SEMA News—December 2012

BUSINESS TECHNOLOGY
By Steve Campbell

Information Equals Sales

A Conversation With Bob Moore, Chairman of the SEMA Business Technology Committee

	Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of the industry’s newest sales-generation system, the SEMA Data Co-Op.

Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of standardized data and the SEMA Data Co-Op, the industry’s newest sales-generation system. He has been working in the automotive aftermarket since 1976 and is a partner with Jerry McCabe in J&B Service, a consulting company that specializes in the aftermarket.

A former member of the SEMA Board of Directors, Moore is also a volunteer for a variety of industry organizations. He spent some time with SEMA News again this year to provide an update on the industry’s data systems and the course of technology.

As our interview began, Moore noted that the SEMA Data Co-Op is up, running and open for business, and he pointed out that many people deserve the industry’s thanks, including Chris Kersting and the SEMA staff, the BTC and Jon Wyly, who was a member of the SEMA Board of Directors from 2002–2007, was one of the founders of the BTC, and was its first chairman. Wyly is now CEO of the SEMA Data Co-Op.

SEMA News: For those who may not be familiar with the SEMA Data Co-Op (SDC), could you give us a thumbnail description of the system and what it is designed to do?

Bob Moore: Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

The SEMA Data Co-Op itself is a centralized resource that helps manufacturers—the suppliers of products—get their product and marketing information into a shareable condition so that they can transfer it to any reseller partner they choose in order to sell more of their products. “Data” in this context simply means information about the product, including fitment information, such as the year, make and model of vehicle or what engine it fits or even what kind of chassis or drivetrain it goes on. It also includes product information required to do commerce, such as the descriptions of the part itself, its dimensions, how many come in a box, case or on a pallet, how much it weighs to calculate shipping, country of origin or hazardous material content.

		The SEMA Data Co-Op is up, running and open for business. It exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

But increasingly “data” also includes the stuff that resellers are really clamoring for—the marketing data that they need so badly to populate their websites, mobile apps and point-of-sale systems. That data can include images of the product itself, the product installed on a vehicle, happy people enjoying using the product, marketing features and benefits, even video and audio files. In a selling environment where consumers are using mobile devices, such as smartphones, tablets and pads to gather information on almost every purchase they make, resellers must have rich content that their customers need. And the only realistic and reliable place they can get it is from the companies that make the products they sell.

SN: So once a manufacturer has its data in the Co-op, retailers can pull the information they need in order to sell the manufacturer’s parts, correct?

BM: Yes, they have a single source from which they can pull images, specs, text, audio, schematics, video—any type of informational data to use to provide consumers everything they need to know to make an informed purchase decision. Some resellers may want to have that type of information available at a call center, because jobbers or customers call in looking for specific information and descriptions. Others will use it to populate websites. Regardless, the shared information from the Data Co-op ensures that buyers can get answers to all of the questions they have.

If you think about any shopping experience, whether it is online or across a counter, the more information that can be provided, the greater the likelihood that the consumer will make the purchase. The counterman has to be able to tell the customer not just the differences in prices between various products, but also the difference in value—what the products are made of, how they’re constructed, how they perform. What’s critical is being able to instantly access the data that enables a counterman to answer those questions for an in-store retail shopper or on a website to provide comparative data to an online customer.

People are often reluctant to buy something because there isn’t enough information available. They never decline to buy because there is too much information.

SN: Some people are still turned off by the term “data.” To them, everything should revolve around sales. Is there validity to that idea?

		More than 110 SEMA-member companies are already part of the Data Co-Op, including some of the most recognized brands in the industry.

BM: The SEMA Data Co-Op is a selling machine. I had a discussion with a manufacturer several years ago on this very point. He said that “data” never sold anything; that marketing sells products, not data. I knew he was an avid golfer and that he wanted to buy a new driver, so we went to a website and looked at videos of slow-motion swings showing the deflection of various types of shafts that equated to distance and accuracy charts. While we were sitting there looking, he decided to buy a particular driver. I pointed out to him that we had just gone through all kinds of data that led him to make his decision to spend $500 on a new driver. I can’t make a better case than that about how data sells.

It comes down to the information. Whether it is information for marketing or selling, it’s still data that makes the sale.

SN: How does a manufacturer go about getting his data into the Co-Op?

BM: Suppliers and receivers can simply fill out the “contact us” form at www.semadatacoop.org/contact-us, and the SDC help desk will proactively reach out to get the process started. Or they can call Jim Graven, director of membership, at 913-378-6133 and he will help them get connected. We currently have more than 110 SEMA companies actively putting in data and more than 50 resellers that are sharing data from those suppliers during the initial beta phase.

SN: Can the data be tailored to specific content types, such as desktop computers, mobile, print publications or point of sale?

BM: Yes, but let’s be clear: The reseller—whether it’s a wholesaler, a distributor, a jobber, a restyler, a machine shop, whatever—can only receive the data that the manufacturer grants permission to see. Each reseller has to get permission to receive specific information from the owner of the data. Not just anybody can download the information. The electronic data is treated the same as price sheets or catalogs. The manufacturer retains control of the information.

	Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

And let’s make one other point as well: You said earlier, “once a manufacturer’s data is in the data pool, then this can happen.” That little “once the data is in the data pool” statement is no small undertaking. There is application data, such as year, make and model, and there is also commerce data, such as how many come in a box, how much it weighs, its dimensions and so on. Then there is that whole range of marketing information that is critical to selling.

If you are selling cat-back exhausts, for instance, it is a hell of an advantage if you can let a customer listen to what the system sounds like installed on his or her specific vehicle. Some of the more progressive exhaust companies have uploaded audio files on their websites so that a customer can listen to what an exhaust product sounds like on a Camaro, Mustang or MINI Cooper.

This whole range of marketing data could be anything from bullet points to video files, but those do not magically appear. The data pool cannot write copy for the manufacturer, and it cannot take pictures of happy customers using a tonneau cover on a pickup. The manufacturer has to supply those things, so a lot has to happen to get the data into
the Co-op.

In most cases, the manufacturer already has this information, but it can’t be distributed until the data has been compiled, put into shareable condition and loaded into the Data Co-op. That is when the magic can happen.

In the beginning, manufacturers will likely put in basic application and product information and then build from there. In our experience, the more information they can include, the greater their sales will grow. There is a calculable relationship between the amount and quality of the information available and the likelihood that a consumer will make a purchase. And the receivers of the data, recognizing that fact, will eventually be going back to the manufacturers and asking for more information to help make the sale.

SN: All those different types of data you just talked about—text, images, video, audio—those can all be stored within the data pool?

		The SEMA Data Co-Op can make it easier, quicker and cheaper for all suppliers—large, medium and small—to get their information to retailers, making the overall shopping experience better for everybody.

BM: Absolutely, but it’s important to point out that not everybody needs every field in the Data Co-op. For instance, accurate color representation may be important to a manufacturer of seat covers but not to a manufacturer of engine bearings or pistons. If you’re selling an exhaust system, an audio file might be very important, but if you’re selling a lift kit, you don’t need an audio file. Common sense will dictate what you need.

SN: What about customizing the materials for an individual reseller who may not want a cookie-cutter data set?

