SEMA News—December 2013

INTERNATIONAL

The Promise of China

U.S. Specialty-Equipment Companies Visit an Emerging Market

By Linda Spencer

From left: Peter MacGillivray, SEMA vice president of communications and events; Bill Miller, SEMA senior vice president of operations; Linda Spencer, SEMA senior director of international and government affairs; Xiuyun Zheng, general manager of Tuner Tribe; Liz Couch, international economist for the auto team of the International Trade Administration; and Bin Wang, vice general manager of Tuner Tribe pose for a picture at the September 12, 2013, Tuner Tribe-SEMA celebration. Local government officials announced that day the first annual Vehicle Modification Appreciation Day.

Twenty-two SEMA-member companies recently traveled to China for the 2013 SEMA China Business Development Conference. The program included a briefing by U.S. government officials, a visit to specialty-equipment shops, an evening at the Great Hall of the People (which serves as the seat of the Chinese parliament) and exhibiting at the China International Auto Parts Expo (CIAPE).

About two-thirds of the delegation had participated in previous SEMA overseas business-development programs to China and/or the Middle East, while this was the first time participating in an overseas SEMA event for a third of the companies and the first time exploring this market of 1.3 billion people.

“My pre-trip impression was completely different from my end-of-trip impression,” said first-timer Mark Turner, CEO of Daystar Products International. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential.”

Kevin Floody, international business manager for K&N Engineering Inc., has participated on nearly all of the SEMA trips abroad and was equally optimistic.

“China is rapidly becoming one of the largest consumer markets in the world,” he said. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”

SEMA Member Participants on the 2013 SEMA China Trip AEM Induction Systems Baja Designs Borla Performance Industries Inc. Champion Oil Coverking Daystar Products International eBay Motors Escort Inc. Injen Technology K&N Engineering Inc. Keystone Automotive Operations MagnaFlow Omix-ADA/Rugged Ridge Penda Corp. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology Rigid Industries SCT Performance Spyder Auto Stillwater Designs & Audio Inc. (Kicker) Transamerican Wholesale

There are some challenges in China (and, in fact, in many other emerging markets), such as fragmented distribution and import duty, and vehicle modification in a “gray zone” regarding the legality of some products. But there was unanimous belief among the SEMA group that Chinese drivers like to make their cars stand out. From expensive sports cars to off-road warriors, customization is increasingly popular among a wide segment of consumers in China.

The importance of the automotive specialty-equipment industry is increasingly being recognized by the Chinese government at the provincial and local levels. It is also being seen increasingly among national officials as a source of jobs, revenue and a way boost to domestic consumption to offset the country’s slowing export base.

In fact, during the SEMA-member visit in Beijing, local officials declared September 12 as “Vehicle Modification Appreciation Day.” These local officials have heavily invested in developing the northern part of Beijing as a worldwide model of the industry, with a hotel, a showroom and a car-customizing mall all designed to grow the specialty-equipment market.

And it’s not just in the largest cities such as Beijing and Shanghai, with populations of about 20 million and 23 million. Consumerism is growing throughout China. In fact, the fastest-growing markets in China are outside the gridlocked roads of Beijing and Shanghai. This year’s event included buyers from throughout the country.

A full 100% of the participants responding to a post-event survey said that they actively pursue business in China.

“We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014, based on the relationships we have established and additional vehicle coverage we have provided,” said Justin Oltz, SCT Performance vice president of sales. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”

