SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

California State Legislature:

While most of the national attention during last November’s election was devoted to the presidential race, an event critical to the state of California also created news. With all the votes counted, one party has garnered enough seats in both houses of California’s legislature to now govern the state with a supermajority that can overturn a governor’s veto. Democrats now hold 54 seats of California’s 80-seat assembly and 25 of the 40 state senate seats. With a supermajority, Democrats will no longer need Republican support to pass tax increases. Article 13A of California’s constitution notes that “any change in state statute which results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.”

California Vehicle Licensing Tax:

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit. In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.”

Wyoming Registration Fees:

SEMA is working with Wyoming lawmakers to oppose legislation pre-filed for consideration in 2013 that would increase vehicle registration fees by $10 for passenger vehicles and would double registration fees based on unladen vehicle weight for non-commercial trucks. For example, the registration fee for a vehicle weighing 6,001 pounds or more would rise from $60 to $120. In addition, the bill increases the gasoline and diesel fuel taxes by $.10 per gallon.

Canada Toxic Substances:

Legislation has been introduced in the Canadian Parliament to prohibit the sale, importation or advertisement of any product that contains a toxic substance unless the product contains a warning label on one or more surfaces of its packaging. Under the bill, a “toxic substance” is defined as any substance identified as carcinogenic by various bodies, including the U.S. Environmental Protection Agency, the U.S. National Toxicology Program, the California Air Resources Board, any directive of the European Parliament or Council of the European Union and various other bodies that classify toxic substances. The prohibitions would also include any substance that is prescribed as toxic in the regulations required by the measure.

State Automotive Enthusiast Leadership Caucus Dinner

Members of the State Automotive Enthusiast Leadership Caucus gathered again this past November to meet with SEMA staff and enjoy the 2012 SEMA Show in Las Vegas. In attendance were (left to right) Representative Joe Pitre (New Hampshire), Senator Mark Manendo (Nevada), Representative Stan Blake (Wyoming), Representative Elaine Bowers (Kansas), Senator Ted Gaines (California), Senator David Parks (Nevada), Representative Nikki Randall (Georgia), Assemblymember Bill Reilich (New York) and Assemblymember Richard Carrillo (Nevada).

FEDERAL UPDATE

Tire-Pressure Monitoring Systems (TPMS):

The National Highway Traffic Safety Administration (NHTSA) has issued survey results on the effectiveness of TPMS. The technical report analyzes a sampling of data collected from tires mounted on model year ’04–’07 vehicles. The survey found that 23.1% of the vehicles without TPMS had at least one severely underinflated tire (25% or more below the recommended cold tire pressure). Only 11.8% of TPMS-equipped vehicles had an underinflated tire. The percentage dropped even further, to just 5.7%, for a sampling of model year ’08–’11 vehicles. The NHTSA also estimates that its TPMS rule saved $511 million in 2011 in reduced fuel consumption as a result of more properly inflated tires.

Proposed National Monument Threat to OHV Trails:

SEMA joined with the Off Road Business Association (ORBA) and a number of other motorized recreation groups to oppose designating 1.4 million acres of land in Utah as a national monument. The area surrounds Canyonlands National Park and is referred to as “Greater Canyonlands.” There is no widespread local or congressional support for the designation, which could threaten to close off-highway vehicle (OHV) use and shared access. The president has the authority to declare a national monument, but monuments are typically small in acreage. A number of conservation groups are now pressuring President Obama to designate the large swathe of Utah land and simultaneously close 1,050 miles of OHV routes and monitor 1,450 miles for possible future closure. SEMA and its motorized recreation partners sent a letter to the president urging the administration to abandon the idea, citing the positive economic impact of motorized recreation activities, which account for more than $257 billion in annual economic impact nationwide. The letter calls for a more collaborative approach to land-use decisions, including input from local citizens, elected leaders and other stakeholders.