BM: Excellent point. Not every receiver wants to get their data in the same way. The Data Co-Op works with the receivers to tailor the data to their requirements. The information can be translated from the standard formats into customized formats that an individual receiver wants. It’s much easier to do that from the pooled data than for the manufacturer to have to keep one set of data points for exactly the way Keystone wants it and another for the way NAPA wants it and another for the way Advance Auto Parts wants it. If a manufacturer can just put its data into a standardized set once, put it into the Data Co-Op, then we can translate it into the receiver’s required formats. That is a huge value-added extra.

SN: And then the receivers can tailor the data for how it will be used—in a print product, on a website, for a mobile app?

BM: Precisely. One of the frustrations that web sellers in particular have is that they will set up their website template to be able to display in a certain way. But they may only get really good data from a handful of their suppliers. That means that their site is missing photos or has no marketing bullet points on dozens of other products they carry. It makes for a very inconsistent shopping experience. The SEMA Data Co-op can make it easier, quicker and cheaper for all of the suppliers—large, medium and small—to get their information into a place where the reseller can pull it up, making the overall shopping experience better for everybody.

	There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched.

We embarked on this project 10 years ago because we saw that the aftermarket was not keeping up with technology, and collectively we were not able to sell our products as effectively as some other industries. To compete, it is absolutely critical that we are able to quickly and easily transmit information from manufacturers to sellers.

I think the latest numbers I saw indicated that 92% of all purchases begin with some type of Internet search. That doesn’t mean 92% of the products are going to be bought online but that some amount of the data gathering comes through the Internet—ranging from color and size choices to the location of retail outlets and price points. And much of that is now coming through mobile devices, such as smartphones
and tablets.

SN: Are there any limitations to the types of data that can be put into the Data Co-Op? What about things such as quick-response (QR) codes?

		The majority of consumers now begin shopping for products with an Internet search, whether for background information or to make their purchases. Smartphones and tablets are quickly capturing a huge portion of this web traffic.

BM: There is no limitation to what type of data could be put into the data pool, but there may be some limitations to the standardized fields as they are currently defined by the industry. For example, I don’t know that there is a placeholder for a QR code in the Product Information Exchange Standard (PIES). But what is important is that the SDC as an association-owned part of the industry is a critical player in the standards-setting community, and we can make additions or adjustments to the standards to accommodate the needs of the SEMA marketplace.

We are plugged into the larger automotive industry and are working across the replacement parts, tools, paint and heavy-duty marketplaces—even, in some cases, the marine and RV industries. In the case of new requirements, we would go to the governing bodies and say, “Here is how we propose to tag and label QR codes. Let’s all do it the same way.” If none of them have done it yet, they’ll either agree to our recommendation or suggest an alternative from another segment of the industry. That is how we will be able to come up with a common way of handling any new fields or new technology that might crop up.

Technology is constantly morphing. For instance, if you go onto a website today, you’re likely to encounter the classic hierarchical lookup using a dropdown menu to enter year, make and model information, even for generic items such as oil or paint. But we are now seeing the emergence of Google-type searches where someone who is looking for a product for a 2008 Ford F-250 simply enters 08 250 and the search engine asks, “Did you mean 2008 Ford F-250?” The search engines get smarter the more they’re queried about common items.

Rich marketing descriptions that take advantage of that technology make it possible for these new-age searches to be a lot more intuitive and a lot friendlier for both the trade and consumers. We have to have the wherewithal to be able to capture that, so the standards provide a place to record keywords, populating the marketing data with appropriate slang. It all starts with the basic data, but manufactures have to ensure that the data is populated and available to make this work. Increasingly that will mean having rich data populated in the SEMA Data Co-op.

There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched. If I can’t find the supercharger I’m looking for, it doesn’t make any difference that you can tell me there is a speed shop two miles from my home.

In the end, it’s like we always say: It really is all about the data.

SEMA News—December 2012

BUSINESS TECHNOLOGY
By Steve Campbell

Information Equals Sales

A Conversation With Bob Moore, Chairman of the SEMA Business Technology Committee

	Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of the industry’s newest sales-generation system, the SEMA Data Co-Op.

Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of standardized data and the SEMA Data Co-Op, the industry’s newest sales-generation system. He has been working in the automotive aftermarket since 1976 and is a partner with Jerry McCabe in J&B Service, a consulting company that specializes in the aftermarket.

A former member of the SEMA Board of Directors, Moore is also a volunteer for a variety of industry organizations. He spent some time with SEMA News again this year to provide an update on the industry’s data systems and the course of technology.

As our interview began, Moore noted that the SEMA Data Co-Op is up, running and open for business, and he pointed out that many people deserve the industry’s thanks, including Chris Kersting and the SEMA staff, the BTC and Jon Wyly, who was a member of the SEMA Board of Directors from 2002–2007, was one of the founders of the BTC, and was its first chairman. Wyly is now CEO of the SEMA Data Co-Op.

SEMA News: For those who may not be familiar with the SEMA Data Co-Op (SDC), could you give us a thumbnail description of the system and what it is designed to do?

Bob Moore: Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

The SEMA Data Co-Op itself is a centralized resource that helps manufacturers—the suppliers of products—get their product and marketing information into a shareable condition so that they can transfer it to any reseller partner they choose in order to sell more of their products. “Data” in this context simply means information about the product, including fitment information, such as the year, make and model of vehicle or what engine it fits or even what kind of chassis or drivetrain it goes on. It also includes product information required to do commerce, such as the descriptions of the part itself, its dimensions, how many come in a box, case or on a pallet, how much it weighs to calculate shipping, country of origin or hazardous material content.

		The SEMA Data Co-Op is up, running and open for business. It exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

But increasingly “data” also includes the stuff that resellers are really clamoring for—the marketing data that they need so badly to populate their websites, mobile apps and point-of-sale systems. That data can include images of the product itself, the product installed on a vehicle, happy people enjoying using the product, marketing features and benefits, even video and audio files. In a selling environment where consumers are using mobile devices, such as smartphones, tablets and pads to gather information on almost every purchase they make, resellers must have rich content that their customers need. And the only realistic and reliable place they can get it is from the companies that make the products they sell.

SN: So once a manufacturer has its data in the Co-op, retailers can pull the information they need in order to sell the manufacturer’s parts, correct?

BM: Yes, they have a single source from which they can pull images, specs, text, audio, schematics, video—any type of informational data to use to provide consumers everything they need to know to make an informed purchase decision. Some resellers may want to have that type of information available at a call center, because jobbers or customers call in looking for specific information and descriptions. Others will use it to populate websites. Regardless, the shared information from the Data Co-op ensures that buyers can get answers to all of the questions they have.

If you think about any shopping experience, whether it is online or across a counter, the more information that can be provided, the greater the likelihood that the consumer will make the purchase. The counterman has to be able to tell the customer not just the differences in prices between various products, but also the difference in value—what the products are made of, how they’re constructed, how they perform. What’s critical is being able to instantly access the data that enables a counterman to answer those questions for an in-store retail shopper or on a website to provide comparative data to an online customer.

People are often reluctant to buy something because there isn’t enough information available. They never decline to buy because there is too much information.

SN: Some people are still turned off by the term “data.” To them, everything should revolve around sales. Is there validity to that idea?

		More than 110 SEMA-member companies are already part of the Data Co-Op, including some of the most recognized brands in the industry.

