Tracking Trends

Some Legislative Proposals Follow Predictable Patterns

Among the greatest challenges of any business is the effort and skill required to stay current or even ahead of what is popular. Predicting trends and following their progress are key elements to success not only in business, but also in politics. Just as businesses are subject to consumer sentiments and economic fluctuations, timely legislative initiatives and popular regulatory proposals can be shaped by any number of national variables and are often broadly applicable. The following are several important legislative trends affecting the automotive specialty-equipment industry that continue to feature prominently in state and federal government agendas. 

Clean Vehicle Incentives

In this election year, the price of gasoline has once again emerged as a national issue, topping the list of many voters’ concerns. In the name of emissions reduction and national security, the federal government has introduced initiatives to increase the fuel efficiency of new vehicles sold in the United States. The National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFE) program, instituted in 1975, is today being used as a tool to push new motor vehicles to be progressively more efficient, eventually reaching an average of 60 miles per gallon by 2025.

Incentive programs to reduce emissions and consumer dependency on petroleum are not unique to the federal government, however. Legislation to reduce the sale of gas guzzlers and remove older “gross polluters” was introduced in Rhode Island and Massachusetts. In New York, proposed legislation would create the Clean Vehicle Incentive Program, consisting of rebates and surcharges on the purchase of new motor vehicles based on their emissions.

Major auto manufacturers are not waiting for these proposals to become realities, however. As global oil production remains subject to unpredictable fluctuations, prices at the pump remain higher than ever. As the cost of operating a vehicle continues to require consumers to search for more fuel-efficient options, manufacturers respond to new market demands.

Large automakers are pouring resources into developing new technologies to increase efficiency while maintaining the performance and quality expected by American consumers. Most of these manufacturers are already pressing for production of vehicles that use traditional gasoline more efficiently while also introducing new and alternative fuel technologies. The push for increased fuel economy has already resulted in companies moving away from the traditional mantra of “no replacement for displacement” in favor of swap-ping V8s for turbocharged four- and six-cylinder engines.

The trend of legislation and regulation pushing for increased fuel economy is one that will continue to shape the new-car market and production offerings of major manufacturers for the foreseeable future.

The Burden of Increased Government Regulation

Increased government regulation is a major point of contention in politics today. The accumulation of requirements that must be followed when providing goods or services to a consumer has become increasingly burdensome. Many states create excessive and often costly roadblocks that inhibit the timing and efficiency of a business.

In Maryland and New York, bills to further regulate and track the manufacture and use of tires by imposing additional identification numbers goes beyond the sufficient checks to insure quality and safety. In Michigan, Oklahoma, South Carolina and Georgia, legislatures considered bills that would require installers to inform consumers of the use of mechanical aftermarket parts in the repair of their vehicles.

The time and paperwork required by these proposed regulations burden the already complicated process of auto repair and place a negative stigma on many parts that are often designed to be safer and more affordable than original-manufacturer equipment.

Hobby Cars as Revenue Sources

It has been four years since the collapse of the global economy, and the fallout from the ensuing credit crunch is still reverberating across the country. As budget shortfalls become a perpetual concern, states and municipalities continue to search for ways to raise revenue.

As a result of the perceived luxury status of collector cars, registration exemptions and specialty-use provisions become easy targets. In Virginia and Washington, legislatures attempted this year to raise funds by modifying annual fees imposed on the registration of collector vehicles. Additionally, in Maryland, a bill was introduced to increase the age of vehicles that qualify for registration as historical motor vehicles, thus decreasing the number of vehicles eligible for a reduced rate.

As all levels of government across the nation continue to work to protect public services while operating on reduced budgets, the exemptions classic-car hobbyists and enthusiasts enjoy will continue to come under threat.

Registration Made Easy

One of the more favorable legislative trends this year includes exemptions and special designations for specialty vehicles in several states. The best of these examples are in states that adopt SEMA’s own street rod and custom vehicle model legislation, which creates specific registration categories for historic and specialty cars.

Both Massachusetts and Texas recently joined 20 other states by enacting versions of SEMA’s model bill. New York and New Jersey have versions of the bill pending this year. Other favorable accommodations were introduced in Wisconsin and Michigan to allow for the expanded use of collector vehicles.

While these victories exemplify the willingness of legislatures to work with automotive enthusiasts to expand and preserve the rights enjoyed within the hobby, it remains important to work in all states to ensure that these privileges
are protected.

A Beautiful Noise

It is no secret that automotive enthusiasts are often proud to display custom aspects of their vehicles. A louder-than-stock exhaust system is often the first aftermarket addition an enthusiast makes to his or her vehicle. However, the appropriate decibel level a vehicle’s exhaust may produce without becoming a nuisance is not a universally agreed-upon concept. 

Efforts to curb the freedom of consumers to choose were reintroduced in legislatures again this year, including a Vermont bill to ban aftermarket exhausts that produce sound levels higher than those of a stock muffler. In New Jersey, a broadly written bill would prohibit any modified muffler that produced unusual noise levels. In order to avoid such ambiguous language, which can lead to improper enforcement, SEMA has crafted model legislation that sets noise limits at 95 decibels and outlines specific measurement guidelines proposed by the Society of Automotive Engineers (SAE). Bills following these specific guidelines were introduced in West Virginia, Hawaii and Iowa during this year’s legislative sessions.

Exhausts systems are not the only aftermarket parts to be targeted by restrictive legislation recently. The Hawaii House of Representatives moved to consider a bill to limit the size of speakers that may be installed in vehicles. This initiative, although a first, may not prove to be unique in the future as the sophistication of mobile audio systems improves and the technology that allows for increased integration of mobile electronics grows in popularity among enthusiasts.

Vehicle Miles Traveled and Big Brother

As governments, both federal and state, push to incentivize the development and production of more fuel-efficient vehicles alongside those that use alternative fuels altogether, they increasingly cannibalize their own sources of revenue. The less Americans consume at the pump, the less money is contributed to budgets by means of fuel taxes. The consequence of this predicament has not gone unnoticed. 