Fourth Collector Car Appreciation Day to Be Celebrated on July 12, 2013

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) announced that the next Collector Car Appreciation Day will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its councils will once again seek a congressional resolution to recognize the day’s significance. The industry endeavors to preserve the nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector-car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As we prepare for the fourth celebration of our nation’s automotive heritage, enthusiasts and related businesses are already planning open houses, car cruises, club gatherings and educational events to mark this annual commemoration. In fact, Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada and Australia.”

Congressional Automotive Performance and Motorsports Caucus Co-Chairs Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) sponsored the previous resolutions. Senators Tester and Burr have been strong advocates for the automotive hobby in D.C. and recognize the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports.

“Over the past three years, thousands of enthusiasts and collectors have celebrated their hobby at events throughout the country,” said Alex Tainsh, chairman of ARMO. “The event continues to grow in prominence as a summer holiday for the hobby. This year, we look forward to partnering with enthusiasts, car clubs and businesses to make this the largest celebration to date.”

Said Rick Love, chairman-elect of HRIA: “Collector Car Appreciation Day is an opportunity for hobbyists to share their passion for the automotive hobby. Each year, more events are held to raise awareness of the unique educational and economic impact of collector-car enthusiasts across the globe.”

SEMA will maintain and publicize a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Colby Martin, director of the SEMA Action Network (SAN), at 909-978-6721 or san@sema.org. For those unable to celebrate on July 12, 2013, SEMA encourages events to be scheduled throughout the month of July. 

SEMA News—February 2013

INTERNET
By Joe Dysart

Windows 8

Microsoft’s Big Bet

	Microsoft CEO Steve Ballmer has characterized Windows 8 as a complete “re-imagining” of the operating system.

Sporting a radical redesign that’s expected to charm some and disappoint others, Microsoft’s new Windows 8 operating system (OS) faces a tough slog, including a slow adoption rate, analysts said recently.

“The challenges of a new user interface, a complex set of processor choices and a long ramp to a compelling set of app offerings in the Microsoft Store will translate to a slower-than-usual Windows upgrade cycle,” said Frank E. Gillett, an analyst with research and advisory firm Forrester.

Gillett is the lead author of a new Forrester report entitled “Windows: The Next Five Years”. The study predicts a grim forecast for Windows 8 next year, concluding that Microsoft could re-stabilize long-term market acceptance of its Windows product line with the right moves.

Microsoft is betting big on the new OS, which is driven by touch-screen controls for the first time. The change makes Windows much easier to use on smartphones and tablets. But the new interface comes across as clunky and inefficient on traditional desktops, according to many early adopters.

“This common design language is being used across all of Microsoft’s products and services, including Xbox and Bing,” Gillett said. “Users will switch to ‘desktop mode’ to run existing Windows desktop apps and to access some systems settings and features. This dual OS personality will likely confuse many users, at least at first.”

Gillett said that even though Forrester is encouraging enterprises to look at Windows 8 in all use cases, the new Windows 8 UX Start screen is prompting concerns about the need for extensive employee training.

“Having finally migrated to Windows 7 in significant numbers and released their death grip on Windows XP, many enterprise IT shops are content to stand pat,” he explained.

	Microsoft’s first sale of its Surface tablet.

Microsoft CEO Steve Ballmer sees things differently.

“We have re-imagined Windows, and the result is a stunning lineup of new PCs,” he said. “Windows 8 brings together the best of the PC and the tablet. It’s perfect for work and play, and it is alive with your world. Every one of our customers will find a PC that they will absolutely love.”

Not surprisingly, Microsoft is putting significant marketing muscle behind the new rollout—including the release of its own, Microsoft-manufactured tablet for Windows 8, the Surface.

“We decided to do Surface because it’s the ultimate expression of a Windows PC for us,” said Steven Sinofsky, president of MS Windows Division. “It’s an extension of Windows. It’s a stage for Windows.”

Microsoft partners are also releasing their own studies, which indicate that user interest is more enthusiastic than others have found. For example, PC Helps—a Microsoft gold-certified partner—said that 25% of employers with 500 or more employees anticipated migrating to Windows 8, according to its Windows Pulse Survey. And 17% of those employers said that they expected to start migrating to Windows 8 as soon as the OS was available.