BM: The SEMA Data Co-Op is a selling machine. I had a discussion with a manufacturer several years ago on this very point. He said that “data” never sold anything; that marketing sells products, not data. I knew he was an avid golfer and that he wanted to buy a new driver, so we went to a website and looked at videos of slow-motion swings showing the deflection of various types of shafts that equated to distance and accuracy charts. While we were sitting there looking, he decided to buy a particular driver. I pointed out to him that we had just gone through all kinds of data that led him to make his decision to spend $500 on a new driver. I can’t make a better case than that about how data sells.

It comes down to the information. Whether it is information for marketing or selling, it’s still data that makes the sale.

SN: How does a manufacturer go about getting his data into the Co-Op?

BM: Suppliers and receivers can simply fill out the “contact us” form at www.semadatacoop.org/contact-us, and the SDC help desk will proactively reach out to get the process started. Or they can call Jim Graven, director of membership, at 913-378-6133 and he will help them get connected. We currently have more than 110 SEMA companies actively putting in data and more than 50 resellers that are sharing data from those suppliers during the initial beta phase.

SN: Can the data be tailored to specific content types, such as desktop computers, mobile, print publications or point of sale?

BM: Yes, but let’s be clear: The reseller—whether it’s a wholesaler, a distributor, a jobber, a restyler, a machine shop, whatever—can only receive the data that the manufacturer grants permission to see. Each reseller has to get permission to receive specific information from the owner of the data. Not just anybody can download the information. The electronic data is treated the same as price sheets or catalogs. The manufacturer retains control of the information.

	Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

And let’s make one other point as well: You said earlier, “once a manufacturer’s data is in the data pool, then this can happen.” That little “once the data is in the data pool” statement is no small undertaking. There is application data, such as year, make and model, and there is also commerce data, such as how many come in a box, how much it weighs, its dimensions and so on. Then there is that whole range of marketing information that is critical to selling.

If you are selling cat-back exhausts, for instance, it is a hell of an advantage if you can let a customer listen to what the system sounds like installed on his or her specific vehicle. Some of the more progressive exhaust companies have uploaded audio files on their websites so that a customer can listen to what an exhaust product sounds like on a Camaro, Mustang or MINI Cooper.

This whole range of marketing data could be anything from bullet points to video files, but those do not magically appear. The data pool cannot write copy for the manufacturer, and it cannot take pictures of happy customers using a tonneau cover on a pickup. The manufacturer has to supply those things, so a lot has to happen to get the data into
the Co-op.

In most cases, the manufacturer already has this information, but it can’t be distributed until the data has been compiled, put into shareable condition and loaded into the Data Co-op. That is when the magic can happen.

In the beginning, manufacturers will likely put in basic application and product information and then build from there. In our experience, the more information they can include, the greater their sales will grow. There is a calculable relationship between the amount and quality of the information available and the likelihood that a consumer will make a purchase. And the receivers of the data, recognizing that fact, will eventually be going back to the manufacturers and asking for more information to help make the sale.

SN: All those different types of data you just talked about—text, images, video, audio—those can all be stored within the data pool?

		The SEMA Data Co-Op can make it easier, quicker and cheaper for all suppliers—large, medium and small—to get their information to retailers, making the overall shopping experience better for everybody.

BM: Absolutely, but it’s important to point out that not everybody needs every field in the Data Co-op. For instance, accurate color representation may be important to a manufacturer of seat covers but not to a manufacturer of engine bearings or pistons. If you’re selling an exhaust system, an audio file might be very important, but if you’re selling a lift kit, you don’t need an audio file. Common sense will dictate what you need.

SN: What about customizing the materials for an individual reseller who may not want a cookie-cutter data set?

BM: Excellent point. Not every receiver wants to get their data in the same way. The Data Co-Op works with the receivers to tailor the data to their requirements. The information can be translated from the standard formats into customized formats that an individual receiver wants. It’s much easier to do that from the pooled data than for the manufacturer to have to keep one set of data points for exactly the way Keystone wants it and another for the way NAPA wants it and another for the way Advance Auto Parts wants it. If a manufacturer can just put its data into a standardized set once, put it into the Data Co-Op, then we can translate it into the receiver’s required formats. That is a huge value-added extra.

SN: And then the receivers can tailor the data for how it will be used—in a print product, on a website, for a mobile app?

BM: Precisely. One of the frustrations that web sellers in particular have is that they will set up their website template to be able to display in a certain way. But they may only get really good data from a handful of their suppliers. That means that their site is missing photos or has no marketing bullet points on dozens of other products they carry. It makes for a very inconsistent shopping experience. The SEMA Data Co-op can make it easier, quicker and cheaper for all of the suppliers—large, medium and small—to get their information into a place where the reseller can pull it up, making the overall shopping experience better for everybody.

	There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched.

We embarked on this project 10 years ago because we saw that the aftermarket was not keeping up with technology, and collectively we were not able to sell our products as effectively as some other industries. To compete, it is absolutely critical that we are able to quickly and easily transmit information from manufacturers to sellers.

I think the latest numbers I saw indicated that 92% of all purchases begin with some type of Internet search. That doesn’t mean 92% of the products are going to be bought online but that some amount of the data gathering comes through the Internet—ranging from color and size choices to the location of retail outlets and price points. And much of that is now coming through mobile devices, such as smartphones
and tablets.

SN: Are there any limitations to the types of data that can be put into the Data Co-Op? What about things such as quick-response (QR) codes?

		The majority of consumers now begin shopping for products with an Internet search, whether for background information or to make their purchases. Smartphones and tablets are quickly capturing a huge portion of this web traffic.

BM: There is no limitation to what type of data could be put into the data pool, but there may be some limitations to the standardized fields as they are currently defined by the industry. For example, I don’t know that there is a placeholder for a QR code in the Product Information Exchange Standard (PIES). But what is important is that the SDC as an association-owned part of the industry is a critical player in the standards-setting community, and we can make additions or adjustments to the standards to accommodate the needs of the SEMA marketplace.

We are plugged into the larger automotive industry and are working across the replacement parts, tools, paint and heavy-duty marketplaces—even, in some cases, the marine and RV industries. In the case of new requirements, we would go to the governing bodies and say, “Here is how we propose to tag and label QR codes. Let’s all do it the same way.” If none of them have done it yet, they’ll either agree to our recommendation or suggest an alternative from another segment of the industry. That is how we will be able to come up with a common way of handling any new fields or new technology that might crop up.

Technology is constantly morphing. For instance, if you go onto a website today, you’re likely to encounter the classic hierarchical lookup using a dropdown menu to enter year, make and model information, even for generic items such as oil or paint. But we are now seeing the emergence of Google-type searches where someone who is looking for a product for a 2008 Ford F-250 simply enters 08 250 and the search engine asks, “Did you mean 2008 Ford F-250?” The search engines get smarter the more they’re queried about common items.

Rich marketing descriptions that take advantage of that technology make it possible for these new-age searches to be a lot more intuitive and a lot friendlier for both the trade and consumers. We have to have the wherewithal to be able to capture that, so the standards provide a place to record keywords, populating the marketing data with appropriate slang. It all starts with the basic data, but manufactures have to ensure that the data is populated and available to make this work. Increasingly that will mean having rich data populated in the SEMA Data Co-op.

