SEMA Member News—March/April 2016

TORA Featured Vehicles

Members of the Truck and Off-Road Alliance (TORA) showcase their vehicles throughout the SEMA Show each year to promote their products and expertise. TORA recognizes a handful of amazing vehicles from member companies that have supported SEMA Cares charities during the year by featuring them either in the TORA booth, on the Show floor or on the outdoor promenade between the South Hall and the Performance Pavilion. Here is an inside look at the TORA feature vehicles that were at the 2015 SEMA Show, from the owners and builders.

Westin Automotive	Truck Accessories Group
Vehicle: ’13 Jeep JK Owner: Bradley Lewis Project Manager: Cris Payne, Truck Guru Builder: Simmons Diesel Builder’s Favorite Detail: “The twin-turbo Cummins diesel, which puts out more than 750 hp to the rear wheels.” Challenge to Overcome: “It’s not an everyday thing to just slap a diesel motor into a Jeep. It took thousands of hours of labor to get this done. We are pleased with the final turnout of the project.”	Vehicle: ’15 GMC 2500 HD Denali Builder: California Truck Accessories (CTA), Bakersfield, California Builder’s Favorite Detail: “Our favorite detail on the truck would have to be the lift kit, which was provided by CST Suspension. We like how we were able to get the kit powdercoated to match the wrap of the vehicle. The detail CST did with this kit was amplified by how the dual-shock reservoir was placed and the new beefy tie rods they provided for us. This kit really set off this build for us.” Challenge to Overcome: “One of the biggest challenges we had with this truck was managing time to get it finished before the SEMA Show and between our regular customers.”
Westin Automotive	Westin Automotive
Vehicle: ’15 Ram 3500 Owner: Earnest Jefferson, DEBO Project Manager: Cris Payne, Truck Guru Builder: Chip Snyder, No Limitz Customz	Vehicle: ’15 GMC Sierra 2500 Owner: Vince Villereal Project Manager: Cris Payne, Truck Guru Builder: Chip Snyder, No Limitz Customz
A.R.E Accessories	Bolt Locks
Vehicle: ’15 Extreme Sports F-150 Project Truck Builder: Trent VanArsdalen, Trent’s Trick Upholstery Builder’s Favorite Detail: “My favorite thing is the helmet holder that I made out of bicycle inner tubes.” Challenge to Overcome: “The biggest challenge of the build was the timing. I only had the truck 7 weeks before it was shown to the public and coordinating the scheduling of timing and parts delivery was a little stressful but it all fell into place.”	Vehicle: ’15 Dodge Ram Megacab Builder: Joseph Khan

The Builders on Trends to Watch

• Quickly growing use of light bars and different styles of lights, either for show or for actual off-roading.
• Big wheels and smaller tires.
• Wraps.
• The industry is seeing an increase in accessory and vehicle theft, so wheel and light-bar locks and kill switches are becoming more and more popular.

SEMA News—March 2016

Chris Kersting

Rallying the Legislators: Help Build Relationships

Our cover story this month calls attention to a significant shift in how the federal government regulates replica cars. Enactment of this law was a great victory for SEMA and the industry, but exactly how this win was achieved is, perhaps, even more important. In many ways, we can chalk it up to a long-term effort to build key relationships.

As small businesses, SEMA-member companies know well the importance of relationships in their day-to-day activities. Personal relationships—with customers, suppliers, bankers, insurance agents and others—allow for trust, good communication and cooperative understandings that ultimately create the foundation that allows a business to flourish. It’s no different when it comes to addressing our industry’s concerns in Washington, D.C., and in state capitols. The process of building relationships with lawmakers allows SEMA to be successful in gathering support for our legislative initiatives.

That was the case with the new replica law championed by SEMA and its members. Getting this legislation signed into law is a perfect example of how relationships make a difference and yield productive results. You can learn about the details of the new law starting on page 22 of this issue. In essence, the law provides a path for small companies to produce a limited number of replica cars within a simplified regulatory system. The new law will, for the first time, allow these small-volume auto manufacturers to offer a range of complete, brand-new replica cars to an eager public.

By building relationships with members of Congress and working to find common ground with a wide variety of stakeholders, SEMA was able to identify a compromise solution that reduces the costly and time-consuming regulatory requirements for mass-produced vehicles. SEMA members met with their federal lawmakers over the past several years to help communicate how a change to the law could fairly and reasonably create new business and job opportunities. Some of these visits occurred at the Washington Rally organized by SEMA and held biannually in May. SEMA staff also worked extensively with members of the legislature. It took time, but in the end, 24 members of the U.S. House of Representatives from both parties sponsored SEMA’s bill, and bipartisan support from two U.S. Senators proved vital in securing final Congressional approval. Make no mistake, this kind of cooperative effort could not have happened without the understanding and trust generated by personal, face-to-face communication.

We are proud that this law will create skilled-labor jobs in the auto industry, expand export opportunities, and help preserve our American automotive heritage. The new law is a victory for SEMA-member companies, workers and consumers.

Meanwhile, much remains to be done on a variety of other legislative issues that still need urgent attention. The next SEMA Washington Rally will take place on May 11, and we invite you to join us. It is an opportunity for SEMA members to connect face-to-face with elected members of Congress and let them know what matters most to you and your business and the people who work with you. Building relationships with these key decision-makers can yield future benefits for your company and the industry. Scheduled events during the Rally include SEMA staff-guided one-on-one meetings with lawmakers and their staff, an exclusive Capitol Hill luncheon with special guests, and a private dinner with high-profile legislators.

