Wed, 04/01/2020 - 14:14

SEMA News—April 2020

FROM THE HILL

By Eric Snyder

Members of Congress Visit the SEMA Show

From the Hill
Owner of Factor Five Racing Dave Smith (left) and U.S. Representative Mike Kelly (R-PA) discussed the importance of implementing a 2015 law to allow replica vehicle production at the 2019 SEMA Show.

The SEMA Show is four action-packed days of conducting business, making connections and seeing the industry’s newest products. It is also a great opportunity for SEMA to provide elected officials with a firsthand look at the automotive specialty aftermarket and the role the industry plays in the communities they represent. Each year, SEMA hosts members of Congress and state lawmakers, providing Show tours that feature visits to home-state exhibitors. The 2019 SEMA Show hosted U.S. Representatives Doug LaMalfa (R-CA), Mike Kelly (R-PA) and Dina Titus (D-NV), along with 18 state lawmakers.

The 2019 SEMA Show was the second time that Reps. LaMalfa and Titus attended in the past few years. Rep. Kelly—a car dealer by trade—was excited to make his first pilgrimage to the Show, which was a long-time bucket list item. Below are profiles of the distinguished SEMA Show Congressional attendees.

Rep. Mike Kelly

After graduating from the University of Notre Dame, which he attended on an academic and football scholarship, Rep. Kelly moved back to Butler, Pennsylvania (30 mi. north of Pittsburgh), and took a job at his father’s Chevrolet-Cadillac dealership. After working in the business for more than 20 years, he bought the dealership in the mid-’90s and expanded its operations to include Hyundai and Kia franchises. Rep. Kelly went on to serve as chairman of the Hyundai Eastern Region Dealer Council and vice chairman of the Hyundai National Dealer Council. He also sat on the boards of the Chevrolet Dealers Advertising Association of Pittsburgh and the Cadillac Consultants of Western Pennsylvania.

After years of charitable work with the Butler County Housing and Redevelopment Authorities, the Boy Scouts of America and public service on the Butler City Council, Rep. Kelly was elected to Congress in 2010. During his five terms in the U.S. House of Representatives, Kelly has distinguished himself as a leader on the Ways and Means Committee, which maintains jurisdiction over tax policy and entitlement-program spending. Rep. Kelly also serves as co-chair of the House Automotive Caucus and has been a strong SEMA ally, serving as an early supporter of the Low Volume Motor Vehicle Manufacturers Act of 2015 and the RPM Act.

“It was a pleasure to join several western Pennsylvania constituents at the 2019 SEMA Show, which showcases small businesses on the automotive frontier,” Rep. Kelly said. “The auto industry is vital to the economy, and I thank SEMA for highlighting the value these men and women bring to communities throughout America by creating jobs and taking auto technology to the next level.”

Dina Titus
U.S. Representative Dina Titus (center, D-NV) poses with Gloss-It LLC CEO Rich Light (right) and Dianna Light.

Rep. Dina Titus

Rep. Titus spent her formative years in Tifton, Georgia (a small town in the south central part of the state), before attending the College of William and Mary in Williamsburg, Virginia. Titus went on to earn a master’s degree from the University of Georgia and a doctorate at Florida State University before pursuing a career in academia and public service. Rep. Titus was a professor of American and Nevada government at the University of Nevada, Las Vegas, from 1979–2011 and was elected to the Nevada State Senate in 1988. Titus distinguished herself in Carson City, Nevada, serving as the democratic minority leader from 1993–2008. During that time, she championed education and renewable energy development, and she was a strong advocate on behalf of Nevada’s children, seniors and persons with disabilities.

In 2008, Titus was elected to represent the First Congressional District of Nevada, which spans from McCarran International Airport to downtown Las Vegas. Rep. Titus is the most senior member of the Nevada House delegation and serves on the House Committees on Transportation and Infrastructure, Foreign Affairs and Homeland Security.

“The 2019 SEMA Show provided a firsthand glimpse at the exciting future of the automobile industry and its impact on small businesses across the country,” Rep. Titus said. “I look forward to welcoming SEMA back to Las Vegas next year. It’s hard to even imagine the cutting-edge technology that will be on display.”

Doug LaMalfa
U.S. Representative Doug LaMalfa (left, R-CA) and his son Kyle LaMalfa stopped for a picture after a full day at the SEMA Show.

Rep. Doug LaMalfa

Congressman Doug LaMalfa grew up working on his family’s rice farm, which is located outside Sacramento, California. When he wasn’t working or studying, LaMalfa could be found tinkering with vehicles. Rep. LaMalfa went on to study agriculture and business at California Polytechnic State University in San Luis Obispo, graduating with a bachelor’s degree. He put his education to work, managing the family farm, which he and his family still call home.

Rep. LaMalfa ran for public office for the first time in 2002, winning a seat in the California State Assembly. He served in the Assembly until 2008 and was elected to the California State Senate in 2010. During his time in Sacramento, LaMalfa was a frequent collaborator with SEMA on issues of importance to automotive enthusiasts, as he is passionate about restoring and personalizing vehicles. His fleet includes Ford trucks from ’34 and ’51; Mustangs from model-years ’65, ’68, ’03 and ’13; a ’69 Torino Talladega; a ’72 Pantera; and ’55 and ’56 Thunderbirds that he maintains for his parents.

LaMalfa was elected to the U.S. House in 2012, where he is a member of the House Committees on Transportation and Infrastructure as well as Agriculture. Rep. LaMalfa is a leading voice on Capitol Hill for the automotive aftermarket and has been a staunch supporter of the RPM Act.

Mike Braun
From left: Maureen Braun, U.S. Senator Mike Braun (R-IN) and SEMA President and CEO Chris Kersting at the PRI Trade Show.

U.S. Senator Mike Braun Visits the PRI Trade Show

The Performance Racing Industry (PRI) Trade Show was a homecoming for U.S. Senator Mike Braun (R-IN), who served as Meyer Distributing president and CEO prior to being elected to the U.S. Senate in 2018. Braun started working for Meyer Body Co. in 1981 and transitioned its business from manufacturing to distribution, forming Meyer Distributing. Over the following decades, Braun grew the business into a national distribution and logistics company with 65 locations in 38 states. During his first year in the U.S. Senate, Braun championed issues of importance to the automotive specialty aftermarket, serving as an original sponsor of the RPM Act. Sen. Braun had a chance to meet with more than half a dozen Indiana-based exhibitors at the PRI Trade Show.

 

 

 

Wed, 04/01/2020 - 13:59

SEMA News—April 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

New Jersey
New Jersey—Vehicle Warranties: New Jersey Governor Phil Murphy signed into law legislation to require new-car dealers to provide purchasers written notice that it is illegal for manufacturers or dealers to void a warranty or deny coverage because aftermarket or recycled parts were installed or because someone other than the dealer performed service.

Chinese Tariffs: The United States and China signed a phase-one trade deal whereby China will buy more U.S. goods and implement some structural changes to its trade laws. However, the Trump Administration intends to continue the 25% tariffs imposed by the United States on List 1, 2 and 3 products until November 2020 at the earliest, when the United States will review and confirm China’s compliance under the accord. Lists 1 and 2 include miscellaneous metal and rubber parts, wiring and measurement devices. List 3 covers most auto parts imported from China. The phase-one accord includes intellectual-property enforcement measures and provisions to end the practice of pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative licenses, or receiving advantages from the government. The accord includes a dispute resolution mechanism via bilateral consultations, with the ability to impose tariffs if disputes cannot be resolved. A phase-two agreement will seek to address other outstanding issues, such as reducing the U.S.-China trade imbalance, addressing cyber-theft and stopping Chinese subsidization of key industries. Phase-two negotiations are not expected to begin in earnest until after the November election. A reduction or removal of the 25% tariffs may also be tied to completion of the phase-two negotiations.

Auto Tariffs: The Trump Administration is pursuing trade talks with Europe and Japan following completion of the United States-Mexico-Canada Agreement (USMCA) and China’s phase-one accord. President Trump has stated his willingness to impose tariffs on imported automobiles and auto parts as bargaining leverage in the upcoming trade talks.

Retirement Plans: The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law in December 2019. It makes a number of significant changes to U.S. retirement policy, including simplifying the process for small businesses to join multiple employer plans by not requiring businesses to be affiliated; increasing tax credits for small businesses adopting a retirement plan; permitting part-time employees to enroll in 401(k) plans; increasing the age when individuals must start withdrawing money from an IRA from 70½ to 72; repealing the age cap on contributing to an IRA (currently 70½); and protecting employers offering annuities from liability if the insurance company administering the plan is not able to make payments. While many SECURE Act provisions are favorable for small businesses and workers, the new law eliminates stretch IRAs, which are an estate-planning tool that has allowed individuals to pass their retirement funds to their children, grandchildren or other beneficiaries. The law now limits to 10 years the amount of time individuals inheriting a retirement account may take before fully withdrawing funds from the account. It also increases penalties charged to businesses that fail to file retirement plan returns—errors that small businesses make more often than large corporations.

West Virginia
West Virginia—Inoperable Vehicles: The West Virginia House of Delegates introduced SEMA-model legislation to permit automotive collecting activities on residential property if the vehicles are kept out of ordinary public view. The bill awaits consideration in the House Political Subdivisions Committee.

STATE UPDATE

Kansas—Military Vehicles: The Kansas House of Representatives introduced a bill to allow for the registration and on-road use of surplus military vehicles. Currently, only antique military vehicles more than 35 years old can be registered for road use. The bill has been introduced and referred to the House Committee on Transportation, where it awaits consideration.

New Hampshire—License Plates: A bill that would have required passenger vehicles to display only a single rear license plate died as the New Hampshire Legislature convened for the 2020 session.

New Jersey—Historic Vehicles: A bill that would have permitted the use of historic motor vehicles for occasional travel or pleasure driving, not more than one day per week, failed to pass as the legislature convened for 2020. Currently, historic vehicles are allowed to be used only for exhibition and educational purposes.

New Jersey—Street Rods and Customs: The New Jersey Assembly reintroduced legislation to create vehicle registration classifications for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49, and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation and Independent Authorities Committee.

New York—Fees: The New York Senate introduced a bill to exempt historic-vehicle owners in several cities from paying the Metropolitan Commuter Transportation District supplemental registration fee. The city of New York and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester are included in the Metropolitan Commuter Transportation District. The bill awaits consideration in the Senate Transportation Committee.

New York—Street Rods and Customs: The New York Assembly introduced legislation to create a vehicle titling and registration classification for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49 and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation Committee.

New York—Vehicle Inspection: The New York Assembly introduced legislation to require a biennial safety inspection instead of an annual inspection for antique, classic and collector vehicles. The bill awaits consideration in the Assembly Transportation Committee.

Rhode Island—Vehicle Inspection: A bill that would have extended emissions exemptions to motor vehicles in their first five model years died as the Rhode Island Legislature convened for its 2020 session. Current law does not make any exemption for new vehicles.

Washington—Vehicle Registration: The Washington legislature introduced companion bills to restrict the eligibility of horseless carriages. If passed, the bill will raise the age of vehicles eligible for horseless-carriage license plates to those manufactured prior to 1916, removing the current rolling age requirement of 40 years old or older. The bills currently await consideration in the House and Senate Transportation Committees.

West Virginia—Military Vehicles: The West Virginia House of Delegates introduced a bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are currently available for vehicles that are more than 25 years old and owned solely as collectors’ items. The bill passed the West Virginia House in 2019, but by rule it has returned to the House Committee on Technology and Infrastructure, where it currently awaits consideration.

West Virginia—Vehicle Taxes: The West Virginia legislature introduced companion bills to exempt certain vehicles in the state from personal property taxes. Currently, the bills await consideration in the House Technology and Infrastructure Committee and Senate Transportation and Infrastructure Committee.

Wed, 04/01/2020 - 13:59

SEMA News—April 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

New Jersey
New Jersey—Vehicle Warranties: New Jersey Governor Phil Murphy signed into law legislation to require new-car dealers to provide purchasers written notice that it is illegal for manufacturers or dealers to void a warranty or deny coverage because aftermarket or recycled parts were installed or because someone other than the dealer performed service.