Dan Green (second right), director of the trade facilitation office of the U.S. Embassy in Beijing, spoke with Ed Rossi (left), vice president of sales for Injen Technology; Rick Trudo (second left), president and CEO of SCT Performance; Jeff Victer (center), director of global sales for Prolong Super Lubricants; and Justin Oltz (right), vice president of sales for SCT Performance.		Deputy Assistant Secretary Craig Allen (front right) briefed the SEMA delegation on doing business in China and provided some insider tips on market developments. The three-day program opened with a briefing by U.S. officials that included Allen; Daniel Green, director of the trade facilitation office for the U.S. Embassy in Beijing; Liz Couch, international economist for the auto team of the International Trade Administration; Daisy Wang, trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Joshua Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing.
Al Azadi (left), president/owner of Omix Ada/Rugged Ridge, exchanged business cards with buyers. “We’ve sold our Jeep accessories and performance products to China for many years now, but visiting this many customers and prospects in just one trip was never practical,” Azadi said. “Thanks to SEMA’s well-coordinated schedule, we met most of our existing customers and many prospects in just two days. We feel that China, with the highest number of Wranglers sold outside the North America and with higher-income consumers buying these vehicles, has the potential to become the number-one destination for our products outside North America. It is never easy learning how to conduct business in a foreign land, but we are betting it will be rewarding at the end.”		Mark Turner, CEO of Daystar, visiting a local retailer and wholesaler. “My pre-trip impression was completely different from my end-of-trip impression,” he said. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential. Prior to our trip, the Chinese market was not part of our long-term strategy. After the trip, I am encouraged that it could be part of our five-year plan.”
Attendees at the declaration of September 12, 2013, as Vehicle Modification Appreciation Day included Beijing local officials; Tuner Tribe officials (Bin Wang, vice general manager of Tuner Tribe, far right); Josh Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing (fourth from left) and Bill Miller, SEMA senior vice president of operations (second from right).		Zheng Yong, a Beijing local government official, declared September 12, 2013, as “Vehicle Modification Appreciation Day” at Tuner Tribe, a Beijing-based upscale mall of specialty-equipment shops. Participants in the recent SEMA trip to China had the opportunity to visit the retailers, installers and wholesalers at the mall before attending a party hosted by Tuner Tribe in honor of our industry.
Officials from Oklahoma-based Stillwater Designs & Audio Inc. (Kicker) who participated in the China trip. Including Bart Deal (left), director of international sales, and Steve Outhier (right), director of product planning—talked with buyers about their lineup of sound systems.		A few of the SEMA delegation outside the Great Hall of the People before attending a dinner at the iconic building, which in Tiananmen Square. The building is used for legislative and ceremonial activities. and functions as the parliament building for the People’s Republic of China.
Attendees at the opening ceremony in the SEMA Hall of the CIAPE included Joshua Halpern, (front left); George Hsieh, (second from left), brand manager for AEM Induction Systems; Daisy Wang, (third from right), trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Liz Couch (far right), international economist for the auto team of the International Trade Administration.		Paula Argiropoulos (left), international sales manager for Rigid Industries, demonstrated the company’s product features to buyers. “Going into China, I had a completely different perception and may have had preconceived notions on the markets. After attending the SEMA event, I now have a better understanding of the growing aftermarket industry in China. It is projected that by 2015, China will become the second largest consumer market with enough purchasing power to buy 14% of the world’s products.
Josh Abbott (right), international sales manager for Borla Performance Industries Inc., enjoyed a steady stream of buyers in the company’s booth, which featured stainless-steel performance exhaust and induction products manufactured by the company based in Oxnard, California. Noted Abbott: “We are putting more and more emphasis on export in general, and China naturally represents a significant part of this expansion. China’s economic engine is going strong and while this growth has been slowing a bit, we’re still talking GDP growth rates roughly triple much of the Western world’s. This is being clearly represented in their car sales which is at an all-time high with close to 20 million vehicles sold in 2012. Add to this their approach and enthusiasm for performance and the bases are there for a beneficial business relationship with the country.”		Karl Dedolph (second from right), director of the racing and performance division of Champion Oil, talked about the specialty formulations of the company’s products and why they are well-suited for the Chinese market. Dedolph said that the aftermarket performance industry in China exceeded his company’s expectations as an emerging market. “It is showing strong growth as a new market,” he said. “The global aftermarket will continue to expand in the coming years.” He expects sales in China to increase by more than 100% by 2020.
Justin Oltz (far right), vice president of sales for SCT Performance, talked to buyers and discussed the importance of the Chinese market to SCT’s company strategy. “We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014,” he said. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”		Edwin Preza (left), sales manager for Spyder Auto, answered questions from buyers. “Spyder Auto is absolutely thrilled to have been part of the successful trip to Beijing,” he said. “We received great interest from many buyers and are excited to be a part of the growth of this new market. We are very pleased to see the buyers looking for quality products, and we are excited to be a part of [the SEMA China trip].”
Injen Technology, a manufacturer of high-performance air-intake systems and exhaust systems for cars and trucks, was represented on the China trip by Edward Rossi (left), vice president of sales, and Ron Delgado (right), the company’s president. Noted Delgado: “We visited China for the first time four years ago, and we have gone back every year since. Every pre-conceived notion we held about China soon dissipated under the shadow of endless rows of modern high-rises! People in China are warm and very welcoming. They have elevated the concept of hospitality to an art. Beijing is a thriving, bustling city that never rests! One cannot imagine the volume of cars and traffic until you see it for yourself. China’s economy is one of the fastest-growing economies in the world. As a market, it has been virtually untapped by western manufacturers.		Ryan Lai (foreground, second from right) of eBay Motors talked with buyers. Dan Tsuchiya (back right), eBay’s director of merchant development and Sumip Patel, the firm’s Cross Border Trade Manager back center), also participated in the program. “It’s important for us to learn the market and what’s possible for our U.S. sellers when they start selling into China,” Tsuchiya said. “It’s one of the BRICS countries, and when one understands the increasing wealth in the country and the desire for what we have in the West, it’s clear that this is a growth opportunity.”
Debra Sweet (center), international sales manager for Penda Corp. “What I appreciated the most about my experience was that the entire trip was very thoughtfully planned out to give me the best opportunity to meet the proper buyers for my product line. Without the assistance of SEMA providing pre-approved buyers, I would have spent at least six to 12 months to establish the same number and quality of leads that I gained in just two days,” noted Sweet.		“China is rapidly becoming one of the largest consumer markets in the world,” said Kevin Floody (second from right), international business manager for K&N Engineering. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”
“The international automotive landscape is changing, and China is most certainly one of the countries that is leading the way in positive growth and higher expectations,” said Brad Otoupalik (far right), MagnaFlow’s director of international business development. “MagnaFlow is working to be a part of that growth in a powerful way by bringing our high-quality products and 30-plus years of research to the consumer marketplace in China. The trip with SEMA was an excellent showcase of the potential market while allowing us to directly connect to many distributors, shop owners and enthusiasts.”		Radflo Suspension Technology, a California-based manufacturer of performance shock absorbers, responded to inquires from resellers about the company’s line of products designed to improve vehicle handling and performance. “China as a market for our products has become a large focus of our business,” said Glenn Classen (right), the company’s president. “We have seen a huge demand and expect exponential growth through our dealer base for products we both manufacture and sell. We think it’s great that our Chinese customers are looking for quality and are able to identify with our brand.”

