely to patronize a business that had imposed layoffs, so how companies respond to this negative public perception can make a considerable difference not only to the minds of consumers but also to the bottom line.

According to the Morning Consult survey, among the actions that companies can take to strengthen consumer loyalty are pledges to rehire workers after business improves (64% responded favorably), announcing salary reductions for the executive management team (63%), and issuing public statements explaining the reasons behind the layoffs while expressing continued support for laid-off employees (62%). Shay advised against layoffs if at all possible.

“As an employer, if you’ve got the money, you have to look at how much time you invested in that employee to teach them what they know about the automotive industry,” he said. “If you simply toss them out the door and say, ‘I’m sorry, but I have to lay you off at this point,’ how do you think you build that experience back into your business?”

Shay instead advised companies to consider taking advantage of new federal relief initiatives such as the Paycheck Protection Program (PPP), a Small Business Administration (SBA) program that guarantees loans for small businesses up to 250% of a company’s monthly payroll (up to $10 million), which can be used to cover payroll, mortgage, rent and other specified expenses. PPP loans offer favorable terms (1% interest), and the SBA will forgive portions of the loan used to cover payroll, mortgage interest, rent and utilities for the first eight weeks if small businesses retain their employees and payroll levels.

Shay also pointed out that programs such as PPP provide companies with an opportunity to leverage their workforce to perform valuable community service.

“You don’t have to have your employees actually working; you just have to keep them on the payroll,” he noted. “So if you don’t have anything for your employees to do, you could assign them to volunteer at a local charity such as a food bank that’s feeding low-income children: ‘I don’t have anything for you to do here, so this is where I’m assigning you today.’”

To that end, many companies have responded by launching community-service programs, and consumers have noticed, according to the Morning Consult survey. As an example, 38% of Americans said that they would be more likely to patronize Wal-Mart after the company announced it would conduct drive-through coronavirus testing at some of its locations. A similar percentage said they would be more likely to purchase products from Apple after the company announced it was donating nine million face masks to support hospital relief efforts; 36% said they were more likely to purchase from Anheuser-Busch after the brewer announced it was shifting production lines to make hand sanitizer; and 45% said they’d be more likely to buy from Kraft-Heinz after the company announced that it was donating $12 million in cash and products to virus-impacted communities.

In a similar vein, numerous SEMA-member companies have retooled their operations or partnered with other companies to provide goods and services outside their core competencies to address the coronavirus pandemic—and discovered potential new revenue streams in so doing.

Case in point is Graffiti Shield, a company based in Anaheim, California, that manufactures graffiti-proof protective film products. The company saw a steep decline in business in the weeks following the initial COVID-19 outbreak, but then it was approached by a local hospital that was having trouble sourcing clear face shields for its medical staff. Within a matter of hours, the company had devised the means to design and cut shields that could be secured to the wearer’s head with Velcro straps.

“The main reason we took the project on—besides helping the hospital—was that we didn’t want to furlough any of our people,” said company CEO Jeff Green.

The company initially produced 1,000 shields a day, but production was soon tripled as new orders came in, and additional workers have been hired to meet
the demand.

Shay summed it up: “In the short term, the questions you need to be asking are: What can you do for your employees? What can you do to stay in touch with your customers? And what can you do to help your community?”

Tip: Invest in Quality Service and Acknowledge Customer Support

It’s one thing to make those changes in the workplace, but it’s equally important to communicate those facts in ways that will resonate with the public. According to Morning Consult, consumers respond most favorably to messaging that shows (a) what companies are doing to help stop the spread of the coronavirus and (b) what companies are doing to improve their customers’ safety and overall
well-being.

“It’s all about customer service,” Shay said. “A good message for employers is to emphasize customer service at this point more than ever.”

But customer service requires more than a nod and a wave at the door. It requires an educated workforce and a company willing to provide ongoing education.

“When I’m speaking at the SEMA Show,” Shay explained. “I’ll ask this question with a show of hands: ‘How many of you believe that you give great customer service?’ And the majority of hands go up. Okay, so I ask a second question: ‘How many of you have an ongoing program where you teach people how to engage with customers, how to sell merchandise, and where you teach about the products and the differences between various products?’ Very few hands go up. My question then is, ‘How do you expect me to believe your first answer when I’ve heard your second answer?’”