Chinese Tariffs: The United States and China signed a phase-one trade deal whereby China will buy more U.S. goods and implement some structural changes to its trade laws. However, the Trump Administration intends to continue the 25% tariffs imposed by the United States on List 1, 2 and 3 products until November 2020 at the earliest, when the United States will review and confirm China’s compliance under the accord. Lists 1 and 2 include miscellaneous metal and rubber parts, wiring and measurement devices. List 3 covers most auto parts imported from China. The phase-one accord includes intellectual-property enforcement measures and provisions to end the practice of pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative licenses, or receiving advantages from the government. The accord includes a dispute resolution mechanism via bilateral consultations, with the ability to impose tariffs if disputes cannot be resolved. A phase-two agreement will seek to address other outstanding issues, such as reducing the U.S.-China trade imbalance, addressing cyber-theft and stopping Chinese subsidization of key industries. Phase-two negotiations are not expected to begin in earnest until after the November election. A reduction or removal of the 25% tariffs may also be tied to completion of the phase-two negotiations.

Auto Tariffs: The Trump Administration is pursuing trade talks with Europe and Japan following completion of the United States-Mexico-Canada Agreement (USMCA) and China’s phase-one accord. President Trump has stated his willingness to impose tariffs on imported automobiles and auto parts as bargaining leverage in the upcoming trade talks.

Retirement Plans: The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law in December 2019. It makes a number of significant changes to U.S. retirement policy, including simplifying the process for small businesses to join multiple employer plans by not requiring businesses to be affiliated; increasing tax credits for small businesses adopting a retirement plan; permitting part-time employees to enroll in 401(k) plans; increasing the age when individuals must start withdrawing money from an IRA from 70½ to 72; repealing the age cap on contributing to an IRA (currently 70½); and protecting employers offering annuities from liability if the insurance company administering the plan is not able to make payments. While many SECURE Act provisions are favorable for small businesses and workers, the new law eliminates stretch IRAs, which are an estate-planning tool that has allowed individuals to pass their retirement funds to their children, grandchildren or other beneficiaries. The law now limits to 10 years the amount of time individuals inheriting a retirement account may take before fully withdrawing funds from the account. It also increases penalties charged to businesses that fail to file retirement plan returns—errors that small businesses make more often than large corporations.

West Virginia
West Virginia—Inoperable Vehicles: The West Virginia House of Delegates introduced SEMA-model legislation to permit automotive collecting activities on residential property if the vehicles are kept out of ordinary public view. The bill awaits consideration in the House Political Subdivisions Committee.

STATE UPDATE

Kansas—Military Vehicles: The Kansas House of Representatives introduced a bill to allow for the registration and on-road use of surplus military vehicles. Currently, only antique military vehicles more than 35 years old can be registered for road use. The bill has been introduced and referred to the House Committee on Transportation, where it awaits consideration.

New Hampshire—License Plates: A bill that would have required passenger vehicles to display only a single rear license plate died as the New Hampshire Legislature convened for the 2020 session.

New Jersey—Historic Vehicles: A bill that would have permitted the use of historic motor vehicles for occasional travel or pleasure driving, not more than one day per week, failed to pass as the legislature convened for 2020. Currently, historic vehicles are allowed to be used only for exhibition and educational purposes.

New Jersey—Street Rods and Customs: The New Jersey Assembly reintroduced legislation to create vehicle registration classifications for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49, and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation and Independent Authorities Committee.

New York—Fees: The New York Senate introduced a bill to exempt historic-vehicle owners in several cities from paying the Metropolitan Commuter Transportation District supplemental registration fee. The city of New York and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester are included in the Metropolitan Commuter Transportation District. The bill awaits consideration in the Senate Transportation Committee.

New York—Street Rods and Customs: The New York Assembly introduced legislation to create a vehicle titling and registration classification for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49 and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation Committee.

New York—Vehicle Inspection: The New York Assembly introduced legislation to require a biennial safety inspection instead of an annual inspection for antique, classic and collector vehicles. The bill awaits consideration in the Assembly Transportation Committee.

Rhode Island—Vehicle Inspection: A bill that would have extended emissions exemptions to motor vehicles in their first five model years died as the Rhode Island Legislature convened for its 2020 session. Current law does not make any exemption for new vehicles.

Washington—Vehicle Registration: The Washington legislature introduced companion bills to restrict the eligibility of horseless carriages. If passed, the bill will raise the age of vehicles eligible for horseless-carriage license plates to those manufactured prior to 1916, removing the current rolling age requirement of 40 years old or older. The bills currently await consideration in the House and Senate Transportation Committees.

West Virginia—Military Vehicles: The West Virginia House of Delegates introduced a bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are currently available for vehicles that are more than 25 years old and owned solely as collectors’ items. The bill passed the West Virginia House in 2019, but by rule it has returned to the House Committee on Technology and Infrastructure, where it currently awaits consideration.

West Virginia—Vehicle Taxes: The West Virginia legislature introduced companion bills to exempt certain vehicles in the state from personal property taxes. Currently, the bills await consideration in the House Technology and Infrastructure Committee and Senate Transportation and Infrastructure Committee.

Wed, 04/01/2020 - 13:59

SEMA News—April 2020

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

FEDERAL UPDATE

New Jersey
New Jersey—Vehicle Warranties: New Jersey Governor Phil Murphy signed into law legislation to require new-car dealers to provide purchasers written notice that it is illegal for manufacturers or dealers to void a warranty or deny coverage because aftermarket or recycled parts were installed or because someone other than the dealer performed service.

Chinese Tariffs: The United States and China signed a phase-one trade deal whereby China will buy more U.S. goods and implement some structural changes to its trade laws. However, the Trump Administration intends to continue the 25% tariffs imposed by the United States on List 1, 2 and 3 products until November 2020 at the earliest, when the United States will review and confirm China’s compliance under the accord. Lists 1 and 2 include miscellaneous metal and rubber parts, wiring and measurement devices. List 3 covers most auto parts imported from China. The phase-one accord includes intellectual-property enforcement measures and provisions to end the practice of pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative licenses, or receiving advantages from the government. The accord includes a dispute resolution mechanism via bilateral consultations, with the ability to impose tariffs if disputes cannot be resolved. A phase-two agreement will seek to address other outstanding issues, such as reducing the U.S.-China trade imbalance, addressing cyber-theft and stopping Chinese subsidization of key industries. Phase-two negotiations are not expected to begin in earnest until after the November election. A reduction or removal of the 25% tariffs may also be tied to completion of the phase-two negotiations.

Auto Tariffs: The Trump Administration is pursuing trade talks with Europe and Japan following completion of the United States-Mexico-Canada Agreement (USMCA) and China’s phase-one accord. President Trump has stated his willingness to impose tariffs on imported automobiles and auto parts as bargaining leverage in the upcoming trade talks.

Retirement Plans: The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law in December 2019. It makes a number of significant changes to U.S. retirement policy, including simplifying the process for small businesses to join multiple employer plans by not requiring businesses to be affiliated; increasing tax credits for small businesses adopting a retirement plan; permitting part-time employees to enroll in 401(k) plans; increasing the age when individuals must start withdrawing money from an IRA from 70½ to 72; repealing the age cap on contributing to an IRA (currently 70½); and protecting employers offering annuities from liability if the insurance company administering the plan is not able to make payments. While many SECURE Act provisions are favorable for small businesses and workers, the new law eliminates stretch IRAs, which are an estate-planning tool that has allowed individuals to pass their retirement funds to their children, grandchildren or other beneficiaries. The law now limits to 10 years the amount of time individuals inheriting a retirement account may take before fully withdrawing funds from the account. It also increases penalties charged to businesses that fail to file retirement plan returns—errors that small businesses make more often than large corporations.

West Virginia
West Virginia—Inoperable Vehicles: The West Virginia House of Delegates introduced SEMA-model legislation to permit automotive collecting activities on residential property if the vehicles are kept out of ordinary public view. The bill awaits consideration in the House Political Subdivisions Committee.

STATE UPDATE

Kansas—Military Vehicles: The Kansas House of Representatives introduced a bill to allow for the registration and on-road use of surplus military vehicles. Currently, only antique military vehicles more than 35 years old can be registered for road use. The bill has been introduced and referred to the House Committee on Transportation, where it awaits consideration.

New Hampshire—License Plates: A bill that would have required passenger vehicles to display only a single rear license plate died as the New Hampshire Legislature convened for the 2020 session.

New Jersey—Historic Vehicles: A bill that would have permitted the use of historic motor vehicles for occasional travel or pleasure driving, not more than one day per week, failed to pass as the legislature convened for 2020. Currently, historic vehicles are allowed to be used only for exhibition and educational purposes.

New Jersey—Street Rods and Customs: The New Jersey Assembly reintroduced legislation to create vehicle registration classifications for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49, and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation and Independent Authorities Committee.

New York—Fees: The New York Senate introduced a bill to exempt historic-vehicle owners in several cities from paying the Metropolitan Commuter Transportation District supplemental registration fee. The city of New York and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester are included in the Metropolitan Commuter Transportation District. The bill awaits consideration in the Senate Transportation Committee.

New York—Street Rods and Customs: The New York Assembly introduced legislation to create a vehicle titling and registration classification for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before ’49 and a custom as an altered vehicle at least 25 years old and manufactured after ’48. The bill awaits consideration in the Assembly Transportation Committee.

New York—Vehicle Inspection: The New York Assembly introduced legislation to require a biennial safety inspection instead of an annual inspection for antique, classic and collector vehicles. The bill awaits consideration in the Assembly Transportation Committee.

Rhode Island—Vehicle Inspection: A bill that would have extended emissions exemptions to motor vehicles in their first five model years died as the Rhode Island Legislature convened for its 2020 session. Current law does not make any exemption for new vehicles.

Washington—Vehicle Registration: The Washington legislature introduced companion bills to restrict the eligibility of horseless carriages. If passed, the bill will raise the age of vehicles eligible for horseless-carriage license plates to those manufactured prior to 1916, removing the current rolling age requirement of 40 years old or older. The bills currently await consideration in the House and Senate Transportation Committees.

West Virginia—Military Vehicles: The West Virginia House of Delegates introduced a bill to allow antique military vehicles to display an alternate registration insignia as opposed to a traditional license plate. Antique vehicle plates are currently available for vehicles that are more than 25 years old and owned solely as collectors’ items. The bill passed the West Virginia House in 2019, but by rule it has returned to the House Committee on Technology and Infrastructure, where it currently awaits consideration.

West Virginia—Vehicle Taxes: The West Virginia legislature introduced companion bills to exempt certain vehicles in the state from personal property taxes. Currently, the bills await consideration in the House Technology and Infrastructure Committee and Senate Transportation and Infrastructure Committee.

Wed, 04/01/2020 - 13:36

SEMA News—April 2020

INDUSTRY NEWS

Fast Facts

Laurel Dasher

Paramount Data Management (PDM Automotive) announced the addition of Laurel Dasher as its new vice president for sales and marketing. In that new role, Dasher will lead the company’s sales and marketing efforts for the latest technology in automotive aftermarket data exchange between manufacturers and receivers. Dasher is a 20-plus-year veteran of the automotive aftermarket and has served various sales and marketing roles with MagnaFlow, Superchips/Edge Products, MSD Ignition and B&M Automotive. She also served two terms on the SEMA Board of Directors, served as Young Executives Network (YEN) chair, and received such awards as 2009 SEMA Businesswomen’s Network Person of the Year and 2005 YEN Person of the Year.

Auto parts supplier BorgWarner is acquiring Delphi Technologies in an all-stock deal valued at approximately $3.3 billion, partly to help strengthen its power electronics products. Delphi Technologies PLC shareholders will receive a fixed exchange ratio of 0.4534 shares of BorgWarner stock for each Delphi Technologies share they own. BorgWarner Inc. stockholders are expected to own about 84% of the combined company, with Delphi Technologies shareholders owning approximately 16%. The transaction is targeted to close in the second half of the year but still needs approval from Delphi shareholders.

Firestone

Firestone Industrial Products Co. LLC (FSIP) announced a change in supply-chain strategy with the opening of a new distribution center in Chobienice, Poland. The facility will help to centralize the company’s manufacturing and distribution operations in Europe. The new facility is located a short distance from the existing FSIP plant in Wolsztyn, Poland, enabling a smooth transfer of products from manufacturing to the warehouse. The modern distribution center has a footprint of more than 100,000 sq. ft. and is equipped with four loading docks.