SEMA News—December 2013

INTERNATIONAL

The Promise of China

U.S. Specialty-Equipment Companies Visit an Emerging Market

By Linda Spencer

From left: Peter MacGillivray, SEMA vice president of communications and events; Bill Miller, SEMA senior vice president of operations; Linda Spencer, SEMA senior director of international and government affairs; Xiuyun Zheng, general manager of Tuner Tribe; Liz Couch, international economist for the auto team of the International Trade Administration; and Bin Wang, vice general manager of Tuner Tribe pose for a picture at the September 12, 2013, Tuner Tribe-SEMA celebration. Local government officials announced that day the first annual Vehicle Modification Appreciation Day.

Twenty-two SEMA-member companies recently traveled to China for the 2013 SEMA China Business Development Conference. The program included a briefing by U.S. government officials, a visit to specialty-equipment shops, an evening at the Great Hall of the People (which serves as the seat of the Chinese parliament) and exhibiting at the China International Auto Parts Expo (CIAPE).

About two-thirds of the delegation had participated in previous SEMA overseas business-development programs to China and/or the Middle East, while this was the first time participating in an overseas SEMA event for a third of the companies and the first time exploring this market of 1.3 billion people.

“My pre-trip impression was completely different from my end-of-trip impression,” said first-timer Mark Turner, CEO of Daystar Products International. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential.”

Kevin Floody, international business manager for K&N Engineering Inc., has participated on nearly all of the SEMA trips abroad and was equally optimistic.

“China is rapidly becoming one of the largest consumer markets in the world,” he said. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”

SEMA Member Participants on the 2013 SEMA China Trip AEM Induction Systems Baja Designs Borla Performance Industries Inc. Champion Oil Coverking Daystar Products International eBay Motors Escort Inc. Injen Technology K&N Engineering Inc. Keystone Automotive Operations MagnaFlow Omix-ADA/Rugged Ridge Penda Corp. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology Rigid Industries SCT Performance Spyder Auto Stillwater Designs & Audio Inc. (Kicker) Transamerican Wholesale

There are some challenges in China (and, in fact, in many other emerging markets), such as fragmented distribution and import duty, and vehicle modification in a “gray zone” regarding the legality of some products. But there was unanimous belief among the SEMA group that Chinese drivers like to make their cars stand out. From expensive sports cars to off-road warriors, customization is increasingly popular among a wide segment of consumers in China.

The importance of the automotive specialty-equipment industry is increasingly being recognized by the Chinese government at the provincial and local levels. It is also being seen increasingly among national officials as a source of jobs, revenue and a way boost to domestic consumption to offset the country’s slowing export base.

In fact, during the SEMA-member visit in Beijing, local officials declared September 12 as “Vehicle Modification Appreciation Day.” These local officials have heavily invested in developing the northern part of Beijing as a worldwide model of the industry, with a hotel, a showroom and a car-customizing mall all designed to grow the specialty-equipment market.

And it’s not just in the largest cities such as Beijing and Shanghai, with populations of about 20 million and 23 million. Consumerism is growing throughout China. In fact, the fastest-growing markets in China are outside the gridlocked roads of Beijing and Shanghai. This year’s event included buyers from throughout the country.

A full 100% of the participants responding to a post-event survey said that they actively pursue business in China.

“We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014, based on the relationships we have established and additional vehicle coverage we have provided,” said Justin Oltz, SCT Performance vice president of sales. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”