Besides facing initial resistance from desktop users, Windows 8 is also in desperate need of cool. Currently, it’s all too fashionable for consumers to bash anything new from Microsoft, while they genuflect at the altar of all things Apple.

For example, an Associated Press/GfK poll conducted just prior to the release of Windows 8 found that 52% of 1,200 people surveyed were not even aware that Microsoft was releasing a new operating system. Moreover, 61% of those who were aware of Windows 8 expressed little or no interest in the software. And only 35% of those in the know thought that Windows 8 would be an improvement over previous versions.

That’s a far cry from new releases of Apple iPhones and iPads, which are regularly accompanied by news stories of hordes of diehard Apple fans camping out for days to snatch the latest version of their digital nirvana. And there are other market factors outside Microsoft’s control conspiring to make Windows 8 a tough sell.

“PCs are going through a severe slump,” said Jay Chou, senior analyst at IDC, a market research firm. “The industry had already weathered a rough second quarter, and the third quarter was even worse. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter.”

In addition, stubborn economic times are a continued drag on the market.

“Businesses slowed their refresh cycle as they remained concerned about the broad economic outlook amid a busy political season,” said David Daoud, a research director at IDC.

	Microsoft’s Surface was designed as a “stage” for Windows 8, according to Steven Sinofsky, president of MS Windows Division.

While that’s sobering news for Microsoft, others celebrated the challenging outlook for Windows 8. They saw the anticipated resistance to the new OS as a resounding confirmation that Microsoft’s often stultifying monopoly over the personal computing market—which lasted for decades—has finally been crushed.

Essentially, personal computing has evolved from a desktop-only affair into a decidedly on-the-go market, they said. Microsoft now faces two formidable competitors—Apple and Google—which also have smarts and very deep pockets.

“Until smartphones arrived, Microsoft ruled the PC industry roost,” Forrester’s Gillett said. “Now smartphone and tablet sales—where Microsoft has little share—vastly outnumber [desktop] sales.”

Indeed, in the new reality of personal computing via smartphones and tablets in addition to desktops, Microsoft’s share of the personal computing market has shrunk from 95% penetration on all devices to just 30%, Gillett said.

“From 2008–2012, global smartphone sales exploded from about 140 million to more than 660 million, and tablets emerged to similarly explosive growth,” Gillett said. “And we’re only part way through the shift. The PC’s share of total personal devices will continue to decline in coming years—even as PC unit sales gradually grow.”

Through it all, Microsoft’s attempts to become a player in the smartphone market have been rebuffed.

“So far, Windows Phone has captured only a small share of the largest personal device market, some of it with the now obsolete Windows Mobile OS,” Gillett said. Ergo, Microsoft’s big bet on a touch-centric Windows.

“Early adopters will jump at Windows tablets,” Gillett said. “Beyond that, individuals will be slow to adopt. Windows will ramp in 2014 and gain almost a 30% share of tablets by 2016 but will miss out on phones.”

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
For more information: 646-233-4089; joe@joedysart.com;
visit www.joedysart.com

SEMA News—February 2013

INTERNET
By Joe Dysart

Windows 8

Microsoft’s Big Bet

	Microsoft CEO Steve Ballmer has characterized Windows 8 as a complete “re-imagining” of the operating system.

Sporting a radical redesign that’s expected to charm some and disappoint others, Microsoft’s new Windows 8 operating system (OS) faces a tough slog, including a slow adoption rate, analysts said recently.

“The challenges of a new user interface, a complex set of processor choices and a long ramp to a compelling set of app offerings in the Microsoft Store will translate to a slower-than-usual Windows upgrade cycle,” said Frank E. Gillett, an analyst with research and advisory firm Forrester.

Gillett is the lead author of a new Forrester report entitled “Windows: The Next Five Years”. The study predicts a grim forecast for Windows 8 next year, concluding that Microsoft could re-stabilize long-term market acceptance of its Windows product line with the right moves.

Microsoft is betting big on the new OS, which is driven by touch-screen controls for the first time. The change makes Windows much easier to use on smartphones and tablets. But the new interface comes across as clunky and inefficient on traditional desktops, according to many early adopters.