Pilot programs to develop a method of charging drivers a fee for vehicle miles traveled (VMT) has been proposed in many forms. Global positioning satellite units similar to those used in tracking commercial shipping trucks have been tested in private applications. This proposal has since been met with substantial concern over privacy rights and even constitutional violations.

In Michigan, for example, legislation was introduced to prohibit the state from imposing a VMT tax on vehicles and would specifically disallow any global-positioning-satellite-based toll that would provide for the location tracking of private motor vehicles. Preemptive legislative initiatives such as this are a telling sign that many states see the VMT taxes as a rising issue and view it as a possible threat in the near future.

As legislative sessions across the country progress this year, these trends are likely to become clearer. Although many of the most prominent of these issues may never be uniformly resolved, the work to advocate for positive and effective pro-business laws within each legislative body remains an essential pursuit. As new issues arise and old ones are packaged in novel ways, the need to track and understand legislative and regulatory trends remains as important as ever.

Tracking Trends

Some Legislative Proposals Follow Predictable Patterns

Among the greatest challenges of any business is the effort and skill required to stay current or even ahead of what is popular. Predicting trends and following their progress are key elements to success not only in business, but also in politics. Just as businesses are subject to consumer sentiments and economic fluctuations, timely legislative initiatives and popular regulatory proposals can be shaped by any number of national variables and are often broadly applicable. The following are several important legislative trends affecting the automotive specialty-equipment industry that continue to feature prominently in state and federal government agendas. 

Clean Vehicle Incentives

In this election year, the price of gasoline has once again emerged as a national issue, topping the list of many voters’ concerns. In the name of emissions reduction and national security, the federal government has introduced initiatives to increase the fuel efficiency of new vehicles sold in the United States. The National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFE) program, instituted in 1975, is today being used as a tool to push new motor vehicles to be progressively more efficient, eventually reaching an average of 60 miles per gallon by 2025.

Incentive programs to reduce emissions and consumer dependency on petroleum are not unique to the federal government, however. Legislation to reduce the sale of gas guzzlers and remove older “gross polluters” was introduced in Rhode Island and Massachusetts. In New York, proposed legislation would create the Clean Vehicle Incentive Program, consisting of rebates and surcharges on the purchase of new motor vehicles based on their emissions.

Major auto manufacturers are not waiting for these proposals to become realities, however. As global oil production remains subject to unpredictable fluctuations, prices at the pump remain higher than ever. As the cost of operating a vehicle continues to require consumers to search for more fuel-efficient options, manufacturers respond to new market demands.

Large automakers are pouring resources into developing new technologies to increase efficiency while maintaining the performance and quality expected by American consumers. Most of these manufacturers are already pressing for production of vehicles that use traditional gasoline more efficiently while also introducing new and alternative fuel technologies. The push for increased fuel economy has already resulted in companies moving away from the traditional mantra of “no replacement for displacement” in favor of swap-ping V8s for turbocharged four- and six-cylinder engines.

The trend of legislation and regulation pushing for increased fuel economy is one that will continue to shape the new-car market and production offerings of major manufacturers for the foreseeable future.

The Burden of Increased Government Regulation

Increased government regulation is a major point of contention in politics today. The accumulation of requirements that must be followed when providing goods or services to a consumer has become increasingly burdensome. Many states create excessive and often costly roadblocks that inhibit the timing and efficiency of a business.

In Maryland and New York, bills to further regulate and track the manufacture and use of tires by imposing additional identification numbers goes beyond the sufficient checks to insure quality and safety. In Michigan, Oklahoma, South Carolina and Georgia, legislatures considered bills that would require installers to inform consumers of the use of mechanical aftermarket parts in the repair of their vehicles.

The time and paperwork required by these proposed regulations burden the already complicated process of auto repair and place a negative stigma on many parts that are often designed to be safer and more affordable than original-manufacturer equipment.

Hobby Cars as Revenue Sources

It has been four years since the collapse of the global economy, and the fallout from the ensuing credit crunch is still reverberating across the country. As budget shortfalls become a perpetual concern, states and municipalities continue to search for ways to raise revenue.

As a result of the perceived luxury status of collector cars, registration exemptions and specialty-use provisions become easy targets. In Virginia and Washington, legislatures attempted this year to raise funds by modifying annual fees imposed on the registration of collector vehicles. Additionally, in Maryland, a bill was introduced to increase the age of vehicles that qualify for registration as historical motor vehicles, thus decreasing the number of vehicles eligible for a reduced rate.

As all levels of government across the nation continue to work to protect public services while operating on reduced budgets, the exemptions classic-car hobbyists and enthusiasts enjoy will continue to come under threat.

Registration Made Easy

One of the more favorable legislative trends this year includes exemptions and special designations for specialty vehicles in several states. The best of these examples are in states that adopt SEMA’s own street rod and custom vehicle model legislation, which creates specific registration categories for historic and specialty cars.

Both Massachusetts and Texas recently joined 20 other states by enacting versions of SEMA’s model bill. New York and New Jersey have versions of the bill pending this year. Other favorable accommodations were introduced in Wisconsin and Michigan to allow for the expanded use of collector vehicles.

While these victories exemplify the willingness of legislatures to work with automotive enthusiasts to expand and preserve the rights enjoyed within the hobby, it remains important to work in all states to ensure that these privileges
are protected.

A Beautiful Noise

It is no secret that automotive enthusiasts are often proud to display custom aspects of their vehicles. A louder-than-stock exhaust system is often the first aftermarket addition an enthusiast makes to his or her vehicle. However, the appropriate decibel level a vehicle’s exhaust may produce without becoming a nuisance is not a universally agreed-upon concept. 

Efforts to curb the freedom of consumers to choose were reintroduced in legislatures again this year, including a Vermont bill to ban aftermarket exhausts that produce sound levels higher than those of a stock muffler. In New Jersey, a broadly written bill would prohibit any modified muffler that produced unusual noise levels. In order to avoid such ambiguous language, which can lead to improper enforcement, SEMA has crafted model legislation that sets noise limits at 95 decibels and outlines specific measurement guidelines proposed by the Society of Automotive Engineers (SAE). Bills following these specific guidelines were introduced in West Virginia, Hawaii and Iowa during this year’s legislative sessions.