The Aftermarket Performance Group (APG) announced the departure of its CEO Matt Jordan. APG and Jordan mutually agreed to seek new leadership. Over the past five years, APG doubled sales and workforce through organic growth and multiple acquisitions. The board of directors announced that Russ Spieler agreed to assume the role of interim CEO while the company conducts a search for a permanent replacement. Spieler is a managing director at Capital Partners and brings considerable experience and strong leadership skills to the role, having served on APG’s board of managers for five years.

Stertil-Koni

Stertil-Koni announced that Chris Murabito was named midwest regional sales manager. In his new post, Murabito brings more than 20 years of client-focused sales management, new-business development and a dedicated concentration on customer service to Stertil-Koni and its initiatives in advancing the heavy-duty vehicle lift sector. He succeeds Jim Sylvester, who recently retired.

Yokohama Tire announced that its all-terrain Geolandar X-AT and the performance SUV/crossover Geolandar X-CV each won 2019 Good Design awards in the transportation category from The Chicago Athenaeum. According to the Athenaeum, the Good Design awards program, which began in 1950, creates awareness about contemporary design. It honors products and industry leaders in design and manufacturing that have chartered new directions for innovation and pushed the envelope for competitive products in the world marketplace.

Steele Rubber Products

Steele Rubber Products announced the appointment of Joanna Agosta Shere as its new president/CEO. She joined the company in July 2005, serving as Steele’s vice president over the past four years. Throughout her tenure, Shere worked in many different areas of the company, including marketing, customer service, research and development, commercial sales, management and administration. Shere also serves as a volunteer on the SEMA’s Automotive Restoration Market Organization select committee. Matt Agosta, Steele Rubber Products former president, retired but remains with the company as an owner and a member of the board.

Brake Parts

Brake Parts Inc. promoted Paul Oleandi to sales director of national/key accounts. In his new role at Brake Parts Inc., Oleandi will be responsible for business development for the Raybestos and Maval brands for assigned key accounts across the United States. Oleandi joined BPI in 2015, serving in a variety of roles, including director of sales and business development manager. Oleandi has 17 years of experience in the auto care industry.

Impact Racing Inc. announced a partnership with ASAP Trading USA LLC (a sales and marketing agency with offices in San Diego, California, and Lima, Peru) as its exclusive authorized representative company for Mexico as well as Central and South America. ASAP Trading USA LLC was established by Juan-Jose Rebaza to serve the Latin American region. Rebaza is based in San Diego, California. He brings more than 15 years of logistics and international experience developing business in the United States, Latin America, Europe, Australia and New Zealand. ASAP Trading’s Lima operations are managed by his brother Ricardo, who has more than 20 years of experience in logistics.

Motovicity

Motovicity Distribution expanded its team with the addition of Kate Turowska as the new marketing manager. She previously served as a marketing manager for Stanley Black and Decker’s Engineered Fastening division, where she was responsible for promoting the industrial product portfolio that included Heli-Coil and POP. Prior to Stanley, Turowska led the development and execution of a successful marketing strategy for Spiralock Corp.

Chaparral Motorsports is expanding its operations to better serve its customers with shorter delivery times, according to the company. The purchase of a 108,000-sq.-ft. fulfillment facility on 7.15 acres in Memphis, Tennessee, is intended to help cut down on shipping times for Chaparral’s customers who live in the Northeast and Midwest regions. Between Chaparral’s headquarters in Southern California and the new facility in Memphis, Chaparral will now be able to ship product to 85% of its United States-based customers in two days or less.

Travis French

Travis French was named loss control consultant with RevPro—a specialty insurance program created by Alliant Insurance Services. He oversees all of the company’s middle-market clients on the West Coast, helping them to maintain OSHA compliance, determining what drives client losses from a workers’ compensation standpoint and assisting them with managing their safety programs tailored to their specific needs. He started working with Alliant in December 2017. He was previously safety and risk management director for Universal Waste Systems Inc., where he oversaw the company’s safety department.

VMP Performance announced a new partnership with R&R Marketing Consultants Inc. that will see the two brands work together in a number of national marketing and sales initiatives in the automotive aftermarket. As part of the VMP partner program, R&R Marketing Consultants Inc. will bolster the strength and range of VMP Performance’s products that it can offer to
its customers.

Lubrication Specialties Inc. (LSI), manufacturer of Hot Shot’s Secret brand of performance additives and oils, has announced Josh Steinmetz as the company’s new digital marketing manager. Steinmetz brings a decade of creative and digital marketing experience to the company’s growing marketing team. As digital marketing manager, Steinmetz will be responsible for developing the digital strategy, content, analytics and ROI for all Hot Shot’s Secret 35-plus products across multiple markets with a goal of ensuring a future-state mindset to emerging industry and consumer digital media trends to build brand awareness and loyalty.

Performance Warehouse

Performance Online/Western Chassis has announced a new addition to the team. Larry Ashley, new operations/marketing manager, brings more than 30 years of professional experience in the automotive aftermarket, having worked in key management positions at various companies that have revolutionized certain areas of the aftermarket. Some recognizable brands include California Custom USA, American Products Co., and most recently TMI Products.

Industrial Opportunity Partners (IOP), an operations-focused private equity firm based in Evanston, Illinois, and owner of Edelbrock LLC, has announced the acquisition of the COMP Performance Group. Edelbrock LLC and the COMP Performance Group and their respective management teams will currently operate as independent organizations, providing the products and service that have made them respective market leaders.

Wed, 04/01/2020 - 13:19

SEMA News—April 2020

INDUSTRY NEWS

By Douglas McColloch

SEMA Education
The SEMA High School Vehicle Build Program will provide 10 high schools with hands-on learning opportunities and expose hundreds of students to the $44.6 billion automotive specialty-equipment industry.

Participating Schools Announced for SEMA’s High School 2019–2020 Vehicle Build Program

SEMA announced the 10 participating high schools for the 2019–2020 SEMA High School Vehicle Build Program—a project that reaches, inspires and supports high-school students to learn about the automotive aftermarket industry.

The program debuted less than three years ago with just one participating school. Four schools that participated last year will return to the program this year, with six new schools joining.

“The continuous success of this program speaks volumes to the positive impact auto technology programs have when offered in high-school curricula,” said Katie Hurst, SEMA youth engagement programs manager. “SEMA is proud to provide these students with an avenue to further expand their advancement to careers in the automotive industry.”

Over the course of the semester, students will gain hands-on experience with aftermarket products, equipping them with skills in project management, installation, body styling and team building. Vehicles incorporated in this year’s program will include third-generation Toyota 4Runners and Jeep Wrangler TJs.

The chosen high schools for the 2019–2020 SEMA High School Vehicle Build Program are:

  • Career Center High School—Winston-Salem, North Carolina
  • Comstock High School—Kalamazoo, Michigan
  • John Hersey High School—Arlington Heights, Illinois
  • McGavock High School—Nashville, Tennessee
  • Mon Valley Career & Technology Center—Charleroi, Pennsylvania
  • Omaha Public Schools Career Center—Omaha, Nebraska
  • R.L. Turner High School—Carrollton, Texas
  • Santa Fe Early Career Opportunities High School—Santa Fe, New Mexico
  • Santa Ynez Valley Union High School—Santa Ynez, California
  • Wichita Falls Career Education Center—Wichita Falls, Texas

Rogelio Martinez, a senior at Santa Fe Early Career Opportunities High School who participated in last years’ build, shared his experience about what the program meant to him.

“The part I loved was seeing all the new aftermarket parts we got to work with,” he said. “It’s a passion for each and all of us to work with cars, and when we get neat parts like this, it’s just that much better.”

Upon the completion of the builds, each vehicle will be auctioned off. The proceeds will be reinvested into the program to further expand another round of builds for the 2020–2021 school year. As participants of the program, each high school will also receive industry recognition through the SEMA build website and SEMA build promotions.

Young Guns
Young builders age 27 or younger will have 13 opportunities to win an expenses-paid trip to the 2020 SEMA Show as part of SEMA Battle of the Builders regional competitions.

SEMA Expands Regional Qualifying Events for 2020 Battle of the Builders Series

SEMA expanded its partnership with event producers across the country by increasing the number of scheduled Battle of the Builders qualifying events to 13 nationwide. Young builders (age 27 or younger at the time of the 2020 SEMA Show) will have additional opportunities to participate in regional events for a chance to win an all-expenses-paid trip to the 2020 SEMA Show held in Las Vegas.

Industry professionals who have previously participated in the SEMA Battle of the Builders (BOTB) competition will select one winner from each event to advance to the 2020 SEMA Show, taking place November 3–6. All eligible runner-up candidates will have the opportunity to take part in an online fan vote in which the Young Gun with the most votes will take the final spot in the Battle of the Builders Young Guns competition.

“We continue to see an increasing level of craftsmanship, ingenuity and dedication from the young builders competing at these regional events,” said Ira Gabriel, SEMA vice president of marketing, PR and communications. “It is so rewarding to see these Young Guns recognized for their abilities. The opportunities that this competition can open up for them are huge.”

For more information about the SEMA BOTB competition or SEMA Young Guns program, visit www.sema.org/botb or www.semayoungguns.com.

WD-40
The SEMA Cares/WD-40 ‘66 Ford Bronco fetched more than $120,000 at auction, with all proceeds going to benefit Childhelp.

SEMA Cares, WD-40 Bronco Raises $126,212 for Charity

SEMA Garage, WD-40 and many others in the industry came together in order to create a custom ’66 Ford Bronco that was recently auctioned by Bring a Trailer (BaT) to benefit Childhelp. With a winning bid of $121,212, Jeff Mosing won the fierce bidding war that erupted as the auction came down to the wire. BaT’s Randy Nonnenberg explained just how special and exciting this unique Bronco project was for all parties involved.

“We were very pleased to be selected by Childhelp and SEMA to auction this Bronco for charity,” Nonnenberg said. “The strong $120,000-plus result came from a buyer within the BaT Community of enthusiasts who was highly motivated by the great cause and the work that Childhelp does on behalf of children in need.”

In addition to hosting the auction, BaT donated its transaction fee of $5,000 to the final bid, bringing the grand total raised to $126,212.

“We are very happy to also be able to contribute to that worthy cause and look forward to many more charity auctions on Bring a Trailer,” Nonnenberg said in explaining why the company gifted the fee.

Founded in 1959 by Sara O’Meara and Yvonne Fedderson, the purpose of Childhelp has been prevention and treatment of child abuse and neglect. Since its establishment, Childhelp has grown to become one of the nation’s leading nonprofit organizations. For donation and volunteer information, visit www.childhelp.org.

Wed, 04/01/2020 - 13:19

SEMA News—April 2020

INDUSTRY NEWS

By Douglas McColloch

SEMA Education
The SEMA High School Vehicle Build Program will provide 10 high schools with hands-on learning opportunities and expose hundreds of students to the $44.6 billion automotive specialty-equipment industry.

Participating Schools Announced for SEMA’s High School 2019–2020 Vehicle Build Program

SEMA announced the 10 participating high schools for the 2019–2020 SEMA High School Vehicle Build Program—a project that reaches, inspires and supports high-school students to learn about the automotive aftermarket industry.

The program debuted less than three years ago with just one participating school. Four schools that participated last year will return to the program this year, with six new schools joining.

“The continuous success of this program speaks volumes to the positive impact auto technology programs have when offered in high-school curricula,” said Katie Hurst, SEMA youth engagement programs manager. “SEMA is proud to provide these students with an avenue to further expand their advancement to careers in the automotive industry.”

Over the course of the semester, students will gain hands-on experience with aftermarket products, equipping them with skills in project management, installation, body styling and team building. Vehicles incorporated in this year’s program will include third-generation Toyota 4Runners and Jeep Wrangler TJs.

