SEMA-member companies have posted several new listings for job opportunities (view all here) in the Classifieds page of SEMA.org.

The RPM Act needs your support.

The RPM Act needs your support.

The RPM Act needs your support.

The RPM Act needs your support.

Compiled by SEMA Editors

The Toyo Tires/Flying Lizard Motorsports team won its fourth consecutive overall victory at the NASA 25 Hours of Thunderhill presented by Hawk Performance last Sunday.

Toyo Tires/Flying Lizard Motorsports Wins Record Fourth 2018 NASA 25 Hours of Thunderhill Presented by Hawk Performance

The Toyo Tires/Flying Lizard Motorsports team won its fourth consecutive overall victory at the NASA 25 Hours of Thunderhill presented by Hawk Performance last Sunday. The team overcame a broken axle just after the start of the race on Saturday and powered on to the checkered flag at Thunderhill Raceway Park in Northern California. The team now holds the most overall titles in the 16-year history of 25 Hours of Thunderhill. Nearly 50 teams competed in seven classes in the endurance race that started Saturday at 11:00 a.m., and concluded at noon on Sunday.

Edelbrock has announced an enhanced partnership with Pat Musi Racing Engines that will cater to the hardcore drag-racing market.

Edelbrock Partners with Pat Musi Racing Engines to Power New Crate Engine Program

Edelbrock has announced an enhanced partnership with Pat Musi Racing Engines that will cater to the hardcore drag-racing market. At the center of the partnership is a new crate engine program created specifically for drag racers, which features the Musi 632 Top Sportsman/Top Dragster engine. Besides the complete engine available from Pat Musi Racing Engines, individual components are also available directly from both Edelbrock and Musi as part of the program. Available components include 12-degree cylinder heads and Victor Musi Big-Block Chevy 24-degree CNC cylinder heads, a Super Victor II CNC intake manifold and a Big Victor 2 Spread-Port Tall Deck intake manifold. Edelbrock is also continuing its support of Pat Musi’s 27-year-old daughter Lizzy Musi in the Professional Drag Racers Association (PDRA) Pro Nitrous ranks as a primary sponsor of Musi and her Pro Nitrous ’18 Dodge Dart. The official unveiling of the partnership will take place in the Edelbrock booth (#1713), Friday, December 7, at 1:00 p.m. (EST) at the Performance Racing Industry (PRI) Trade Show, held at the Indiana Convention Center in downtown Indianapolis.

Cris Vandagriff

Sonoma Speed Festival Brings HMSA and Vandagriff on Board

Sonoma Speed Festival Owner Jeff O’Neill and General Manager Ryan Turri have tabbed veteran vintage racing expert Cris Vandagriff and the Historic Motor Sports Association (HMSA) to sanction and oversee all competition for the new event.

MacCachren Wins SCORE Trophy Truck points, W. Matlock Tops Overall and Pro UTV FI in 2018 SCORE World Desert Championship

Veteran champion desert racer Wayne Matlock drove solo for the entire 1,802.68 miles to become the first UTV racer to win the SCORE Overall Point season championship, capturing the title in the four-race 2018 SCORE World Desert Championship. Tied in the SCORE overall points race for 2018 with eventual SCORE Trophy Truck season point champion Rob MacCachren entering November’s season-ending 51st SCORE Baja 1000, Matlock capped his season with his solo drive to the 2018 SCORE Overall and his Pro UTV FI class. A night of champions will be held Saturday, January 12, 2019, at the San Diego Air and Space Museum at Balboa Park. The evening will salute the champions of the 2018 SCORE World Desert Championship, honor the 2018 SCORE Off-Roadsman of the Year award winners and recognize the 43 winners of the 2018 SCORE Milestone awards. For more information and complete results, visit the SCORE website.

2018 champions: J.R. Todd, NHRA Funny Car World champion; Matt Smith, NHRA Pro Stock Motorcycle champion; Joey Logano, NASCAR champion; and Mike Janis, E3 Pro Mod Drag Racing Series champion.

Four MAHLE-Sponsored Racers Achieve Fastest MPH Recorded for NHRA Pro Stock Motorcycle Competition

In 2018, MAHLE-sponsored racers came out on top with four racers titled champions. They include Joey Logano, who won the 2018 NASCAR championship with a MAHLE-sponsored Roush Yates-built engine. In NHRA series racing, MAHLE-sponsored racer J.R. Todd with Kalitta Racing won the NHRA Funny Car World Championship. Matt Smith not only clinched the NHRA Pro Stock Motorcycle Championship at the finals in Pomona, but also recorded the fastest MPH ever recorded at 201.22 MPH. In a final five-second run against Ricky Smith at the E3 Pro Mod Drag Racing Series eliminations in Las Vegas, MAHLE-sponsored racer Mike Janis won his first Pro Mod Championship.

AJ Flick Wins Chili Bowl Opportunity

Mt Baker Vapor and Landon Simon Racing have officially named Pennsylvania driver AJ Flick winner of the MBVDirt campaign’s grand prize—a free ride at the 2019 Chili Bowl Nationals in Tulsa, Oklahoma. Flick will pilot the second entry out of the LSR stable beside driver and team owner Landon Simon.

For more racing news, visit Performance Racing Industry’s (PRI) eNewsletter.