Shay also advised companies to consider expanding payment methods to provide greater flexibility to customers. In the short term, he said, “You’re going to find people who don’t want to touch cash, so I’d ask every businessperson: ‘How many different ways can I pay you? Visa, MasterCard, is that it?’ For a lot of folks, the answer is yes. But you also need to look at American Express and Discover. Then look at Apple Pay, Amazon Pay, Google Pay, Samsung Pay. You’ve got to open up.”

In the end, Shay said, customer service begins with keeping customers engaged. When so many are quarantined, social-media sites such as Facebook, YouTube and Instagram are ideal messaging tools to reach them as well as express empathy and gratitude for their support.

“You have an opportunity right now to try your wildest and craziest ideas of how to market to people,” he said. “They’ll be easily forgotten or forgiven if you do it wrong. Just keep trying. Find ways to connect with customers.

“Most of us have a database of information in which we have names, addresses and phone numbers. If you have to shut down your business, sit down with a telephone and start calling people just to say, ‘Hello, I’m thinking about you, and I just want to know how you’re doing.’”

The COVID-19 pandemic caused many companies to scale back production or reduce operating hours, and it’s clear that consumers are looking for greater safety and security in their lives as the industry moves toward recovery. Based on information gathered from a variety of sources, the consensus is that the companies that are best positioned to deliver those attributes while still reliably delivering the products and services their customers depend on will have a unique opportunity to build upon and even expand their brand awareness in the coming years.

SEMA News—July 2020

BUSINESS

(Re)Open For Business

Three Brand-Management Strategies to Survive COVID-19 and Come Out Stronger

By Douglas McColloch

Consumers expect the business community to assume a leadership role in the fight against COVID-19, so proactive support for community initiatives outside the traditional business scope can be a big help to promote and expand your brand in the short term.

The COVID-19 pandemic caused many companies to scale back production or reduce operating hours, and it’s clear that consumers are looking for greater safety and security in their lives as the industry moves toward recovery. Based on information gathered from a variety of sources, the consensus is that the companies that are best positioned to deliver those attributes while still reliably delivering the products and services their customers depend on will have a unique opportunity to build upon and even expand their brand awareness in the coming years.

That will require many companies to make adjustments—some minor, others substantial—to their current business models and develop marketing communications initiatives that offer assurance and affirmation as well as motivation and engagement.

One data point, a market-research survey of 2,200 adult Americans conducted in late March and published by global technology company Morning Consult suggested that large majorities of consumers are forgiving of businesses in the face of the virus, with 87% expressing appreciation for companies that have remained open for business. But they also expect the business community to take a leadership role in combatting the pandemic, with 68% expressing the belief that company CEOs bear some responsibility for helping Americans during
the crisis.

With so many potential customers quarantined, there has never been a better time for companies to expand their online presence with aggressive use of social media. Facebook, Instagram and YouTube are all efficient and economical ways to stay in touch with your customers when they can’t interact with you.

Tip: Take Note of Consumer Preferences and Tailor Your Business Accordingly

According to the Morning Consult survey, consumers show a strong preference to buy from companies that provide a “clean and safe” store environment (88%). This is one action point that many companies have already begun to ramp up in their workplaces by accelerating daily and hourly cleaning schedules, making hand sanitizer and related cleaning products more widely available to customers and employees, and by offering curbside service where in-store shopping has been curtailed or is not advisable.

As an example, Pep Boys recently rolled out a new repair and installation protocol where customers can book appointments online, drop off their vehicles, pay for services via smartphone and pick up their vehicles, all without the need for any close human contact. 4 Wheel Parts, among others, has recently introduced curbside service at its retail locations. Additionally, environmental service companies such as U.S. Ecology (www.usecology.com) are among those becoming more visible to provide cleaning and decontamination instructions to aftermarket companies looking to optimize workplace sanitation.

The survey also showed a strong consumer preference for companies that treat their employees with “flexibility and empathy” (84%). This is another area where many aftermarket companies have been proactive, expanding work-from-home policies and creating greater safeguards in the workplace. Summit Racing, to name one, announced recently that it will begin requiring masks to be worn at its facilities, in addition to implementing greater physical spacing between work stations, and many aftermarket companies such as Derive Systems and Painless Performance have instituted telecommuting protocols.

Tom Shay, an author and small-business consultant, encouraged companies to reconsider how they engage with their customers.