Dan Green (second right), director of the trade facilitation office of the U.S. Embassy in Beijing, spoke with Ed Rossi (left), vice president of sales for Injen Technology; Rick Trudo (second left), president and CEO of SCT Performance; Jeff Victer (center), director of global sales for Prolong Super Lubricants; and Justin Oltz (right), vice president of sales for SCT Performance.		Deputy Assistant Secretary Craig Allen (front right) briefed the SEMA delegation on doing business in China and provided some insider tips on market developments. The three-day program opened with a briefing by U.S. officials that included Allen; Daniel Green, director of the trade facilitation office for the U.S. Embassy in Beijing; Liz Couch, international economist for the auto team of the International Trade Administration; Daisy Wang, trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Joshua Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing.
Al Azadi (left), president/owner of Omix Ada/Rugged Ridge, exchanged business cards with buyers. “We’ve sold our Jeep accessories and performance products to China for many years now, but visiting this many customers and prospects in just one trip was never practical,” Azadi said. “Thanks to SEMA’s well-coordinated schedule, we met most of our existing customers and many prospects in just two days. We feel that China, with the highest number of Wranglers sold outside the North America and with higher-income consumers buying these vehicles, has the potential to become the number-one destination for our products outside North America. It is never easy learning how to conduct business in a foreign land, but we are betting it will be rewarding at the end.”		Mark Turner, CEO of Daystar, visiting a local retailer and wholesaler. “My pre-trip impression was completely different from my end-of-trip impression,” he said. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential. Prior to our trip, the Chinese market was not part of our long-term strategy. After the trip, I am encouraged that it could be part of our five-year plan.”
Attendees at the declaration of September 12, 2013, as Vehicle Modification Appreciation Day included Beijing local officials; Tuner Tribe officials (Bin Wang, vice general manager of Tuner Tribe, far right); Josh Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing (fourth from left) and Bill Miller, SEMA senior vice president of operations (second from right).		Zheng Yong, a Beijing local government official, declared September 12, 2013, as “Vehicle Modification Appreciation Day” at Tuner Tribe, a Beijing-based upscale mall of specialty-equipment shops. Participants in the recent SEMA trip to China had the opportunity to visit the retailers, installers and wholesalers at the mall before attending a party hosted by Tuner Tribe in honor of our industry.
Officials from Oklahoma-based Stillwater Designs & Audio Inc. (Kicker) who participated in the China trip. Including Bart Deal (left), director of international sales, and Steve Outhier (right), director of product planning—talked with buyers about their lineup of sound systems.		A few of the SEMA delegation outside the Great Hall of the People before attending a dinner at the iconic building, which in Tiananmen Square. The building is used for legislative and ceremonial activities. and functions as the parliament building for the People’s Republic of China.
Attendees at the opening ceremony in the SEMA Hall of the CIAPE included Joshua Halpern, (front left); George Hsieh, (second from left), brand manager for AEM Induction Systems; Daisy Wang, (third from right), trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Liz Couch (far right), international economist for the auto team of the International Trade Administration.		Paula Argiropoulos (left), international sales manager for Rigid Industries, demonstrated the company’s product features to buyers. “Going into China, I had a completely different perception and may have had preconceived notions on the markets. After attending the SEMA event, I now have a better understanding of the growing aftermarket industry in China. It is projected that by 2015, China will become the second largest consumer market with enough purchasing power to buy 14% of the world’s products.
Josh Abbott (right), international sales manager for Borla Performance Industries Inc., enjoyed a steady stream of buyers in the company’s booth, which featured stainless-steel performance exhaust and induction products manufactured by the company based in Oxnard, California. Noted Abbott: “We are putting more and more emphasis on export in general, and China naturally represents a significant part of this expansion. China’s economic engine is going strong and while this growth has been slowing a bit, we’re still talking GDP growth rates roughly triple much of the Western world’s. This is being clearly represented in their car sales which is at an all-time high with close to 20 million vehicles sold in 2012. Add to this their approach and enthusiasm for performance and the bases are there for a beneficial business relationship with the country.”		Karl Dedolph (second from right), director of the racing and performance division of Champion Oil, talked about the specialty formulations of the company’s products and why they are well-suited for the Chinese market. Dedolph said that the aftermarket performance industry in China exceeded his company’s expectations as an emerging market. “It is showing strong growth as a new market,” he said. “The global aftermarket will continue to expand in the coming years.” He expects sales in China to increase by more than 100% by 2020.
Justin Oltz (far right), vice president of sales for SCT Performance, talked to buyers and discussed the importance of the Chinese market to SCT’s company strategy. “We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014,” he said. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”		Edwin Preza (left), sales manager for Spyder Auto, answered questions from buyers. “Spyder Auto is absolutely thrilled to have been part of the successful trip to Beijing,” he said. “We received great interest from many buyers and are excited to be a part of the growth of this new market. We are very pleased to see the buyers looking for quality products, and we are excited to be a part of [the SEMA China trip].”
Injen Technology, a manufacturer of high-performance air-intake systems and exhaust systems for cars and trucks, was represented on the China trip by Edward Rossi (left), vice president of sales, and Ron Delgado (right), the company’s president. Noted Delgado: “We visited China for the first time four years ago, and we have gone back every year since. Every pre-conceived notion we held about China soon dissipated under the shadow of endless rows of modern high-rises! People in China are warm and very welcoming. They have elevated the concept of hospitality to an art. Beijing is a thriving, bustling city that never rests! One cannot imagine the volume of cars and traffic until you see it for yourself. China’s economy is one of the fastest-growing economies in the world. As a market, it has been virtually untapped by western manufacturers.		Ryan Lai (foreground, second from right) of eBay Motors talked with buyers. Dan Tsuchiya (back right), eBay’s director of merchant development and Sumip Patel, the firm’s Cross Border Trade Manager back center), also participated in the program. “It’s important for us to learn the market and what’s possible for our U.S. sellers when they start selling into China,” Tsuchiya said. “It’s one of the BRICS countries, and when one understands the increasing wealth in the country and the desire for what we have in the West, it’s clear that this is a growth opportunity.”
Debra Sweet (center), international sales manager for Penda Corp. “What I appreciated the most about my experience was that the entire trip was very thoughtfully planned out to give me the best opportunity to meet the proper buyers for my product line. Without the assistance of SEMA providing pre-approved buyers, I would have spent at least six to 12 months to establish the same number and quality of leads that I gained in just two days,” noted Sweet.		“China is rapidly becoming one of the largest consumer markets in the world,” said Kevin Floody (second from right), international business manager for K&N Engineering. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”
“The international automotive landscape is changing, and China is most certainly one of the countries that is leading the way in positive growth and higher expectations,” said Brad Otoupalik (far right), MagnaFlow’s director of international business development. “MagnaFlow is working to be a part of that growth in a powerful way by bringing our high-quality products and 30-plus years of research to the consumer marketplace in China. The trip with SEMA was an excellent showcase of the potential market while allowing us to directly connect to many distributors, shop owners and enthusiasts.”		Radflo Suspension Technology, a California-based manufacturer of performance shock absorbers, responded to inquires from resellers about the company’s line of products designed to improve vehicle handling and performance. “China as a market for our products has become a large focus of our business,” said Glenn Classen (right), the company’s president. “We have seen a huge demand and expect exponential growth through our dealer base for products we both manufacture and sell. We think it’s great that our Chinese customers are looking for quality and are able to identify with our brand.”