The chosen high schools for the 2019–2020 SEMA High School Vehicle Build Program are:

  • Career Center High School—Winston-Salem, North Carolina
  • Comstock High School—Kalamazoo, Michigan
  • John Hersey High School—Arlington Heights, Illinois
  • McGavock High School—Nashville, Tennessee
  • Mon Valley Career & Technology Center—Charleroi, Pennsylvania
  • Omaha Public Schools Career Center—Omaha, Nebraska
  • R.L. Turner High School—Carrollton, Texas
  • Santa Fe Early Career Opportunities High School—Santa Fe, New Mexico
  • Santa Ynez Valley Union High School—Santa Ynez, California
  • Wichita Falls Career Education Center—Wichita Falls, Texas

Rogelio Martinez, a senior at Santa Fe Early Career Opportunities High School who participated in last years’ build, shared his experience about what the program meant to him.

“The part I loved was seeing all the new aftermarket parts we got to work with,” he said. “It’s a passion for each and all of us to work with cars, and when we get neat parts like this, it’s just that much better.”

Upon the completion of the builds, each vehicle will be auctioned off. The proceeds will be reinvested into the program to further expand another round of builds for the 2020–2021 school year. As participants of the program, each high school will also receive industry recognition through the SEMA build website and SEMA build promotions.

Young Guns
Young builders age 27 or younger will have 13 opportunities to win an expenses-paid trip to the 2020 SEMA Show as part of SEMA Battle of the Builders regional competitions.

SEMA Expands Regional Qualifying Events for 2020 Battle of the Builders Series

SEMA expanded its partnership with event producers across the country by increasing the number of scheduled Battle of the Builders qualifying events to 13 nationwide. Young builders (age 27 or younger at the time of the 2020 SEMA Show) will have additional opportunities to participate in regional events for a chance to win an all-expenses-paid trip to the 2020 SEMA Show held in Las Vegas.

Industry professionals who have previously participated in the SEMA Battle of the Builders (BOTB) competition will select one winner from each event to advance to the 2020 SEMA Show, taking place November 3–6. All eligible runner-up candidates will have the opportunity to take part in an online fan vote in which the Young Gun with the most votes will take the final spot in the Battle of the Builders Young Guns competition.

“We continue to see an increasing level of craftsmanship, ingenuity and dedication from the young builders competing at these regional events,” said Ira Gabriel, SEMA vice president of marketing, PR and communications. “It is so rewarding to see these Young Guns recognized for their abilities. The opportunities that this competition can open up for them are huge.”

For more information about the SEMA BOTB competition or SEMA Young Guns program, visit www.sema.org/botb or www.semayoungguns.com.

WD-40
The SEMA Cares/WD-40 ‘66 Ford Bronco fetched more than $120,000 at auction, with all proceeds going to benefit Childhelp.

SEMA Cares, WD-40 Bronco Raises $126,212 for Charity

SEMA Garage, WD-40 and many others in the industry came together in order to create a custom ’66 Ford Bronco that was recently auctioned by Bring a Trailer (BaT) to benefit Childhelp. With a winning bid of $121,212, Jeff Mosing won the fierce bidding war that erupted as the auction came down to the wire. BaT’s Randy Nonnenberg explained just how special and exciting this unique Bronco project was for all parties involved.

“We were very pleased to be selected by Childhelp and SEMA to auction this Bronco for charity,” Nonnenberg said. “The strong $120,000-plus result came from a buyer within the BaT Community of enthusiasts who was highly motivated by the great cause and the work that Childhelp does on behalf of children in need.”

In addition to hosting the auction, BaT donated its transaction fee of $5,000 to the final bid, bringing the grand total raised to $126,212.

“We are very happy to also be able to contribute to that worthy cause and look forward to many more charity auctions on Bring a Trailer,” Nonnenberg said in explaining why the company gifted the fee.

Founded in 1959 by Sara O’Meara and Yvonne Fedderson, the purpose of Childhelp has been prevention and treatment of child abuse and neglect. Since its establishment, Childhelp has grown to become one of the nation’s leading nonprofit organizations. For donation and volunteer information, visit www.childhelp.org.

Wed, 04/01/2020 - 11:11

SEMA News—April 2020

INTERNATIONAL

By Linda Spencer

The SEMA Show: A Global Gathering, Part II

Factor 55Factor 55 staff pictured with SEMA Vice President of Marketing Ira Gabriel (right) at the Global Media Awards presentation. “It is a wonderful opportunity to be chosen as a Global Media Awards winner selected from nearly 3,000 products that were featured at this year’s SEMA Show,” said Factor 55’s Justin Andrews (second from right). “We are truly honored and humbled to be chosen as one of these elite brands. We are so proud to be recognized by the media, the industry and our peers.”

The 2019 SEMA Show was once again the world’s epicenter of customizing, with exhibitors, trade buyers and media from 140 countries coming together to sell products, discover new trends and innovations, and network.

In recognition of the Show’s international appeal, SEMA hosted the 16th annual Global Media Awards (GMAs). Nearly 30 top enthusiast journalists hailing from 22 countries on six continents served on a panel, each selecting 10 products from the Show’s New Products Showcase that they felt would appeal to consumers in their home markets.

First-time SEMA Show exhibitor RSI SmartCap was the top vote-getter, winning nine GMAs. Other top award winners included another first-time exhibitor, The Bracketeer (six awards), which tied with Factor 55, a perennial GMA winner that has now garnered a total of 23 awards over the past eight years.

In our March issue SEMA News shared the insights of 24 journalist judges about their selections. This issue we continue our coverage with more GMA panel comments and insights.

NORWAY

Chet Kjetil Sveistrup, Amcar Magazine

Distinctive Industries, Early Bronco Assembled Rear Jump Seat With Storage Compartment: “We have seen an incredible increase in demand for early Broncos in recent years, especially in the United States. While Norway sometimes might be a year or two behind on such trends, they do come. With increased demand follows increased supplies of parts and accessories for everyone who restores or modifies classic SUVs such as the Bronco. The value of the first-generation Bronco has increased dramatically, and various suppliers such as Distinctive Industries now have a great lineup of accessories to offer, such as door panels, upholstery, seat foam, armrests and now this high-quality rear jump seat with an under-seat storage compartment. In a market with such a demand for everything Bronco, this is a great new addition.”

Griot’s Garage Inc., Foaming Metal Detailer: “Griot’s Garage has an impressive lineup of detailing products for paint, rubber, glass, interior, leather and also for metal. Foaming Metal Detailer is one of the latest products. It is made to be used on bare, painted or powdercoated metal or stainless steel. We are eager to try it out, especially to see how long-lasting it is. Our experience with other products from Griot’s Garage is very positive, and we hope this new product has the same long-lasting effect as Griot’s polish and wax products for paint. What caught our eye was in part the Griot name itself and the product quality Griot’s Garage is known for. While still not a top seller in Norway, the market for Griot’s products is definitely there.”

Hotchkis Sport Suspension, GM A-Body Front Suspension Kit: “This installer-friendly bolt-on suspension kit for common models, such as the Buick Skylark, Chevrolet Chevelle, Malibu and El Camino, as well as the Oldsmobile Cutlass and Pontiac GTO. It includes sway-bar sets, upper and lower control arms, complete with bushings and ball joints. This will increase ride and handling by leaps and bounds on these popular models, especially on curvy and narrow roads, which there are plenty of in Norway.”

Pareto Point Industries, FilterBooster: “Pareto Point Industries introduces the FilterBooster, a new product for advanced oil filtration. While there are hundreds of oil-treatment products and additives on the market, this little booster—designed to be installed inside a regular oil filter—is in many ways unique. It has the purpose of enhancing filtration and keeping the oil cleaner longer. For any market, and especially for the Norwegian market, where the price of an oil change is very steep, many car owners will often follow today’s long-range oil change intervals instead of the old “every 3,000 miles” rule. With the longer intervals, it is reassuring to know that you have a little booster inside your oil filter, increasing filtration and keeping your oil cleaner longer.”

Speedmaster, Small-Block Ford Downdraft EFI Manifold—Black: “Oh, what a beauty it is, this classic Weber-like EFI individual throttle-body unit. It provides the high state of tune and engine performance versatility of EFI while keeping all the show-off value and classic looks. What we like about these types of throttle bodies is that they are able to keep the advantages of EFI and you don’t need to cover it up under a massive air cleaner. For the Norwegian market, just like for the market in the United States, the number of people who trade their old carburetors for EFI increases at the same rate as the number of people who don’t know how to adjust a carburetor.”

Stoner Car Care, Invisible Glass Clean & Repel Washer Fluid Additive: “Ultra-concentrated Invisible Glass Clean & Repel Washer Fluid Additive mixed with your washer fluid improves driving visibility in wet weather. In Norway, where there are more rainy days than sunny days for months, it seems that you use more washer fluid than gasoline. Anything to get better visibility and help you reduce the volume of washer fluid is highly welcomed. For safer and more comfortable driving through rain, sleet and snow, this product is a perfect match for the Nordic market.”

Tire Stickers, Cerebrum Smart Tire Sensor: “The list of new high-tech products for any auto application grows longer and more advanced each year. Car tires, however, seem to have escaped this trend—until now. Cerebrum is a tire sensor that measures tire pressure, tire rubber temperature, tread depth and alignment variation. It comes in a four pack of reusable smart tire sensors, each with a rubber bonding adhesive to be glued inside each car tire. With the Cerebrum app (available in the App Store), it records user sessions, providing GPS path, pressure, temperature and accelerometer conditions—all meant to optimize tire performance. For the Norwegian market, which has its share of early adopters, this might be an interesting product to watch.”

TRAC Tire Rotation Assistance Cart, TRAC Tire Rotation Assistance Cart: “Heavy tires can take a toll on your back and knees. It is easy to imagine the benefits of this cart. For the Norwegian market, with its share of SUVs with heavy tires, not only does it help with regular tire rotation or tire changes but, more importantly, it makes it easier to change from regular summer tires to winter tires—something most Norwegians do twice a year in the fall and spring. This product would be helpful both for the average do-it-yourselfer and for professional shops.”

TSI Products Inc., Stratos Climate 5-in. Multi-Fit Under-Dash Heater Kit: “Rarely does a pre-manufactured solution or kit work just as well than a custom-made solution. This heater kit includes all components needed to complete installation in any car, UTV or boat. Any vehicle in Norway needs a heater 10 months of the year. In cases where the original heater was removed during restoration, this might be an easy and more economical solution. The same would be the case where the original unit simply does not do the job well enough and assistance is needed.”

Turbosmart, Gen-V eWG60 Power-Gate 60 Electronic: “The Gen-V WG60 Power-Gate60 is the largest in the Gen-V range. It is an external high-performing 60mm wastegate that can easily be configured. Turbosmart has a long list of advantages for this unit, such as best-in-class flow and thermal performance. What caught our interest on this improved version was better user configurability. We have noted the amount of individual control on previous models from Turbosmart, and this Gen-V eWG60 Power-Gate 60 Electronic is the best to date. For the Norwegian market, this is a product that will find its way to its target audience.”

PERU

Kike Pérez, Auto TV Peru

Pilot/RBP/Voodoo, Lunna 3-in-1 Seat Poncho: “I found the product very versatile and creative. It can be used in several ways and is suitable for all types of climates—to be cooler in the summer or to shelter in the winter. It’s also useful to always keep the car seat clean. I chose it because it seemed very useful, especially for people who work with their cars, such as taxi drivers. They always try in different ways to avoid the sun and are always putting things on their seats. This poncho is very useful in these cases, and they can also use it sometimes outside the car.”

RSI SmartCap, SmartKitchen: “I love how they have stored all the kitchen stuff in specific places, trying to save space at all times. For a camp, it is perfect because you do not have to look for all the kitchen implements inside a suitcase. This makes everything easy to get to or grab and also leaves you a lot of free space inside the vehicle to load everything you need to go camping. Peru has 1,900 miles of coastline where you can find many deserts with dunes of all sizes. That is why off-roading is very common. A lot of people go to camp at the beaches, and that is the reason why this product seems very suitable for desert trips, typical in Peru.”

SeaSucker, Off-Road Rescue Board Mount: “This element tries to save space in the vehicle in a very creative and simple way. I found very interesting the solution that gave the transport of this type of equipment for rescuing vehicles. Being off-road is very common in my country, and you can always see SUVs very loaded with things for the camps and the off-road implements that take up a lot of space.”

Society of Collision Repair Specialists (SCRS), SCRS Guide to Complete Repair Planning—Blueprint Optimization Tool: “I found this product quite complete and very well done. It can help the workshops that do not have much budget to buy machines or expensive systems. In Peru, there are many low-cost workshops where I am sure that this product would be ideal and required by this type of business.”