Exhausts systems are not the only aftermarket parts to be targeted by restrictive legislation recently. The Hawaii House of Representatives moved to consider a bill to limit the size of speakers that may be installed in vehicles. This initiative, although a first, may not prove to be unique in the future as the sophistication of mobile audio systems improves and the technology that allows for increased integration of mobile electronics grows in popularity among enthusiasts.

Vehicle Miles Traveled and Big Brother

As governments, both federal and state, push to incentivize the development and production of more fuel-efficient vehicles alongside those that use alternative fuels altogether, they increasingly cannibalize their own sources of revenue. The less Americans consume at the pump, the less money is contributed to budgets by means of fuel taxes. The consequence of this predicament has not gone unnoticed. 

Pilot programs to develop a method of charging drivers a fee for vehicle miles traveled (VMT) has been proposed in many forms. Global positioning satellite units similar to those used in tracking commercial shipping trucks have been tested in private applications. This proposal has since been met with substantial concern over privacy rights and even constitutional violations.

In Michigan, for example, legislation was introduced to prohibit the state from imposing a VMT tax on vehicles and would specifically disallow any global-positioning-satellite-based toll that would provide for the location tracking of private motor vehicles. Preemptive legislative initiatives such as this are a telling sign that many states see the VMT taxes as a rising issue and view it as a possible threat in the near future.

As legislative sessions across the country progress this year, these trends are likely to become clearer. Although many of the most prominent of these issues may never be uniformly resolved, the work to advocate for positive and effective pro-business laws within each legislative body remains an essential pursuit. As new issues arise and old ones are packaged in novel ways, the need to track and understand legislative and regulatory trends remains as important as ever.

SEMA News—August 2012

An Impatient Electorate Seeks Certainty

With the critical 2012 election only a few months away, lawmakers have produced few results. The blame falls on both sides of the aisle. For example, the U.S. Senate has not passed a budget since April 29, 2009. While scores of crucial tax-relief measures expire, including the estate tax and research and development tax credit, the House of Representatives has chosen to delay consideration until after the November election.

Lawmakers are avoiding tough decisions on tax and spending issues before voters go to the polls. Instead, they intend to hold a lame-duck session after the election but before the new Congress is seated in January. Many important decisions can’t wait until 2013, but the current atmosphere on Capitol Hill is too divisive to enact legislation. The lame-duck session may permit a compromise to temporarily extend some tax cuts and set in motion the process for overhauling the tax code.

Instead of dealing with those important issues now, Congress has purposely engaged in partisan standoffs over the 2008 health care law, the Keystone XL pipeline project and infrastructure funding, among many other issues. The debates have been shallow on substance and served as wedge issues to rile up voters rather than enact laws. Meanwhile, Congressional leaders from both sides have postponed action on legislative initiatives designed to stimulate the economy and put Americans back to work.

The evidence of gridlock is clear. Unemployment in the United States has remained above 8%. Economic growth remains sluggish. Given the uncertainties about taxes, regulatory burdens and future product sales, businesses throughout the nation are still hesitant to hire new workers. Throughout the first half of 2012, small-business owners have repeatedly called for clarity from Washington. Congress and the White House have not responded.

This economic uncertainty has resulted in frustration and anger from the American public. Voters first made a statement in 2008 that “change” was necessary to bring a new approach to Washington. In 2010, Americans issued a strong declaration that the change they had voted for only two years prior was not meeting their demands. Now, with control of both houses of Congress and the White House at stake, we find ourselves yet again at a historic crossroads.

While demanding change, the American electorate also needs to hold itself accountable for the people it puts into office. A large segment of the public automatically votes with its party affiliation, leaving independent voters to sway the results. These are swing voters that have no allegiance to a particular party. They also symbolize the nation’s impatience with gridlock. Given the growing divide between electoral demands and partisan rhetoric, the 2012 election may serve as the strongest rebuke of partisan politics in years.

Voters are looking for leadership, a vision for the future and a concise message on how to get there. Addressing tax reform, spending cuts, entitlement reforms, regulatory relief, investments in infrastructure and other issues that shape a strong economy requires leadership at all levels of government. Debating these topics and articulating legislative solutions during the campaign season allows lawmakers to claim a mandate once elected. Of course, voters also need to accept the fact that restoring the nation’s economy will require some tough medicine, and the leaders who prescribe the appropriate remedy should be supported.

In this divided environment, it is important that SEMA remain a leading voice for its membership. While legislative leaders continue to express empty rhetoric on Capitol Hill and in the media, SEMA continues to advocate strongly for the future of the industry. SEMA is working to hold elected officials accountable by calling for tax and entitlement reform, regulatory relief for small businesses and economic incentives to ensure that member businesses continue to drive the recovery of the American economy.

As Election Day draws closer, SEMA remains engaged in protecting our industry and providing the strongest opportunities for growth, expansion and success.

SEMA News—August 2012

An Impatient Electorate Seeks Certainty

With the critical 2012 election only a few months away, lawmakers have produced few results. The blame falls on both sides of the aisle. For example, the U.S. Senate has not passed a budget since April 29, 2009. While scores of crucial tax-relief measures expire, including the estate tax and research and development tax credit, the House of Representatives has chosen to delay consideration until after the November election.

Lawmakers are avoiding tough decisions on tax and spending issues before voters go to the polls. Instead, they intend to hold a lame-duck session after the election but before the new Congress is seated in January. Many important decisions can’t wait until 2013, but the current atmosphere on Capitol Hill is too divisive to enact legislation. The lame-duck session may permit a compromise to temporarily extend some tax cuts and set in motion the process for overhauling the tax code.

Instead of dealing with those important issues now, Congress has purposely engaged in partisan standoffs over the 2008 health care law, the Keystone XL pipeline project and infrastructure funding, among many other issues. The debates have been shallow on substance and served as wedge issues to rile up voters rather than enact laws. Meanwhile, Congressional leaders from both sides have postponed action on legislative initiatives designed to stimulate the economy and put Americans back to work.