SEMA News—December 2013

INTERNATIONAL

The Promise of China

U.S. Specialty-Equipment Companies Visit an Emerging Market

By Linda Spencer

From left: Peter MacGillivray, SEMA vice president of communications and events; Bill Miller, SEMA senior vice president of operations; Linda Spencer, SEMA senior director of international and government affairs; Xiuyun Zheng, general manager of Tuner Tribe; Liz Couch, international economist for the auto team of the International Trade Administration; and Bin Wang, vice general manager of Tuner Tribe pose for a picture at the September 12, 2013, Tuner Tribe-SEMA celebration. Local government officials announced that day the first annual Vehicle Modification Appreciation Day.

Twenty-two SEMA-member companies recently traveled to China for the 2013 SEMA China Business Development Conference. The program included a briefing by U.S. government officials, a visit to specialty-equipment shops, an evening at the Great Hall of the People (which serves as the seat of the Chinese parliament) and exhibiting at the China International Auto Parts Expo (CIAPE).

About two-thirds of the delegation had participated in previous SEMA overseas business-development programs to China and/or the Middle East, while this was the first time participating in an overseas SEMA event for a third of the companies and the first time exploring this market of 1.3 billion people.

“My pre-trip impression was completely different from my end-of-trip impression,” said first-timer Mark Turner, CEO of Daystar Products International. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential.”

Kevin Floody, international business manager for K&N Engineering Inc., has participated on nearly all of the SEMA trips abroad and was equally optimistic.

“China is rapidly becoming one of the largest consumer markets in the world,” he said. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”

SEMA Member Participants on the 2013 SEMA China Trip AEM Induction Systems Baja Designs Borla Performance Industries Inc. Champion Oil Coverking Daystar Products International eBay Motors Escort Inc. Injen Technology K&N Engineering Inc. Keystone Automotive Operations MagnaFlow Omix-ADA/Rugged Ridge Penda Corp. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology Rigid Industries SCT Performance Spyder Auto Stillwater Designs & Audio Inc. (Kicker) Transamerican Wholesale

There are some challenges in China (and, in fact, in many other emerging markets), such as fragmented distribution and import duty, and vehicle modification in a “gray zone” regarding the legality of some products. But there was unanimous belief among the SEMA group that Chinese drivers like to make their cars stand out. From expensive sports cars to off-road warriors, customization is increasingly popular among a wide segment of consumers in China.

The importance of the automotive specialty-equipment industry is increasingly being recognized by the Chinese government at the provincial and local levels. It is also being seen increasingly among national officials as a source of jobs, revenue and a way boost to domestic consumption to offset the country’s slowing export base.

In fact, during the SEMA-member visit in Beijing, local officials declared September 12 as “Vehicle Modification Appreciation Day.” These local officials have heavily invested in developing the northern part of Beijing as a worldwide model of the industry, with a hotel, a showroom and a car-customizing mall all designed to grow the specialty-equipment market.

And it’s not just in the largest cities such as Beijing and Shanghai, with populations of about 20 million and 23 million. Consumerism is growing throughout China. In fact, the fastest-growing markets in China are outside the gridlocked roads of Beijing and Shanghai. This year’s event included buyers from throughout the country.

A full 100% of the participants responding to a post-event survey said that they actively pursue business in China.

“We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014, based on the relationships we have established and additional vehicle coverage we have provided,” said Justin Oltz, SCT Performance vice president of sales. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”