Switch-Pros by Off Road Engineering, RCR-Force 12 (Patent Pending): “This switch box looks great. The buttons are of very good quality and look very neat, with clear icons. It seems perfect to have all your controls ordered and good-looking. There are no cheap switches that take away that cool look, for example. Due to the large number of dunes in Peru, there are different degrees of difficulty, and it is common to see well-equipped vehicles. It is very likely that many people are looking for an implement like this.”

The A.T. Hotbox, A.T. Hotbox: “This product was very interesting because it is very simple but at the same time very useful. Many times when people go camping in their cars, they grill in the afternoon. Leftover food is usually wasted because there is no way to heat it later. With this product, that problem is over. You can also cook something extra while you grill. With the A.T. Hotbox you can heat everything you want without having to light a burner.”

Tire Stickers, Cerebrum Smart Tire Sensor: “I find very interesting all the tire information that this product can obtain. Improves driver safety and helps to better understand the behavior of tires in different situations. The most interesting thing is the track mode, where you can get information in shorter time intervals and angle information such as camber or caster, and it will be of great help to set up a race car. The track mode is ideal for Peru. Car racing has very little technology to measure car behavior. With Cerebrum, we could work very well to set up race cars.”

True Spike Lug Nuts, Fat Bullet Antenna: “This product was very simple, but that was what I liked. A bullet-shaped antenna with theft insurance, it is an ornament and at the same time it is safe. In Peru, there are many robberies of this type of equipment. Antennas do not last long. That is why I think that the anti-theft protector is suitable for the people of my country. Moreover, many taxi drivers like to brag about the new designs of their cars.”

Vais Technology, SEER (Smart Entry Exit Recognition): “With few cables and with a simple installation, you can have a system for not taking the key out of your pocket. With this, you no longer need a modern car to be able to have this type of technology. You also don’t have to pay for the most equipped version of the model you want to buy. Peru has a very old vehicle fleet. Moreover, new cars often do not arrive in the country in the most equipped versions, and you don’t even have the option to order this technology. That’s why I think this product is going to be a success.”

SOUTH AFRICA

Neeresh Harrichand, Speed and Sound

AutoMeter, InVision Digital Dash: “The InVision Digital Dash quickly caught my attention because it’s a simple and easy-to-install digital dash that allows you to replace several other gauges with one sleek, high-tech-looking screen that provides you with all the information you need. With the amount of crazy aftermarket mods I see back in South Africa, I’m certain that this will be very well accepted.”

Custom Wheel Solutions, Custom Steering Wheel: “Seeing this at the new-product awards was a breath of fresh air. Let’s face it: OEM steering wheels are straight-out boring, and you can’t really have a custom new-age car if it still has a bone-stock steering wheel. On the contrary, no one wants to replace their OEM steering, as there is nothing available on the market that allows you to retain your vehicle’s air bag. Until now, that is. Custom Wheel Solutions has seriously changed the game by being able to offer a service that allows users to have the best of both worlds.”

MechMan Alternators, 500-amp Alternator for GM Trucks and SUVs: “With the increasing technological advances in the car audio industry where amplifiers are becoming more and more powerful, so is the need for larger-than-normal current supply. MechMan certainly has outdone itself with this whopping 500A alternator, which is more than enough power to feed an array of amplifiers efficiently.”

Mirka USA, Aros Cordless Denibber: “If ever you’ve used an orbital sander, be it for woodwork or in an auto-body repair shop, you would agree that, while they are brilliant, it can become more of an inconvenience than anything else to pull out a chunky sander when you just need to touch up a little corner or sand something really tiny. The Mirka Aros Cordless Denibber makes it so much easier to remedy these challenges, as it’s tiny enough to fit in your pocket yet effective enough to get the job done right. Given that the battery lasts up to 16 hours and that it has a brushless motor, you could put it to work nonstop.”

SeatbeltPlanet.com, Ninja Harness: “I’ve seen a number of enthusiasts using daily drivers as track and drag cars on the weekends. As much as they’d like to kit their rides out with four-point harnesses, it does make it rather uncomfortable when using the car during the week. When I saw that the Ninja harness allows you to simply add a four-point harness to an existing safety-belt system, I figured that this could come in handy for everyone in South Africa who uses their daily rides to race over the weekend and needs that added support and safety when at the track.”

SounDigital/Ground Zero, 800.4 Evox: “I’ve had the pleasure of reviewing one of this company’s amplifiers in the past and was already blown away with just how much power they could put out from such a tiny footprint. Needless to say, when I saw the new SounDigital Evox, I was really taken aback at how much smaller their new range has gotten. What was even more impressive was that they’ve clearly made a few improvements as the new range now also sports a variable crossover.”

SP Tools USA, Flex-Head Torque Angle Pro: “Irrespective of what industry you’re in, from time to time, almost everyone needs to accurately fasten a bolt or nut to a certain torque setting. In South Africa, most of the torque wenches that I’ve seen have fixed heads, which can sometimes be a problem, especially when you’re working in tight spaces. SP Tools’ new Flex-Head Torque Angle Pro remedies that problem by allowing you to torque your bolt and nut at an angle. The fact that it has a digital screen for you to dial in your settings and that it alerts you with an audible sound and LED indication when it reaches the specified angle value is just a bonus.”

The Detail Guardz Premium Car Care Products, Dirt Lock Pad Washer System Attachment: “Being a detailing enthusiast myself, I’ve learned to appreciate a great product when I see one. What I noticed here was that this was actually two great products in one. This first is a proper high-quality polisher pad washer, which I’ve never seen before. The second is that it can be used to lock dirt at the bottom of your wash bucket, which also works very differently from anything I’ve ever seen in South Africa.”

Waxedshine, SQL Soundwave Speaker Strip Surround: “As simple as this product may seem, it’s actually quite cool. It is uncommon to find a foam product like this that allows you to add a barrier that seals your aftermarket speaker and the door card for added audio performance. These kinds of products are already pretty popular in South Africa, but what makes this product so different is its shape. Because of this shape, it allows you to bend the foam around a speaker without the foam losing its shape or form, which in turn helps provide better overall performance. For that reason. I believe that this product has a chance of doing well on African soil.”

XS Power Batteries, SuperBank Combo Kit: “Both the car audio and performance market in South Africa are pretty huge. In both market segments, consumers are constantly striving to not just get better current but also help reduce weight and physical volume where possible. XS Powers SuperBank combo kit allows you to do exactly that, so I think the demand in Southern Africa is already there.”

Vic Pardal, IgnitionTV

aFe Power, ’19 BMW M5 Carbon-Fiber Intake: “I loved the high-end finish on this intake, which complements the engine bay on an M5. The BMW M performance brand has a huge following in South Africa. Aftermarket bolt-on performance products are in high demand for these products and would be welcomed by BMW enthusiasts.”

AutoMeter, InVision Digital Dash: “All the important information and engine outputs are displayed neatly. Perfect for anyone retrofitting new-age technology on possibly ‘60s-and-older cars. One screen with all the vital info would suit the South African aftermarket needs. As with many engine swaps, sometimes it’s necessary to wire several aftermarket gauges to keep tabs on the engine. This has everything on one screen.”

DeatschWerks, 5.5L Triple DW400 Staged Surge Tank: “My favorite of my selections. This surge tank ticks all the right and much-needed boxes on any professional racing build. Creatively housing three pumps with all the right fittings for your fuel line needs. Love the black finish. The motorsports community of South Africa would love this. This product is a winner.”

DeatschWerks, DW400 Fuel Pump: “Small in size but great in performance. Reliability intertwined with high fuel pressure. A requirement for all performance-built cars. This product would do well in aftermarket tuning circles specializing in European performance models in South Africa, including RS3, M3 and GTI.”

Nabil Moustafa of the United Arab Emirates’ Strive Middle East talked at the SEMA International Happy Hour with some of the winning companies he selected as part of the Global Media Awards.

Icon Vehicle Dynamics, ’19–Up Ford Ranger 2.5 Series CDCV Coil-Over: “Ford Rangers are the second-best-selling trucks (Bakkie) in South Africa, with a huge following for aftermarket accessories. These coil-overs are perfect for our market, as South Africans in general love the outdoors and 4x4s. Really appreciated the quality finish and the ability to control dampening.”

Integrated Engineering, Carbon-Fiber Intake for Audi RS3 (’17+): “Clean, soft lines with great visual appeal. It’s a simple bolt-on product that complements the RS3 performance brand. VAG is huge in South Africa, and simple stage 1 performance upgrades are a must for any RS3 owner.”

Mahle Motorsports, Toyota Supra Drop-In BMW B58 3.0L: “Mahle Motorsports has always been associated with quality and performance, and this piston is no different. A great drop-in option if you’re rebuilding or upgrading your B58 for performance or planning to up the boost significantly.”

Nitrous Express, Stage 2 Boost Cooler Plate System for N54/N55 BMW Engines: “Water meth has become a standard upgrade for anyone looking to increase their boost on their N54/N55. With this plate, you’re able to inject into all six ports and increase the water/meth mix into your engine, thus allowing increases in performance tuning capabilities and preventing engine knock. With older BMWs falling out of the motor plan, the BMW 135i has become the popular choice for entry-level street to strip performance-minded individuals in South Africa.”

Turbonetics/Precision Turbo & Engine, Entry-Level Sportsman PT7675 Turbocharger: “Precision has great loyal customers in South Africa, and this would be a great addition to their catalogue. A great turbo for drag-racing enthusiasts with great services both locally and abroad.”

Yokohama Tire, Advan A052: “A phenomenal tire, whether you’re a weekend racer attending track days or a die-hard professional racer/drifter looking for the edge over your competition. This is the tire that will get you on the podium. Advan is already well represented in South Africa with an estimated 55% of circuit racing teams using Yokohama Advan on their race cars.”

UNITED ARAB EMIRATES

Nabil Moustafa, Strive Middle East

3D Billet Products, Hub Lights: “Having the light bulbs inside the rims is a really cool idea, and it can actually have high potential in our market, taking into consideration the love of personalization on each car.”

Antigravity Lithium Batteries, Lithium-Ion Auto Battery: “I work with many battery providers in our region, and they seem to have an issue with returned batteries. This will definitely help solve their problems.”

Retro Manufacturing, Daytona Radio: “Having a retro-mod radio with classic looks and modern and futuristic features is an excellent combination. I think it has potential in our markets, as lots of collectors are now looking to have today’s comfort and technology in their retro-looking cars.”

SeatbeltPlanet.com, Custom Printed Seat Belt Webbing: “Customization is all about individual styling, and in our region, you mostly see either a four-point seatbelt or a colored three-point seatbelt. Having the chance to customize it the way the owner would like will create a great opportunity for such a product.”

sPod, SourceLT: “Having the ability to create your own controller in the car and define what each button does is one of the best inventions out there—especially for off-roaders who wish to run several aftermarket options that are not usually in the OE control panel.”

Tire Stickers, Cerebrum Smart Tire Sensor: “Having this technology set up in cars that don’t have it is a great option. Markets such as Saudi Arabia, Lebanon and Arab North Africa will be the perfect for such a product.”

TRAC Tire Rotation Assistance Cart, TRAC Tire Rotation Assistance Cart: “Physical strength has always been part of the tire-changing process, and now, with this easy-to-use product, physical strength is no longer needed. This will create opportunities for women in our region to be part of that industry and also will create effectiveness among male employees.”

United Pacific Industries Inc., Chrome Exterior Mirror With LED Turn Signal for ’66–’72 Chevy Passenger Cars: “Retro mods are becoming a big thing in our region, and everybody is looking for comfort in driving while still maintaining retro looks. This fits perfectly in that market.”

Vais Technology, SEER (Smart Entry Exit Recognition): “This is an option that should be available in every car. Most of its features are available but separately or not having the same full functionality and practicality—especially that everything is connected to your key. Depends on the price, but there may be a great opportunity for such a product.”

Victor Racing, SPT1 Intelligent Active Aero Wing: “A racing technology in an everyday car. People like to take their cars on tracks, but the limitation of the rear wing definitely doesn’t help. With this product, people can actually adjust the rear wing according to their need.”