SEMA News—December 2018

EVENTS

By Chad Simon

About 400 members of the automotive specialty-parts industry attended the 2018 SEMA Installation & Gala, themed “Success Starts Here,” at the Hilton Los Angeles/Universal City in Universal City, California, on July 20, to pay tribute to the specialty-equipment industry’s pioneers and dedicated volunteers.

About 400 members of the automotive specialty-parts industry attended the 2018 SEMA Installation & Gala, themed “Success Starts Here,” at the Hilton Los Angeles/Universal City in Universal City, California, on July 20, to pay tribute to the specialty-equipment industry’s pioneers and dedicated volunteers. Jessi Combs and Kevin Oeste served as the evening’s emcees. Honorees included the SEMA Hall of Fame class of 2018—Donnie Eatherly, P&E Distributors; Ed Pink, Ed Pink’s Garage; and Chris Thomson, TMG Performance Products.

SEMA Hall of Fame Class of 2018

Induction into the SEMA Hall of Fame is considered the trade association’s most prestigious honor and is reserved for outstanding individuals within the specialty-equipment industry whose creativity, dignity, integrity, industriousness and accomplishments on a national basis have enhanced the stature of the industry and significantly contributed to its growth.

From sales, inventory management, marketing and managing capital, resources and people, Donnie Eatherly has worked in all areas of the industry and has a broad perspective of every aspect involved. He now owns one of the longest-running speed shops in the mid-Tennessee area, which was originally founded by his father. His unique experience has helped him to effectively champion many important industry initiatives, including youth engagement, legislative advocacy, data standardization and vehicle technology. He is among the industry’s most active volunteers, having served on the SEMA Board of Directors, SEMA Political Action Committee and various SEMA councils and task forces.

For more than 60 years, Ed Pink Racing Engines has helped legendary racers set records and win championships. And while that alone is reason to honor “The Old Master,” it’s his dedication, innovation and contribution to the industry that sets him apart from all the others. Ed Pink has worked alongside industry pioneers such as Lou Baney, Ed Iskenderian and the Edelbrock family. He opened his first shop in 1957 and built engines used in virtually every avenue of motorsports. Although Pink sold his original business about 10 years ago, he continues to consult and actively supports programs such as the SEMA Scholarship Foundation. He is a member of the Motorsports Hall of Fame in Detroit, Don Garlits International Drag Racing Hall of Fame and the Super Stock Hall of Fame.

Before joining TMG Group earlier this year, Chris Thomson worked for leading industry brands, including Baer Brakes Systems, Airaid/K&N Filter Co., Holley Performance Products and FlowTech Exhaust Co. For more than 40 years, he held coveted executive positions in those organizations and played a key role in the companies’ successes. However, it is his selfless dedication to the industry as a whole that makes him stand out from others. Having served numerous terms on the SEMA Board of Directors, as well as on several councils, committees and task forces, Thomson is often described as a “mentor” and an “advocate.” He was honored in 2006 as the PWA Person of the Year, the same year that the company he worked for—Airaid Filter Co.—received the PWA Manufacturer of the Year award.

Recognizing Industry Leaders

Among the event’s highlights, SEMA President and CEO Chris Kersting and Chairman of the Board Wade Kawasaki took the stage to pay tribute to longtime SEMA General Counsel Russ Deane to recognize the efforts of outgoing Board of Directors officials and to welcome the incoming Board. They included:

• Jim Bingham of Winner’s Circle Speed & Custom Inc. (outgoing)
• Laurel Dasher of MagnaFlow (outgoing)
• Russ Deane of Trainum, Snowdon & Deane, General Counsel (outgoing)
• Susan Carpenter of CPG (outgoing)
• Donnie Eatherly of P&E Distributors (incoming)
• David Goch of Webster of Chamberlain & Bean LLP, General Counsel
• Nick Gramelspacher of Meyer Distributing (outgoing)
• Dan Kahn of Kahn Media Inc. (re-elected)
• Brian Lounsberry of Motovicity Distribution (incoming)
• Dr. Jamie Meyer of General Motors (incoming)
• Steve Whipple of Edelbrock LLC (incoming)

“This year’s Installation & Gala was another outstanding celebration of the spirit and passion that drives our industry,” said Kersting. “I’d like to once again thank the dedicated volunteers who serve on the SEMA Board of Directors and congratulate our incoming Hall of Fame inductees. Their service and leadership have meant so much to the specialty-equipment aftermarket. This event will also be long remembered for its unprecedented outpouring of generosity in service to SEMA Cares charities. And for many of us, it will be remembered as an evening of appreciation for the many years of dedicated and outstanding service of SEMA’s General Counsel Russ Deane.”

SEMA Cares Pinewood Drag Races

The evening’s festivities also featured the Pinewood Drag Races—an annual fundraiser for SEMA Cares charities, including Childhelp and Victory Junction. In addition to the Build-It-For-Me (BIFM) class, the races included the Council Cup, People’s Choice, several different industry classes and Industry Cup Challenge. Children living at the Childhelp facilities and Victory Junction campers built the vehicles for the BIFM class and donors sponsored their race cars.

Council Cup

1st Place: Automotive Restoration Market Association (ARMO)

Build It For Me Class (cars and trucks built by kids)

1st Place: Hella

People’s Choice

Edelbrock

Industry Cup Challenge

1st Place: Hot Rod

Media Class: Hot Rod
Service Provider’s Class: LGE*CTS
Rep Agency Class: R&R Marketing
Warehouse Distributor Class: RSD
Manufacturer’s Class: A.R.E.