Dan Green (second right), director of the trade facilitation office of the U.S. Embassy in Beijing, spoke with Ed Rossi (left), vice president of sales for Injen Technology; Rick Trudo (second left), president and CEO of SCT Performance; Jeff Victer (center), director of global sales for Prolong Super Lubricants; and Justin Oltz (right), vice president of sales for SCT Performance.		Deputy Assistant Secretary Craig Allen (front right) briefed the SEMA delegation on doing business in China and provided some insider tips on market developments. The three-day program opened with a briefing by U.S. officials that included Allen; Daniel Green, director of the trade facilitation office for the U.S. Embassy in Beijing; Liz Couch, international economist for the auto team of the International Trade Administration; Daisy Wang, trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Joshua Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing.
Al Azadi (left), president/owner of Omix Ada/Rugged Ridge, exchanged business cards with buyers. “We’ve sold our Jeep accessories and performance products to China for many years now, but visiting this many customers and prospects in just one trip was never practical,” Azadi said. “Thanks to SEMA’s well-coordinated schedule, we met most of our existing customers and many prospects in just two days. We feel that China, with the highest number of Wranglers sold outside the North America and with higher-income consumers buying these vehicles, has the potential to become the number-one destination for our products outside North America. It is never easy learning how to conduct business in a foreign land, but we are betting it will be rewarding at the end.”		Mark Turner, CEO of Daystar, visiting a local retailer and wholesaler. “My pre-trip impression was completely different from my end-of-trip impression,” he said. “The enthusiasts in China are now realizing what they want, and they are demanding quality U.S.-made products. They negotiate for higher quality, not for price. This is refreshing compared to the Walmart-junk frame-of-mind of the United States. With the aftermarket being only five years old in China—and the total number of people in China—growth is exponential. Prior to our trip, the Chinese market was not part of our long-term strategy. After the trip, I am encouraged that it could be part of our five-year plan.”
Attendees at the declaration of September 12, 2013, as Vehicle Modification Appreciation Day included Beijing local officials; Tuner Tribe officials (Bin Wang, vice general manager of Tuner Tribe, far right); Josh Halpern, commercial officer for the Department of Commerce at the U.S. Embassy in Beijing (fourth from left) and Bill Miller, SEMA senior vice president of operations (second from right).		Zheng Yong, a Beijing local government official, declared September 12, 2013, as “Vehicle Modification Appreciation Day” at Tuner Tribe, a Beijing-based upscale mall of specialty-equipment shops. Participants in the recent SEMA trip to China had the opportunity to visit the retailers, installers and wholesalers at the mall before attending a party hosted by Tuner Tribe in honor of our industry.
Officials from Oklahoma-based Stillwater Designs & Audio Inc. (Kicker) who participated in the China trip. Including Bart Deal (left), director of international sales, and Steve Outhier (right), director of product planning—talked with buyers about their lineup of sound systems.		A few of the SEMA delegation outside the Great Hall of the People before attending a dinner at the iconic building, which in Tiananmen Square. The building is used for legislative and ceremonial activities. and functions as the parliament building for the People’s Republic of China.
Attendees at the opening ceremony in the SEMA Hall of the CIAPE included Joshua Halpern, (front left); George Hsieh, (second from left), brand manager for AEM Induction Systems; Daisy Wang, (third from right), trade policy specialist for the market access and compliance office of the U.S. Embassy in Beijing; and Liz Couch (far right), international economist for the auto team of the International Trade Administration.		Paula Argiropoulos (left), international sales manager for Rigid Industries, demonstrated the company’s product features to buyers. “Going into China, I had a completely different perception and may have had preconceived notions on the markets. After attending the SEMA event, I now have a better understanding of the growing aftermarket industry in China. It is projected that by 2015, China will become the second largest consumer market with enough purchasing power to buy 14% of the world’s products.
Josh Abbott (right), international sales manager for Borla Performance Industries Inc., enjoyed a steady stream of buyers in the company’s booth, which featured stainless-steel performance exhaust and induction products manufactured by the company based in Oxnard, California. Noted Abbott: “We are putting more and more emphasis on export in general, and China naturally represents a significant part of this expansion. China’s economic engine is going strong and while this growth has been slowing a bit, we’re still talking GDP growth rates roughly triple much of the Western world’s. This is being clearly represented in their car sales which is at an all-time high with close to 20 million vehicles sold in 2012. Add to this their approach and enthusiasm for performance and the bases are there for a beneficial business relationship with the country.”		Karl Dedolph (second from right), director of the racing and performance division of Champion Oil, talked about the specialty formulations of the company’s products and why they are well-suited for the Chinese market. Dedolph said that the aftermarket performance industry in China exceeded his company’s expectations as an emerging market. “It is showing strong growth as a new market,” he said. “The global aftermarket will continue to expand in the coming years.” He expects sales in China to increase by more than 100% by 2020.
Justin Oltz (far right), vice president of sales for SCT Performance, talked to buyers and discussed the importance of the Chinese market to SCT’s company strategy. “We have doubled our business in the country every year for the past three and have commitments from our partners to quadruple growth in 2014,” he said. “We see this growth continuing well into the future as the Chinese automotive market continues to grow and outpace every other market in the world.”		Edwin Preza (left), sales manager for Spyder Auto, answered questions from buyers. “Spyder Auto is absolutely thrilled to have been part of the successful trip to Beijing,” he said. “We received great interest from many buyers and are excited to be a part of the growth of this new market. We are very pleased to see the buyers looking for quality products, and we are excited to be a part of [the SEMA China trip].”
Injen Technology, a manufacturer of high-performance air-intake systems and exhaust systems for cars and trucks, was represented on the China trip by Edward Rossi (left), vice president of sales, and Ron Delgado (right), the company’s president. Noted Delgado: “We visited China for the first time four years ago, and we have gone back every year since. Every pre-conceived notion we held about China soon dissipated under the shadow of endless rows of modern high-rises! People in China are warm and very welcoming. They have elevated the concept of hospitality to an art. Beijing is a thriving, bustling city that never rests! One cannot imagine the volume of cars and traffic until you see it for yourself. China’s economy is one of the fastest-growing economies in the world. As a market, it has been virtually untapped by western manufacturers.		Ryan Lai (foreground, second from right) of eBay Motors talked with buyers. Dan Tsuchiya (back right), eBay’s director of merchant development and Sumip Patel, the firm’s Cross Border Trade Manager back center), also participated in the program. “It’s important for us to learn the market and what’s possible for our U.S. sellers when they start selling into China,” Tsuchiya said. “It’s one of the BRICS countries, and when one understands the increasing wealth in the country and the desire for what we have in the West, it’s clear that this is a growth opportunity.”
Debra Sweet (center), international sales manager for Penda Corp. “What I appreciated the most about my experience was that the entire trip was very thoughtfully planned out to give me the best opportunity to meet the proper buyers for my product line. Without the assistance of SEMA providing pre-approved buyers, I would have spent at least six to 12 months to establish the same number and quality of leads that I gained in just two days,” noted Sweet.		“China is rapidly becoming one of the largest consumer markets in the world,” said Kevin Floody (second from right), international business manager for K&N Engineering. “China’s middle-class population is set to accelerate and is expected to double to 500 million by 2020. If you haven’t done so yet, now is when you should change your perception of China as purely a country for manufacturing cheap products and start appreciating it as a huge consumer market.”
“The international automotive landscape is changing, and China is most certainly one of the countries that is leading the way in positive growth and higher expectations,” said Brad Otoupalik (far right), MagnaFlow’s director of international business development. “MagnaFlow is working to be a part of that growth in a powerful way by bringing our high-quality products and 30-plus years of research to the consumer marketplace in China. The trip with SEMA was an excellent showcase of the potential market while allowing us to directly connect to many distributors, shop owners and enthusiasts.”		Radflo Suspension Technology, a California-based manufacturer of performance shock absorbers, responded to inquires from resellers about the company’s line of products designed to improve vehicle handling and performance. “China as a market for our products has become a large focus of our business,” said Glenn Classen (right), the company’s president. “We have seen a huge demand and expect exponential growth through our dealer base for products we both manufacture and sell. We think it’s great that our Chinese customers are looking for quality and are able to identify with our brand.”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”