The evidence of gridlock is clear. Unemployment in the United States has remained above 8%. Economic growth remains sluggish. Given the uncertainties about taxes, regulatory burdens and future product sales, businesses throughout the nation are still hesitant to hire new workers. Throughout the first half of 2012, small-business owners have repeatedly called for clarity from Washington. Congress and the White House have not responded.

This economic uncertainty has resulted in frustration and anger from the American public. Voters first made a statement in 2008 that “change” was necessary to bring a new approach to Washington. In 2010, Americans issued a strong declaration that the change they had voted for only two years prior was not meeting their demands. Now, with control of both houses of Congress and the White House at stake, we find ourselves yet again at a historic crossroads.

While demanding change, the American electorate also needs to hold itself accountable for the people it puts into office. A large segment of the public automatically votes with its party affiliation, leaving independent voters to sway the results. These are swing voters that have no allegiance to a particular party. They also symbolize the nation’s impatience with gridlock. Given the growing divide between electoral demands and partisan rhetoric, the 2012 election may serve as the strongest rebuke of partisan politics in years.

Voters are looking for leadership, a vision for the future and a concise message on how to get there. Addressing tax reform, spending cuts, entitlement reforms, regulatory relief, investments in infrastructure and other issues that shape a strong economy requires leadership at all levels of government. Debating these topics and articulating legislative solutions during the campaign season allows lawmakers to claim a mandate once elected. Of course, voters also need to accept the fact that restoring the nation’s economy will require some tough medicine, and the leaders who prescribe the appropriate remedy should be supported.

In this divided environment, it is important that SEMA remain a leading voice for its membership. While legislative leaders continue to express empty rhetoric on Capitol Hill and in the media, SEMA continues to advocate strongly for the future of the industry. SEMA is working to hold elected officials accountable by calling for tax and entitlement reform, regulatory relief for small businesses and economic incentives to ensure that member businesses continue to drive the recovery of the American economy.

As Election Day draws closer, SEMA remains engaged in protecting our industry and providing the strongest opportunities for growth, expansion and success.

SEMA News—August 2012

An Impatient Electorate Seeks Certainty

With the critical 2012 election only a few months away, lawmakers have produced few results. The blame falls on both sides of the aisle. For example, the U.S. Senate has not passed a budget since April 29, 2009. While scores of crucial tax-relief measures expire, including the estate tax and research and development tax credit, the House of Representatives has chosen to delay consideration until after the November election.

Lawmakers are avoiding tough decisions on tax and spending issues before voters go to the polls. Instead, they intend to hold a lame-duck session after the election but before the new Congress is seated in January. Many important decisions can’t wait until 2013, but the current atmosphere on Capitol Hill is too divisive to enact legislation. The lame-duck session may permit a compromise to temporarily extend some tax cuts and set in motion the process for overhauling the tax code.

Instead of dealing with those important issues now, Congress has purposely engaged in partisan standoffs over the 2008 health care law, the Keystone XL pipeline project and infrastructure funding, among many other issues. The debates have been shallow on substance and served as wedge issues to rile up voters rather than enact laws. Meanwhile, Congressional leaders from both sides have postponed action on legislative initiatives designed to stimulate the economy and put Americans back to work.

The evidence of gridlock is clear. Unemployment in the United States has remained above 8%. Economic growth remains sluggish. Given the uncertainties about taxes, regulatory burdens and future product sales, businesses throughout the nation are still hesitant to hire new workers. Throughout the first half of 2012, small-business owners have repeatedly called for clarity from Washington. Congress and the White House have not responded.

This economic uncertainty has resulted in frustration and anger from the American public. Voters first made a statement in 2008 that “change” was necessary to bring a new approach to Washington. In 2010, Americans issued a strong declaration that the change they had voted for only two years prior was not meeting their demands. Now, with control of both houses of Congress and the White House at stake, we find ourselves yet again at a historic crossroads.

While demanding change, the American electorate also needs to hold itself accountable for the people it puts into office. A large segment of the public automatically votes with its party affiliation, leaving independent voters to sway the results. These are swing voters that have no allegiance to a particular party. They also symbolize the nation’s impatience with gridlock. Given the growing divide between electoral demands and partisan rhetoric, the 2012 election may serve as the strongest rebuke of partisan politics in years.

Voters are looking for leadership, a vision for the future and a concise message on how to get there. Addressing tax reform, spending cuts, entitlement reforms, regulatory relief, investments in infrastructure and other issues that shape a strong economy requires leadership at all levels of government. Debating these topics and articulating legislative solutions during the campaign season allows lawmakers to claim a mandate once elected. Of course, voters also need to accept the fact that restoring the nation’s economy will require some tough medicine, and the leaders who prescribe the appropriate remedy should be supported.

In this divided environment, it is important that SEMA remain a leading voice for its membership. While legislative leaders continue to express empty rhetoric on Capitol Hill and in the media, SEMA continues to advocate strongly for the future of the industry. SEMA is working to hold elected officials accountable by calling for tax and entitlement reform, regulatory relief for small businesses and economic incentives to ensure that member businesses continue to drive the recovery of the American economy.

As Election Day draws closer, SEMA remains engaged in protecting our industry and providing the strongest opportunities for growth, expansion and success.

SEMA News—August 2012

An Impatient Electorate Seeks Certainty

With the critical 2012 election only a few months away, lawmakers have produced few results. The blame falls on both sides of the aisle. For example, the U.S. Senate has not passed a budget since April 29, 2009. While scores of crucial tax-relief measures expire, including the estate tax and research and development tax credit, the House of Representatives has chosen to delay consideration until after the November election.

Lawmakers are avoiding tough decisions on tax and spending issues before voters go to the polls. Instead, they intend to hold a lame-duck session after the election but before the new Congress is seated in January. Many important decisions can’t wait until 2013, but the current atmosphere on Capitol Hill is too divisive to enact legislation. The lame-duck session may permit a compromise to temporarily extend some tax cuts and set in motion the process for overhauling the tax code.