Zlatko Mulabegovic, Top Performance

FiTech, Ultimate LS 2x4 EFI System: “EFI conversions and system upgrades are very popular with custom shops in our region, with a variety of brands and products represented in the Middle Eastern markets catering to the users of the full LS engines range. The comprehensive FiTech Ultimate LS 2x4 EFI System ticks many boxes, covering the popular applications. It is both a powerful weapon in the hands of a professional tuner and a beginner-friendly package, allowing even inexperienced users to take control of their engines. The sleek sheetmetal intake manifold delivers the goods and enhances the looks of the engine bay, thus providing extra clearance. The compatibility of the system with aftermarket cams and adaptability to GM truck engines makes it a perfect solution for a number of platforms. Finally, the single-pump surge tank eliminates fuel starvation under lateral G-forces and extreme angles, making it relevant for the Middle Eastern terrains and ideal for extreme off-road and desert use.”

RSI SmartCap employees Chris Le Sueur (bottom left); Guy Ralfe (bottom center); Rob Le Sueur (bottom right); Keith Pitout (top left); Andrew Campbell (top second left); Michael Voss, president (top third from left); Peter Voss (top second from right); and Dan Beaulaurier, vice president (top right) posed with SEMA Chairman-Elect James Lawrence (top row, third from right) of Power Automedia. RSI SmartCap was a first-time exhibitor from Pietermaritzburg, South Africa, and won nine global media awards. “The response we received from both the industry and the media blew us away,” said Dan Beaulaurier (top row, far right), vice president of RSI North America Inc. “Our entire team, both stateside and in South Africa, is feeling excited, humbled and very grateful for the recognition. It validates that the design innovation and products our team has worked so hard to bring to market are truly resonating with people and organizations we hold in very high regard.”

HKS USA Inc., Hipermax Touring Height-Adjustable Spring: “Toyota launched the exciting new Supra in the United Arab Emirates on September 22, 2019, marking the return of the glorious high-performance Grand Tourer, with close to a hundred units sold in the first batch. As with any new launch, all eyes are on the aftermarket, expecting new performance parts with anticipation. Japanese tuning giant HKS was among the first to jump on the Supra bandwagon, developing a number of go-fast parts before its competitors. The Hipermax Touring Height-Adjustable Spring set works with the original adaptive suspension system and offers height adjustability through its hybrid spring kit, which includes sport springs, a threaded adjustable sleeve, rear bump stops and rear shock dust boots. With the popularity of the new Supra, this product should be in high demand for those looking to improve the stance and handling of their vehicles.”

MSS Automotive UK, MSS Sport Springs With Rear Unique Middle-Located Adjuster Coupler Product: “Lowering springs are a quick and cost-effective fix when it comes to improving both the looks and handling of a car. For those car owners on a budget, springs are often the first upgrade they select. The only downside of lowering springs is the lack of height adjustability, making it impossible to dial in the perfect ride height. MSS Sport Springs feature a unique and innovative middle-located adjuster coupler that promises quick and easy height adjustment—a game changer when it comes to entry-level suspension upgrades. Ride height can be adjusted without removing the product, and the manufacturer claims increased grip levels with unchanged comfort and improved drivability. Cost-effective upgrades promising improved performance have been traditionally popular with those venturing into car customization, and our market is no exception.

Rennstand By Wuhan Robot Weld, Rennstand: “The Rennstand by Wuhan Robot Weld is a revolutionary workshop stand that changes the way cars are supported, with a four-post design that supports the car under its tires, offering increased clearance and access. Virtually any space can be converted into a makeshift workshop within minutes. Rennstand solves the problem of lifting, supporting and height adjusting a lifted car at the same jack point. In our market, this product should work for both large dealership workshops as well as smaller garages and individual users, addressing the issue of limited floor space in addition to the above-mentioned advantages.”

Restomod Air, Bantam A/C Kit With Remote Control: “Restomod Air has been synonymous with innovation in the field of air-conditioning systems and has had an increasing presence at the SEMA Show, with a whopping 11 new products on display this year. The one that caught our eye is the Bantam A/C kit with remote control. Aside from the cooling efficiency and compact size, this is one of the most significant features of an A/C system in the hot Middle Eastern weather, allowing the cooling of the vehicle to start even before the driver steps in, thanks to its Wi-Fi-based remote control. Despite the Bantam’s compact size, this kit packs a mighty punch and features the most efficient evaporator in the market and thus is backed by quality components that exceed OEM standards. Retrofitting such kits should allow the owners of classics to enjoy driving their prides even during prolonged warm-weather periods and extend the usability of classics in our region.”

RockJock 4x4 by John Currie Performance Group, Forged Antirock Sway Bar Arms: “The Antirock sway bar arms are designed to enhance off-road driving capabilities and to provide balanced performance of the front and rear suspension in rugged off-road conditions. They improve off-road traction by enabling increased suspension flex and by equalizing and distributing the weight of the vehicle over all four tires, contrary to the standard sway bars that only limit suspension flex, therefore affecting off-road traction and performance. Unlike traditional sway bars, the Antirock sway bar arms do not require disconnection. They are connected at all times, promising a more enjoyable transition from on-road to off-road. Available for most popular applications, they promise to change the way off-roaders perform in the rough at all levels, mild to extreme. With the immense popularity of dune bashing and rock crawling in our territory, this product should find its way onto the shelves of our local off-road shops.”

Specialty Auto Parts/Proform, Universal Slim-Fit Radiator System With 23-in. Hybrid Core: “Efficient engine cooling is paramount when building a performance machine in the hot Middle Eastern region, with summer temperatures soaring to extreme levels. Providing adequate cooling is often synonymous with reduced engine-bay clearance, thanks to an oversize radiator, radiator fans and shroud that clutter the front of the engine bay. Proform is changing the way we look at engine cooling with the introduction of its Slim-Fit radiator system, where the radiator, fans, shroud and thermostat can come together in a unified radiator system that is under 4-in. thick, looks great and is efficient. This revolutionary system is a preassembled and ready-to-fit unit for your custom V8 motor and comes with a thin radiator, a shroud, an electric fan with an adjustable thermostat, wiring harness and a radiator cap. Perfect for our region.”

sPod, BantamX: “The Bantam is a small, innovative eight-circuit expandable control system that provides a clean and safe way to power and control all 12-/24-volt accessories without the need to spend hours wiring them into your vehicle’s system. The compact-size Bantam is connected via an ethernet cable and does away with wires or the need to tap into the vehicle’s electrical system and thus is programmable to control dimming, strobe or flash. All aftermarket electrical accessories can now be controlled from one central point, using its touchscreen or an app. Bantam also acts as protection against over-current, overheat, reverse polarity and field collapse. These features make it a perfect device for off-roaders and campers who tend to overload their weekend rides with additional accessories, such as lighting, an audio system, speakers, navigation, fridges, showers and other convenience accessories and aids.”

The Bracketeer, UFEB1317/D Universal Car Fire Extinguisher Bracket: “Another mini revolution is the universal car fire extinguisher bracket developed and manufactured by The Bracketeer. This patented universal bracket simply drops down onto the front or rear side of the seat rails, providing an adequate location for the emergency extinguisher on both the driver and passenger sides. The clever design provides more than 30 different positions and mounting combinations, making it adaptable to virtually any vehicle found on our roads. Compatible with the majority of the industry-standard fire extinguishers, this universal car fire-extinguisher bracket is a must-have in every custom or off-road vehicle. Particularly important is the installation of fire extinguishers in our region, where extreme temperatures increase the hazard of fire, both in on-road and off-road driving. This bracket should become an industry standard, enabling every car owner to boost their vehicle safety and protection against fire.”

Wavian USA, Red Jerry Can, 20-Liter: “Extreme off-roading and camping are immensely popular in the whole of the Middle East, and both take place away from main roads and sometimes civilization, making it paramount to ensure sufficient fuel supplies while off-road. Keeping in mind the extremely hot climate in our region, safe storage of fuel is one of the precautions car owners need to keep in mind when preparing to venture off-road. Wavian Jerry Cans have been developed to deliver a safe, leak-free experience. They’re built of high-quality steel and feature a rust-proof internal lining, an internal breather pipe for splash-free pouring, a three-handle configuration for practicality, a leak-proof closure and a locking pin for the cap. These Jerry Cans work with both gasoline and diesel, making them the safe choice for any kind of off-roading experience in our region.”

UNITED KINGDOM

Mike Rysiecki, Auto Italia, Retro Ford & Performance Ford Cars Magazine

Chevrolet, ’20 Corvette High-Wing Spoiler and ’20 Corvette Visible Carbon-Fiber Ground Effects: “These two superbly engineered products enhance and individualize the new-model Corvette, making its aero characteristics more effective and its appearance even more arresting. U.K. buyers are awaiting the arrival of the ’20 Corvette with anticipation and will want to be able to select their own combination of performance and personalization accessories.”

Ford Motor Company, 5.0L Coyote Black Cammer-Style Coil-Covers: “Respect for heritage lies at the heart of every restomod build, and the classic Cammer-style covers bring that in an appropriately understated way. As the Coyote crate engine increases in popularity for resto-modified Fords in Europe, builders now have another option when it comes to dressing their powerplants for maximum nostalgia.”

Ford Motor Company, 5.0L/5.2L GT500 Aluminum Oil Pan and Pump Kit: “Owners looking to extract the most from their late-model Mustangs on track will appreciate the design and engineering that went into the development of this new product. Following Ford’s success in the British GT4 Championship, the current generation of Mustang is seen more frequently at track days in the UK as owners look to explore the upper reaches of its performance.”

Ford Motor Company, Ranger Bed Extender: “The nascent leisure-and-pleasure subsegment of the pickup market is emerging in the United Kingdom. This load bed extender is perfect for increasing its flexibility and versatility in both commercial- and domestic-use cases.”

Green Filter USA, Ford Ranger Diesel ’17–’19 #7365: “Recently awarded ‘Pickup Truck of the Year’ in Europe, the Ford Ranger is a perfect platform for those with an eye for customization and performance enhancement. The new clean-burning diesels are important because of their economy and improved social acceptance.”

R3 Performance Products, ’65–’70 Mustang Body Shell: “The R3 Mustang body shell is now licensed by both Ford and Gone in 60 Seconds owner Denice Halicki, thereby adding more authenticity for restorers looking to replicate the hero car. The “Eleanor” movie halo reaches around the world as builders look to create the most accurate reproductions.”

Roush Performance, Roush ’18–’20 Mustang Supercharger Kit, Phase 2 750 hp: “It’s not just how much horsepower and torque a supercharged engine can produce, it’s also about how it’s delivered. Roush’s long-standing reputation for usability and power means that ’18–’20 V8 Mustang owners now have access to the latest version of proven power addition from this trusted vendor.”

The Bracketeer, UFEB1317/D Universal Car Fire Extinguisher Bracket: “Some products just leap out and shout, ‘Here’s what you have been waiting for.’ The Bracketeer’s clever design and thoughtful engineering make this great product look simple. How did we get this far without it?”

The Original California Car Duster Company, The Original California Platinum-Series Super Duster: “Who would have thought that this already world-renowned detailing essential could be improved? The new 360-degree capability with longer reach make the Platinum Series Super Duster perfect for larger vehicles and hard-to-reach places. In addition, the new ‘Why didn’t I think of that?’ prong-style wheel duster is perfect for keeping complex multi-spoke alloy wheels in pristine condition.”

VENEZUELA

Henry Pierini, AutoZulia International

Aeromotive Inc., Variable-Speed Brushless Fuel Pump: “It’s a fuel pump that is great for your car. It uses sensors to monitor the rotor angle and provides a more reliable phase change, producing more in capacitated torque and engine efficiency. With this product, the fuel-economy capacity in the vehicle, which is currently very relevant in our country, would be facilitated where access to hydrocarbons is quite limited.”

Antigravity Batteries, Lithium-Ion Auto Battery: “It is a last-generation drummer that offers a longer and safer life cycle. It has safety circuits to avoid overloads and protections against short circuits; maintains the temperature and cellular balance of it; and has an energy-saving mode. These features make it safer and more permanent. With this battery, our automotive park would be more durable and efficient.”

Cedar Electronics, Cobra Road Scout: “It’s a smart radar with long range to detect threats along the way and also capture high-resolution images and record in video everything that happened through your lens for 24 hours straight. It is a product that could be used for passive safety of the vehicle as it works as a backup, preserving images and videos in real time and in case of accidents and unforeseen events.”