“This common design language is being used across all of Microsoft’s products and services, including Xbox and Bing,” Gillett said. “Users will switch to ‘desktop mode’ to run existing Windows desktop apps and to access some systems settings and features. This dual OS personality will likely confuse many users, at least at first.”

Gillett said that even though Forrester is encouraging enterprises to look at Windows 8 in all use cases, the new Windows 8 UX Start screen is prompting concerns about the need for extensive employee training.

“Having finally migrated to Windows 7 in significant numbers and released their death grip on Windows XP, many enterprise IT shops are content to stand pat,” he explained.

	Microsoft’s first sale of its Surface tablet.

Microsoft CEO Steve Ballmer sees things differently.

“We have re-imagined Windows, and the result is a stunning lineup of new PCs,” he said. “Windows 8 brings together the best of the PC and the tablet. It’s perfect for work and play, and it is alive with your world. Every one of our customers will find a PC that they will absolutely love.”

Not surprisingly, Microsoft is putting significant marketing muscle behind the new rollout—including the release of its own, Microsoft-manufactured tablet for Windows 8, the Surface.

“We decided to do Surface because it’s the ultimate expression of a Windows PC for us,” said Steven Sinofsky, president of MS Windows Division. “It’s an extension of Windows. It’s a stage for Windows.”

Microsoft partners are also releasing their own studies, which indicate that user interest is more enthusiastic than others have found. For example, PC Helps—a Microsoft gold-certified partner—said that 25% of employers with 500 or more employees anticipated migrating to Windows 8, according to its Windows Pulse Survey. And 17% of those employers said that they expected to start migrating to Windows 8 as soon as the OS was available.

Besides facing initial resistance from desktop users, Windows 8 is also in desperate need of cool. Currently, it’s all too fashionable for consumers to bash anything new from Microsoft, while they genuflect at the altar of all things Apple.

For example, an Associated Press/GfK poll conducted just prior to the release of Windows 8 found that 52% of 1,200 people surveyed were not even aware that Microsoft was releasing a new operating system. Moreover, 61% of those who were aware of Windows 8 expressed little or no interest in the software. And only 35% of those in the know thought that Windows 8 would be an improvement over previous versions.

That’s a far cry from new releases of Apple iPhones and iPads, which are regularly accompanied by news stories of hordes of diehard Apple fans camping out for days to snatch the latest version of their digital nirvana. And there are other market factors outside Microsoft’s control conspiring to make Windows 8 a tough sell.

“PCs are going through a severe slump,” said Jay Chou, senior analyst at IDC, a market research firm. “The industry had already weathered a rough second quarter, and the third quarter was even worse. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter.”

In addition, stubborn economic times are a continued drag on the market.

“Businesses slowed their refresh cycle as they remained concerned about the broad economic outlook amid a busy political season,” said David Daoud, a research director at IDC.

	Microsoft’s Surface was designed as a “stage” for Windows 8, according to Steven Sinofsky, president of MS Windows Division.

While that’s sobering news for Microsoft, others celebrated the challenging outlook for Windows 8. They saw the anticipated resistance to the new OS as a resounding confirmation that Microsoft’s often stultifying monopoly over the personal computing market—which lasted for decades—has finally been crushed.

Essentially, personal computing has evolved from a desktop-only affair into a decidedly on-the-go market, they said. Microsoft now faces two formidable competitors—Apple and Google—which also have smarts and very deep pockets.

“Until smartphones arrived, Microsoft ruled the PC industry roost,” Forrester’s Gillett said. “Now smartphone and tablet sales—where Microsoft has little share—vastly outnumber [desktop] sales.”

Indeed, in the new reality of personal computing via smartphones and tablets in addition to desktops, Microsoft’s share of the personal computing market has shrunk from 95% penetration on all devices to just 30%, Gillett said.

“From 2008–2012, global smartphone sales exploded from about 140 million to more than 660 million, and tablets emerged to similarly explosive growth,” Gillett said. “And we’re only part way through the shift. The PC’s share of total personal devices will continue to decline in coming years—even as PC unit sales gradually grow.”