The Rally registration deadline is May 1, 2016. To register or for more information, visit www.sema.org/dcrally, or contact Christian Robinson by phone at 202-783-6007 x20 or via e-mail at christianr@sema.org.

SEMA News—March 2016

Chris Kersting

Rallying the Legislators: Help Build Relationships

Our cover story this month calls attention to a significant shift in how the federal government regulates replica cars. Enactment of this law was a great victory for SEMA and the industry, but exactly how this win was achieved is, perhaps, even more important. In many ways, we can chalk it up to a long-term effort to build key relationships.

As small businesses, SEMA-member companies know well the importance of relationships in their day-to-day activities. Personal relationships—with customers, suppliers, bankers, insurance agents and others—allow for trust, good communication and cooperative understandings that ultimately create the foundation that allows a business to flourish. It’s no different when it comes to addressing our industry’s concerns in Washington, D.C., and in state capitols. The process of building relationships with lawmakers allows SEMA to be successful in gathering support for our legislative initiatives.

That was the case with the new replica law championed by SEMA and its members. Getting this legislation signed into law is a perfect example of how relationships make a difference and yield productive results. You can learn about the details of the new law starting on page 22 of this issue. In essence, the law provides a path for small companies to produce a limited number of replica cars within a simplified regulatory system. The new law will, for the first time, allow these small-volume auto manufacturers to offer a range of complete, brand-new replica cars to an eager public.

By building relationships with members of Congress and working to find common ground with a wide variety of stakeholders, SEMA was able to identify a compromise solution that reduces the costly and time-consuming regulatory requirements for mass-produced vehicles. SEMA members met with their federal lawmakers over the past several years to help communicate how a change to the law could fairly and reasonably create new business and job opportunities. Some of these visits occurred at the Washington Rally organized by SEMA and held biannually in May. SEMA staff also worked extensively with members of the legislature. It took time, but in the end, 24 members of the U.S. House of Representatives from both parties sponsored SEMA’s bill, and bipartisan support from two U.S. Senators proved vital in securing final Congressional approval. Make no mistake, this kind of cooperative effort could not have happened without the understanding and trust generated by personal, face-to-face communication.

We are proud that this law will create skilled-labor jobs in the auto industry, expand export opportunities, and help preserve our American automotive heritage. The new law is a victory for SEMA-member companies, workers and consumers.

Meanwhile, much remains to be done on a variety of other legislative issues that still need urgent attention. The next SEMA Washington Rally will take place on May 11, and we invite you to join us. It is an opportunity for SEMA members to connect face-to-face with elected members of Congress and let them know what matters most to you and your business and the people who work with you. Building relationships with these key decision-makers can yield future benefits for your company and the industry. Scheduled events during the Rally include SEMA staff-guided one-on-one meetings with lawmakers and their staff, an exclusive Capitol Hill luncheon with special guests, and a private dinner with high-profile legislators.

The Rally registration deadline is May 1, 2016. To register or for more information, visit www.sema.org/dcrally, or contact Christian Robinson by phone at 202-783-6007 x20 or via e-mail at christianr@sema.org.

SEMA News—March 2016

INTERNATIONAL

By Linda Spencer

It’s a Big World Out There

SEMA Resources for Exporters

Exporting is a way to reach the 97% of consumers residing outside the United States. SEMA provides you with tools to reach these buyers.

Why export? One of the proven methods to increasing the health of your firm is to diversify your customer base, which can improve your bottom line, lead to product-improvement ideas and improve a firm’s ability to ride out future economic downturns. It is also the way to reach the 97% of consumers residing outside the United States and take advantage of global demand for products made in the United States.

To narrow down the list of markets to target, consider the following list of criteria for the regions you are targeting:

• Sizable population interested in customizing.
• Discretionary income to afford U.S. specialty-equipment products.
• Vehicle parc (total number of vehicles in the country) that fits your product line or one for which you are willing to make product.
• Legal/regulatory environment allowing vehicle customization.

SEMA Resources

The following resources are available at www.sema.org/international:

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia: These markets were selected based on the above criteria. In all three markets, U.S. products are highly regarded and sought after, and there is a sufficient enthusiast buyer base seeking the latest specialty-equipment products. These trips provide participants with the opportunity to meet one-on-one with pre-vetted potential partners all in a single venue, and a chance to explore a promising market through an efficient and low-cost program.

Make/Model Data is available for countries throughout the world: The Ford Mustang, the Jeep Wrangler and the Ford F-Series pickup were winners of the 2015 SEMA Award, recognizing the year’s hottest vehicles. Does your company make products for those vehicles? Do you sell your products primarily in the United States? If you answered yes to both of those questions but want to expand your sales outside the United States, SEMA’s make/model data can help you get started by giving you easy-to-use information that will help you identify the best markets in terms of vehicle registrations. Through a joint program with the U.S. Department of Commerce and IHS Automotive, SEMA has compiled the data into a user-friendly resource.

Access to top vehicles customized overseas but not sold in the United States: SEMA, in a partnership with the U.S. Department of Commerce, has the following vehicles available for members to measure in order to create export-ready products:

• ’16 Toyota HiLux
• ’12 Toyota HiLux (CAD data only)
• ’13 Ford Ranger T6 (CAD data only)
• ’14 Mitsubishi L200
• ’14 UAZ Hunter

These vehicles are now available to member manufacturers at the new SEMA Garage in Diamond Bar, California. A vehicle can even be delivered to a SEMA member’s facility for those who need that sort of access.