Instead of dealing with those important issues now, Congress has purposely engaged in partisan standoffs over the 2008 health care law, the Keystone XL pipeline project and infrastructure funding, among many other issues. The debates have been shallow on substance and served as wedge issues to rile up voters rather than enact laws. Meanwhile, Congressional leaders from both sides have postponed action on legislative initiatives designed to stimulate the economy and put Americans back to work.

The evidence of gridlock is clear. Unemployment in the United States has remained above 8%. Economic growth remains sluggish. Given the uncertainties about taxes, regulatory burdens and future product sales, businesses throughout the nation are still hesitant to hire new workers. Throughout the first half of 2012, small-business owners have repeatedly called for clarity from Washington. Congress and the White House have not responded.

This economic uncertainty has resulted in frustration and anger from the American public. Voters first made a statement in 2008 that “change” was necessary to bring a new approach to Washington. In 2010, Americans issued a strong declaration that the change they had voted for only two years prior was not meeting their demands. Now, with control of both houses of Congress and the White House at stake, we find ourselves yet again at a historic crossroads.

While demanding change, the American electorate also needs to hold itself accountable for the people it puts into office. A large segment of the public automatically votes with its party affiliation, leaving independent voters to sway the results. These are swing voters that have no allegiance to a particular party. They also symbolize the nation’s impatience with gridlock. Given the growing divide between electoral demands and partisan rhetoric, the 2012 election may serve as the strongest rebuke of partisan politics in years.

Voters are looking for leadership, a vision for the future and a concise message on how to get there. Addressing tax reform, spending cuts, entitlement reforms, regulatory relief, investments in infrastructure and other issues that shape a strong economy requires leadership at all levels of government. Debating these topics and articulating legislative solutions during the campaign season allows lawmakers to claim a mandate once elected. Of course, voters also need to accept the fact that restoring the nation’s economy will require some tough medicine, and the leaders who prescribe the appropriate remedy should be supported.

In this divided environment, it is important that SEMA remain a leading voice for its membership. While legislative leaders continue to express empty rhetoric on Capitol Hill and in the media, SEMA continues to advocate strongly for the future of the industry. SEMA is working to hold elected officials accountable by calling for tax and entitlement reform, regulatory relief for small businesses and economic incentives to ensure that member businesses continue to drive the recovery of the American economy.

As Election Day draws closer, SEMA remains engaged in protecting our industry and providing the strongest opportunities for growth, expansion and success.

SEMA News—August 2012

An Impatient Electorate Seeks Certainty

With the critical 2012 election only a few months away, lawmakers have produced few results. The blame falls on both sides of the aisle. For example, the U.S. Senate has not passed a budget since April 29, 2009. While scores of crucial tax-relief measures expire, including the estate tax and research and development tax credit, the House of Representatives has chosen to delay consideration until after the November election.

Lawmakers are avoiding tough decisions on tax and spending issues before voters go to the polls. Instead, they intend to hold a lame-duck session after the election but before the new Congress is seated in January. Many important decisions can’t wait until 2013, but the current atmosphere on Capitol Hill is too divisive to enact legislation. The lame-duck session may permit a compromise to temporarily extend some tax cuts and set in motion the process for overhauling the tax code.

Instead of dealing with those important issues now, Congress has purposely engaged in partisan standoffs over the 2008 health care law, the Keystone XL pipeline project and infrastructure funding, among many other issues. The debates have been shallow on substance and served as wedge issues to rile up voters rather than enact laws. Meanwhile, Congressional leaders from both sides have postponed action on legislative initiatives designed to stimulate the economy and put Americans back to work.

The evidence of gridlock is clear. Unemployment in the United States has remained above 8%. Economic growth remains sluggish. Given the uncertainties about taxes, regulatory burdens and future product sales, businesses throughout the nation are still hesitant to hire new workers. Throughout the first half of 2012, small-business owners have repeatedly called for clarity from Washington. Congress and the White House have not responded.

This economic uncertainty has resulted in frustration and anger from the American public. Voters first made a statement in 2008 that “change” was necessary to bring a new approach to Washington. In 2010, Americans issued a strong declaration that the change they had voted for only two years prior was not meeting their demands. Now, with control of both houses of Congress and the White House at stake, we find ourselves yet again at a historic crossroads.

While demanding change, the American electorate also needs to hold itself accountable for the people it puts into office. A large segment of the public automatically votes with its party affiliation, leaving independent voters to sway the results. These are swing voters that have no allegiance to a particular party. They also symbolize the nation’s impatience with gridlock. Given the growing divide between electoral demands and partisan rhetoric, the 2012 election may serve as the strongest rebuke of partisan politics in years.

Voters are looking for leadership, a vision for the future and a concise message on how to get there. Addressing tax reform, spending cuts, entitlement reforms, regulatory relief, investments in infrastructure and other issues that shape a strong economy requires leadership at all levels of government. Debating these topics and articulating legislative solutions during the campaign season allows lawmakers to claim a mandate once elected. Of course, voters also need to accept the fact that restoring the nation’s economy will require some tough medicine, and the leaders who prescribe the appropriate remedy should be supported.

In this divided environment, it is important that SEMA remain a leading voice for its membership. While legislative leaders continue to express empty rhetoric on Capitol Hill and in the media, SEMA continues to advocate strongly for the future of the industry. SEMA is working to hold elected officials accountable by calling for tax and entitlement reform, regulatory relief for small businesses and economic incentives to ensure that member businesses continue to drive the recovery of the American economy.

As Election Day draws closer, SEMA remains engaged in protecting our industry and providing the strongest opportunities for growth, expansion and success.

E-mail Marketing

An Inexpensive Alternative

While there are any number of online services eager to manage your e-marketing for you, the downside to those services is cost. Unlike the one-time fees associated with PC-based software, online service billings generally recur monthly and never disappear. Not surprisingly, many small businesses are deciding to opt for PC-based e-mail marketing software instead, which starts at about $100. Such packages can be every bit as sophisticated as an online service while offering users much more control over how their data and analytics are managed.