There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched. If I can’t find the supercharger I’m looking for, it doesn’t make any difference that you can tell me there is a speed shop two miles from my home.

In the end, it’s like we always say: It really is all about the data.

SEMA News—December 2012

BUSINESS TECHNOLOGY
By Steve Campbell

Information Equals Sales

A Conversation With Bob Moore, Chairman of the SEMA Business Technology Committee

	Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of the industry’s newest sales-generation system, the SEMA Data Co-Op.

Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of standardized data and the SEMA Data Co-Op, the industry’s newest sales-generation system. He has been working in the automotive aftermarket since 1976 and is a partner with Jerry McCabe in J&B Service, a consulting company that specializes in the aftermarket.

A former member of the SEMA Board of Directors, Moore is also a volunteer for a variety of industry organizations. He spent some time with SEMA News again this year to provide an update on the industry’s data systems and the course of technology.

As our interview began, Moore noted that the SEMA Data Co-Op is up, running and open for business, and he pointed out that many people deserve the industry’s thanks, including Chris Kersting and the SEMA staff, the BTC and Jon Wyly, who was a member of the SEMA Board of Directors from 2002–2007, was one of the founders of the BTC, and was its first chairman. Wyly is now CEO of the SEMA Data Co-Op.

SEMA News: For those who may not be familiar with the SEMA Data Co-Op (SDC), could you give us a thumbnail description of the system and what it is designed to do?

Bob Moore: Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

The SEMA Data Co-Op itself is a centralized resource that helps manufacturers—the suppliers of products—get their product and marketing information into a shareable condition so that they can transfer it to any reseller partner they choose in order to sell more of their products. “Data” in this context simply means information about the product, including fitment information, such as the year, make and model of vehicle or what engine it fits or even what kind of chassis or drivetrain it goes on. It also includes product information required to do commerce, such as the descriptions of the part itself, its dimensions, how many come in a box, case or on a pallet, how much it weighs to calculate shipping, country of origin or hazardous material content.

		The SEMA Data Co-Op is up, running and open for business. It exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

But increasingly “data” also includes the stuff that resellers are really clamoring for—the marketing data that they need so badly to populate their websites, mobile apps and point-of-sale systems. That data can include images of the product itself, the product installed on a vehicle, happy people enjoying using the product, marketing features and benefits, even video and audio files. In a selling environment where consumers are using mobile devices, such as smartphones, tablets and pads to gather information on almost every purchase they make, resellers must have rich content that their customers need. And the only realistic and reliable place they can get it is from the companies that make the products they sell.

SN: So once a manufacturer has its data in the Co-op, retailers can pull the information they need in order to sell the manufacturer’s parts, correct?

BM: Yes, they have a single source from which they can pull images, specs, text, audio, schematics, video—any type of informational data to use to provide consumers everything they need to know to make an informed purchase decision. Some resellers may want to have that type of information available at a call center, because jobbers or customers call in looking for specific information and descriptions. Others will use it to populate websites. Regardless, the shared information from the Data Co-op ensures that buyers can get answers to all of the questions they have.

If you think about any shopping experience, whether it is online or across a counter, the more information that can be provided, the greater the likelihood that the consumer will make the purchase. The counterman has to be able to tell the customer not just the differences in prices between various products, but also the difference in value—what the products are made of, how they’re constructed, how they perform. What’s critical is being able to instantly access the data that enables a counterman to answer those questions for an in-store retail shopper or on a website to provide comparative data to an online customer.

People are often reluctant to buy something because there isn’t enough information available. They never decline to buy because there is too much information.

SN: Some people are still turned off by the term “data.” To them, everything should revolve around sales. Is there validity to that idea?

		More than 110 SEMA-member companies are already part of the Data Co-Op, including some of the most recognized brands in the industry.

BM: The SEMA Data Co-Op is a selling machine. I had a discussion with a manufacturer several years ago on this very point. He said that “data” never sold anything; that marketing sells products, not data. I knew he was an avid golfer and that he wanted to buy a new driver, so we went to a website and looked at videos of slow-motion swings showing the deflection of various types of shafts that equated to distance and accuracy charts. While we were sitting there looking, he decided to buy a particular driver. I pointed out to him that we had just gone through all kinds of data that led him to make his decision to spend $500 on a new driver. I can’t make a better case than that about how data sells.

It comes down to the information. Whether it is information for marketing or selling, it’s still data that makes the sale.

SN: How does a manufacturer go about getting his data into the Co-Op?

BM: Suppliers and receivers can simply fill out the “contact us” form at www.semadatacoop.org/contact-us, and the SDC help desk will proactively reach out to get the process started. Or they can call Jim Graven, director of membership, at 913-378-6133 and he will help them get connected. We currently have more than 110 SEMA companies actively putting in data and more than 50 resellers that are sharing data from those suppliers during the initial beta phase.

SN: Can the data be tailored to specific content types, such as desktop computers, mobile, print publications or point of sale?

BM: Yes, but let’s be clear: The reseller—whether it’s a wholesaler, a distributor, a jobber, a restyler, a machine shop, whatever—can only receive the data that the manufacturer grants permission to see. Each reseller has to get permission to receive specific information from the owner of the data. Not just anybody can download the information. The electronic data is treated the same as price sheets or catalogs. The manufacturer retains control of the information.

	Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

And let’s make one other point as well: You said earlier, “once a manufacturer’s data is in the data pool, then this can happen.” That little “once the data is in the data pool” statement is no small undertaking. There is application data, such as year, make and model, and there is also commerce data, such as how many come in a box, how much it weighs, its dimensions and so on. Then there is that whole range of marketing information that is critical to selling.

If you are selling cat-back exhausts, for instance, it is a hell of an advantage if you can let a customer listen to what the system sounds like installed on his or her specific vehicle. Some of the more progressive exhaust companies have uploaded audio files on their websites so that a customer can listen to what an exhaust product sounds like on a Camaro, Mustang or MINI Cooper.

This whole range of marketing data could be anything from bullet points to video files, but those do not magically appear. The data pool cannot write copy for the manufacturer, and it cannot take pictures of happy customers using a tonneau cover on a pickup. The manufacturer has to supply those things, so a lot has to happen to get the data into
the Co-op.

In most cases, the manufacturer already has this information, but it can’t be distributed until the data has been compiled, put into shareable condition and loaded into the Data Co-op. That is when the magic can happen.

In the beginning, manufacturers will likely put in basic application and product information and then build from there. In our experience, the more information they can include, the greater their sales will grow. There is a calculable relationship between the amount and quality of the information available and the likelihood that a consumer will make a purchase. And the receivers of the data, recognizing that fact, will eventually be going back to the manufacturers and asking for more information to help make the sale.

SN: All those different types of data you just talked about—text, images, video, audio—those can all be stored within the data pool?

		The SEMA Data Co-Op can make it easier, quicker and cheaper for all suppliers—large, medium and small—to get their information to retailers, making the overall shopping experience better for everybody.

BM: Absolutely, but it’s important to point out that not everybody needs every field in the Data Co-op. For instance, accurate color representation may be important to a manufacturer of seat covers but not to a manufacturer of engine bearings or pistons. If you’re selling an exhaust system, an audio file might be very important, but if you’re selling a lift kit, you don’t need an audio file. Common sense will dictate what you need.