Cooper Tire & Rubber Co., Discoverer EnduraMax: “It is a pneumatic for small and medium SUVs with technology, design and formula of pneumatics for off-road vehicles. Resists the extra wear of difficult roads that can damage tires and shorten their useful life. It offers good performance on roads, gravel or sand, providing excellent resistance. It’s a 30% mixed and 70% off-road tire. It is a very useful product in the local market, where the terrains are varied and the distances are extensive.”

Griot’s Garage Inc., Ceramic 3-in-1 Wax: “It is a high-performance sprayable body, formulated with polymer, liquid and a chemical fusion that forms a link with the paint to impart a layer of protection more solid than conventional waxes and sealants. Protects against oxidation, UV rays, stains, acid rain engraving and other environmental and chemical sources. It is an excellent product for automotive washing entrepreneurs, as it offers great potential for the car surface.”

Holley Performance, Amp’d Throttle Booster: “This product adjusts the throttle sensitivity of the vehicle, which reduces dead-pedal sensitivity while accelerating. Checks and controls the fuel level of the engine, giving access to more power according to the driver’s need. It is an innovative product that provides safety to the driver while traveling, especially over long distances.”

Keep It Klean, Revolution: “It is a reusable air filter cleaner that uses the power of centrifugal force to clean your filter until it leaves it flawless. It is able to clean, rinse and test reusable air filters in a simple and efficient way. It is another ideal product for automotive washing companies, as it would offer great effectiveness and guaranteed quality with only one product.”

Redline Detection, Dual-Purpose Diagnostic Leak Locator: “It is a device designed to test the integrity of EVAP systems, intake sockets, turbo systems, low and high pressure—all without dyes or contaminants, making it safe for vehicles and the environment. It allows the discovery of all kinds of faults in all kinds of vehicles, including in heavy trucks. Ideal product for mechanical workshops.”

Switch-Pros by Off Road Engineering, RCR Force 12: “It’s a 12-switch power supply system. A switch panel with active switch indicators to assist in 12 car functions. It has a capacity of 150A, controls 17 outputs and tolerates inductive loads. Programming options include attenuation memory, multiple output switches, and on-on-off. It would be a very useful product, especially in those vehicles that are not so modern.”

Tire Stickers, Cerebrum Smart Tire Sensor: “This product is the intelligent pneumatic solution that uses revolutionary sensor technology. It provides advanced pressure and temperature data for pneumatics, as well as depth, alignment and tread performance data to the operator through a convenient application. It is a really efficient product, because drivers can optimize the performance of the pneumatics of their vehicle, reduce fuel consumption and excessive carbon-dioxide emissions, eliminate premature wear of the pneumatics and receive critical safety alerts such as the priority of blowouts.”

2020 Global Media Award Winners—Number of Awards

RSI SmartCap–9
Factor 55–6
The Bracketeer–6
Antigravity Lithium Batteries–5
AutoMeter–5
Tire Stickers–5
Turbosmart–5
FiTech–4
Ford Motor Company–4
Icon Vehicle Dynamics–4
Lokar Inc.–4
Aeromotive Inc.–3
Bestop Premium Accessories Group–3
CFR Performance–3
Cooper Tire & Rubber Co.–3
DeatschWerks–3
Griot’s Garage Inc.–3
Integrated Engineering–3
JE Pistons–3
K&N Engineering Inc.–3
Mickey Thompson Tires & Wheels–3
Nitrous Express–3
R3 Performance Products–3
Restomod Air–3
SCOSCHE–3
Stoner Car Care–3
Switch-Pros by Off Road
Engineering–3
Topfire China–3
Traxxas–3
United Pacific Industries Inc.–3
VAIS Technology–3
Yokohama Tire–3
AAMP Global–2
All-Fit Automotive–2
Cedar Electronics – Cobra/Escort–2
Chevrolet–2
Coverking–2
Flaming River Industries Inc.–2
Garrett Advancing Motion–2
Harbor Freight Tools–2
Hypertech–2
NotcHead–2
RaceChip–2
Racingline–2
Ridetech–1Retro Manufacturing–2
Roush Performance–2
SeaSucker–2
SeatbeltPlanet.com–2
Specialty Auto Parts/Proform–2
sPod–2
TRAC Tire Rotation Assistance Cart–2
Wheel Vintiques–2
XS Power Batteries–2
Zeitronix–2
The A.T. Hotbox–1
Advance Adapters–1
Aero Detail Products–1
aFe Power–1
American Autowire–1
ARB 4x4 Accessories–1
ARP Inc.–1
ATI Performance Products Inc.–1
AutoRing.Com–1
Banks Power–1
Bubba Rope–1
Comp Performance Group–1
Cragar Wheel & Black Rock Wheel–1
Curt Group: Curt, Aries,
Luverne, UWS–1
Custom Wheel Solutions–1
Dakota Digital–1
Dana Incorporated–1
DashLogic–1
The Detail Guardz Premium
Car Care Products–1
Distinctive Industries–1
Dobinsons Spring & Suspension
USA LLC–1
Eibach–1
Essex/AP Racing–1
Falcon Shocks–1
GFB Go Fast Bits–1
Giant Loop–1
Goodridge USA–1
Green Filter USA–1
GU Auto Tech Inc.–1
HaulGauge/Garage Smart–1

Heatshield Products Inc.–1
Hima Lighting–1
Hiwowsport–1
HKS USA Inc. –1
Hoffman Services Inc.–1
Holley Performance–1
Hotchkis Sport Suspension–1
Hunter Engineering Co.–1
Ididit LLC–1
Inurzone–1
Keep It Klean–1
Kenoh USA: Automotive Led Light-Shield–1
King Shocks–1
KNS/Grand General Accessories–1
Lincoln Electric Co.–1
Liquid Armour Protective Coatings–1
Mahle Motorsports–1
McLeod Racing–1
MechMan Alternators–1
Metra Electronics–1
Midwest Innovative Products–1
Milltek Sport–1
Milwaukee Tool–1
Mirka USA–1
Mobil 1–1
Mooneyes–1
MouseBlocker–1
MSA 4X4 Accessories–1
MSS Automotive UK–1
Nexen Tire America–1
NFS Sport International–1
Northern Radiator–1
onX Offroad–1
The Original California Car Duster Company–1
Pareto Point Industries–1
Pilot/RBP/Voodoo–1
Pro Eagle–1
ProComp/Smittybilt/Rubicon Express/Poison Spyder/G2 Axle/
LRG Rims–1
PurePower Performance Eco Filters–1
Ram Mounts–1
Redline Detection–1
Rennstand by Wuhan Robot Weld–1
Revology Cars–1

Rhinohide 4x4 Body Armor–1Rightline Gear–1
RimPro-Tec/Wheel Bands–1
Road Armor–1
Roadster Shop–1
RockJock 4x4 by John Currie
Performance Group–1
RPC–1
Rubicon Expedition Products–1
Rust-Oleum Corporation–1
Scangrip–1
Shenzhen Carku
Technology Co. Ltd.–1
Society of Collision Repair Specialists (SCRS)–1
Sojoy Auto USA Ltd.–1
Sony Car Audio–1
Soundigital/Ground Zero–1
SP Tools USA–1
SPA Technique Inc.–1
Sparta Evolution–1
Speedmaster–1
Speedway Motors–1
Sprint Booster/Johnston Research & Performance Inc. –1
Spyder Auto–1
SSV Works–1
Steelcraft–1
Steele Rubber Products–1
Suntop–1
Super Mini Booster.com–1
TeraFlex–1
3D Billet Products–1
3M–1
TKO Clamping Systems–1
Truck Hero–1
True Spike Lug Nuts–1
TSI Products Inc. –1
Turbonetics/Precision Turbo & Engine–1
Unisteer Performance–1
Velvet Comfort–1
Victor Racing–1
Wagner Tuning Inc.–1
Wavian USA–1
Waxedshine–1
Weld/MOMO/Adv.1/CCW/Forgestar/Hiper–1
Westin/Superwinch–1
Wright CNC–1

First-Time Exhibitors Winning Global Media Awards—Number of Awards

RSI SmartCap–9
The Bracketeer–6
Integrated Engineering–3
Vais Technology–3
Harbor Freight Tools–2
Racingline–2
SeatbeltPlanet.com–2
TRAC Tire Rotation Assistance Cart–2
The A.T. Hotbox–1
Giant Loop–1
GU Auto Tech Inc.–1
Keep It Klean–1
Midwest Innovative Products–1
Milwaukee Tool–1
MSS Automotive UK–1
onX Offroad–1

Rennstand by Wuhan Robot Weld–1
RockJock 4x4 by John Currie Performance Group–1
Rubicon Expedition Products–1
SP Tools USA–1
3D Billet Products–1
Velvet Comfort–1
Waxedshine–1
Wright CNC–1


   

Wed, 04/01/2020 - 11:08

SEMA News—April 2020

RETAIL BEST PRACTICES

Guarding Against Retail Theft

Engagement Is the Key Factor in Deterrence

By Mike Imlay

Retail
Whether by shoplifters, employees or after-hours burglars, theft can have devastating effects on a retail operation. Fortunately, there are a number of best practices you can adopt to protect your business from such thievery. Courtesy: Shutterstock.com

As a retailer, are you doing everything you can to minimize loss from theft? Whether it results from shoplifters, employees or vendors, theft remains a leading cause of “inventory shrinkage” and operational loss among retailers. In fact, according to the National Retail Foundation (NRF), inventory shrinkage cost the U.S. retail industry $46.8 billion in the last year. The NRF further set the average shrink rate for a retail business at 1.33% of sales. That may sound small, but for a retail outfit making $1 million in sales a year, that’s over $13,000 unaccounted for.

While high-tech online fraud often grabs the headlines, good old basic thievery is still alive and well. In addition to credit card fraud, consumer theft can take the form of grabbing and concealing merchandise, altering and changing price tags, “repackaging” items before checkout, and returning fingered merchandise or knockoff products for refunds. Then there’s employee theft, encompassing stolen inventory and misappropriation of funds, refunds and discounts. As if that weren’t enough, vendors and delivery personnel also account for a smaller percentage of retail shrinkage by shorting and skimming inventory.

Whatever form it takes, the consequences of theft can be devastating to a retailer, according to small-business consultant Tom Shay, principal of Profits Plus Solutions.

“I would take it seriously,” Shay said. “I have a friend who had five retail locations, and the whole thing went down because of a thief in one location. The business went under, and he declared bankruptcy.”

Most retailers are aware of the more tried-and-true shoplifting prevention measures:

  • Keeping the retail outlet tidy, organized and well lit; eliminating maze-like aisles and blind spots; and maintaining low displays and fixtures that allow for visibility along with locking display cases for more expensive items.
  • Good placement of mirrors, cameras and signage to deter theft—without overdoing it. While effective in combatting crime, such visual measures can also intimidate legitimate clientele, so the aim should be “balanced deterrence” that reflects your brand.
  • An adequate number of employees covering the store, along with manned counters or checkouts near entry/exit points.
  • Learning to identify suspicious shopping behaviors, such as loitering, misdirecting sales people, and wearing bulky clothing, backpacks, etc. But avoid any temptation to profile. (Studies show that a well-established, gainfully employed clientele can steal just as readily as strangers, and there is no one profile that fits all.)

And while no employer likes to contemplate employee theft, the following are some of the more familiar countermeasures to guard against it:

  • Again, placing cameras in crucial areas, such as entries and exits; stockrooms, inventory and delivery points; sales points; and trash areas and dumpsters.
  • Regular audits and inventory control, including counting cash drawers at least daily and carefully checking delivered supplies and inventory against invoices and cash receipts.
  • Instituting buddy systems for inventory tasks and taking out the trash.
  • Creating a fair and positive work environment that fosters employee loyalty and involvement.

Practicing Engagement

While all of those steps are good starts, Shay believes that the most effective anti-theft tool can be summed up by the word “engagement.” Applied to shoplifting, that means customer engagement—a concept every retailer should be practicing.