Generally speaking, PC-based software is ideal for monthly mailings of 5,000 subscribers or fewer if you’re using the entry-level Internet connection offered by most Internet service providers (ISPs). It also offers you much more precise handling of your subscriber list. For example, automated online services often simply remove an e-mail address from your list if it bounces. But with PC software, you’ll be able to manage bounces manually and pick up e-mails sent by subscribers informing you of their new addresses or a new person to target with your mailings.

PC-based e-mail marketing also enables you to market to potential customers with whom you’ve never done business before. This practice is legal under U.S. laws, as long as you provide an easy way to unsubscribe from your mailing list and comply with the other fine print of the CAN-SPAM Act.

In contrast, online e-marketing providers offer no such flexibility. Instead, online e-marketing services by and large will only agree to work with a double-opt-in mailing list. Such lists require subscribers to take the initiative to sign-up for your mailings and then reconfirm via e-mail that they want to be on your list once they receive a mailing from you.

Using PC-based e-mail marketing software may also offer your business a greater level of security. When you’re working with an online e-marketing provider, you’re asked to upload your entire mailing list to that provider’s servers. Essentially, the security on that list is only as good as the service provider’s.

PC-based e-mail marketing software also enables you to retain data locally on your computer from analytics on your e-marketing. If you go with an online provider, those analytics remain in the cloud. That’s fine if you plan to do business with that provider for the rest of your life. Otherwise, when you’re ready to leave that provider, you may not be able to export all of your analytics data to your next provider or move that data in-house. 

Working with PC-based software will also prepare you to establish an in-house mail server for your business, if you decide to go that route at a later date. Such a proposition represents an investment of $5,000–$10,000 as well as the need for a staff person with the expertise to run and maintain a server. But you’ll at least have an idea of what handling all e-mailing in-house is like if you start with the simpler PC-based software.

Of course, there are some caveats inherent in opting for PC-based e-mail marketing software. Typically, running your own software will require more time to get up-to-speed on how your software works as well as its full capabilities. You’ll want to read the software manual thoroughly and watch a few training videos, if available. Plus, it’s also very likely that you’ll be on the phone with your software maker’s tech support the first month or so until you get the hang of things.

More importantly, many ISPs frown on the use of PC-based e-marketing software. The reason: With the scourge of spam still so ferocious, ISPs are quick to label a business using PC-based e-marketing software as a spammer—whether or not that business is a legitimate sender of e-marketing e-mail.

There’s also a very good chance that you could be unfairly labeled a spammer if you send a legal but unsolicited e-mail to someone using a free e-mail provider, such as Google, Yahoo! or AOL. Unfortunately, free e-mail providers usually sport a nice, big “Report Spam” button on the user interface, which many users are all too happy to click without justification. (An easy workaround for this problem is to simply do a global remove of free e-mail addresses from your mailing list.)

That said, businesses can generally steer clear of being unfairly labeled spammers if they limit their mailings to 1,000 e-mail addresses or fewer per day, send fewer than 100 e-mails per hour and send their e-mails over the weekend. Moreover, you’ll have the best luck if you’re only sending a mailing to, say, a total of 5,000 addresses once a month.

If you find yourself still getting dinged by your ISP (ISPs often shut down an e-mail sender for a day if they decide, unfairly or not, that it’s a spammer), you may want to consider an Internet connection with a “static IP.” Essentially, this is a connection to the Internet that has an identifiable address that you, as a business, own.

Often, ISPs are more lenient with businesses using static IPs, since spam monitoring services, such as Spamhaus, blacklist spammers by identifying the static IP they’re using to send e-mail. Put another way: If you’re sending large amounts of e-mail using a standard Internet connection, your ISP gets labeled as a spammer by Spamhaus. But if you’re sending large amounts of e-mail using a static IP, your business gets labeled as a spammer. Ergo, ISPs really have little to lose if you’re sending large amounts over a static IP that your business owns, so their policing of such IPs is often very lenient or even nonexistent.

No matter what approach you choose, your results may vary. So it’s best to download a trial version of PC-based software, conduct a few trial runs over your ISP and monitor your ISP’s response. Here’s a representative sampling of highly rated PC-based software you can check out:

Campaign Enterprise, from Arial Software, $985: A longtime favorite, Campaign Enterprise enables users to track every click subscribers make in the company’s newsletter. Plus, it offers scores of variables to personalize an e-mail newsletter with the subscriber’s name, company and other distinguishing data. You’ll also be able to insert varied paragraphs, images and other content elements into an e-mail newsletter, enabling your company to customize an e-mail newsletter by region, demographics, the type of relationship you have with the recipient and more.

Atomic E-mail Studio, from AtomPark Software, $299: Another extremely popular program, Atomic E-mail Studio also allows a company to personalize each e-mail newsletter it sends with info about each subscriber it has in its database. You’ll also be able to work with your e-mail newsletters using the Studio’s task-specific modules, including List Manager, Subscription Manager and Mail Verifier. Other modules enable you to auto-collect new subscribers for your newsletter from your website as well as hunt for e-mail addresses on your PC.

SendBlaster Pro, from Nuraxis, $129: Another highly rated solution, SendBlaster also offers personalization as well as list maintenance tools and analytics. It can run a spam-alert check on your e-mail newsletter to ensure that it complies with all spam laws and is not characterized as such by the scores of “spam cop” websites that are currently policing the web.

GroupMail Personal Edition, from Infacta, $139: Another reliable package, GroupMail Personal Edition offers personalization for each e-mail newsletter you send, with 38 HTML templates to choose from and mailing-list management, among other features. This is GroupMail’s entry-level product. More robust versions—GroupMail Business and Groupmail Marketing Pack—offer many more features.

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
646-233-4089
joe@joedysart.com
www.joedysart.com

E-mail Marketing

An Inexpensive Alternative

While there are any number of online services eager to manage your e-marketing for you, the downside to those services is cost. Unlike the one-time fees associated with PC-based software, online service billings generally recur monthly and never disappear. Not surprisingly, many small businesses are deciding to opt for PC-based e-mail marketing software instead, which starts at about $100. Such packages can be every bit as sophisticated as an online service while offering users much more control over how their data and analytics are managed.