SN: What about customizing the materials for an individual reseller who may not want a cookie-cutter data set?

BM: Excellent point. Not every receiver wants to get their data in the same way. The Data Co-Op works with the receivers to tailor the data to their requirements. The information can be translated from the standard formats into customized formats that an individual receiver wants. It’s much easier to do that from the pooled data than for the manufacturer to have to keep one set of data points for exactly the way Keystone wants it and another for the way NAPA wants it and another for the way Advance Auto Parts wants it. If a manufacturer can just put its data into a standardized set once, put it into the Data Co-Op, then we can translate it into the receiver’s required formats. That is a huge value-added extra.

SN: And then the receivers can tailor the data for how it will be used—in a print product, on a website, for a mobile app?

BM: Precisely. One of the frustrations that web sellers in particular have is that they will set up their website template to be able to display in a certain way. But they may only get really good data from a handful of their suppliers. That means that their site is missing photos or has no marketing bullet points on dozens of other products they carry. It makes for a very inconsistent shopping experience. The SEMA Data Co-op can make it easier, quicker and cheaper for all of the suppliers—large, medium and small—to get their information into a place where the reseller can pull it up, making the overall shopping experience better for everybody.

	There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched.

We embarked on this project 10 years ago because we saw that the aftermarket was not keeping up with technology, and collectively we were not able to sell our products as effectively as some other industries. To compete, it is absolutely critical that we are able to quickly and easily transmit information from manufacturers to sellers.

I think the latest numbers I saw indicated that 92% of all purchases begin with some type of Internet search. That doesn’t mean 92% of the products are going to be bought online but that some amount of the data gathering comes through the Internet—ranging from color and size choices to the location of retail outlets and price points. And much of that is now coming through mobile devices, such as smartphones
and tablets.

SN: Are there any limitations to the types of data that can be put into the Data Co-Op? What about things such as quick-response (QR) codes?

		The majority of consumers now begin shopping for products with an Internet search, whether for background information or to make their purchases. Smartphones and tablets are quickly capturing a huge portion of this web traffic.

BM: There is no limitation to what type of data could be put into the data pool, but there may be some limitations to the standardized fields as they are currently defined by the industry. For example, I don’t know that there is a placeholder for a QR code in the Product Information Exchange Standard (PIES). But what is important is that the SDC as an association-owned part of the industry is a critical player in the standards-setting community, and we can make additions or adjustments to the standards to accommodate the needs of the SEMA marketplace.

We are plugged into the larger automotive industry and are working across the replacement parts, tools, paint and heavy-duty marketplaces—even, in some cases, the marine and RV industries. In the case of new requirements, we would go to the governing bodies and say, “Here is how we propose to tag and label QR codes. Let’s all do it the same way.” If none of them have done it yet, they’ll either agree to our recommendation or suggest an alternative from another segment of the industry. That is how we will be able to come up with a common way of handling any new fields or new technology that might crop up.

Technology is constantly morphing. For instance, if you go onto a website today, you’re likely to encounter the classic hierarchical lookup using a dropdown menu to enter year, make and model information, even for generic items such as oil or paint. But we are now seeing the emergence of Google-type searches where someone who is looking for a product for a 2008 Ford F-250 simply enters 08 250 and the search engine asks, “Did you mean 2008 Ford F-250?” The search engines get smarter the more they’re queried about common items.

Rich marketing descriptions that take advantage of that technology make it possible for these new-age searches to be a lot more intuitive and a lot friendlier for both the trade and consumers. We have to have the wherewithal to be able to capture that, so the standards provide a place to record keywords, populating the marketing data with appropriate slang. It all starts with the basic data, but manufactures have to ensure that the data is populated and available to make this work. Increasingly that will mean having rich data populated in the SEMA Data Co-op.

There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched. If I can’t find the supercharger I’m looking for, it doesn’t make any difference that you can tell me there is a speed shop two miles from my home.

In the end, it’s like we always say: It really is all about the data.

SEMA News—December 2012

BUSINESS TECHNOLOGY
By Steve Campbell

Information Equals Sales

A Conversation With Bob Moore, Chairman of the SEMA Business Technology Committee

	Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of the industry’s newest sales-generation system, the SEMA Data Co-Op.

Bob Moore is the co-founder and current chairman of SEMA’s Business Technology Committee (BTC) and an unflagging advocate for the use of standardized data and the SEMA Data Co-Op, the industry’s newest sales-generation system. He has been working in the automotive aftermarket since 1976 and is a partner with Jerry McCabe in J&B Service, a consulting company that specializes in the aftermarket.

A former member of the SEMA Board of Directors, Moore is also a volunteer for a variety of industry organizations. He spent some time with SEMA News again this year to provide an update on the industry’s data systems and the course of technology.

As our interview began, Moore noted that the SEMA Data Co-Op is up, running and open for business, and he pointed out that many people deserve the industry’s thanks, including Chris Kersting and the SEMA staff, the BTC and Jon Wyly, who was a member of the SEMA Board of Directors from 2002–2007, was one of the founders of the BTC, and was its first chairman. Wyly is now CEO of the SEMA Data Co-Op.

SEMA News: For those who may not be familiar with the SEMA Data Co-Op (SDC), could you give us a thumbnail description of the system and what it is designed to do?

Bob Moore: Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

The SEMA Data Co-Op itself is a centralized resource that helps manufacturers—the suppliers of products—get their product and marketing information into a shareable condition so that they can transfer it to any reseller partner they choose in order to sell more of their products. “Data” in this context simply means information about the product, including fitment information, such as the year, make and model of vehicle or what engine it fits or even what kind of chassis or drivetrain it goes on. It also includes product information required to do commerce, such as the descriptions of the part itself, its dimensions, how many come in a box, case or on a pallet, how much it weighs to calculate shipping, country of origin or hazardous material content.

		The SEMA Data Co-Op is up, running and open for business. It exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

But increasingly “data” also includes the stuff that resellers are really clamoring for—the marketing data that they need so badly to populate their websites, mobile apps and point-of-sale systems. That data can include images of the product itself, the product installed on a vehicle, happy people enjoying using the product, marketing features and benefits, even video and audio files. In a selling environment where consumers are using mobile devices, such as smartphones, tablets and pads to gather information on almost every purchase they make, resellers must have rich content that their customers need. And the only realistic and reliable place they can get it is from the companies that make the products they sell.

SN: So once a manufacturer has its data in the Co-op, retailers can pull the information they need in order to sell the manufacturer’s parts, correct?

BM: Yes, they have a single source from which they can pull images, specs, text, audio, schematics, video—any type of informational data to use to provide consumers everything they need to know to make an informed purchase decision. Some resellers may want to have that type of information available at a call center, because jobbers or customers call in looking for specific information and descriptions. Others will use it to populate websites. Regardless, the shared information from the Data Co-op ensures that buyers can get answers to all of the questions they have.

If you think about any shopping experience, whether it is online or across a counter, the more information that can be provided, the greater the likelihood that the consumer will make the purchase. The counterman has to be able to tell the customer not just the differences in prices between various products, but also the difference in value—what the products are made of, how they’re constructed, how they perform. What’s critical is being able to instantly access the data that enables a counterman to answer those questions for an in-store retail shopper or on a website to provide comparative data to an online customer.