To sign up to measure a vehicle included in this program, e-mail Jim Moore at jimm@sema.org or call 909-978-6739.

Scan Library

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia. At the most recent Business Development Program in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data.

SEMA has created a Scan Library of international vehicles not sold in the United States. The very-high-resolution scans are available to association members through the SEMA Tech Transfer program. At the most recent event in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data. Below is the list of the international vehicles for which SEMA has scanned high-resolution pictures of several components or vehicle surfaces.

• ’15 BAIC BJ40
• ’12 Ford Ranger
• ’14 Ford Ranger
• ’14 Ford Ranger Wildtrak Diesel
• ’15 Great Wall H5
• ’14 Mitsubishi L200
• ’06 Nissan Patrol
• ’13 Nissan Patrol
• Nissan Patrol Two-Door Diesel
• ’12 Suzuki Jimny
• ’14 Toyota HiLux
• ’05 Toyota Landcruiser
• ’10 Toyota Landcruiser
• ’14 VW Scirocco

For questions or to request information on the available scans, e-mail techtransfer@sema.org. Want additional international vehicles to be scanned? Provide your requests to Linda Spencer at lindas@sema.org.

Online Resource: Providing International Buyers With Current and Detailed Product Information

The SEMA Data Co-op (SDC) serves as a conduit between manufacturers and their customers. The SDC provides manufacturers a direct method to funnel product data information to their customers—whether across town, across the country or around the globe—including near real-time product updates and SEMA Search, which is a comprehensive Internet-based catalog and reference source powered by SDC. For more information visit www.semadatacoop.org or contact jimg@semadatacoop.org.

Protecting Your Intellectual Property Overseas

When members think about expanding their operations overseas, they should first take steps to protect their companies’ intellectual property (IP). Laws on trademarks (brand names, logos, slogans), patents (inventions) and copyrights (drawings, photos and product guides) vary by country, so it is useful to make a list of where the company plans to sell, the products it wants to sell and the IP associated with each product.

It is important to register IP rights with the appropriate government agencies in the United States and in the relevant foreign markets. For example, if a company based in California decided to sell its Brand X wheels in China, it would be best positioned to do so from an IP standpoint if it first registers its trademark for Brand X in the United States and in China.

Developing a relationship with a trustworthy distributor in the foreign country will also help with enforcing rights overseas, as the distributor will have a vested interest in making sure that local competitors do not knock off the product.

To help members navigate IP issues, SEMA maintains informational materials online at www.sema.org/ipr, and staff is available year-round to help answer IP-related questions. Ultimately, companies may need legal counsel outside of SEMA to represent their interests and advise on specifics, but SEMA is here to provide information and help guide members in the right direction.

Insights From SEMA- Member Exporters

“It has been great to see our market here in the states rebounding. As our market rebounds, we must not lose sight of overseas markets. I’ve always found success exporting when I first focus on markets that I have products for. From there, it is important to do your homework and develop products for those growing
overseas markets that you don’t have product for. Never forget that you will be most successful and understand a market best when you actually put boots on the ground and are willing to meet potential customers on their turf.

“When looking for overseas markets to sell to, it is vital to gather as much information as possible. Talk to potential distributors. Read magazines and visit websites from the region you are considering. Use SEMA as a great resource. If possible, visit the region. Also talk to other manufacturers that you know sell to that market. Try to gather information from as many credible sources as possible and plan your sales approach based on that information.”

—Bob Scheid, Director of Business Development, McLeod Racing LLC

“We are an automotive performance company specializing in rear-wheel-drive, all-wheel-drive and 4x4 GM vehicles. We study the vehicles available in the market, the commonality with the vehicles we build products for, and the potential for performance component sales. There has to be an opportunity for return on investment. In addition, we look at others selling in the market.

“In my experience, one of the best tools for understanding these markets has been the U.S. Department of Commerce. They have a tremendous amount of information available just by asking for it. If they don’t have the information, they will get you the information. They have researched my questions and come back with detailed information that is critical to making decisions on potential markets.”

—Mike Copeland, Vice President of Operations, Lingenfelter Performance Engineering

The SEMA Business Development programs—in the Middle East, China, Australia and Russia—provide SEMA members with a low-cost, efficient way to explore and grow their international sales in promising overseas markets. More information is available at www.sema.org/international.

“When we explore growth opportunities in international markets where we are not yet established, there are a few fundamental elements we address. We look at the overall numbers as well as the mix of modified vehicles in that region to see if it’s a target-rich environment for tuning and also if we have relevant parts. We look at the circumstances of doing business in the region: duties, trade regulations, product regulations, logistics, political and economic environment, etc. We also look at the distribution network and promotional opportunities in the region. Secondary to those elements are things such as market trends, competitors, demographics and other traditional market research efforts.

“As far as the tools we use, we’re careful not to buy reports from unknown entities, because the data is not necessarily reliable. This information is elusive, and that’s why you need to meet the right people. Attending the international SEMA events provided the opportunity for us to create the network we needed to get us this information. It doesn’t happen overnight; you need to get out there and do the work.”

—David Borla, Vice President of Marketing and Sales, Borla Exhaust

“I look at what vehicles are hot in a country, and then I look at what the individuals do with the vehicles. For example, Focus and Fiesta owners put on exhausts, cold-air intakes and low-ride tires, and some add stripes to the vehicle or put on a flange in the back. This information allows me to better understand the opportunities and which SEMA members I may also try to work with to offer a bundle of products that all work together.