While the racing is over, it’s not too late to make a direct donation to Childhelp and Victory Junction via SEMA Cares.

The Gala was emceed by industry personalities Kevin Oeste (left) and Jessi Combs (right).		SEMA Board of Directors Chairman Wade Kawasaki welcomed attendees to the annual Installation & Gala.
SEMA President and CEO Chris Kersting (left) and SEMA Chairman of the Board Wade Kawasaki (right) honored longtime SEMA Counsel Russ Deane, who retired.		SEMA Cares Chairman Rich Barsamian encouraged guests to sponsor a Pinewood car to help raise money for children’s charities.
Outgoing SEMA Board member Jim Bingham (center) of Winner’s Circle Speed & Custom Inc. was recognized for his contributions.		Donnie Eatherly of P&E Distributors was welcomed to the SEMA Board.
Outgoing Board member Nick Gramelspacher (center) of Meyer Distributing was thanked for his efforts.		Dan Kahn (center) of Kahn Media Inc. was re-elected to the SEMA Board of Directors.
Outgoing SEMA Board member Laurel Dasher (center) of MagnaFlow was recognized for her contributions.		Dr. Jamie Meyer (center) of General Motors was welcomed to the SEMA Board of Directors.
Brian Lounsberry (center) of Motovicity Distribution was welcomed to the SEMA Board of Directors.		SEMA paid tribute to longtime General Counsel Russ Deane (center), who retired.
Steve Whipple (center) of Edelbrock LLC was welcomed to the SEMA Board.		2018 SEMA Hall of Fame inductee Donnie Eatherly.
2018 SEMA Hall of Fame inductee Ed Pink.		2018 SEMA Hall of Fame inductee Chris Thomson.
The SEMA Pinewood Drag Races, held in conjunction with the Installation & Gala, raised money for charities supported by SEMA Cares.		2018–2019 SEMA Board of Directors.

SEMA News—December 2018

EVENTS

By Chad Simon

About 400 members of the automotive specialty-parts industry attended the 2018 SEMA Installation & Gala, themed “Success Starts Here,” at the Hilton Los Angeles/Universal City in Universal City, California, on July 20, to pay tribute to the specialty-equipment industry’s pioneers and dedicated volunteers.

About 400 members of the automotive specialty-parts industry attended the 2018 SEMA Installation & Gala, themed “Success Starts Here,” at the Hilton Los Angeles/Universal City in Universal City, California, on July 20, to pay tribute to the specialty-equipment industry’s pioneers and dedicated volunteers. Jessi Combs and Kevin Oeste served as the evening’s emcees. Honorees included the SEMA Hall of Fame class of 2018—Donnie Eatherly, P&E Distributors; Ed Pink, Ed Pink’s Garage; and Chris Thomson, TMG Performance Products.

SEMA Hall of Fame Class of 2018

Induction into the SEMA Hall of Fame is considered the trade association’s most prestigious honor and is reserved for outstanding individuals within the specialty-equipment industry whose creativity, dignity, integrity, industriousness and accomplishments on a national basis have enhanced the stature of the industry and significantly contributed to its growth.

From sales, inventory management, marketing and managing capital, resources and people, Donnie Eatherly has worked in all areas of the industry and has a broad perspective of every aspect involved. He now owns one of the longest-running speed shops in the mid-Tennessee area, which was originally founded by his father. His unique experience has helped him to effectively champion many important industry initiatives, including youth engagement, legislative advocacy, data standardization and vehicle technology. He is among the industry’s most active volunteers, having served on the SEMA Board of Directors, SEMA Political Action Committee and various SEMA councils and task forces.

For more than 60 years, Ed Pink Racing Engines has helped legendary racers set records and win championships. And while that alone is reason to honor “The Old Master,” it’s his dedication, innovation and contribution to the industry that sets him apart from all the others. Ed Pink has worked alongside industry pioneers such as Lou Baney, Ed Iskenderian and the Edelbrock family. He opened his first shop in 1957 and built engines used in virtually every avenue of motorsports. Although Pink sold his original business about 10 years ago, he continues to consult and actively supports programs such as the SEMA Scholarship Foundation. He is a member of the Motorsports Hall of Fame in Detroit, Don Garlits International Drag Racing Hall of Fame and the Super Stock Hall of Fame.

Before joining TMG Group earlier this year, Chris Thomson worked for leading industry brands, including Baer Brakes Systems, Airaid/K&N Filter Co., Holley Performance Products and FlowTech Exhaust Co. For more than 40 years, he held coveted executive positions in those organizations and played a key role in the companies’ successes. However, it is his selfless dedication to the industry as a whole that makes him stand out from others. Having served numerous terms on the SEMA Board of Directors, as well as on several councils, committees and task forces, Thomson is often described as a “mentor” and an “advocate.” He was honored in 2006 as the PWA Person of the Year, the same year that the company he worked for—Airaid Filter Co.—received the PWA Manufacturer of the Year award.