Generally speaking, PC-based software is ideal for monthly mailings of 5,000 subscribers or fewer if you’re using the entry-level Internet connection offered by most Internet service providers (ISPs). It also offers you much more precise handling of your subscriber list. For example, automated online services often simply remove an e-mail address from your list if it bounces. But with PC software, you’ll be able to manage bounces manually and pick up e-mails sent by subscribers informing you of their new addresses or a new person to target with your mailings.

PC-based e-mail marketing also enables you to market to potential customers with whom you’ve never done business before. This practice is legal under U.S. laws, as long as you provide an easy way to unsubscribe from your mailing list and comply with the other fine print of the CAN-SPAM Act.

In contrast, online e-marketing providers offer no such flexibility. Instead, online e-marketing services by and large will only agree to work with a double-opt-in mailing list. Such lists require subscribers to take the initiative to sign-up for your mailings and then reconfirm via e-mail that they want to be on your list once they receive a mailing from you.

Using PC-based e-mail marketing software may also offer your business a greater level of security. When you’re working with an online e-marketing provider, you’re asked to upload your entire mailing list to that provider’s servers. Essentially, the security on that list is only as good as the service provider’s.

PC-based e-mail marketing software also enables you to retain data locally on your computer from analytics on your e-marketing. If you go with an online provider, those analytics remain in the cloud. That’s fine if you plan to do business with that provider for the rest of your life. Otherwise, when you’re ready to leave that provider, you may not be able to export all of your analytics data to your next provider or move that data in-house. 

Working with PC-based software will also prepare you to establish an in-house mail server for your business, if you decide to go that route at a later date. Such a proposition represents an investment of $5,000–$10,000 as well as the need for a staff person with the expertise to run and maintain a server. But you’ll at least have an idea of what handling all e-mailing in-house is like if you start with the simpler PC-based software.

Of course, there are some caveats inherent in opting for PC-based e-mail marketing software. Typically, running your own software will require more time to get up-to-speed on how your software works as well as its full capabilities. You’ll want to read the software manual thoroughly and watch a few training videos, if available. Plus, it’s also very likely that you’ll be on the phone with your software maker’s tech support the first month or so until you get the hang of things.

More importantly, many ISPs frown on the use of PC-based e-marketing software. The reason: With the scourge of spam still so ferocious, ISPs are quick to label a business using PC-based e-marketing software as a spammer—whether or not that business is a legitimate sender of e-marketing e-mail.

There’s also a very good chance that you could be unfairly labeled a spammer if you send a legal but unsolicited e-mail to someone using a free e-mail provider, such as Google, Yahoo! or AOL. Unfortunately, free e-mail providers usually sport a nice, big “Report Spam” button on the user interface, which many users are all too happy to click without justification. (An easy workaround for this problem is to simply do a global remove of free e-mail addresses from your mailing list.)

That said, businesses can generally steer clear of being unfairly labeled spammers if they limit their mailings to 1,000 e-mail addresses or fewer per day, send fewer than 100 e-mails per hour and send their e-mails over the weekend. Moreover, you’ll have the best luck if you’re only sending a mailing to, say, a total of 5,000 addresses once a month.

If you find yourself still getting dinged by your ISP (ISPs often shut down an e-mail sender for a day if they decide, unfairly or not, that it’s a spammer), you may want to consider an Internet connection with a “static IP.” Essentially, this is a connection to the Internet that has an identifiable address that you, as a business, own.

Often, ISPs are more lenient with businesses using static IPs, since spam monitoring services, such as Spamhaus, blacklist spammers by identifying the static IP they’re using to send e-mail. Put another way: If you’re sending large amounts of e-mail using a standard Internet connection, your ISP gets labeled as a spammer by Spamhaus. But if you’re sending large amounts of e-mail using a static IP, your business gets labeled as a spammer. Ergo, ISPs really have little to lose if you’re sending large amounts over a static IP that your business owns, so their policing of such IPs is often very lenient or even nonexistent.

No matter what approach you choose, your results may vary. So it’s best to download a trial version of PC-based software, conduct a few trial runs over your ISP and monitor your ISP’s response. Here’s a representative sampling of highly rated PC-based software you can check out:

Campaign Enterprise, from Arial Software, $985: A longtime favorite, Campaign Enterprise enables users to track every click subscribers make in the company’s newsletter. Plus, it offers scores of variables to personalize an e-mail newsletter with the subscriber’s name, company and other distinguishing data. You’ll also be able to insert varied paragraphs, images and other content elements into an e-mail newsletter, enabling your company to customize an e-mail newsletter by region, demographics, the type of relationship you have with the recipient and more.

Atomic E-mail Studio, from AtomPark Software, $299: Another extremely popular program, Atomic E-mail Studio also allows a company to personalize each e-mail newsletter it sends with info about each subscriber it has in its database. You’ll also be able to work with your e-mail newsletters using the Studio’s task-specific modules, including List Manager, Subscription Manager and Mail Verifier. Other modules enable you to auto-collect new subscribers for your newsletter from your website as well as hunt for e-mail addresses on your PC.

SendBlaster Pro, from Nuraxis, $129: Another highly rated solution, SendBlaster also offers personalization as well as list maintenance tools and analytics. It can run a spam-alert check on your e-mail newsletter to ensure that it complies with all spam laws and is not characterized as such by the scores of “spam cop” websites that are currently policing the web.

GroupMail Personal Edition, from Infacta, $139: Another reliable package, GroupMail Personal Edition offers personalization for each e-mail newsletter you send, with 38 HTML templates to choose from and mailing-list management, among other features. This is GroupMail’s entry-level product. More robust versions—GroupMail Business and Groupmail Marketing Pack—offer many more features.

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
646-233-4089
joe@joedysart.com
www.joedysart.com

E-mail Marketing

An Inexpensive Alternative

While there are any number of online services eager to manage your e-marketing for you, the downside to those services is cost. Unlike the one-time fees associated with PC-based software, online service billings generally recur monthly and never disappear. Not surprisingly, many small businesses are deciding to opt for PC-based e-mail marketing software instead, which starts at about $100. Such packages can be every bit as sophisticated as an online service while offering users much more control over how their data and analytics are managed.