“It’s a different game now,” he said. “The old item-and-price advertising with the list of ‘here’s our weekly specials’ isn’t going to work because that’s not what people are interested in. People are buying things that help them feel normal. They’re feeling out of control, and some of the panic buying we’re seeing is a reflection of that. There’s a great opportunity to connect with people, to help them feel good about your business and to keep your name in front of them so that you’ll be remembered when the world comes back to normal.”

By contrast, he said, “the people who went to shut-down mode to a large degree have got to start all over with building their name from ground zero.”

As more sales are generated online, it’s a good idea for companies to be flexible in offering multiple payment options for consumers. PayPal, Apple Pay and Amazon Pay should be considered as essential going forward in addition to traditional credit and debit cards.

Tip: Consider the Future Consequences of Decisions Made Today

This can be a difficult subject, particularly in a business climate in which layoffs, furloughs or reduced business hours may be unavoidable. While consumers are overwhelmingly sympathetic as companies adjust their operations, actions such as layoffs, besides being disruptive, can lead to poor business outcomes. Nearly half of all Americans surveyed by Morning Consult said that they were less likely to patronize a business that had imposed layoffs, so how companies respond to this negative public perception can make a considerable difference not only to the minds of consumers but also to the bottom line.

According to the Morning Consult survey, among the actions that companies can take to strengthen consumer loyalty are pledges to rehire workers after business improves (64% responded favorably), announcing salary reductions for the executive management team (63%), and issuing public statements explaining the reasons behind the layoffs while expressing continued support for laid-off employees (62%). Shay advised against layoffs if at all possible.

“As an employer, if you’ve got the money, you have to look at how much time you invested in that employee to teach them what they know about the automotive industry,” he said. “If you simply toss them out the door and say, ‘I’m sorry, but I have to lay you off at this point,’ how do you think you build that experience back into your business?”

Shay instead advised companies to consider taking advantage of new federal relief initiatives such as the Paycheck Protection Program (PPP), a Small Business Administration (SBA) program that guarantees loans for small businesses up to 250% of a company’s monthly payroll (up to $10 million), which can be used to cover payroll, mortgage, rent and other specified expenses. PPP loans offer favorable terms (1% interest), and the SBA will forgive portions of the loan used to cover payroll, mortgage interest, rent and utilities for the first eight weeks if small businesses retain their employees and payroll levels.

Shay also pointed out that programs such as PPP provide companies with an opportunity to leverage their workforce to perform valuable community service.

“You don’t have to have your employees actually working; you just have to keep them on the payroll,” he noted. “So if you don’t have anything for your employees to do, you could assign them to volunteer at a local charity such as a food bank that’s feeding low-income children: ‘I don’t have anything for you to do here, so this is where I’m assigning you today.’”

To that end, many companies have responded by launching community-service programs, and consumers have noticed, according to the Morning Consult survey. As an example, 38% of Americans said that they would be more likely to patronize Wal-Mart after the company announced it would conduct drive-through coronavirus testing at some of its locations. A similar percentage said they would be more likely to purchase products from Apple after the company announced it was donating nine million face masks to support hospital relief efforts; 36% said they were more likely to purchase from Anheuser-Busch after the brewer announced it was shifting production lines to make hand sanitizer; and 45% said they’d be more likely to buy from Kraft-Heinz after the company announced that it was donating $12 million in cash and products to virus-impacted communities.

In a similar vein, numerous SEMA-member companies have retooled their operations or partnered with other companies to provide goods and services outside their core competencies to address the coronavirus pandemic—and discovered potential new revenue streams in so doing.

Case in point is Graffiti Shield, a company based in Anaheim, California, that manufactures graffiti-proof protective film products. The company saw a steep decline in business in the weeks following the initial COVID-19 outbreak, but then it was approached by a local hospital that was having trouble sourcing clear face shields for its medical staff. Within a matter of hours, the company had devised the means to design and cut shields that could be secured to the wearer’s head with Velcro straps.

“The main reason we took the project on—besides helping the hospital—was that we didn’t want to furlough any of our people,” said company CEO Jeff Green.

The company initially produced 1,000 shields a day, but production was soon tripled as new orders came in, and additional workers have been hired to meet
the demand.

Shay summed it up: “In the short term, the questions you need to be asking are: What can you do for your employees? What can you do to stay in touch with your customers? And what can you do to help your community?”