People are often reluctant to buy something because there isn’t enough information available. They never decline to buy because there is too much information.

SN: Some people are still turned off by the term “data.” To them, everything should revolve around sales. Is there validity to that idea?

		More than 110 SEMA-member companies are already part of the Data Co-Op, including some of the most recognized brands in the industry.

BM: The SEMA Data Co-Op is a selling machine. I had a discussion with a manufacturer several years ago on this very point. He said that “data” never sold anything; that marketing sells products, not data. I knew he was an avid golfer and that he wanted to buy a new driver, so we went to a website and looked at videos of slow-motion swings showing the deflection of various types of shafts that equated to distance and accuracy charts. While we were sitting there looking, he decided to buy a particular driver. I pointed out to him that we had just gone through all kinds of data that led him to make his decision to spend $500 on a new driver. I can’t make a better case than that about how data sells.

It comes down to the information. Whether it is information for marketing or selling, it’s still data that makes the sale.

SN: How does a manufacturer go about getting his data into the Co-Op?

BM: Suppliers and receivers can simply fill out the “contact us” form at www.semadatacoop.org/contact-us, and the SDC help desk will proactively reach out to get the process started. Or they can call Jim Graven, director of membership, at 913-378-6133 and he will help them get connected. We currently have more than 110 SEMA companies actively putting in data and more than 50 resellers that are sharing data from those suppliers during the initial beta phase.

SN: Can the data be tailored to specific content types, such as desktop computers, mobile, print publications or point of sale?

BM: Yes, but let’s be clear: The reseller—whether it’s a wholesaler, a distributor, a jobber, a restyler, a machine shop, whatever—can only receive the data that the manufacturer grants permission to see. Each reseller has to get permission to receive specific information from the owner of the data. Not just anybody can download the information. The electronic data is treated the same as price sheets or catalogs. The manufacturer retains control of the information.

	Simply put, the SDC exists to help the aftermarket sell more parts by getting more and better information in front of buyers.

And let’s make one other point as well: You said earlier, “once a manufacturer’s data is in the data pool, then this can happen.” That little “once the data is in the data pool” statement is no small undertaking. There is application data, such as year, make and model, and there is also commerce data, such as how many come in a box, how much it weighs, its dimensions and so on. Then there is that whole range of marketing information that is critical to selling.

If you are selling cat-back exhausts, for instance, it is a hell of an advantage if you can let a customer listen to what the system sounds like installed on his or her specific vehicle. Some of the more progressive exhaust companies have uploaded audio files on their websites so that a customer can listen to what an exhaust product sounds like on a Camaro, Mustang or MINI Cooper.

This whole range of marketing data could be anything from bullet points to video files, but those do not magically appear. The data pool cannot write copy for the manufacturer, and it cannot take pictures of happy customers using a tonneau cover on a pickup. The manufacturer has to supply those things, so a lot has to happen to get the data into
the Co-op.

In most cases, the manufacturer already has this information, but it can’t be distributed until the data has been compiled, put into shareable condition and loaded into the Data Co-op. That is when the magic can happen.

In the beginning, manufacturers will likely put in basic application and product information and then build from there. In our experience, the more information they can include, the greater their sales will grow. There is a calculable relationship between the amount and quality of the information available and the likelihood that a consumer will make a purchase. And the receivers of the data, recognizing that fact, will eventually be going back to the manufacturers and asking for more information to help make the sale.

SN: All those different types of data you just talked about—text, images, video, audio—those can all be stored within the data pool?

		The SEMA Data Co-Op can make it easier, quicker and cheaper for all suppliers—large, medium and small—to get their information to retailers, making the overall shopping experience better for everybody.

BM: Absolutely, but it’s important to point out that not everybody needs every field in the Data Co-op. For instance, accurate color representation may be important to a manufacturer of seat covers but not to a manufacturer of engine bearings or pistons. If you’re selling an exhaust system, an audio file might be very important, but if you’re selling a lift kit, you don’t need an audio file. Common sense will dictate what you need.

SN: What about customizing the materials for an individual reseller who may not want a cookie-cutter data set?

BM: Excellent point. Not every receiver wants to get their data in the same way. The Data Co-Op works with the receivers to tailor the data to their requirements. The information can be translated from the standard formats into customized formats that an individual receiver wants. It’s much easier to do that from the pooled data than for the manufacturer to have to keep one set of data points for exactly the way Keystone wants it and another for the way NAPA wants it and another for the way Advance Auto Parts wants it. If a manufacturer can just put its data into a standardized set once, put it into the Data Co-Op, then we can translate it into the receiver’s required formats. That is a huge value-added extra.

SN: And then the receivers can tailor the data for how it will be used—in a print product, on a website, for a mobile app?

BM: Precisely. One of the frustrations that web sellers in particular have is that they will set up their website template to be able to display in a certain way. But they may only get really good data from a handful of their suppliers. That means that their site is missing photos or has no marketing bullet points on dozens of other products they carry. It makes for a very inconsistent shopping experience. The SEMA Data Co-op can make it easier, quicker and cheaper for all of the suppliers—large, medium and small—to get their information into a place where the reseller can pull it up, making the overall shopping experience better for everybody.

	There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched.

We embarked on this project 10 years ago because we saw that the aftermarket was not keeping up with technology, and collectively we were not able to sell our products as effectively as some other industries. To compete, it is absolutely critical that we are able to quickly and easily transmit information from manufacturers to sellers.

I think the latest numbers I saw indicated that 92% of all purchases begin with some type of Internet search. That doesn’t mean 92% of the products are going to be bought online but that some amount of the data gathering comes through the Internet—ranging from color and size choices to the location of retail outlets and price points. And much of that is now coming through mobile devices, such as smartphones
and tablets.

SN: Are there any limitations to the types of data that can be put into the Data Co-Op? What about things such as quick-response (QR) codes?

		The majority of consumers now begin shopping for products with an Internet search, whether for background information or to make their purchases. Smartphones and tablets are quickly capturing a huge portion of this web traffic.

BM: There is no limitation to what type of data could be put into the data pool, but there may be some limitations to the standardized fields as they are currently defined by the industry. For example, I don’t know that there is a placeholder for a QR code in the Product Information Exchange Standard (PIES). But what is important is that the SDC as an association-owned part of the industry is a critical player in the standards-setting community, and we can make additions or adjustments to the standards to accommodate the needs of the SEMA marketplace.

We are plugged into the larger automotive industry and are working across the replacement parts, tools, paint and heavy-duty marketplaces—even, in some cases, the marine and RV industries. In the case of new requirements, we would go to the governing bodies and say, “Here is how we propose to tag and label QR codes. Let’s all do it the same way.” If none of them have done it yet, they’ll either agree to our recommendation or suggest an alternative from another segment of the industry. That is how we will be able to come up with a common way of handling any new fields or new technology that might crop up.

Technology is constantly morphing. For instance, if you go onto a website today, you’re likely to encounter the classic hierarchical lookup using a dropdown menu to enter year, make and model information, even for generic items such as oil or paint. But we are now seeing the emergence of Google-type searches where someone who is looking for a product for a 2008 Ford F-250 simply enters 08 250 and the search engine asks, “Did you mean 2008 Ford F-250?” The search engines get smarter the more they’re queried about common items.