SEMA News—December 2013

BUSINESS TECHNOLOGY

Rapid Change Calls for Immediate Attention

From the Data Co-op to Responsive Websites, Staying Current Is Critical

By Steve Campbell

	Current studies suggest that up to 90% of shopping now begins with an Internet search, and mobile is overhauling other search devices. No wonder the Online Marketing seminars at the SEMA Show are among the most popular.

Current studies suggest that up to 90% of shopping now begins with an Internet search, whether the product is ultimately purchased online or through a brick-and-mortar retail store. And mobile is overhauling other search devices, with tablets alone projected to account for 65% of all sales made on mobile devices. That’s a rapid change from only a short time ago.

“It’s like dog years, where one year is actually seven years worth of change,” said Bob Moore, partner in the automotive aftermarket consulting company J&B Service in Kansas City, Missouri. “For example, I was looking at a presentation we did in 2010, and while there were references to mobile devices, like smartphones and PDAs, there was no reference to tablets. The original iPad was released in April of 2010. Now we’re reading about how tablets are becoming more predominant than the PC. That underscores the need to keep up on technology, especially as it relates to business.”

Companies are recognizing that necessity across the automotive specialty-equipment spectrum and are making changes to their systems and software. K&N Engineering in Riverside, California, is one of the most forward-thinking organizations, and it has embraced technology in as many ways as possible.

“We have redesigned the knfilters.com and aemintakes.com websites to provide a better experience on mobile devices,” said Tim Martin, K&N’s vice president. “A traditional website does not work well on a smartphone, so our sites were modified to provide streamlined product search capabilities, dealer locators and other features. Consumers increasingly use mobile devices to learn about our products.”

	Performance Warehouse uses data from Polk and its catalog lookups to fine-tune inventory management for replacement parts, and the SEMA Data Co-op helps the company carry over that same process to its specialty-equipment lines.

K&N also uses analytics software to assess website traffic, online advertising, print advertising, social media and other consumer marketing, Martin said. The business turns to e-mail marketing software to provide product and company information to its distributors, retailers and consumers and software tools to help the company better understand customer buying trends and make merchandising recommendations to distributors and retailers.

Meanwhile, warehouse distributor Performance Warehouse in Portland, Oregon, has been leveraging manufacturer data to fine-tune its inventory management. JR Moore, president, said that the company uses Polk data coupled with catalog data to contrast what the WD stocks with what it actually sells.

“Previously, we had always believed that we should stock a lot of replacement parts for the vehicles that were popular in the area,” he said. “But we’ve discovered that those vehicles may not wear out the parts we were stocking, so we’ve been able to better manage inventory. The SEMA Data Co-op (SDC) helps us carry over that same process to our specialty-equipment lines—determining how many bug shields or running boards we stock based on the popularity of the lookups we get on our electronic catalogs. That helps us have the right part at the right time.”

The SDC has made huge strides in the past year. Its founding principal was to gather and provide robust, clean data so that partner companies could deliver and receive information to make websites more accessible and usable for each other and—more importantly—to enable consumers to use PCs and mobile devices in searches for the information they needed to make smart purchases.

“The SEMA Data Co-op was still pretty much only a concept just a year ago,” said Bob Moore, “so it is incredible what progress CEO Jon Wyly, Vice President Bob Castle and the team there have made. They’re in full production. They have a Product Information Management (PIM) solution deployed. They have 400 companies signed up, and 70% of them are regularly trading data through the SDC. It’s pretty mind-boggling how far it has come.”

Martin said that K&N is a data supplier to the SDC and is pleased with the services, receiving positive feedback from distributors that have exported information for K&N’s brands.

Companies across the automotive specialty-equipment spectrum are making changes to their systems and software. K&N Engineering has redesigned its websites to provide streamlined product search capabilities, dealer locators and other features on both PCs and mobile devices.

“Anything that improves data accuracy is helpful,” Martin said. “The consistency of the SEMA Data Co-op export processes across a large number of brands can benefit distributors and retailers and make it more likely that their product data is accurate and timely.”

Bob Moore said that the SDC staff is currently working on three broad initiatives that will further enhance the system: data on demand, do-it-for-me (DIFM) data services and SEMA Search.

“‘Data on demand’ is the way mobile apps work,” Moore said. “They use what are called web services to grab data off the web and display it on the mobile device. The SDC is developing that type of system to supercharge the ability to use the SDC with mobile devices and to allow brick-and-mortar and web users access to the full repository of data without actually having to store it.”