Through it all, Microsoft’s attempts to become a player in the smartphone market have been rebuffed.

“So far, Windows Phone has captured only a small share of the largest personal device market, some of it with the now obsolete Windows Mobile OS,” Gillett said. Ergo, Microsoft’s big bet on a touch-centric Windows.

“Early adopters will jump at Windows tablets,” Gillett said. “Beyond that, individuals will be slow to adopt. Windows will ramp in 2014 and gain almost a 30% share of tablets by 2016 but will miss out on phones.”

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
For more information: 646-233-4089; joe@joedysart.com;
visit www.joedysart.com

SEMA News—February 2013

INTERNET
By Joe Dysart

Windows 8

Microsoft’s Big Bet

	Microsoft CEO Steve Ballmer has characterized Windows 8 as a complete “re-imagining” of the operating system.

Sporting a radical redesign that’s expected to charm some and disappoint others, Microsoft’s new Windows 8 operating system (OS) faces a tough slog, including a slow adoption rate, analysts said recently.

“The challenges of a new user interface, a complex set of processor choices and a long ramp to a compelling set of app offerings in the Microsoft Store will translate to a slower-than-usual Windows upgrade cycle,” said Frank E. Gillett, an analyst with research and advisory firm Forrester.

Gillett is the lead author of a new Forrester report entitled “Windows: The Next Five Years”. The study predicts a grim forecast for Windows 8 next year, concluding that Microsoft could re-stabilize long-term market acceptance of its Windows product line with the right moves.

Microsoft is betting big on the new OS, which is driven by touch-screen controls for the first time. The change makes Windows much easier to use on smartphones and tablets. But the new interface comes across as clunky and inefficient on traditional desktops, according to many early adopters.

“This common design language is being used across all of Microsoft’s products and services, including Xbox and Bing,” Gillett said. “Users will switch to ‘desktop mode’ to run existing Windows desktop apps and to access some systems settings and features. This dual OS personality will likely confuse many users, at least at first.”

Gillett said that even though Forrester is encouraging enterprises to look at Windows 8 in all use cases, the new Windows 8 UX Start screen is prompting concerns about the need for extensive employee training.

“Having finally migrated to Windows 7 in significant numbers and released their death grip on Windows XP, many enterprise IT shops are content to stand pat,” he explained.

	Microsoft’s first sale of its Surface tablet.

Microsoft CEO Steve Ballmer sees things differently.

“We have re-imagined Windows, and the result is a stunning lineup of new PCs,” he said. “Windows 8 brings together the best of the PC and the tablet. It’s perfect for work and play, and it is alive with your world. Every one of our customers will find a PC that they will absolutely love.”

Not surprisingly, Microsoft is putting significant marketing muscle behind the new rollout—including the release of its own, Microsoft-manufactured tablet for Windows 8, the Surface.

“We decided to do Surface because it’s the ultimate expression of a Windows PC for us,” said Steven Sinofsky, president of MS Windows Division. “It’s an extension of Windows. It’s a stage for Windows.”

Microsoft partners are also releasing their own studies, which indicate that user interest is more enthusiastic than others have found. For example, PC Helps—a Microsoft gold-certified partner—said that 25% of employers with 500 or more employees anticipated migrating to Windows 8, according to its Windows Pulse Survey. And 17% of those employers said that they expected to start migrating to Windows 8 as soon as the OS was available.

Besides facing initial resistance from desktop users, Windows 8 is also in desperate need of cool. Currently, it’s all too fashionable for consumers to bash anything new from Microsoft, while they genuflect at the altar of all things Apple.

For example, an Associated Press/GfK poll conducted just prior to the release of Windows 8 found that 52% of 1,200 people surveyed were not even aware that Microsoft was releasing a new operating system. Moreover, 61% of those who were aware of Windows 8 expressed little or no interest in the software. And only 35% of those in the know thought that Windows 8 would be an improvement over previous versions.