“The other big thing I look at is currency and exchange rates, as this tells me immediately if I can make it a win-win for us and them. You must leave margins for people internationally, otherwise there is no reason to push the product.

“I think CEO/presidents need to travel to a market and spend three to five days there, listen to what the market wants, and visit some shops or wholesellers to see what moves and if your product can fit or if you can create an attractive reason for them to carry your products. I also believe in giving displays to better showcase our products and tie them to an order so it works for both.”

—Rick Trudo, President, Rick Trudo Consulting

“When Hellwig is looking at new markets, we first look at what vehicles they have on the road and what they are modifying. We are focused on markets needing load- and sway-control products, so we look at territories that need those products. We have found the SEMA international trips to be very helpful as an introduction to a new market.”

—Melanie White, Vice President, Hellwig

Jeremy Barras of consulting/marketing firm Advanced Performance Parts Inc. noted that he approaches markets with a five-step analysis. It includes:

1. Population and average income per capita.
2. Car parc, make, model and number.
3. Legislation/technical requirements.
4. Define who the national segment market leaders are.
5. Visit in person, always.

SEMA News—March 2016

INTERNATIONAL

By Linda Spencer

It’s a Big World Out There

SEMA Resources for Exporters

Exporting is a way to reach the 97% of consumers residing outside the United States. SEMA provides you with tools to reach these buyers.

Why export? One of the proven methods to increasing the health of your firm is to diversify your customer base, which can improve your bottom line, lead to product-improvement ideas and improve a firm’s ability to ride out future economic downturns. It is also the way to reach the 97% of consumers residing outside the United States and take advantage of global demand for products made in the United States.

To narrow down the list of markets to target, consider the following list of criteria for the regions you are targeting:

• Sizable population interested in customizing.
• Discretionary income to afford U.S. specialty-equipment products.
• Vehicle parc (total number of vehicles in the country) that fits your product line or one for which you are willing to make product.
• Legal/regulatory environment allowing vehicle customization.

SEMA Resources

The following resources are available at www.sema.org/international:

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia: These markets were selected based on the above criteria. In all three markets, U.S. products are highly regarded and sought after, and there is a sufficient enthusiast buyer base seeking the latest specialty-equipment products. These trips provide participants with the opportunity to meet one-on-one with pre-vetted potential partners all in a single venue, and a chance to explore a promising market through an efficient and low-cost program.

Make/Model Data is available for countries throughout the world: The Ford Mustang, the Jeep Wrangler and the Ford F-Series pickup were winners of the 2015 SEMA Award, recognizing the year’s hottest vehicles. Does your company make products for those vehicles? Do you sell your products primarily in the United States? If you answered yes to both of those questions but want to expand your sales outside the United States, SEMA’s make/model data can help you get started by giving you easy-to-use information that will help you identify the best markets in terms of vehicle registrations. Through a joint program with the U.S. Department of Commerce and IHS Automotive, SEMA has compiled the data into a user-friendly resource.

Access to top vehicles customized overseas but not sold in the United States: SEMA, in a partnership with the U.S. Department of Commerce, has the following vehicles available for members to measure in order to create export-ready products:

• ’16 Toyota HiLux
• ’12 Toyota HiLux (CAD data only)
• ’13 Ford Ranger T6 (CAD data only)
• ’14 Mitsubishi L200
• ’14 UAZ Hunter

These vehicles are now available to member manufacturers at the new SEMA Garage in Diamond Bar, California. A vehicle can even be delivered to a SEMA member’s facility for those who need that sort of access.

To sign up to measure a vehicle included in this program, e-mail Jim Moore at jimm@sema.org or call 909-978-6739.

Scan Library

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia. At the most recent Business Development Program in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data.

SEMA has created a Scan Library of international vehicles not sold in the United States. The very-high-resolution scans are available to association members through the SEMA Tech Transfer program. At the most recent event in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data. Below is the list of the international vehicles for which SEMA has scanned high-resolution pictures of several components or vehicle surfaces.

• ’15 BAIC BJ40
• ’12 Ford Ranger
• ’14 Ford Ranger
• ’14 Ford Ranger Wildtrak Diesel
• ’15 Great Wall H5
• ’14 Mitsubishi L200
• ’06 Nissan Patrol
• ’13 Nissan Patrol
• Nissan Patrol Two-Door Diesel
• ’12 Suzuki Jimny
• ’14 Toyota HiLux
• ’05 Toyota Landcruiser
• ’10 Toyota Landcruiser
• ’14 VW Scirocco

For questions or to request information on the available scans, e-mail techtransfer@sema.org. Want additional international vehicles to be scanned? Provide your requests to Linda Spencer at lindas@sema.org.

Online Resource: Providing International Buyers With Current and Detailed Product Information

The SEMA Data Co-op (SDC) serves as a conduit between manufacturers and their customers. The SDC provides manufacturers a direct method to funnel product data information to their customers—whether across town, across the country or around the globe—including near real-time product updates and SEMA Search, which is a comprehensive Internet-based catalog and reference source powered by SDC. For more information visit www.semadatacoop.org or contact jimg@semadatacoop.org.

Protecting Your Intellectual Property Overseas

When members think about expanding their operations overseas, they should first take steps to protect their companies’ intellectual property (IP). Laws on trademarks (brand names, logos, slogans), patents (inventions) and copyrights (drawings, photos and product guides) vary by country, so it is useful to make a list of where the company plans to sell, the products it wants to sell and the IP associated with each product.