Rich marketing descriptions that take advantage of that technology make it possible for these new-age searches to be a lot more intuitive and a lot friendlier for both the trade and consumers. We have to have the wherewithal to be able to capture that, so the standards provide a place to record keywords, populating the marketing data with appropriate slang. It all starts with the basic data, but manufactures have to ensure that the data is populated and available to make this work. Increasingly that will mean having rich data populated in the SEMA Data Co-op.

There are all kinds of really cool technologies on the horizon—tablet computing, mobile availability, local searches, VIN lookups. All of that stuff is critical, but none of it works unless you’ve got the good, fundamental data that can be searched. If I can’t find the supercharger I’m looking for, it doesn’t make any difference that you can tell me there is a speed shop two miles from my home.

In the end, it’s like we always say: It really is all about the data.

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

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Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

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Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

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Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

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SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

---

Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

---

Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

---

Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

---

Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

---

Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

---

Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

---

SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

---

Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

---

Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

---

Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

---

Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

---

Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

---

Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

---

SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

---

Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

---

Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

---

Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

---

Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

---

Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

---

Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

---

SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

---

Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

---

Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

---

Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

---

Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

---

Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

---

Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

---

SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

---

Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

---

Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

---

Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

For its December issue each year, SEMA News puts out a call to the leaders of the association’s councils and networks to seek their views about what might be in store in the near term. These industry professionals provide responses based on what their organizations and their companies are seeing within their marketplaces. Their responses are instructive and should provide helpful insights for businesses in every segment of the marketplace.

SEMA councils offer members unparalleled volunteer opportunities that will not only benefit your company, but will also help you grow as a leader in your industry. Seventy five percent of current SEMA Board members were former council members. Each SEMA council represents a group of SEMA members that share a common business purpose or market segment.

To join your automotive industry niche-specific council or committee, visit www.sema.org/councils-committees for more information or to sign up.

Automotive Restoration Market Organization (ARMO)
Alex Tainsh, Parts Unlimited Inc., Chairman

Some younger people are entering our hobby, and vehicles not considered typical “classics” are starting to be restored due to their reasonable purchase prices. Many are restomods rather than traditional restorations, and we are also seeing restorations of four-door cars, station wagons and other cars that were not considered worthwhile a few years ago. “New” classic-car bodies are also becoming available. For instance, a restorer can now build a ’69 Camaro without using a single part from 1969.

On the other hand, we need to continue to get more youth involved in our industry. Programs such as Take a Kid to a Car Show and the SEMA-sponsored Collector Car Appreciation Day are growing, but involving young people is still one of the greatest challenges we face within ARMO.

Most of the industry professionals I speak to expect modest growth through 2013. There seem to be small improvements in the economy, and car restorers are very passionate and cut spending on other things. Many local car shows saw increases in car counts this summer, although some of the national shows did not do as well because of high gas prices.

The restoration market has been successfully expanding into nontraditional outlets, with retailers that have been historically considered only performance shops, such as Jegs, Summit and Honest Charlie’s, expanding into the restoration market. With the new SEMA Data Co-op program, we have the opportunity to expand to even more mainstream outlets.

Restoration companies have embraced the Internet with state-of-the art websites. Still, there will always be a segment of the market that likes to see and touch a part before buying it. There are still some parts not yet reproduced for some cars; in those cases, walking through a swap meet like Carlisle is the best bet, and a lot of fun.

Hot Rod Industry Alliance (HRIA)
Rick Love, Vintage Air, Chairman

People want to drive and enjoy their cars, and they’re driving them hard. Events have grown that incorporate a cruise and an autocross and then a track day. Even the average guy is building a car that he can really drive and enjoy more. The trend has been to build a car that is comfortable, drives well, stops well and does things more like a late-model vehicle.

Even the best shops are not seeing the 6- to 18-month backlog on cars and work that they had a few years ago, but a lot of the shops and manufacturers that we deal with have been busy this year.

We have been fortunate as an industry to stay fairly busy, even though the leading economic indicators are sometimes pretty flat. Interestingly, many shops are doing hot-rod maintenance rather than full-out builds, and they’re doing more upgrades—disc brakes, suspension improvements and tilt columns. We have to be more inventive and smarter about what we’re doing.

Election years have traditionally been down years, but this one has bucked that trend. The interstate sales tax changes may create some challenges next year, so we are all monitoring these legislative initiatives. The Main Street Fairness Act and the Marketplace Fairness Act could affect a lot of our businesses.

The other big challenge is seeing which direction consumer confidence goes following the election.

When things are tight, people buy from the companies that they trust. We are continuing to expand our line of complete bolt-in Gen IV Sure Fit systems for ’60s and ’70s cars, and we have also developed a new Front Runner drive system for the Ford Coyote crate engine. Manufacturers and distributors that can provide customers with the most complete coverage are going to be the ones that will be in the best position for growth.

Light Truck Industry Alliance (TORA)
George Lathouris, Keystone Automotive, Chairman

Pickup sales have been rebounding, and TORA-member companies are taking advantage of that trend.

There is a strong move toward items that improve the functionality of a truck rather than just “bolt-on” items. Manufacturers are producing innovative new products that consumers value and want to buy. When you couple that innovation with the retailers’ desire to sell those new products, the combination can’t be beat!

More than ever, manufacturers and retailers are utilizing the web for dispersing information and creating sales throughout the truck industry. That will only increase in the future.

The biggest challenges during the near future will be federal regulations and our industry’s ability to not only understand those regulations, but also to harness its resources to manufacture products that meet and exceed the requirements of those regulations.

 

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Manufacturers’ Representatives Network (MRN)
Thomas Jourdan, True High Performance Sales, Chairman

The marketplace continues to go through rapid changes. All channels of distribution are more sophisticated and tech savvy, and the end user now does online research prior to making buying decisions. Manufacturers’ representatives and agents assist distributors and retailers to access complete and clean data, allowing for maximized sales conversions. Whether the consumer chooses to purchase online or simply does research online and makes the final purchase from a brick-and-mortar retailer, the sales process needs to provide all the tools to satisfy the savvy consumer.

There is some real optimism in the marketplace, although it is guarded. The industry is slowly rebounding from the slowdown in the economy. Progressive manufacturers, wholesalers and retailers have begun to reinvest in expansion. The economic recovery has been slow, and consumer confidence is questionable. But this having been an election year with an incumbent running for president, there should be a spike in sales after November.

Vehicle sales continue to increase month after month. Passenger truck sales continue to increase as the Ford F-150 and Chevy Silverado regain their positions in the top three. Combined with modern American musclecars moving out of warranty, this will offer additional opportunities next year.

Exciting changes are in store for our market segment. The Manufacturers Representatives’ Council has been reinvented and recently relaunched as the Manufacturers’ Representative Network (MRN), the network for professional agents and representatives. It is more than just a name change. This new network will reach out to individual representatives and agents so that we will be able to better communicate with, educate and elevate our members. MRN is focused on elevating the professionalism of members as well as promoting association benefits that will make a substantial difference in the industry.