That’s a far cry from new releases of Apple iPhones and iPads, which are regularly accompanied by news stories of hordes of diehard Apple fans camping out for days to snatch the latest version of their digital nirvana. And there are other market factors outside Microsoft’s control conspiring to make Windows 8 a tough sell.

“PCs are going through a severe slump,” said Jay Chou, senior analyst at IDC, a market research firm. “The industry had already weathered a rough second quarter, and the third quarter was even worse. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter.”

In addition, stubborn economic times are a continued drag on the market.

“Businesses slowed their refresh cycle as they remained concerned about the broad economic outlook amid a busy political season,” said David Daoud, a research director at IDC.

	Microsoft’s Surface was designed as a “stage” for Windows 8, according to Steven Sinofsky, president of MS Windows Division.

While that’s sobering news for Microsoft, others celebrated the challenging outlook for Windows 8. They saw the anticipated resistance to the new OS as a resounding confirmation that Microsoft’s often stultifying monopoly over the personal computing market—which lasted for decades—has finally been crushed.

Essentially, personal computing has evolved from a desktop-only affair into a decidedly on-the-go market, they said. Microsoft now faces two formidable competitors—Apple and Google—which also have smarts and very deep pockets.

“Until smartphones arrived, Microsoft ruled the PC industry roost,” Forrester’s Gillett said. “Now smartphone and tablet sales—where Microsoft has little share—vastly outnumber [desktop] sales.”

Indeed, in the new reality of personal computing via smartphones and tablets in addition to desktops, Microsoft’s share of the personal computing market has shrunk from 95% penetration on all devices to just 30%, Gillett said.

“From 2008–2012, global smartphone sales exploded from about 140 million to more than 660 million, and tablets emerged to similarly explosive growth,” Gillett said. “And we’re only part way through the shift. The PC’s share of total personal devices will continue to decline in coming years—even as PC unit sales gradually grow.”

Through it all, Microsoft’s attempts to become a player in the smartphone market have been rebuffed.

“So far, Windows Phone has captured only a small share of the largest personal device market, some of it with the now obsolete Windows Mobile OS,” Gillett said. Ergo, Microsoft’s big bet on a touch-centric Windows.

“Early adopters will jump at Windows tablets,” Gillett said. “Beyond that, individuals will be slow to adopt. Windows will ramp in 2014 and gain almost a 30% share of tablets by 2016 but will miss out on phones.”

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
For more information: 646-233-4089; joe@joedysart.com;
visit www.joedysart.com

SEMA News—February 2013

INTERNET
By Joe Dysart

Windows 8

Microsoft’s Big Bet

	Microsoft CEO Steve Ballmer has characterized Windows 8 as a complete “re-imagining” of the operating system.

Sporting a radical redesign that’s expected to charm some and disappoint others, Microsoft’s new Windows 8 operating system (OS) faces a tough slog, including a slow adoption rate, analysts said recently.

“The challenges of a new user interface, a complex set of processor choices and a long ramp to a compelling set of app offerings in the Microsoft Store will translate to a slower-than-usual Windows upgrade cycle,” said Frank E. Gillett, an analyst with research and advisory firm Forrester.

Gillett is the lead author of a new Forrester report entitled “Windows: The Next Five Years”. The study predicts a grim forecast for Windows 8 next year, concluding that Microsoft could re-stabilize long-term market acceptance of its Windows product line with the right moves.

Microsoft is betting big on the new OS, which is driven by touch-screen controls for the first time. The change makes Windows much easier to use on smartphones and tablets. But the new interface comes across as clunky and inefficient on traditional desktops, according to many early adopters.

“This common design language is being used across all of Microsoft’s products and services, including Xbox and Bing,” Gillett said. “Users will switch to ‘desktop mode’ to run existing Windows desktop apps and to access some systems settings and features. This dual OS personality will likely confuse many users, at least at first.”

Gillett said that even though Forrester is encouraging enterprises to look at Windows 8 in all use cases, the new Windows 8 UX Start screen is prompting concerns about the need for extensive employee training.

“Having finally migrated to Windows 7 in significant numbers and released their death grip on Windows XP, many enterprise IT shops are content to stand pat,” he explained.

