Based in Kansas City, Missouri, ATC Composites is a longstanding SEMA-member company, positioning itself as a value leader in fiberglass truck caps, tonneau covers and bedliners since its founding in the mid-’80s. But last February 8, just after midnight, an electrical fire erupted in ATC’s 67,000-sq.-ft. main production facility. Although the building’s emergency fire door worked perfectly—and three other offices for the company’s administrative, maintenance and storage operations were spared—ATC’s truck cap and lid manufacturing core was left in ashes.

“We lost about 100 molds in all, which had the most value of anything in the plant, other than human lives, of course,” said Ripper, adding that, fortunately, no one was on-site at the time.

Not so fortunate was the fact that ATC, like many SEMA-member businesses, lacked any sort of advance disaster preparedness and/or business recovery plan. To keep its doors open, the company was forced to improvise—and fast.

“We quickly assessed our immediate options and decided that since we still had existing permits to revamp our old 12,000-sq.-ft. tooling shop, we could convert it to a very limited-production building,” said Ripper. The staff then shifted its focus to combatting industry rumors that ATC was gone for good. “We called our customers and explained the real situation. We had to stay in continual contact with them during this time to reassure them that we were rebuilding.”

With its core business gutted and a long period of rebuilding ahead, ATC relied on ancillary manufacturing to stay in the game.

“Like any good company, we’d diversified enough in recent years in this economy to not be as dependent on new-truck sales,” Ripper explained. “We had orders for waterslides, and we kept producing those on a limited basis.”

After nearly a year and millions of dollars in damage recovery and building costs, ATC now reports that it is only weeks away from producing all of its truck products at a new plant constructed about 25 miles from the company’s current site. With an additional 22,000 sq. ft. of manufacturing space and 12,000 more sq. ft. of covered loading space at the new location, all major equipment is either in place or on the verge of installation. Jigs, molds and templates have all been painstakingly rebuilt, and the company is now hiring again.

However, Ripper believes that only sheer luck saved the business and, in retrospect, ATC should have paid more attention to a formal disaster plan before the fire struck.

“People had talked about it, everybody thought ‘well, here’s what we do,’ but it was not written,” Ripper said. “That was the biggest mistake we made.” He added that the company could have also done more to protect molds, equipment items and other assets by distributing or storing them in separate locations throughout the plant.

For ATC, disaster came in the form of fire. As Ripper pointed out, however, there are many tragedies that can destroy a company overnight if it’s not prepared: floods, lightning strikes, tornados, earthquakes, industrial accidents—the list is endless.

“We were blessed by luck,” Ripper said. “I’d like to say we’re the perfect role model for what to do in a disaster, but that couldn’t be further from the truth. Don’t underestimate how long it takes you to get back into business.”

Based in Kansas City, Missouri, ATC Composites is a longstanding SEMA-member company, positioning itself as a value leader in fiberglass truck caps, tonneau covers and bedliners since its founding in the mid-’80s. But last February 8, just after midnight, an electrical fire erupted in ATC’s 67,000-sq.-ft. main production facility. Although the building’s emergency fire door worked perfectly—and three other offices for the company’s administrative, maintenance and storage operations were spared—ATC’s truck cap and lid manufacturing core was left in ashes.

“We lost about 100 molds in all, which had the most value of anything in the plant, other than human lives, of course,” said Ripper, adding that, fortunately, no one was on-site at the time.

Not so fortunate was the fact that ATC, like many SEMA-member businesses, lacked any sort of advance disaster preparedness and/or business recovery plan. To keep its doors open, the company was forced to improvise—and fast.

“We quickly assessed our immediate options and decided that since we still had existing permits to revamp our old 12,000-sq.-ft. tooling shop, we could convert it to a very limited-production building,” said Ripper. The staff then shifted its focus to combatting industry rumors that ATC was gone for good. “We called our customers and explained the real situation. We had to stay in continual contact with them during this time to reassure them that we were rebuilding.”

With its core business gutted and a long period of rebuilding ahead, ATC relied on ancillary manufacturing to stay in the game.

“Like any good company, we’d diversified enough in recent years in this economy to not be as dependent on new-truck sales,” Ripper explained. “We had orders for waterslides, and we kept producing those on a limited basis.”

After nearly a year and millions of dollars in damage recovery and building costs, ATC now reports that it is only weeks away from producing all of its truck products at a new plant constructed about 25 miles from the company’s current site. With an additional 22,000 sq. ft. of manufacturing space and 12,000 more sq. ft. of covered loading space at the new location, all major equipment is either in place or on the verge of installation. Jigs, molds and templates have all been painstakingly rebuilt, and the company is now hiring again.

However, Ripper believes that only sheer luck saved the business and, in retrospect, ATC should have paid more attention to a formal disaster plan before the fire struck.

“People had talked about it, everybody thought ‘well, here’s what we do,’ but it was not written,” Ripper said. “That was the biggest mistake we made.” He added that the company could have also done more to protect molds, equipment items and other assets by distributing or storing them in separate locations throughout the plant.

For ATC, disaster came in the form of fire. As Ripper pointed out, however, there are many tragedies that can destroy a company overnight if it’s not prepared: floods, lightning strikes, tornados, earthquakes, industrial accidents—the list is endless.

“We were blessed by luck,” Ripper said. “I’d like to say we’re the perfect role model for what to do in a disaster, but that couldn’t be further from the truth. Don’t underestimate how long it takes you to get back into business.”