The second piece is helping manufacturers gather their product information—populating data fields, in tech speak—to provide the greatest breadth of specifications, images and videos possible for use by consumers.

“For some suppliers, getting over the initial hump of their first data upload into the SDC can be overwhelming,” Moore said. “In 2014, the SDC will be adding DIFM data services to help address that challenge, with the goal of handing the steering wheel of ongoing data management back to the supplier once that initial heavy lifting is completed, staying true to the SDC goal of complete supplier ownership and control of their data.”

And SEMA Search will use all that information, all those data fields, to provide the type of intuitive search that an engine such as Google performs. It will be a multi-purpose engine to enable lookups of all types rather than just by year, make and model.

“You’ll be able to look for a specific part based on its size, its horsepower rating or the type of material it’s made from,” Moore said. “For instance, you could ask to see a blower drive belt that’s 36 in. in diameter with 10 teeth per inch, or you could ask for a piece of titanium tubing with a 2.5-in. outside diameter to use in a chassis.”

JR Moore said that the major emphasis at the PWA conference this year was to get SEMA manufacturers in the same position as the replacement-parts manufacturers, providing WDs and retailers with ACES and PIES data so that they can better determine what they need to stock or not stock. ACES stands for Aftermarket Catalog Enhanced Standard, and it’s the industry standard for the management and exchange of automotive catalog and vehicle data. PIES stands for Product Information Exchange Standard, which defines attributes of automotive products that include brand identification, description, price, dimensions, weights and so on.

“We’re using the SDC to develop an online catalog for our business-to-business and business-to-consumer sites,” Moore said. “The ACES data is beginning to gather some strength and will be a great help to us in selling and managing our inventory. We are also in development for better utilizing the PIES data.”

	SEMA’s Technology Transfer, its new Faro arm and 3-D printer at the SEMA Garage-Industry Innovations Center allow members to use CAD files to create testable versions of parts. These and other technologies are available to member companies at discounted rates.

He noted that Performance Warehouse had a leg up on the process even before the SDC was created because of its relationship with K&N.

“K&N sent us inventory feeds every day so that we knew what they had in stock,” he said. “They also sent us ACES files––the application data––which told us that filter X fits vehicles A, B and C. That’s why I’m excited about the SDC. As it provides more ACES data, we’ll be able to leverage that in our inventory management as well as our catalog lookups for B2B and B2C customers. It’s going to create a bigger audience for SEMA products.”

Bob Moore cautioned that the industry also needs to ensure that the legacy systems—the systems that the distributors and the manufacturers already have in place—are going to be capable of using the more complete data from the SDC.

“We’re trying to work with the third-party legacy system providers that are making enterprise software systems for distributors and manufacturers so that they understand what the specifications are and what SEMA members need in order to accommodate what comes out of the SDC as well as what they’re going to need in order to do business in this new environment,” he said.

SEMA also unveiled another significant technology enhancement recently: SEMA Garage-Industry Innovations Center. The 15,000-sq.-ft. facility adjacent to SEMA headquarters in Diamond Bar, California, includes not only a full mechanic’s garage, media center and installation bays, but also advanced design technologies and emissions testing consistent with the California Air Resources Board requirements for Executive Order certification.

Mike Spagnola, SEMA vice president for OEM and product-development programs, said that members can now go from design to prototyping to emissions testing without ever having to actually manufacture a part, and it can be done in weeks rather than months.

“We now have a Faro arm, also called a coordinate-measuring machine, along with some PolyWorks software,” Spagnola said. “We can use it to scan complete vehicles or individual parts. In the case of specialty parts—parts or tooling that were created prior to the advent of computer-aided design (CAD), for instance––we can do custom scanning for specific components that not everybody may want. From there, we can also do 3-D printing.”

The 3-D printer at SEMA Garage allows members to use CAD files to create testable versions of parts and is a further adjunct of the Technology Transfer program that SEMA has built over more than a decade. Using either Technology Transfer files from Ford, GM, Chrysler or Scion or files developed using the Faro arm, the SEMA Garage team can create a part to the member’s specifications on the 3-D printer. Then, in the case of an engine part, for instance, they can actually run tests on the in-house dynamometer and provide emissions and horsepower data.

The services at SEMA Garage are offered to association members at discounted rates, generally about a third less than is available using other sources. Custom scanning is priced at $65 an hour, and 3-D printing is $12 per cubic inch. The testing services are also discounted, but the prices depend upon the specific tests that are run.

“If members want data on a vehicle that we’ll have at scheduled measuring session, we ask them to either come to the session or let us know in advance what they’re looking to have scanned,” Spagnola said. “The limitation there is the amount of time we have the vehicle, but we are often getting vehicles for longer-term usage.”

The SEMA Garage team can also send the data and images gathered from measuring and photo sessions to the SDC, providing real SEMA synergy.

SEMA members who would like to take advantage of SEMA Garage services can contact Gary Pis at garyp@sema.org or 909-978-6732 or Mike Spagnola at mikes@sema.org or 909-978-6707.

These types of technologies are only going to progress and become more common, so businesses should involve themselves as soon as possible in the latest developments.

“If you’re sitting on your thumbs waiting for technology to settle out, you’re making a horrible strategic move,” Bob Moore counseled. “It’s dog years. Would you wait another seven to make an important decision about your business?”