Recognizing Industry Leaders

Among the event’s highlights, SEMA President and CEO Chris Kersting and Chairman of the Board Wade Kawasaki took the stage to pay tribute to longtime SEMA General Counsel Russ Deane to recognize the efforts of outgoing Board of Directors officials and to welcome the incoming Board. They included:

• Jim Bingham of Winner’s Circle Speed & Custom Inc. (outgoing)
• Laurel Dasher of MagnaFlow (outgoing)
• Russ Deane of Trainum, Snowdon & Deane, General Counsel (outgoing)
• Susan Carpenter of CPG (outgoing)
• Donnie Eatherly of P&E Distributors (incoming)
• David Goch of Webster of Chamberlain & Bean LLP, General Counsel
• Nick Gramelspacher of Meyer Distributing (outgoing)
• Dan Kahn of Kahn Media Inc. (re-elected)
• Brian Lounsberry of Motovicity Distribution (incoming)
• Dr. Jamie Meyer of General Motors (incoming)
• Steve Whipple of Edelbrock LLC (incoming)

“This year’s Installation & Gala was another outstanding celebration of the spirit and passion that drives our industry,” said Kersting. “I’d like to once again thank the dedicated volunteers who serve on the SEMA Board of Directors and congratulate our incoming Hall of Fame inductees. Their service and leadership have meant so much to the specialty-equipment aftermarket. This event will also be long remembered for its unprecedented outpouring of generosity in service to SEMA Cares charities. And for many of us, it will be remembered as an evening of appreciation for the many years of dedicated and outstanding service of SEMA’s General Counsel Russ Deane.”

SEMA Cares Pinewood Drag Races

The evening’s festivities also featured the Pinewood Drag Races—an annual fundraiser for SEMA Cares charities, including Childhelp and Victory Junction. In addition to the Build-It-For-Me (BIFM) class, the races included the Council Cup, People’s Choice, several different industry classes and Industry Cup Challenge. Children living at the Childhelp facilities and Victory Junction campers built the vehicles for the BIFM class and donors sponsored their race cars.

Council Cup

1st Place: Automotive Restoration Market Association (ARMO)

Build It For Me Class (cars and trucks built by kids)

1st Place: Hella

People’s Choice

Edelbrock

Industry Cup Challenge

1st Place: Hot Rod

Media Class: Hot Rod
Service Provider’s Class: LGE*CTS
Rep Agency Class: R&R Marketing
Warehouse Distributor Class: RSD
Manufacturer’s Class: A.R.E.

While the racing is over, it’s not too late to make a direct donation to Childhelp and Victory Junction via SEMA Cares.

The Gala was emceed by industry personalities Kevin Oeste (left) and Jessi Combs (right).		SEMA Board of Directors Chairman Wade Kawasaki welcomed attendees to the annual Installation & Gala.
SEMA President and CEO Chris Kersting (left) and SEMA Chairman of the Board Wade Kawasaki (right) honored longtime SEMA Counsel Russ Deane, who retired.		SEMA Cares Chairman Rich Barsamian encouraged guests to sponsor a Pinewood car to help raise money for children’s charities.
Outgoing SEMA Board member Jim Bingham (center) of Winner’s Circle Speed & Custom Inc. was recognized for his contributions.		Donnie Eatherly of P&E Distributors was welcomed to the SEMA Board.
Outgoing Board member Nick Gramelspacher (center) of Meyer Distributing was thanked for his efforts.		Dan Kahn (center) of Kahn Media Inc. was re-elected to the SEMA Board of Directors.
Outgoing SEMA Board member Laurel Dasher (center) of MagnaFlow was recognized for her contributions.		Dr. Jamie Meyer (center) of General Motors was welcomed to the SEMA Board of Directors.
Brian Lounsberry (center) of Motovicity Distribution was welcomed to the SEMA Board of Directors.		SEMA paid tribute to longtime General Counsel Russ Deane (center), who retired.
Steve Whipple (center) of Edelbrock LLC was welcomed to the SEMA Board.		2018 SEMA Hall of Fame inductee Donnie Eatherly.
2018 SEMA Hall of Fame inductee Ed Pink.		2018 SEMA Hall of Fame inductee Chris Thomson.
The SEMA Pinewood Drag Races, held in conjunction with the Installation & Gala, raised money for charities supported by SEMA Cares.		2018–2019 SEMA Board of Directors.

SEMA News—December 2018

RETAIL SPOTLIGHT

By Grant Walter

One Stop Automotive

How Trust, Commitment to Quality and $5,000 Led to Business Success

One Stop Automotive is a family operation. Darren (center), his wife (and general manager) Dianna (left), and his brother-in-law operate their shop in Crossville, Tennessee.

Many entrepreneurs will tell you that they started from the ground up. In the case of Darren Robinson, that means everything you might hope it would. Born in England, he traveled across the ocean and got married in the United States, but he hit a bad patch in the late ’00s when his wife left him and he became homeless. His only possession of value was a decade-old Pontiac Firebird. He was stuck in a foreign country with no home and nor job. The year was 2010, and the American heartland was in deep recession. This is the story of how he persevered to build a successful retail operation.

Now in its seventh year of operation, One Stop Automotive is an all-inclusive customization shop specializing in towing systems, tonneau covers, nerf bars, bedliners and many other accessories for SUVs, trucks and RVs. It has become one of the most popular shops in its area, drawing customers from big cities such as Nashville to the smaller town of Crossville. It serves new- and used-car dealerships, does custom work and supplies parts.

SEMA News: Tell us how One Stop Automotive got started. What did you do after you became homeless?