It is important to register IP rights with the appropriate government agencies in the United States and in the relevant foreign markets. For example, if a company based in California decided to sell its Brand X wheels in China, it would be best positioned to do so from an IP standpoint if it first registers its trademark for Brand X in the United States and in China.

Developing a relationship with a trustworthy distributor in the foreign country will also help with enforcing rights overseas, as the distributor will have a vested interest in making sure that local competitors do not knock off the product.

To help members navigate IP issues, SEMA maintains informational materials online at www.sema.org/ipr, and staff is available year-round to help answer IP-related questions. Ultimately, companies may need legal counsel outside of SEMA to represent their interests and advise on specifics, but SEMA is here to provide information and help guide members in the right direction.

Insights From SEMA- Member Exporters

“It has been great to see our market here in the states rebounding. As our market rebounds, we must not lose sight of overseas markets. I’ve always found success exporting when I first focus on markets that I have products for. From there, it is important to do your homework and develop products for those growing
overseas markets that you don’t have product for. Never forget that you will be most successful and understand a market best when you actually put boots on the ground and are willing to meet potential customers on their turf.

“When looking for overseas markets to sell to, it is vital to gather as much information as possible. Talk to potential distributors. Read magazines and visit websites from the region you are considering. Use SEMA as a great resource. If possible, visit the region. Also talk to other manufacturers that you know sell to that market. Try to gather information from as many credible sources as possible and plan your sales approach based on that information.”

—Bob Scheid, Director of Business Development, McLeod Racing LLC

“We are an automotive performance company specializing in rear-wheel-drive, all-wheel-drive and 4x4 GM vehicles. We study the vehicles available in the market, the commonality with the vehicles we build products for, and the potential for performance component sales. There has to be an opportunity for return on investment. In addition, we look at others selling in the market.

“In my experience, one of the best tools for understanding these markets has been the U.S. Department of Commerce. They have a tremendous amount of information available just by asking for it. If they don’t have the information, they will get you the information. They have researched my questions and come back with detailed information that is critical to making decisions on potential markets.”

—Mike Copeland, Vice President of Operations, Lingenfelter Performance Engineering

The SEMA Business Development programs—in the Middle East, China, Australia and Russia—provide SEMA members with a low-cost, efficient way to explore and grow their international sales in promising overseas markets. More information is available at www.sema.org/international.

“When we explore growth opportunities in international markets where we are not yet established, there are a few fundamental elements we address. We look at the overall numbers as well as the mix of modified vehicles in that region to see if it’s a target-rich environment for tuning and also if we have relevant parts. We look at the circumstances of doing business in the region: duties, trade regulations, product regulations, logistics, political and economic environment, etc. We also look at the distribution network and promotional opportunities in the region. Secondary to those elements are things such as market trends, competitors, demographics and other traditional market research efforts.

“As far as the tools we use, we’re careful not to buy reports from unknown entities, because the data is not necessarily reliable. This information is elusive, and that’s why you need to meet the right people. Attending the international SEMA events provided the opportunity for us to create the network we needed to get us this information. It doesn’t happen overnight; you need to get out there and do the work.”

—David Borla, Vice President of Marketing and Sales, Borla Exhaust

“I look at what vehicles are hot in a country, and then I look at what the individuals do with the vehicles. For example, Focus and Fiesta owners put on exhausts, cold-air intakes and low-ride tires, and some add stripes to the vehicle or put on a flange in the back. This information allows me to better understand the opportunities and which SEMA members I may also try to work with to offer a bundle of products that all work together.

“The other big thing I look at is currency and exchange rates, as this tells me immediately if I can make it a win-win for us and them. You must leave margins for people internationally, otherwise there is no reason to push the product.

“I think CEO/presidents need to travel to a market and spend three to five days there, listen to what the market wants, and visit some shops or wholesellers to see what moves and if your product can fit or if you can create an attractive reason for them to carry your products. I also believe in giving displays to better showcase our products and tie them to an order so it works for both.”

—Rick Trudo, President, Rick Trudo Consulting

“When Hellwig is looking at new markets, we first look at what vehicles they have on the road and what they are modifying. We are focused on markets needing load- and sway-control products, so we look at territories that need those products. We have found the SEMA international trips to be very helpful as an introduction to a new market.”

—Melanie White, Vice President, Hellwig

Jeremy Barras of consulting/marketing firm Advanced Performance Parts Inc. noted that he approaches markets with a five-step analysis. It includes:

1. Population and average income per capita.
2. Car parc, make, model and number.
3. Legislation/technical requirements.
4. Define who the national segment market leaders are.
5. Visit in person, always.

SEMA News—March 2016

INTERNATIONAL

By Linda Spencer

It’s a Big World Out There

SEMA Resources for Exporters

Exporting is a way to reach the 97% of consumers residing outside the United States. SEMA provides you with tools to reach these buyers.

Why export? One of the proven methods to increasing the health of your firm is to diversify your customer base, which can improve your bottom line, lead to product-improvement ideas and improve a firm’s ability to ride out future economic downturns. It is also the way to reach the 97% of consumers residing outside the United States and take advantage of global demand for products made in the United States.

To narrow down the list of markets to target, consider the following list of criteria for the regions you are targeting:

• Sizable population interested in customizing.
• Discretionary income to afford U.S. specialty-equipment products.
• Vehicle parc (total number of vehicles in the country) that fits your product line or one for which you are willing to make product.
• Legal/regulatory environment allowing vehicle customization.