Tip: Invest in Quality Service and Acknowledge Customer Support

It’s one thing to make those changes in the workplace, but it’s equally important to communicate those facts in ways that will resonate with the public. According to Morning Consult, consumers respond most favorably to messaging that shows (a) what companies are doing to help stop the spread of the coronavirus and (b) what companies are doing to improve their customers’ safety and overall
well-being.

“It’s all about customer service,” Shay said. “A good message for employers is to emphasize customer service at this point more than ever.”

But customer service requires more than a nod and a wave at the door. It requires an educated workforce and a company willing to provide ongoing education.

“When I’m speaking at the SEMA Show,” Shay explained. “I’ll ask this question with a show of hands: ‘How many of you believe that you give great customer service?’ And the majority of hands go up. Okay, so I ask a second question: ‘How many of you have an ongoing program where you teach people how to engage with customers, how to sell merchandise, and where you teach about the products and the differences between various products?’ Very few hands go up. My question then is, ‘How do you expect me to believe your first answer when I’ve heard your second answer?’”

Shay also advised companies to consider expanding payment methods to provide greater flexibility to customers. In the short term, he said, “You’re going to find people who don’t want to touch cash, so I’d ask every businessperson: ‘How many different ways can I pay you? Visa, MasterCard, is that it?’ For a lot of folks, the answer is yes. But you also need to look at American Express and Discover. Then look at Apple Pay, Amazon Pay, Google Pay, Samsung Pay. You’ve got to open up.”

In the end, Shay said, customer service begins with keeping customers engaged. When so many are quarantined, social-media sites such as Facebook, YouTube and Instagram are ideal messaging tools to reach them as well as express empathy and gratitude for their support.

“You have an opportunity right now to try your wildest and craziest ideas of how to market to people,” he said. “They’ll be easily forgotten or forgiven if you do it wrong. Just keep trying. Find ways to connect with customers.

“Most of us have a database of information in which we have names, addresses and phone numbers. If you have to shut down your business, sit down with a telephone and start calling people just to say, ‘Hello, I’m thinking about you, and I just want to know how you’re doing.’”

The COVID-19 pandemic caused many companies to scale back production or reduce operating hours, and it’s clear that consumers are looking for greater safety and security in their lives as the industry moves toward recovery. Based on information gathered from a variety of sources, the consensus is that the companies that are best positioned to deliver those attributes while still reliably delivering the products and services their customers depend on will have a unique opportunity to build upon and even expand their brand awareness in the coming years.

SEMA News—July 2020

BUSINESS

By Douglas McColloch

Restyling and Car-Care Market Trends

New Parts, Products and Applications for a Growing Marketplace

Each November, North Hall of the Las Vegas Convention Center at the annual SEMA Show is ground zero for the car-care and restyling industries. Show attendees can see the latest restyling products, learn about the newest car-care technologies, meet their favorite celebrities and observe product demonstrations.

For most builder-enthusiasts, car-care and restyling products are among the most indispensable tools for customizing a vehicle. They can provide added measures of protection for paint, glass and chrome. They can lend upgrades to interior comfort and optimize exterior shine. Many of the most popular products can be purchased without breaking the bank. They’re available nearly everywhere that auto parts are sold—and even some places they’re not, such as in neighborhood car washes or convenience stores.

It’s no surprise that these products are found at so many retail points of sale. According to the 2019 “SEMA Market Report,” fully two-thirds of car-care products are still purchased at traditional brick-and-mortar retail stores.

Altogether, the disparate products of the car-care aftermarket comprise a $1.8 billion segment in annual sales, and the market is poised to expand worldwide in the coming decade. Global market value is estimated to rise from $11.8 billion in 2019 to $16.8 billion by 2027, according to a recent survey published by market-research firm Research and Markets.

For this report, we contacted a number of experts in the car-care products industry representing manufacturers of car-care treatments and related products. The following is a compilation of their insights and observations on the current state of the market and its outlook going forward.

Vinyl wraps have long been popular with enthusiasts in that they allow the owner to personalized a vehicle with minimal shop time and at comparatively low expense versus the cost of a custom paint job, plus they have an average shelf live of five to 10 years.

Products and Processes: What’s Moving the Market

Two of the strongest consumer preferences that were mentioned by a number of our sources can be summed up by the phrases “quick and easy” and “all in one.” Bo Kessing, senior brand manager for Rust-Oleum, said that consumers want “a quick, easy and inexpensive way to transform their vehicles with premium, high-gloss finishes.”

A number of our industry sources pointed to paint-protection film (PPF) and related products as future market drivers.