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Motorsports Parts Manufacturers Council (MPMC)
Vic Wood, Hedman Performance Group, Chairman

The need for manufacturers to have accurate and detailed data on their products has become the number-one issue for all of us. The continued evolution of the electronic marketplace demands that the purchaser (whether a warehouse distributor or a consumer) be provided with accurate information to make an informed buying decision.

Rapidly expanding electronic retailing direct to consumers in all forms demands a sound and well-considered marketing plan. Sadly, the traditional distribution channels that we have all been comfortable with for so many years are now challenged by the electronic world that today’s consumer lives with and demands. While many of us in both the manufacturing and distribution worlds are not entirely comfortable with that stark reality, it’s something we all have to move with in order to continue to maintain and grow our businesses. The world has changed, and the speed of change and how we keep pace with it is the most significant opportunity.

The continued export of U.S. manufacturing jobs overseas and the influx of cheap imported copy products is a genuine concern for all of us who remain tethered to U.S.-based manufacturing. This complex issue is not unique to our industry. Generics (house brands) also are a challenge for some manufacturers.

The MPMC is highly cognizant of today’s issues and concerns and is diligently making every effort to assist our industry sector to gain understanding and background on every issue.

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Professional Restylers Organization (PRO)
Eldon Bracken, Graphic Mart, Chairman

With the increase in new-vehicle sales, many of our members have seen a modest increase in business. Those who continue to stay at the forefront of trends and technology are seeing even greater gains. At PRO’s long-range planning meeting held in June in Detroit, the group identified a need to form a think tank comprised of restylers and manufacturers. Its goal is to identify what the future trends or product needs are and how to bring them to market quicker. Social media continues to be a large focus for many companies. The low cost of entry and instant access to customers is the biggest advantage when used properly.

Complete vehicle wraps by consumers continue to be a trend that many members are taking advantage of. Vehicle wraps that were once used exclusively for advertising are now being used by consumers to change a vehicle’s color from stock to matte, satin or even carbon fiber.

A round of letters from the automakers to dealers critical of aftermarket restyling products is causing a lot of concern for our members. Many companies have found it more difficult to sell items, such as leather interiors and sunroofs into their dealer stores because of unsubstantiated fear of failures. The most significant opportunity for PRO members lies with gaining back the support and confidence of the automobile dealer. With a focus on training and education, restylers can prove to their dealers that they take this business seriously and that the parts they install will be just as good as the original equipment, if not better.

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SEMA Businesswomen’s Network (SBN)
Marla Moore, Hypertech Inc., Chairman

The increasing sales shift from trucks to small- and midsize cars is starting to affect our industry’s product offerings, and the number of manufacturers selling directly to consumers is growing, which impacts not only the distribution system but also the use of electronic media, pricing and manufacturer collaboration.

Everyone enjoyed an upswing in business during the first few months of 2012, but sales leveled out as the year progressed and will decline for the 30% of the aftermarket that manufactures performance products as we near the end of 2012. Much of this can be attributed to economic uncertainty and the rising cost of fuel and food.

The media landscape is definitely changing. Aggressive companies are going to develop a five-platform media strategy that will include print, TV, websites, smartphones and tablets. Others will stick to the familiar outlets. But everyone will be proceeding with caution, analyzing results and looking for return on investment.

Luckily, we are an industry of passionate, creative thinkers, because this next year will be a time to reevaluate your company’s strengths to take advantage of all its abilities and create new business opportunities.

The SBN’s big project, the SEMA Mustang Build Powered by Women, definitely raised the awareness of the talented women in our industry and the opportunities available for women in the aftermarket. Additionally, our highly attended Gear Up Girls female student reception at the SEMA Show proves there is a growing number of women interested in a career in the aftermarket. We need to find ways as an industry to retain these bright new enthusiasts.

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Street Performance Council (SPC)
Tyler Tanaka, Cie Digital Labs, Chairman

The way consumers—particularly young people—are purchasing and using automobiles is radically changing. Reasonably priced vehicles tend to be focused on fuel consumption rather than performance, and the oil and gas industry has not helped with exceptionally high prices. Engaging young people with the automobile is a main priority of the SPC.

The widening gap between manufacturers selling directly to retail businesses also continues to be a major topic, especially now that the interstate tax laws are changing. The changes will help determine how online retailers will do business and how relevant jobbers and distributors will be in selling manufacturers’ parts. At a recent SPC educational seminar, the entire conversation was about how manufacturers share information and how distributors obtain all of the data they need to actually sell a part.

We are focused on mobile and tablet marketing for many of our clients. Marketing will continue to move into handheld devices. That has created an arms race between the manufacturers of these devices, which can now accommodate anything you would normally and naturally do on a desktop or laptop. For instance, I now give my presentations from my iPad, and my backup is my iPhone.

The biggest opportunities lie in how companies are able to engage with and react to consumers. The days of marketing new products by sending a brochure through the mail are gone. Companies must be where consumers are online—inside communities and sites where decisions are taking place—and be able to use websites and social media to form bonds to their brands.

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Wheel & Tire Council (WTC)
Joe Schaefer, Konig American, Chair-Elect

We are seeing modest economy improvements, and we’re making gains at a slow but steady rate. Customers are turning to companies that will be able to provide better delivery and incur fewer issues in this climate.

We continue to experience a large changeover to electronic and digital marketing, with social media leading the way. Still, it’s important not to neglect traditional advertising mediums and direct business-to-business engagement. Social media is constantly evolving, and keeping track of where it will go next is one of the larger challenges at hand.

We are seeing more elements appear from older wheel styles, and even intentionally inspired retro wheels are lending elements to newer designs. On the tire side, the expiration of the Chinese tire tariff this past September will have serious repercussions on pricing, though the final results will not be known for some time.

The single most important item that will allow any company to excel is customer service. Providing your customer with confidence and follow-through is needed to weather the storm. It’s important to remain in touch with and watch your target demographic. As technology appears desirable to today’s youth, we have to closely look at what they want. Cars were a key in the social arena among youth years ago; now iPhones, iPads and other largely social gadgets are competing with what cars once did for young people. Our approach will have to change to capture the same attention that used to come with far less effort.

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Young Executives Network (YEN)
Lee McGuire, Skyjacker Suspension Systems, Chairman

We are seeing more companies concerned with youth engagement, which is a good thing. We need to find ways to connect with Gen Y and Z. It isn’t just the traditional marketing mix anymore; it is far more complex, and you have even less time to grab young consumers’ attention and keep it.

Marketing will continue to change as YEN members find effective ways to communicate with their generation and Gen Z. A marketer’s job is to find the connection to our youth and identify what motivates their buying habits. We have to create emotional connections to the product and help them justify the reason they want it and need it.

The biggest challenge will be adapting to the changing market. The economy is far from where it needs to be, and young executives must be mindful of the decisions that will help their companies succeed. The YEN group covers a range of markets, from street performance and off-road to light truck and more, and the overall economic change this year showed gains. That’s encouraging since our members represent so many areas.

The most significant opportunities lie in finding how to do things more effectively with smaller budgets and staff. This is a time for young executives to shine by showing your talents and demonstrating to employers that you can wear more than one hat and come up with creative ideas to help company growth. That growth may not be possible in traditional terms, so being able to think outside the box is a big opportunity. We at YEN are helping to equip our members to do just that through our webinars and our seminars at the SEMA Show and with other educational initiatives.

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