SEMA Resources

The following resources are available at www.sema.org/international:

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia: These markets were selected based on the above criteria. In all three markets, U.S. products are highly regarded and sought after, and there is a sufficient enthusiast buyer base seeking the latest specialty-equipment products. These trips provide participants with the opportunity to meet one-on-one with pre-vetted potential partners all in a single venue, and a chance to explore a promising market through an efficient and low-cost program.

Make/Model Data is available for countries throughout the world: The Ford Mustang, the Jeep Wrangler and the Ford F-Series pickup were winners of the 2015 SEMA Award, recognizing the year’s hottest vehicles. Does your company make products for those vehicles? Do you sell your products primarily in the United States? If you answered yes to both of those questions but want to expand your sales outside the United States, SEMA’s make/model data can help you get started by giving you easy-to-use information that will help you identify the best markets in terms of vehicle registrations. Through a joint program with the U.S. Department of Commerce and IHS Automotive, SEMA has compiled the data into a user-friendly resource.

Access to top vehicles customized overseas but not sold in the United States: SEMA, in a partnership with the U.S. Department of Commerce, has the following vehicles available for members to measure in order to create export-ready products:

• ’16 Toyota HiLux
• ’12 Toyota HiLux (CAD data only)
• ’13 Ford Ranger T6 (CAD data only)
• ’14 Mitsubishi L200
• ’14 UAZ Hunter

These vehicles are now available to member manufacturers at the new SEMA Garage in Diamond Bar, California. A vehicle can even be delivered to a SEMA member’s facility for those who need that sort of access.

To sign up to measure a vehicle included in this program, e-mail Jim Moore at jimm@sema.org or call 909-978-6739.

Scan Library

SEMA organizes annual Business Development Conferences to China, the Middle East, Australia and Russia. At the most recent Business Development Program in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data.

SEMA has created a Scan Library of international vehicles not sold in the United States. The very-high-resolution scans are available to association members through the SEMA Tech Transfer program. At the most recent event in China, the SEMA Garage team scanned seven vehicles popularly customized in China but not sold in the United States. The SEMA Garage staff scanned the vehicles and converted the scans to surface and CAD data. Below is the list of the international vehicles for which SEMA has scanned high-resolution pictures of several components or vehicle surfaces.

• ’15 BAIC BJ40
• ’12 Ford Ranger
• ’14 Ford Ranger
• ’14 Ford Ranger Wildtrak Diesel
• ’15 Great Wall H5
• ’14 Mitsubishi L200
• ’06 Nissan Patrol
• ’13 Nissan Patrol
• Nissan Patrol Two-Door Diesel
• ’12 Suzuki Jimny
• ’14 Toyota HiLux
• ’05 Toyota Landcruiser
• ’10 Toyota Landcruiser
• ’14 VW Scirocco

For questions or to request information on the available scans, e-mail techtransfer@sema.org. Want additional international vehicles to be scanned? Provide your requests to Linda Spencer at lindas@sema.org.

Online Resource: Providing International Buyers With Current and Detailed Product Information

The SEMA Data Co-op (SDC) serves as a conduit between manufacturers and their customers. The SDC provides manufacturers a direct method to funnel product data information to their customers—whether across town, across the country or around the globe—including near real-time product updates and SEMA Search, which is a comprehensive Internet-based catalog and reference source powered by SDC. For more information visit www.semadatacoop.org or contact jimg@semadatacoop.org.

Protecting Your Intellectual Property Overseas

When members think about expanding their operations overseas, they should first take steps to protect their companies’ intellectual property (IP). Laws on trademarks (brand names, logos, slogans), patents (inventions) and copyrights (drawings, photos and product guides) vary by country, so it is useful to make a list of where the company plans to sell, the products it wants to sell and the IP associated with each product.

It is important to register IP rights with the appropriate government agencies in the United States and in the relevant foreign markets. For example, if a company based in California decided to sell its Brand X wheels in China, it would be best positioned to do so from an IP standpoint if it first registers its trademark for Brand X in the United States and in China.

Developing a relationship with a trustworthy distributor in the foreign country will also help with enforcing rights overseas, as the distributor will have a vested interest in making sure that local competitors do not knock off the product.

To help members navigate IP issues, SEMA maintains informational materials online at www.sema.org/ipr, and staff is available year-round to help answer IP-related questions. Ultimately, companies may need legal counsel outside of SEMA to represent their interests and advise on specifics, but SEMA is here to provide information and help guide members in the right direction.

Insights From SEMA- Member Exporters

“It has been great to see our market here in the states rebounding. As our market rebounds, we must not lose sight of overseas markets. I’ve always found success exporting when I first focus on markets that I have products for. From there, it is important to do your homework and develop products for those growing
overseas markets that you don’t have product for. Never forget that you will be most successful and understand a market best when you actually put boots on the ground and are willing to meet potential customers on their turf.

“When looking for overseas markets to sell to, it is vital to gather as much information as possible. Talk to potential distributors. Read magazines and visit websites from the region you are considering. Use SEMA as a great resource. If possible, visit the region. Also talk to other manufacturers that you know sell to that market. Try to gather information from as many credible sources as possible and plan your sales approach based on that information.”

—Bob Scheid, Director of Business Development, McLeod Racing LLC

“We are an automotive performance company specializing in rear-wheel-drive, all-wheel-drive and 4x4 GM vehicles. We study the vehicles available in the market, the commonality with the vehicles we build products for, and the potential for performance component sales. There has to be an opportunity for return on investment. In addition, we look at others selling in the market.