	Microsoft’s first sale of its Surface tablet.

Microsoft CEO Steve Ballmer sees things differently.

“We have re-imagined Windows, and the result is a stunning lineup of new PCs,” he said. “Windows 8 brings together the best of the PC and the tablet. It’s perfect for work and play, and it is alive with your world. Every one of our customers will find a PC that they will absolutely love.”

Not surprisingly, Microsoft is putting significant marketing muscle behind the new rollout—including the release of its own, Microsoft-manufactured tablet for Windows 8, the Surface.

“We decided to do Surface because it’s the ultimate expression of a Windows PC for us,” said Steven Sinofsky, president of MS Windows Division. “It’s an extension of Windows. It’s a stage for Windows.”

Microsoft partners are also releasing their own studies, which indicate that user interest is more enthusiastic than others have found. For example, PC Helps—a Microsoft gold-certified partner—said that 25% of employers with 500 or more employees anticipated migrating to Windows 8, according to its Windows Pulse Survey. And 17% of those employers said that they expected to start migrating to Windows 8 as soon as the OS was available.

Besides facing initial resistance from desktop users, Windows 8 is also in desperate need of cool. Currently, it’s all too fashionable for consumers to bash anything new from Microsoft, while they genuflect at the altar of all things Apple.

For example, an Associated Press/GfK poll conducted just prior to the release of Windows 8 found that 52% of 1,200 people surveyed were not even aware that Microsoft was releasing a new operating system. Moreover, 61% of those who were aware of Windows 8 expressed little or no interest in the software. And only 35% of those in the know thought that Windows 8 would be an improvement over previous versions.

That’s a far cry from new releases of Apple iPhones and iPads, which are regularly accompanied by news stories of hordes of diehard Apple fans camping out for days to snatch the latest version of their digital nirvana. And there are other market factors outside Microsoft’s control conspiring to make Windows 8 a tough sell.

“PCs are going through a severe slump,” said Jay Chou, senior analyst at IDC, a market research firm. “The industry had already weathered a rough second quarter, and the third quarter was even worse. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter.”

In addition, stubborn economic times are a continued drag on the market.

“Businesses slowed their refresh cycle as they remained concerned about the broad economic outlook amid a busy political season,” said David Daoud, a research director at IDC.

	Microsoft’s Surface was designed as a “stage” for Windows 8, according to Steven Sinofsky, president of MS Windows Division.

While that’s sobering news for Microsoft, others celebrated the challenging outlook for Windows 8. They saw the anticipated resistance to the new OS as a resounding confirmation that Microsoft’s often stultifying monopoly over the personal computing market—which lasted for decades—has finally been crushed.

Essentially, personal computing has evolved from a desktop-only affair into a decidedly on-the-go market, they said. Microsoft now faces two formidable competitors—Apple and Google—which also have smarts and very deep pockets.

“Until smartphones arrived, Microsoft ruled the PC industry roost,” Forrester’s Gillett said. “Now smartphone and tablet sales—where Microsoft has little share—vastly outnumber [desktop] sales.”

Indeed, in the new reality of personal computing via smartphones and tablets in addition to desktops, Microsoft’s share of the personal computing market has shrunk from 95% penetration on all devices to just 30%, Gillett said.

“From 2008–2012, global smartphone sales exploded from about 140 million to more than 660 million, and tablets emerged to similarly explosive growth,” Gillett said. “And we’re only part way through the shift. The PC’s share of total personal devices will continue to decline in coming years—even as PC unit sales gradually grow.”

Through it all, Microsoft’s attempts to become a player in the smartphone market have been rebuffed.

“So far, Windows Phone has captured only a small share of the largest personal device market, some of it with the now obsolete Windows Mobile OS,” Gillett said. Ergo, Microsoft’s big bet on a touch-centric Windows.

“Early adopters will jump at Windows tablets,” Gillett said. “Beyond that, individuals will be slow to adopt. Windows will ramp in 2014 and gain almost a 30% share of tablets by 2016 but will miss out on phones.”

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
For more information: 646-233-4089; joe@joedysart.com;
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