Feedback following the Show suggests that the economy might not be booming, but many of our member companies are making progress. Those businesses have dug in and made the moves that will make it possible to thrive during a prolonged recovery period. That’s a reasonable strategy, since it seems clear that significant growth in our traditional markets is still somewhere out in the future.

What are the options for finding growth? One path is to branch out into related markets.

We’re already hearing from members who have begun to develop a presence in fields outside the traditional enthusiast market. We know of companies selling into agricultural markets, selling to the armed services, adapting product for commercial use and, certainly not least, selling overseas.

Making these transitions requires investment—no doubt about it—and there is risk in knowing exactly where and how to apply those dollars. That’s why SEMA places a high priority on helping members locate promising new markets and making the pathway as smooth as possible.

We recently got a bit of good news from the U.S. Department of Commerce, which named SEMA the recipient of a $500,000 grant as part of a market-development program aimed at stimulating U.S. exports of specialty-equipment products.

In awarding the grant, the U.S. Department of Commerce recognized that SEMA has already delivered some successful programs, that we have developed a network of key people overseas and that we were actively working with overseas governments to develop appropriate regulations covering vehicle modifications. It didn’t hurt that SEMA members are mostly small- and medium-size companies with a proven reputation for innovation and adaptability.

The U.S. Department of Commerce grant will benefit SEMA members in a number of different ways. First, it adds to association resources when it comes to supporting some of our overseas business-development initiatives. We’re already helping member businesses get started in countries such as the United Arab Emirates and the world’s most populous country, China.

Our recent one-on-one matchmaker program in Beijing brought together SEMA-member manufacturers with pre-vetted distributors and retailers of specialty products from throughout China. This turnkey approach provides a low-cost opportunity for members to explore emerging markets. You’ll find a report, including feedback from SEMA-member companies that attended, on p. 54 of the December 2011 issue of SEMA News. With this additional funding, we’ll be able to do more for SEMA members.

Another booming auto-enthusiast market that SEMA is helping its members explore is the United Arab Emirates and surrounding Gulf countries. Motorsports and vehicle personalization have a strong and growing base throughout the region, and a quick drive around Dubai or Abu Dhabi would surprise any gearhead with the wide variety of customized vehicles traveling the roads.

Recognizing the market potential, SEMA has teamed up with the U.S. government to bring the turnkey, one-on-one matchmaker concept to the Middle East. Join SEMA manufacturers in April for the first SEMA Middle East Business Development Conference (April 17–21) and meet with importers and wholesalers from throughout the United Arab Emirates, Saudi Arabia and other neighboring countries. More information is available here.

You’ll be hearing more about alternative markets and especially export opportunities in the coming year. Members who would like to get started today should visit here, and stay tuned for more information.

Feedback following the Show suggests that the economy might not be booming, but many of our member companies are making progress. Those businesses have dug in and made the moves that will make it possible to thrive during a prolonged recovery period. That’s a reasonable strategy, since it seems clear that significant growth in our traditional markets is still somewhere out in the future.

What are the options for finding growth? One path is to branch out into related markets.

We’re already hearing from members who have begun to develop a presence in fields outside the traditional enthusiast market. We know of companies selling into agricultural markets, selling to the armed services, adapting product for commercial use and, certainly not least, selling overseas.

Making these transitions requires investment—no doubt about it—and there is risk in knowing exactly where and how to apply those dollars. That’s why SEMA places a high priority on helping members locate promising new markets and making the pathway as smooth as possible.

We recently got a bit of good news from the U.S. Department of Commerce, which named SEMA the recipient of a $500,000 grant as part of a market-development program aimed at stimulating U.S. exports of specialty-equipment products.

In awarding the grant, the U.S. Department of Commerce recognized that SEMA has already delivered some successful programs, that we have developed a network of key people overseas and that we were actively working with overseas governments to develop appropriate regulations covering vehicle modifications. It didn’t hurt that SEMA members are mostly small- and medium-size companies with a proven reputation for innovation and adaptability.

The U.S. Department of Commerce grant will benefit SEMA members in a number of different ways. First, it adds to association resources when it comes to supporting some of our overseas business-development initiatives. We’re already helping member businesses get started in countries such as the United Arab Emirates and the world’s most populous country, China.

Our recent one-on-one matchmaker program in Beijing brought together SEMA-member manufacturers with pre-vetted distributors and retailers of specialty products from throughout China. This turnkey approach provides a low-cost opportunity for members to explore emerging markets. You’ll find a report, including feedback from SEMA-member companies that attended, on p. 54 of the December 2011 issue of SEMA News. With this additional funding, we’ll be able to do more for SEMA members.

Another booming auto-enthusiast market that SEMA is helping its members explore is the United Arab Emirates and surrounding Gulf countries. Motorsports and vehicle personalization have a strong and growing base throughout the region, and a quick drive around Dubai or Abu Dhabi would surprise any gearhead with the wide variety of customized vehicles traveling the roads.

Recognizing the market potential, SEMA has teamed up with the U.S. government to bring the turnkey, one-on-one matchmaker concept to the Middle East. Join SEMA manufacturers in April for the first SEMA Middle East Business Development Conference (April 17–21) and meet with importers and wholesalers from throughout the United Arab Emirates, Saudi Arabia and other neighboring countries. More information is available here.

You’ll be hearing more about alternative markets and especially export opportunities in the coming year. Members who would like to get started today should visit here, and stay tuned for more information.