“In my experience, one of the best tools for understanding these markets has been the U.S. Department of Commerce. They have a tremendous amount of information available just by asking for it. If they don’t have the information, they will get you the information. They have researched my questions and come back with detailed information that is critical to making decisions on potential markets.”

—Mike Copeland, Vice President of Operations, Lingenfelter Performance Engineering

The SEMA Business Development programs—in the Middle East, China, Australia and Russia—provide SEMA members with a low-cost, efficient way to explore and grow their international sales in promising overseas markets. More information is available at www.sema.org/international.

“When we explore growth opportunities in international markets where we are not yet established, there are a few fundamental elements we address. We look at the overall numbers as well as the mix of modified vehicles in that region to see if it’s a target-rich environment for tuning and also if we have relevant parts. We look at the circumstances of doing business in the region: duties, trade regulations, product regulations, logistics, political and economic environment, etc. We also look at the distribution network and promotional opportunities in the region. Secondary to those elements are things such as market trends, competitors, demographics and other traditional market research efforts.

“As far as the tools we use, we’re careful not to buy reports from unknown entities, because the data is not necessarily reliable. This information is elusive, and that’s why you need to meet the right people. Attending the international SEMA events provided the opportunity for us to create the network we needed to get us this information. It doesn’t happen overnight; you need to get out there and do the work.”

—David Borla, Vice President of Marketing and Sales, Borla Exhaust

“I look at what vehicles are hot in a country, and then I look at what the individuals do with the vehicles. For example, Focus and Fiesta owners put on exhausts, cold-air intakes and low-ride tires, and some add stripes to the vehicle or put on a flange in the back. This information allows me to better understand the opportunities and which SEMA members I may also try to work with to offer a bundle of products that all work together.

“The other big thing I look at is currency and exchange rates, as this tells me immediately if I can make it a win-win for us and them. You must leave margins for people internationally, otherwise there is no reason to push the product.

“I think CEO/presidents need to travel to a market and spend three to five days there, listen to what the market wants, and visit some shops or wholesellers to see what moves and if your product can fit or if you can create an attractive reason for them to carry your products. I also believe in giving displays to better showcase our products and tie them to an order so it works for both.”

—Rick Trudo, President, Rick Trudo Consulting

“When Hellwig is looking at new markets, we first look at what vehicles they have on the road and what they are modifying. We are focused on markets needing load- and sway-control products, so we look at territories that need those products. We have found the SEMA international trips to be very helpful as an introduction to a new market.”

—Melanie White, Vice President, Hellwig

Jeremy Barras of consulting/marketing firm Advanced Performance Parts Inc. noted that he approaches markets with a five-step analysis. It includes:

1. Population and average income per capita.
2. Car parc, make, model and number.
3. Legislation/technical requirements.
4. Define who the national segment market leaders are.
5. Visit in person, always.

SEMA News—March 2016

Fast Facts

Classic Tube appointed Nicole Millich marketing manager. She has worked for more than 10 years in consumer and B2B arenas, focusing on the implementation of strategic and tactical marketing research. Millich will oversee all marketing strategy and tactics of Classic Tube, including print, digital and events. She will also work closely with the Classic Tube sales department to grow the company’s automotive retail, distributor and industrial customer segments. Classic Tube, Lancaster, NY; 800-882-3711.

Serra Automotive announced the appointment of Lou Lobsinger Jr. as the company’s new OEM and aftermarket accessories specialist. Lobsinger will work with all of the brands on the Al Serra Auto Plaza to launch a new accessories program. Lobsinger joins Serra Automotive after 13 years with Specialty Auto Parts USA Inc. in Warren, Michigan, and most recently with Next Advisory Group Inc. He currently writes for several automotive magazines, including Performance Business, and is the automotive correspondent for “NBC 25 Today.”

QA1 won the Materials and Process Innovation Award from the American Composites Manufacturers Association (ACMA) during the 2015 Composites and Advanced Materials Expo in Dallas. ACMA presents its awards to companies that implement innovation in composites design, manufacturing or market growth. QA1 won in the manufacturing category for its nanosilica-infused resin for use in performance automotive carbon-fiber driveshafts. The company partnered with 3M to develop Matrix Resin, which allows for redesign of composite structures, eliminating weight while improving strength and stiffness, according to QA1. QA1 Precision Products, Lakeville, MN; 952-985-6450.

RealTruck.com promoted Justin Deltener to vice president. Deltener will be responsible for managing the regular operations and administration of the company, working with managers and company executives to set strategic goals and spearheading initiatives geared toward further company growth and development. Hired as chief technology officer in 2008, Deltener has been instrumental in creating RealTruck.com’s back-end order-management and fulfillment system, the development of the company’s website and the founding of the RealTruck Fargo office. RealTruck.com, Jamestown, ND; 877-216-5446.

The Wheel Group/Wheel-1 added Shelly Urwiler to its national sales force. Urwiler has been in the wheel, tire and accessory business for more than 40 years and has worked for many well-known wheel companies. He brings many years of experience, knowledge and relationships to the company. His main focus for The Wheel Group/Wheel-1 will be expanding business with national and small chain stores. Wheel-1 has 19 warehouse locations in the United States and Canada. The Wheel Group/Wheel-1, City of Industry, CA; 626-363-1660.