“We still see a lot of traditional restyling products—leather interior, heated seats, remote start,” said Auto Additions Vice President Josh Poulson, “but the film business—window tint, clear matte protection and vinyl wrapping—has really started taking off. Blackout packages are also huge, where you maybe just wrap the roof of the car or the hood of an SUV more in the form of ‘accent’ wrapping rather than a whole body.”

For restylers, the ascendance of overlanding presents an opportunity to expand into a new market niche, as ICD Design President and CEO Paul Ghany explained.

“The SUV market is a good one for us because of the new push to make these vehicles more rugged and oriented toward outdoor adventure with more of an ‘off-road’ look,” he said. “That’s the direction everyone’s going right now, especially for SUVs. Everyone’s looking for camping gear and products for the outdoor lifestyle market.

“Advanced driver-assistance systems (ADAS) are a growing part of the business,” Poulson adds, “but they’re not going gangbusters the way everyone was predicting. A lot of that is because we work on newer vehicles, and a lot of those models are coming with that stuff. But we still do ADAS installations on a daily basis, whereas a year or two ago we were doing it on a weekly basis.”

Car-care and cleaning products—creams, coatings, polishes, waxes and accessories with numerous interior and exterior applications—comprise a $1.8 billion market, according to the 2019 “SEMA Market Report.”

Into the Future: Challenges and Opportunities

One challenge facing the restyling industry in particular is the proliferation of ADAS on original-equipment vehicle platforms and the need to maintain compliance after modifications are made.

“We constantly have to think about, ‘Are you covering up a sensor that now can’t function properly, or are you lifting a truck so that now the sensors don’t work?’” Poulson noted. “The learning curve is steep, and a lot of it comes down to in-house testing on our end because the manufacturers haven’t always been able to get the R&D out to installers.”

On the other hand, Poulson noted that improvements in aftermarket product quality allow for greater amounts of freedom for installers.

“Manufacturers have done a great job of making products that we can do more with,” he said. “We might wrap a chrome bumper now, whereas we would never attempt that for warranty reasons years ago. The product has gotten better, installation has gotten a little easier, and it’s allowed us the opportunity to do more creative things.”

Poulson also sees continued growth in the PPF sector—in particular, new products that provide protection for increasingly large original-equipment infotainment screens.

“We protect our cell phones, but we’re not protecting this $5,000 screen that can easily get scratched or damaged over time,” he said. “There’s the opportunity now for dealerships to do a lot of preloading and install them ahead of time.”

More than one source felt that ceramic coatings and other paint-protection products would continue to gain strength in the marketplace, with Poulson forecasting that “a lot more ‘protective’ restyling products like those are going to be big over the next three to five years.”

The continued popularity of the truck/off-road market, the perceived increase in consumer demand of electric vehicles, and the continued proliferation of ADAS systems all hold opportunities for future growth among restylers.

“For the future, we are looking at the electric vehicle market—in particular, the electric pickup trucks that are coming,” Ghany said. “More truck models give companies like ours more opportunity to expand into that market. We’re also looking at technology. Everybody wants everything in the car computerized now, so we are looking at new products for that market as well.”

“The rapid escalation in ride sharing and self-driving vehicles illustrates consumers’ desires to simplify their lives as it relates to automobiles,” Kessing concluded. “That leads to the need for easier-to-apply, longer-lasting products.”

SEMA News—July 2020

BUSINESS

By Douglas McColloch

Restyling and Car-Care Market Trends

New Parts, Products and Applications for a Growing Marketplace

Each November, North Hall of the Las Vegas Convention Center at the annual SEMA Show is ground zero for the car-care and restyling industries. Show attendees can see the latest restyling products, learn about the newest car-care technologies, meet their favorite celebrities and observe product demonstrations.

For most builder-enthusiasts, car-care and restyling products are among the most indispensable tools for customizing a vehicle. They can provide added measures of protection for paint, glass and chrome. They can lend upgrades to interior comfort and optimize exterior shine. Many of the most popular products can be purchased without breaking the bank. They’re available nearly everywhere that auto parts are sold—and even some places they’re not, such as in neighborhood car washes or convenience stores.

It’s no surprise that these products are found at so many retail points of sale. According to the 2019 “SEMA Market Report,” fully two-thirds of car-care products are still purchased at traditional brick-and-mortar retail stores.