Generally speaking, PC-based software is ideal for monthly mailings of 5,000 subscribers or fewer if you’re using the entry-level Internet connection offered by most Internet service providers (ISPs). It also offers you much more precise handling of your subscriber list. For example, automated online services often simply remove an e-mail address from your list if it bounces. But with PC software, you’ll be able to manage bounces manually and pick up e-mails sent by subscribers informing you of their new addresses or a new person to target with your mailings.

PC-based e-mail marketing also enables you to market to potential customers with whom you’ve never done business before. This practice is legal under U.S. laws, as long as you provide an easy way to unsubscribe from your mailing list and comply with the other fine print of the CAN-SPAM Act.

In contrast, online e-marketing providers offer no such flexibility. Instead, online e-marketing services by and large will only agree to work with a double-opt-in mailing list. Such lists require subscribers to take the initiative to sign-up for your mailings and then reconfirm via e-mail that they want to be on your list once they receive a mailing from you.

Using PC-based e-mail marketing software may also offer your business a greater level of security. When you’re working with an online e-marketing provider, you’re asked to upload your entire mailing list to that provider’s servers. Essentially, the security on that list is only as good as the service provider’s.

PC-based e-mail marketing software also enables you to retain data locally on your computer from analytics on your e-marketing. If you go with an online provider, those analytics remain in the cloud. That’s fine if you plan to do business with that provider for the rest of your life. Otherwise, when you’re ready to leave that provider, you may not be able to export all of your analytics data to your next provider or move that data in-house. 

Working with PC-based software will also prepare you to establish an in-house mail server for your business, if you decide to go that route at a later date. Such a proposition represents an investment of $5,000–$10,000 as well as the need for a staff person with the expertise to run and maintain a server. But you’ll at least have an idea of what handling all e-mailing in-house is like if you start with the simpler PC-based software.

Of course, there are some caveats inherent in opting for PC-based e-mail marketing software. Typically, running your own software will require more time to get up-to-speed on how your software works as well as its full capabilities. You’ll want to read the software manual thoroughly and watch a few training videos, if available. Plus, it’s also very likely that you’ll be on the phone with your software maker’s tech support the first month or so until you get the hang of things.

More importantly, many ISPs frown on the use of PC-based e-marketing software. The reason: With the scourge of spam still so ferocious, ISPs are quick to label a business using PC-based e-marketing software as a spammer—whether or not that business is a legitimate sender of e-marketing e-mail.

There’s also a very good chance that you could be unfairly labeled a spammer if you send a legal but unsolicited e-mail to someone using a free e-mail provider, such as Google, Yahoo! or AOL. Unfortunately, free e-mail providers usually sport a nice, big “Report Spam” button on the user interface, which many users are all too happy to click without justification. (An easy workaround for this problem is to simply do a global remove of free e-mail addresses from your mailing list.)

That said, businesses can generally steer clear of being unfairly labeled spammers if they limit their mailings to 1,000 e-mail addresses or fewer per day, send fewer than 100 e-mails per hour and send their e-mails over the weekend. Moreover, you’ll have the best luck if you’re only sending a mailing to, say, a total of 5,000 addresses once a month.

If you find yourself still getting dinged by your ISP (ISPs often shut down an e-mail sender for a day if they decide, unfairly or not, that it’s a spammer), you may want to consider an Internet connection with a “static IP.” Essentially, this is a connection to the Internet that has an identifiable address that you, as a business, own.

Often, ISPs are more lenient with businesses using static IPs, since spam monitoring services, such as Spamhaus, blacklist spammers by identifying the static IP they’re using to send e-mail. Put another way: If you’re sending large amounts of e-mail using a standard Internet connection, your ISP gets labeled as a spammer by Spamhaus. But if you’re sending large amounts of e-mail using a static IP, your business gets labeled as a spammer. Ergo, ISPs really have little to lose if you’re sending large amounts over a static IP that your business owns, so their policing of such IPs is often very lenient or even nonexistent.

No matter what approach you choose, your results may vary. So it’s best to download a trial version of PC-based software, conduct a few trial runs over your ISP and monitor your ISP’s response. Here’s a representative sampling of highly rated PC-based software you can check out:

Campaign Enterprise, from Arial Software, $985: A longtime favorite, Campaign Enterprise enables users to track every click subscribers make in the company’s newsletter. Plus, it offers scores of variables to personalize an e-mail newsletter with the subscriber’s name, company and other distinguishing data. You’ll also be able to insert varied paragraphs, images and other content elements into an e-mail newsletter, enabling your company to customize an e-mail newsletter by region, demographics, the type of relationship you have with the recipient and more.

Atomic E-mail Studio, from AtomPark Software, $299: Another extremely popular program, Atomic E-mail Studio also allows a company to personalize each e-mail newsletter it sends with info about each subscriber it has in its database. You’ll also be able to work with your e-mail newsletters using the Studio’s task-specific modules, including List Manager, Subscription Manager and Mail Verifier. Other modules enable you to auto-collect new subscribers for your newsletter from your website as well as hunt for e-mail addresses on your PC.

SendBlaster Pro, from Nuraxis, $129: Another highly rated solution, SendBlaster also offers personalization as well as list maintenance tools and analytics. It can run a spam-alert check on your e-mail newsletter to ensure that it complies with all spam laws and is not characterized as such by the scores of “spam cop” websites that are currently policing the web.

GroupMail Personal Edition, from Infacta, $139: Another reliable package, GroupMail Personal Edition offers personalization for each e-mail newsletter you send, with 38 HTML templates to choose from and mailing-list management, among other features. This is GroupMail’s entry-level product. More robust versions—GroupMail Business and Groupmail Marketing Pack—offer many more features.

Joe Dysart is an Internet speaker and business consultant based in Manhattan.
646-233-4089
joe@joedysart.com
www.joedysart.com