Darren Robinson: Well, I saw the shop for rent. Obviously, I wasn’t working at the time, so I sold my car and got $5,000 for it. I called the landlord, and I made a $600 down payment with a deposit for the first month’s rent. Then I actually made the back room into kind of a living quarters. I didn’t have any stock or money. By the time I got all the utilities turned on, the business wire, etc., I was pretty much out of money. I didn’t know where the next month’s rent was coming from. It was a “wing and a prayer” kind of thing,
you know?

For the first year, it would be the last couple of days [of the month] when a customer would walk in. They would want a set of running boards and a camper shell, and that would save me for that month. It was just me for that first year.

A key break came when I got in with a supplier, P&E Distributors. I didn’t know anything about truck accessories, to be honest. P&E helped me out a lot, and in the early days, they were my only supplier. They introduced me to SEMA and sent me display products for my shop. They backed me, and after two years, we started to make a real profit. Now, seven years later, we’ve turned $5,000 into a million-
dollar business.

The shop is almost too full of hand-tested inventory that Darren and his crew know won’t break on customers. He has plans to expand into another storefront in 2019.

SN: In the age of Amazon and online shopping, why is your brick-and-mortar shop so popular?

DR: Customers don’t really know. They rely on what you know. If you want to get a tonneau cover for a ’18 F-150, there’s a million companies out there—eBay, Amazon, all that stuff. So we test everything we sell. For example, one company makes receiver hitches and gooseneck hitches. We carry their receiver hitches, but in our tests, a different company’s gooseneck hitches outperformed theirs. So, we carry receiver hitches from one company and gooseneck hitches from another. Ironically, most of our products happen to be American made because they pass our tests.

I never did want to sway the customer from one manufacturer to another. I say: “What do you wanna do with your truck? What do you have in mind?” I’ll let them make their own decisions. You’ve got these products; they’re all going to be good. It’s all a matter of preference.

I should also mention that we do have an online store now, and it accounts for a quarter of our business. I figured, if you can’t beat them, join them! The online people—not the ones that have got brick-and-mortar stores, but Amazon sellers, for instance—don’t know what they’re selling. They don’t know what a hitch looks like; they don’t know what it goes on; they’ve never sold a hitch. All they’ve got is what’s written down in front of them. We only sell the products we trust online.

SN: You specialize in several vehicle categories. Do you get a lot of crossover customers, repeat customers?

DR: Yes, we do. A lot of my customers come from the dealers and fleets. But if we get a customer and we don’t lie to them and we do what we say we’re going to do for a fair price, they’re happy with it. Three years down the line, they will only come back to you. Once you do their daughter’s vehicle, and their RV, etc., they don’t shop around anymore. They come straight here.

Our eBay store has a 100% positive feedback rating, and our warranty rate is less than 1%. All our hard work in getting them the right product pays off because we’re not doing the same work for free. We have old-school morals. People enjoy coming in and chatting over a cup of coffee. Online sellers don’t have to see your face, and they don’t care if you’re happy. We do. Basically: Do what you say you’re going to do, and do it right, or you’ll be short lived. There were four other people in town when I first started; now I’m the only one. People come all the way from Knoxville and Huntsville, big places!

SN: You said you do a lot of business with dealerships. How did you get your foot in the door?

DR: I went and talked to them [laughs]. They’ve always got the option of using factory OE parts. The thing is, those parts are usually made by the lowest bidder. So you get a high-cost product at a low level of quality. I say, “Hey, I’ll do factory-style equipment at a lower cost, better quality, with a better warranty.” That helps salespeople sell vehicles, because when a customer asks for something, they know they can trust me to do it right. The salespeople actually spread our reputation to other dealerships as they change jobs from one to another. We even do work for used-car dealerships. They’re selling ’14–’16 vehicles now, and they want all the same stuff on them, too.

SN: How do you hire the right people?

DR: That’s a nightmare [laughs]. It’s complicated because we started small. It was just me, and this business is my baby. We just kind of keep it in the family. I know they say that you should never work with your family—I disagree. The only people you can trust is your people, in your little circle to begin with. My brother-in-law, he does the installations. I am also part of the installs because I’m a little particular. My now-wife Dianna, she’s the general manager. She does the front of house—the one who probably answered the phone. I have got another install guy that is actually a friend of the family; we know him and his wife real well. We really have not had to hire outside of our little group. Makes me happy.

SN: Is there anything else you’d like to tell a fellow entrepreneur who is looking for advice?

DR: I mean, if you love what you do and you’ve got interest in it, for a minimal amount of money (I mean, from $5,000 and not another dime in the world), through perseverance and hard work and not giving up, you can build something. The American dream is still alive. You’ve just got to go get it. No one is going to give you a handout. There are people that kind of steer you, but you’re on your own. Now I own the building that I was renting. I own a house—I never thought I’d own a house! I drive a ’18 Chevrolet Camaro. It sounds like I’m blowing my own trumpet [laughs].

Just remember the people who did help you out in the beginning. Don’t get too big for your boots. There’s more to life than making a dollar. That’ll come later, you know? Don’t sell out your principles.

SEMA News—December 2018

BUSINESS

By Chad Simon

Trends and Challenges for 2019

SEMA’s Council and Network Leaders Discuss the Future of Their Marketplaces

SEMA’s council and network leaders gathered at the 2018 SEMA Installation & Gala in Universal City, California, on July 20.