Altogether, the disparate products of the car-care aftermarket comprise a $1.8 billion segment in annual sales, and the market is poised to expand worldwide in the coming decade. Global market value is estimated to rise from $11.8 billion in 2019 to $16.8 billion by 2027, according to a recent survey published by market-research firm Research and Markets.

For this report, we contacted a number of experts in the car-care products industry representing manufacturers of car-care treatments and related products. The following is a compilation of their insights and observations on the current state of the market and its outlook going forward.

Vinyl wraps have long been popular with enthusiasts in that they allow the owner to personalized a vehicle with minimal shop time and at comparatively low expense versus the cost of a custom paint job, plus they have an average shelf live of five to 10 years.

Products and Processes: What’s Moving the Market

Two of the strongest consumer preferences that were mentioned by a number of our sources can be summed up by the phrases “quick and easy” and “all in one.” Bo Kessing, senior brand manager for Rust-Oleum, said that consumers want “a quick, easy and inexpensive way to transform their vehicles with premium, high-gloss finishes.”

A number of our industry sources pointed to paint-protection film (PPF) and related products as future market drivers.

“We still see a lot of traditional restyling products—leather interior, heated seats, remote start,” said Auto Additions Vice President Josh Poulson, “but the film business—window tint, clear matte protection and vinyl wrapping—has really started taking off. Blackout packages are also huge, where you maybe just wrap the roof of the car or the hood of an SUV more in the form of ‘accent’ wrapping rather than a whole body.”

For restylers, the ascendance of overlanding presents an opportunity to expand into a new market niche, as ICD Design President and CEO Paul Ghany explained.

“The SUV market is a good one for us because of the new push to make these vehicles more rugged and oriented toward outdoor adventure with more of an ‘off-road’ look,” he said. “That’s the direction everyone’s going right now, especially for SUVs. Everyone’s looking for camping gear and products for the outdoor lifestyle market.

“Advanced driver-assistance systems (ADAS) are a growing part of the business,” Poulson adds, “but they’re not going gangbusters the way everyone was predicting. A lot of that is because we work on newer vehicles, and a lot of those models are coming with that stuff. But we still do ADAS installations on a daily basis, whereas a year or two ago we were doing it on a weekly basis.”

Car-care and cleaning products—creams, coatings, polishes, waxes and accessories with numerous interior and exterior applications—comprise a $1.8 billion market, according to the 2019 “SEMA Market Report.”

Into the Future: Challenges and Opportunities

One challenge facing the restyling industry in particular is the proliferation of ADAS on original-equipment vehicle platforms and the need to maintain compliance after modifications are made.

“We constantly have to think about, ‘Are you covering up a sensor that now can’t function properly, or are you lifting a truck so that now the sensors don’t work?’” Poulson noted. “The learning curve is steep, and a lot of it comes down to in-house testing on our end because the manufacturers haven’t always been able to get the R&D out to installers.”

On the other hand, Poulson noted that improvements in aftermarket product quality allow for greater amounts of freedom for installers.

“Manufacturers have done a great job of making products that we can do more with,” he said. “We might wrap a chrome bumper now, whereas we would never attempt that for warranty reasons years ago. The product has gotten better, installation has gotten a little easier, and it’s allowed us the opportunity to do more creative things.”

Poulson also sees continued growth in the PPF sector—in particular, new products that provide protection for increasingly large original-equipment infotainment screens.

“We protect our cell phones, but we’re not protecting this $5,000 screen that can easily get scratched or damaged over time,” he said. “There’s the opportunity now for dealerships to do a lot of preloading and install them ahead of time.”

More than one source felt that ceramic coatings and other paint-protection products would continue to gain strength in the marketplace, with Poulson forecasting that “a lot more ‘protective’ restyling products like those are going to be big over the next three to five years.”

The continued popularity of the truck/off-road market, the perceived increase in consumer demand of electric vehicles, and the continued proliferation of ADAS systems all hold opportunities for future growth among restylers.

“For the future, we are looking at the electric vehicle market—in particular, the electric pickup trucks that are coming,” Ghany said. “More truck models give companies like ours more opportunity to expand into that market. We’re also looking at technology. Everybody wants everything in the car computerized now, so we are looking at new products for that market as well.”

“The rapid escalation in ride sharing and self-driving vehicles illustrates consumers’ desires to simplify their lives as it relates to automobiles,” Kessing concluded. “That leads to the need for easier-to-apply, longer-lasting products.”