Turn 14 Distribution relocated its corporate headquarters to a state-of-the-art corporate park in Horsham, Pennsylvania, to better meet the needs of its customers and vendors and facilitate continued growth. The Horsham offices will serve as the base of operations for Turn 14 Distribution’s executive offices as well as its sales, customer-support call center, purchasing, marketing, web development, IT and accounting departments. The addition of a dedicated, 55-person training room features the latest audio and video equipment. Turn 14 Distribution, Horsham, PA; 877-788-7914.

Considine Sales & Marketing received the Rep of the Year Award from Meyer Distributing. Located in the Midwest, Considine Sales & Marketing is a manufacturing representative firm that has been in business for more than 44 years, providing sales, service, product placement, jobber calls and training to the automotive aftermarket. Criteria for the award included jobber calls; communication between manufacturers and Meyer; sales visits with Meyer inside sales reps; participation in vendor days, marketing and promotions; and overall support of Meyer and its efforts to increase sales. Considine Sales & Marketing, Highland, MI; 877-611-3344.

Abdallah (Abdul) Ibrahim was named the 2015 Mitchell 1 Automotive Service Excellence Technician of the Future. The award package included a $500 cash prize and a $2,000 gift certificate for a one-year subscription to ProDemand. Ibrahim has been an automotive and diesel technician for three years. He is currently working with his father at his auto shop in Wiggins, Colorado, and is attending Northeastern Junior College, where he is working toward an associate’s degree in diesel service technology. He also holds an associate’s degree in automotive service technology from Morgan Community College. Mitchell 1, Poway, CA; 858-391-5000.

Truck Hero Inc. announced the acquisition of N-FAB Parts and Accessories, making it the ninth acquisition on the Truck Hero platform. Financial terms of the transaction were not disclosed. Headquartered in Ann Arbor, Michigan, Truck Hero is a supplier of branded light-duty truck accessories for pickup-bed applications. Since its formation, the company has grown organically and via acquisition from two truck bed-cover brands into a diverse portfolio of seven major bed-cover and truck-cap brands and a bedliner brand. N-FAB was previously owned by Thomas Fichter.

The Petersen Automotive Museum announced a media partnership with TEN: The Enthusiast Network. TEN will house its photo archive—which includes historical Petersen Publishing material—in the new Robert E. Petersen Library & Research Center at the museum. TEN will also serve as the presenting sponsor of the museum’s Hot Rod and Customs Gallery. The TEN photo archive—the largest automotive enthusiast archive in the world, with 8 million images from 1955 to 1997—will eventually be available to the public. Petersen Automotive Museum, Los Angeles, CA; 323-964-6320.

Doug Stokes received the Motor Press Guild’s 2015 Lifetime Achievement Award for his public-relations contributions to motorsports and the racing industry. A member of the MPG since it was re-named from IMPA-West in the mid-’80s, Stokes has supported motorsports for more than 25 years. Stokes has served as vice president of communications at Irwindale Event Center since 2013 and has previously been honored with the Chapman Award for PR by the American Auto Racing Writers & Broadcasters Association. Irwindale Event Center, Irwindale, CA; 626-358-1100.

Power Heavy Duty welcomed SR Parts as its newest member company. Established in 2001 and based in Laredo, Texas, the company is operated by Sylvia Benavides, president, and Ricardo Rivera, vice president. The addition of SR Parts to Power Heavy Duty provides the organization with a strategic new point of distribution in South Texas and includes a customer base of fleets, independent service facilities, municipalities and owner-operators. The company’s inventory includes various truck and trailer parts.

Permatex named Curtis Haines associate innovations manager and Suzanne C. Liseo associate product manager. Haines will work with the product-marketing and R&D teams to identify and develop new markets and innovate product ideas for new and existing markets. He will also oversee new-product development, research analysis and provide hands-on technical advisement. Liseo will support the product-management team with a focus on new-product development. She will also handle customer/sales data (NPD & POS), line reviews and promotions as well as price-list maintenance and management.

By SEMA Washington, D.C., Staff

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members.

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members. The pending EPA regulation would also make the sale of certain products for use on such vehicles illegal. The resolution will next be considered by the Senate. 

The resolution recognizes that this proposed EPA regulation represents overreaching by the agency, runs contrary to the law and defies decades of racing activity where EPA has acknowledged and allowed conversion of vehicles. 

For more information, visit the SEMA Action Network (SAN) website. For details, contact Steve McDonald at stevem@sema.org.

By SEMA Washington, D.C., Staff

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members.

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members. The pending EPA regulation would also make the sale of certain products for use on such vehicles illegal. The resolution will next be considered by the Senate. 

The resolution recognizes that this proposed EPA regulation represents overreaching by the agency, runs contrary to the law and defies decades of racing activity where EPA has acknowledged and allowed conversion of vehicles. 

For more information, visit the SEMA Action Network (SAN) website. For details, contact Steve McDonald at stevem@sema.org.

By SEMA Washington, D.C., Staff

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members.

A West Virginia House Concurrent Resolution to urge the U.S. Environmental Protection Agency (EPA) not to prohibit conversion of vehicles originally designed for on-road use into race cars was approved by the West Virginia House in a vote by all members. The pending EPA regulation would also make the sale of certain products for use on such vehicles illegal. The resolution will next be considered by the Senate. 

The resolution recognizes that this proposed EPA regulation represents overreaching by the agency, runs contrary to the law and defies decades of racing activity where EPA has acknowledged and allowed conversion of vehicles. 

For more information, visit the SEMA Action Network (SAN) website. For details, contact Steve McDonald at stevem@sema.org.