SEMA News spoke with SEMA’s council and network leaders to find out what’s in store for the coming year, and to get their thoughts about the emerging trends and the challenges they can expect to face based on what their organizations are seeing in their respective marketplaces. Common themes included the responsibility to fight overly restrictive government regulations, continued concern regarding the Recognizing the Protection of Motorsports (RPM) Act, and the evolution of in-vehicle technologies, such as advanced driver assistance systems (ADAS).

Automotive Restoration Market Organization Chair: Tray Smith, H&H Classic Parts

Over the course of the last couple of years, the Automotive Restoration Market Organization (ARMO) has seen a changing of the guard. Many smaller companies have been bought up for market share and have disappeared. We are also seeing older owners and companies that are either being taken over by the next generation or closing down. Right now, it’s all about trying to hang on to your share of the market. Retailers have to show best price, best service and, of course, what makes them special compared to the competition. What value do you have that is better than the other guy? Manufacturers have to show price but also make a better product than their competitors.

Currently, ARMO is looking to expand our “Take a Kid to a Car Show” program. We’re evaluating several new programs under that umbrella that we will launch in 2019. We’re also working on a joint program with the Hot Rod Industry Alliance about educating school counselors and teachers regarding available opportunities for high-school, college and trade-school graduates and how to guide them into the industry.

There is a misconception that restoration and hot rods are all about building cars. Although that is the end result of everything we do, manufacturers and retailers also need engineers, designers, accountants, graphic artists, sales people and machinists to get to that point. This industry has a number of career paths for someone just starting out. We are also continuing to promote the new and exciting products that are being displayed at the Hot Products Showcase each year in Carlisle, Pennsylvania.

We will always have concourse restorations. They are what got this industry started and will continue to play a large role; however, we are seeing more restomods and full-on street-machine builds. As the original-equipment manufacturers (OEMs) continue to improve what they are putting out, people will want to apply those new technologies and ideas to their classic cars and hot rods. The envelope keeps being pushed a little further each year on what we can put inside a ’69 Camaro, ’67 Mustang or ’57 Chevy.

The changes in the sales-tax laws after the Supreme Court reversed its decision on Quill vs. North Dakota are going to be a challenge for our industry—especially small retailers. Finding qualified employees also continues to be difficult, which is a major reason we have launched the counselor outreach program. In addition, the Prop. 65 mandates coming down in California continue to be a challenge for everyone. As an industry, it is our responsibility to educate ourselves on all government regulations and fight bad ones as they come down the pipe.

Emerging Trends & Technology Network Chair: Marla Moore, Coker Tire

The Emerging Trends and Technology Network (ETTN) offers several educational opportunities for members—including tech seminars, The ETTN Vehicle Tech Lunch and Learn, and annual tech roundtable discussions that are designed to present relevant information to engineers and technical professionals to help them succeed.

The SEMA Board of Directors has given us the opportunity to pursue a research effort to determine a sustainable pathway to engage and recruit engineers involved in student engineering competition teams. More than 300 universities across the United States participate in student engineering automotive competitions. Those students are passionate about building and racing vehicles; they are hands-on, entrepreneurial and already versed in the latest technology.

We want to raise awareness of the specialty-equipment market among team engineers so that they will want to pursue careers in the aftermarket once their studies have concluded.

We are excited about the progress of the first cross-council tech subcommittee powered by the ETTN and led by Rob Simons at Edelbrock. This subcommittee includes many of our industry’s technical leaders, representing all councils with the sole initiative of identifying the most impactful, immediate aftermarket trends, challenges and opportunities in the areas of vehicle technology, product development and manufacturing. The subcommittee works closely with SEMA Vice President of Vehicle Technology John Waraniak and the SEMA Garage to advise them on member needs and as a resource for real-world solutions. This focused leadership has already addressed the need for a 3-D metal printer, an aftermarket tech transfer beta program, and researched the possibility of a supplier database to benefit our members.

The technical landscape of our industry is changing quickly. Our top concerns include the challenges presented by ADAS, new California Air Resources Board (CARB) emissions requirements and the OEMs’ electronic control unit (ECU) advanced encryption. We are working to educate our members to help prepare them for the challenges in front of us. SEMA is looking at ways to guide and support our industry while addressing the impact of ADAS on member parts integrating with the OE systems. There is an ongoing series of tech articles addressing ADAS and an ADAS vehicle equipment list by make and model posted on the SEMA Garage website (www.semagarage.com/services/vehicleadas). ETTN has also developed a Design Validation Resource Guide
(www.semagarage.com/ettnresourceguide) designed to help manufacturers connect with companies capable of testing and validating products or software.

Another immediate concern is CARB’s introduction of new evaporative emissions control system testing and requirements, which will present compliance issues for many SEMA-member companies. CARB and the Environmental Protection Agency regulate two types of emissions: tailpipe and evaporative. Historically, most engine-related performance products have required only tailpipe testing for their evaluation in obtaining a CARB executive order; however, some other products that affect fuel containment or delivery systems have at times been required to undergo evaporative testing. It is preferred to avoid evaporative testing for engine-related performance products because of the cost and unpredictability. SEMA is working with CARB to find a reasonable path to compliance.

A near-future concern involves access to ECU calibrations. As vehicles become more complex, safety and security codes are entangled in the systems and performance calibrations. Current vehicles have 50 million lines of code, and connected vehicles have 100 million lines of code. Within every 1,800–2,000 lines, there is likely a bug in the code. Five thousand bugs are typical in an automotive ECU, which presents 5,000 cyber security issues that a vehicle can face.

Understandably, the OEMs are concerned about allowing access. ETTN select committee member Robert Vogt, CTO at Voyomotive, is working with Waraniak to explore possible opportunities, while the SEMA Board of Directors is addressing those concerns at a higher level. The good news is that we are an industry of innovative entrepreneurs, and with new challenges will come new opportunities.

Hot Rod Industry Alliance Chair: Tammy Holland, COMP Cams

The Hot Rod Industry Alliance (HRIA) is currently working on our youth initiative, Education Days, and engaging our members on legislative issues. We recently attended the American School Counselor Association trade show, where we informed the younger generation about everything the automotive aftermarket has to offer. Three years ago, we moved Educations Days to the National Street Rod Association Louisville Nationals, opening it up to everyone, and the event has grown ever since under the guidance of Joe Petlick with Motor State Distributing. That is a great opportunity for everyone to learn from the experts for free. At each HRIA open meeting, we cover the most current legislative issues.

We are starting to see more ’70s and ’80s models coming out. Traditional hot rods are becoming harder and more expensive to find, whereas the ’70s and ’80s cars and trucks are still cool and have fantastic, clean lines. The younger generation is embracing those aspects and taking advantage of the availability and cost to get into the hot-rod market.

Prop. 65 has hit home with HRIA. SEMA wrote a great article (www.sema.org/prop65), and we encourage our members to get to know the law because it affects everyone in our industry. In addition, the RPM Act and tariffs continue to pose a challenge to our industry. Our members are constantly asking us about these legislative items. We are thankful for SEMA’s Washington, D.C., staff in helping us relay messages to our members.

Truck and Off-Road Alliance Chair: Kathryn Reinhardt, MagnaFlow

The Truck and Off-Road Alliance (TORA) is focused on providing each member company with benefits, including the Jeep report, the media preview event, awards for best new products, and open meetings for truck-specific contributors. We are listening to the marketplace and making sure that we are connecting with the off-road, accessories and powersports communities.

Online commerce is rapidly growing. Consumers are doing more research, and they want to receive aftermarket parts faster and for them to fit perfectly. Many manufacturers are looking into selling-direct opportunities and ways to connect with consumers. Retailers should use their local marketing efforts to capture data on consumers and show off their services, shops and installation abilities.

Jeeps are the latest trend in our aftermarket segment. The JK and JL edition Jeeps have allowed manufacturers to create new product lines and new business that the aftermarket has never had before. We have seen new manufacturers and new distribution formed in order to participate in that trend.

Manufacturers Representative Network Chair: Nathan Kunzman, Kunzman & Associates

The Manufacturers Representative Network (MRN) continues to bring reps and manufacturers together to create more business opportunities. We have helped forge mutually beneficial business relationships through our RepMatch program and now will expand it to help facilitate meetings between rep agencies and manufacturers looking to hire sales teams. Our goal as a network is to help drive business and put dollars into our members’ pockets.

From a sales standpoint, we continue to see the aftermarket expand and offer more unique products. Traditional segments such as truck, Jeep or off-road and street performance are growing. End users are more in tune with what they want, and it’s our job to ensure that our customers have all of the necessary tools and information to stay current with the trends.

Perhaps the longest-running challenge that leads to many concerns within the rep community is the growing trend of mergers and acquisitions. Unfortunately, there are times when companies are bought and sold and our member agencies are cut out without any opportunity to prove what they have done and continue to do on a daily basis to grow the business that was just acquired.

As sales reps, we need to be open and willing to make the changes that are important to stay relevant. We are constantly looking at ideas to better our community and bring value to rep agencies.

Motorsports Parts Manufacturers Council Chair: Jason Bruce, Holley

The performance racing market is strong because there are more places and more variety of grassroots to professional-level racing events in which to participate. With the economy doing well, racers are investing in their vehicles, teams and equipment.

With this growth come some interesting challenges and complications. Historically, the majority of the racing market was divided between drag racing and circle track. Now there are many other forms of racing niches, including “no prep” and “small tire” drag racing, autocross, off-road, SXS, drifting and time trials that allow the racer to choose between a variety of disciplines that fit his/her budget. That provides complexity in the type of products that our member manufacturers design and build, and it gives us an opportunity to offer our members exciting new product ideas to further service their passions.

One of the biggest concerns regarding the performance racing side of the industry is continued overreach by state and federal government agencies. The actions that SEMA has taken with the RPM Act are important subjects that the Motorsports Parts Manufacturers Council (MPMC) and our members have attached ourselves to and support fully. That situation is far from over, and we need to continue to help build awareness of this issue and support the RPM Act.

Professional Restylers Organization Chair: Ellen McCoy, EMK Marketing

For the past few years, the auto industry has experienced an extraordinary run of record-setting new-vehicle sales. In the restyling industry, strong vehicle sales equate to good business, because our primary sales channel is through automotive dealerships. As long as dealers are selling a lot of SUVs and pickups, restylers and manufacturers will thrive.

However, there are signs that vehicle sales may be slowing somewhat, and it’s unlikely that the market will be able to sustain record sales indefinitely. While there’s no indication of a dramatic slowdown, it’s still important for companies to keep their eye on the ball and be prepared to adjust for any swings in the marketplace.

As a council, the Professional Restylers Organization (PRO) has always tried to identify members’ needs and then come up with projects or programs that fill a gap. For example, to help restylers and retailers who sell to car dealers improve their business practices, the council developed the PRO Sales Training Manual: A Restyler’s Guide to Selling Dealer-Direct. As the next step, PRO plans to release a sales professional certificate test during the fourth quarter of this year. The knowledge-based test is centered on the training manual.

SUV and pickup sales now eclipse car sales by a substantial margin. That has proven to be quite beneficial. Truck gear sells, and as long as that trend continues, the accessory market will do well. Other core products include sunroofs and leather interiors, along with paint-protection film and, for some, vehicle wraps. Mobile electronics is another significant trend. Those products—especially those that are safety-related—have become a mainstay category for many restylers, and aftermarket manufacturers are offering a range of products. And while many high-tech features are now standard or optional equipment on many new vehicles, there are still opportunities to add aftermarket versions to some new vehicles and retrofit late-model vehicles lacking those types of equipment.

There’s no question that technology tops the list of challenges in our market. The automotive landscape and vehicle architecture are evolving at lightning speed, with the OEMs onboarding new technologies such as lidar, ADAS, sensors, complex wiring and so on. Those scenarios present some unique challenges for the restyling segment, because our industry’s primary sales channel is through automotive dealerships where new technologies on new vehicles first come into play. For manufacturers, that means learning about new-vehicle architecture, how it affects the products they make (or vice versa) and what they need to do to adapt. Restylers must also learn about those new technologies, how the products they install may impact a vehicle system or sensor, train and educate their technicians/installers, and work with suppliers that have done their due diligence.

SEMA Businesswomen’s Network Chair: Erin Gilhuly, Toyota Motor North America

Women make up 50% of the new-car market, which creates a huge aftermarket sales opportunity. Manufacturers and retailers should look for ways to tap into that market with products and services that provide solutions and tangible value.

With all that has been reported in the news lately regarding harassment and hostile work environments, the SEMA Businesswomen’s Network (SBN) would like to see industry companies, regardless of size, create safe and comfortable environments for all employees. To help with that effort, the SBN, along with SEMA human resources and legal, are working on a series of education modules that will help both managers and team members create inclusive, high-producing teams.

Wheel & Tire Council Chair: Greg Parker, Wegmann Automotive USA Inc.

The SEMA Wheel & Tire Council (WTC) was one of the founding councils of the new Cross-Council Technology Task Force that is now led by ETTN. The task force analyzes future technology and its impact on individual industry segments to find out if there are common challenges that can be addressed as a unified body.

Brand-new vehicles are becoming high-tech computers that are on the road. Due to the technological advancements of ADAS, modifying a new vehicle—especially with new wheels and tires—becomes more of a challenge than it used to be. Altering the ride height, stance or driving characteristics of a new vehicle can also change the geometry of safety camera systems and other driver-assist systems, which are vital to how a new vehicle operates while driving. Wheel and tire manufacturers must come together to share their research and test those alterations to ensure that their products are compliant and safe for end consumers. Retailers must ensure that they have up-to-date knowledge and training capabilities to correctly realign required safety systems on vehicles that enter their shops.

One trend we are seeing is larger wheels and lower-profile tires taking over the market. As the SUV and truck markets continue to grow, those vehicles require larger wheels, and consumers want to go even larger than the original OE package when upgrading. With tires, the reverse seems to be true. Consumers want tighter and lower-profile tires due to the sleeker and high-performance appearance.

The devaluation of vehicles as a whole within the younger generation has been a challenge for us. In the 21st century, young adults can use social media on their cell phones to connect with friends and family. If they need to go somewhere, they can simply rideshare using Uber or Lyft. Previous generations needed vehicles of their own in order to have those same interactions. With a high level of vehicle ownership comes increased customization. Wheel and tire packages are typically one of the first modifications new-vehicle owners make; however, as the need for personalized transportation devalues, it also shrinks the available market for vehicle customization.

Young Executives Network Chair: Rory Connell, Advanced Accessory Concepts LLC

Truck and SUV accessories will continue to dominate the specialty-equipment market. With new additions, such as the Jeep JL and Ranger hitting the market this year and the Bronco coming shortly, consumers have more options than ever before. Retailers should focus on what products they can sell and install for those consumers. Additionally, camping and outdoor segments are growing as more people make an effort to disconnect from technology. Keep an eye on rooftop tents, cargo racks and accessories that people typically buy at sporting-goods stores.

The Young Executives Network (YEN) is creating and executing innovative new programs and watching others follow suit. For instance, live chats and social media are now being utilized by other councils, including PRO. It’s even more rewarding for us to put a strategic focus on a category, such as UTVs and powersports, and watch TORA grow further upon it.

As a network, we must take a hard look at emerging technologies, such as electric vehicles and ADAS. What are retailers going to sell when vehicles no longer need camshafts and carburetors or maybe even steering wheels? It’s a tough but honest question that should not be ignored. We live in a world where innovation is rapid, and if you run a company and you’re not prepared to adopt that mentality, you should prepare for failure.

SEMA councils and networks offer members a variety of niche-specific programs and activities designed to provide educational and networking opportunities while promoting their particular market segment. For more information, visit www.sema.org/councils.