“Far and away, deterrence to shoplifting does not come from RFID chips, does not come from cameras, and does not come from mirrors,” Shay said. “The answer is addressing and speaking to customers. I always advise three people saying, ‘Hello, good morning, and how are you?’ The idea is that you have engaged the person. In doing so, there’s now a bunch of people who can say what a person looks like if they’re going to steal something. It’s easier [for them] to go down the street and shoplift from somebody else.”

In fact, Shay encouraged retailers to hold regular training sessions to help build useful rapport with clientele. For him, typical conversation starters such as “May I help you?” or “Can I ring that up for you?” and “Will that be all?” lead nowhere and make for poor salesmanship.

“I would create two whiteboards and ask staff to come up with really neat things they could say to customers,” he suggested. “For example, I remember a salesperson who once came up with, ‘So what are you working on that I get to help you with?’ That’s very noninvasive and engaging. It says ‘I’m here to help.’”

Shay also suggested teaching employees to enter the aisles where customers are shopping, but not for overt surveillance. Instead, employees should greet customers while removing a shelf item and taking it to another counter or parts location—as if nonchalantly moving stock for inventory or to set aside for another customer. If the customer should ask for assistance, the employee should react immediately.

“The employee can put the item back down and take care of the customer’s needs right there,” Shay explained. “If the customer doesn’t ask for help, you walk off with the item and put it in a specified place elsewhere in the store. And when other employees see merchandise in that spot, it’s a sign to pick it up and put it back where it belongs,”

The result is proactive customer service that can increase sales while simultaneously deterring would-be thieves. Even simple eye contact and a smile that conveys engagement can be a powerful preventative strategy. But even as retailers strive to counteract theft from the shelves and at the counter, they shouldn’t neglect the stealing that can go down after hours.

“Nighttime break-ins are also common,” noted Bob Corwin, senior vice president of Alliant Insurance Services, which specializes in specialty-equipment business coverage. “That gets back in to, at a minimum, having an alarm system with both motion detection and entry and exit door monitors—the contact points, if you will. We’ve even seen a loss where somebody went on the roof and took all the copper wire out of a store’s conduits, so some companies have actually put pressure detectors on the roof as well.”

Then, of course, there’s employee dishonesty.

“A common scenario is someone at a register who appears to be ringing up an order and taking cash, but they don’t really ring up the order and instead pocket the cash,” Corwin said. “Plus the other person [the supposed customer] walks out the door with whatever the item is.”

Other obvious examples of employee theft include siphoning off inventory, forging financial instruments, and misuse of company credit cards or purchasing authority.

“They go online, they buy a little for themselves, they buy a little over here,” Corwin explained. “Something is then drop-shipped in a different location for them, and they’re selling the product on the side.”

The answer, Corwin said, is a rigorous accounting system with substantial checks and balances.

“That also gets into tight inventory control methods that keep the owner and company accountant aware of products that are purchased,” he said. “They go on the shelf; we have an inventory of what’s there; and when we sell five, we see money for five. We know that X number of products sold should lead to X number of dollars. And if there’s a discrepancy, we need to go after the discrepancy and figure out what happened.”

Ideally, retailers should run their inventory forensics monthly, with daily spot checks as well. Tight inventory controls can also help guard against theft taking place outside a retailer’s operation.

“We’ve seen delivery companies steal items, so that gets into the need for monthly forensics,” Corwin said. “Some companies also do weekly accounting.”

In Corwin’s mind, it’s about observing “how everything comes in, how it’s accounted for, and how it’s sold and goes out the door—and all the operational issues that fall into play somewhere in between.”

In that regard, a rigorous system of checks and balances should also apply to cash drawers, which Shay believes should be counted by someone other than the cashiers. He pointed to a procedure in his own business where all cash, check, debit and credit card transactions were tracked in a daily spreadsheet and reconciled against bank card and bank deposit slips.

“When you go to the bank and they stamp it, that very same form had better come back,” he said. “I like to think that there was no way you could fool me by playing with the cash at that point, but to make sure of it, even my office manager knew that at a minimum of one time a week, I would come in and count everything. Coins, ones, fives, everything.”

Retail
Regular and scrupulous inventory checks against receivables and sales invoices can help catch theft of supplies and merchandise early on, thereby preventing escalating losses from dishonest employees, vendors or delivery personnel. Courtesy: Shutterstock.com

Breaking Routines

Shay added that it’s a good practice for retail owners to add an element of unpredictability to everything they do.

“When you go to work, do you go to work about the same time every day?” he asked. “Do you park in the same place? Do you drive the same vehicle? Do you go to lunch about the same time? Do you take a day off between Monday and Sunday? Is it always the same day off? Mix up your routine.”

Corwin further noted that limiting access to video and computer equipment helps eliminate tampering with what could be crucial evidence, should theft somehow take place. However, despite even the best efforts to protect against theft, incidents may still occur—which underscores the need for properly tailored insurance.

“Crime is sometimes an overlooked coverage area,” Corwin said. “Although retailers may not be destroyed as they might be in, say, a fire, loss from theft can be significant. There are certainly ways to prevent losses from occurring, but the other side of the equation is making sure that there’s crime insurance in place in various categories beneficial to an organization—even if it’s a low limit of insurance. If you don’t have insurance, getting that money or those goods back is highly unlikely, whatever happened, even with employee theft that’s prosecuted.”

The good news is that retailers can find insurance protection against a surprisingly broad range of potential crimes without necessarily breaking the bank.

“I don’t want my clients to be insurance rich and cash poor, because it can sometimes be expensive,” Corwin said. “On the other hand, some insurance coverage areas can be really affordable. You should buy based on what your budget allows and what you can afford. That makes sense and is always number one. The goal is to protect the assets of the corporation, whatever they may be.”

A good broker will review every aspect of the business and its practices with a fine-tooth comb to help determine vulnerabilities and make recommendations for appropriate coverage.

Executive Summary

Theft remains one of the leading causes of “retail shrinkage,” and there’s seemingly no end to the sneakiness of would-be thieves. There are, however, many best practices for minimizing an operation’s vulnerability to light-fingered shoppers, employees and vendors. They include:

  • Physical countermeasures such as cameras, mirrors, signage and highly visible aisles within a store.
  • Rigorous inventory and accounting systems, with checks and balances to monitor merchandise, finances and cashflow.
  • Introducing an element of unpredictability into your operating procedures.
  • Perhaps most importantly, fostering a retail climate of customer and employee engagement.

    Knowing that even the best efforts to thwart criminals can fail, proper crime insurance tailored to your operation adds an extra layer of protection should the unthinkable occur.

“The application work we provide steps through questions that are really generalized,” Corwin explained. “Others get very specific about the best practices that we’re looking for. When I’m interviewing a company for crime insurance, I go step by step through the application process to assess what they may or may not be doing as it relates to that process of procuring insurance. We look at the financial information of an organization—annual sales, assets, number and types of employees, how you audit—all of the things that lead back to getting the right limit of insurance for the organization.”

Building a better mousetrap isn’t easy. Unfortunately, criminals can be extremely smart about exploiting a retailer’s vulnerabilities, and there’s seemingly no end to the ways they can abscond with a retailer’s merchandise and profits. Vigilance may seem the keyword for thwarting them, but as Shay again summed up, it’s really about much more.

“I see it as having systems in place, proactiveness and engagement, whether it’s engagement with your customer or engagement with your employees,” he said.

Keep that in mind, and you’ll always have the edge in protecting your business.

About the Experts

Bob Corwin is a senior vice president with Alliant Insurance Services, which specializes in insurance coverage for all types and sizes of aftermarket and performance industry businesses. He can be reached at bcorwin@alliant.com.

Tom Shay is the principal of Profit Plus Solutions Inc. and a frequent speaker on retailing topics, including retail practices for the specialty-equipment industry. He can be reached at 727-464-2182 or visit www.profitsplus.org.

Wed, 04/01/2020 - 11:08

SEMA News—April 2020

RETAIL BEST PRACTICES

Guarding Against Retail Theft

Engagement Is the Key Factor in Deterrence

By Mike Imlay

Retail
Whether by shoplifters, employees or after-hours burglars, theft can have devastating effects on a retail operation. Fortunately, there are a number of best practices you can adopt to protect your business from such thievery. Courtesy: Shutterstock.com

As a retailer, are you doing everything you can to minimize loss from theft? Whether it results from shoplifters, employees or vendors, theft remains a leading cause of “inventory shrinkage” and operational loss among retailers. In fact, according to the National Retail Foundation (NRF), inventory shrinkage cost the U.S. retail industry $46.8 billion in the last year. The NRF further set the average shrink rate for a retail business at 1.33% of sales. That may sound small, but for a retail outfit making $1 million in sales a year, that’s over $13,000 unaccounted for.

While high-tech online fraud often grabs the headlines, good old basic thievery is still alive and well. In addition to credit card fraud, consumer theft can take the form of grabbing and concealing merchandise, altering and changing price tags, “repackaging” items before checkout, and returning fingered merchandise or knockoff products for refunds. Then there’s employee theft, encompassing stolen inventory and misappropriation of funds, refunds and discounts. As if that weren’t enough, vendors and delivery personnel also account for a smaller percentage of retail shrinkage by shorting and skimming inventory.

Whatever form it takes, the consequences of theft can be devastating to a retailer, according to small-business consultant Tom Shay, principal of Profits Plus Solutions.

“I would take it seriously,” Shay said. “I have a friend who had five retail locations, and the whole thing went down because of a thief in one location. The business went under, and he declared bankruptcy.”

Most retailers are aware of the more tried-and-true shoplifting prevention measures:

  • Keeping the retail outlet tidy, organized and well lit; eliminating maze-like aisles and blind spots; and maintaining low displays and fixtures that allow for visibility along with locking display cases for more expensive items.
  • Good placement of mirrors, cameras and signage to deter theft—without overdoing it. While effective in combatting crime, such visual measures can also intimidate legitimate clientele, so the aim should be “balanced deterrence” that reflects your brand.
  • An adequate number of employees covering the store, along with manned counters or checkouts near entry/exit points.
  • Learning to identify suspicious shopping behaviors, such as loitering, misdirecting sales people, and wearing bulky clothing, backpacks, etc. But avoid any temptation to profile. (Studies show that a well-established, gainfully employed clientele can steal just as readily as strangers, and there is no one profile that fits all.)

And while no employer likes to contemplate employee theft, the following are some of the more familiar countermeasures to guard against it:

  • Again, placing cameras in crucial areas, such as entries and exits; stockrooms, inventory and delivery points; sales points; and trash areas and dumpsters.
  • Regular audits and inventory control, including counting cash drawers at least daily and carefully checking delivered supplies and inventory against invoices and cash receipts.
  • Instituting buddy systems for inventory tasks and taking out the trash.
  • Creating a fair and positive work environment that fosters employee loyalty and involvement.

Practicing Engagement

While all of those steps are good starts, Shay believes that the most effective anti-theft tool can be summed up by the word “engagement.” Applied to shoplifting, that means customer engagement—a concept every retailer should be practicing.

“Far and away, deterrence to shoplifting does not come from RFID chips, does not come from cameras, and does not come from mirrors,” Shay said. “The answer is addressing and speaking to customers. I always advise three people saying, ‘Hello, good morning, and how are you?’ The idea is that you have engaged the person. In doing so, there’s now a bunch of people who can say what a person looks like if they’re going to steal something. It’s easier [for them] to go down the street and shoplift from somebody else.”

In fact, Shay encouraged retailers to hold regular training sessions to help build useful rapport with clientele. For him, typical conversation starters such as “May I help you?” or “Can I ring that up for you?” and “Will that be all?” lead nowhere and make for poor salesmanship.

“I would create two whiteboards and ask staff to come up with really neat things they could say to customers,” he suggested. “For example, I remember a salesperson who once came up with, ‘So what are you working on that I get to help you with?’ That’s very noninvasive and engaging. It says ‘I’m here to help.’”

Shay also suggested teaching employees to enter the aisles where customers are shopping, but not for overt surveillance. Instead, employees should greet customers while removing a shelf item and taking it to another counter or parts location—as if nonchalantly moving stock for inventory or to set aside for another customer. If the customer should ask for assistance, the employee should react immediately.

“The employee can put the item back down and take care of the customer’s needs right there,” Shay explained. “If the customer doesn’t ask for help, you walk off with the item and put it in a specified place elsewhere in the store. And when other employees see merchandise in that spot, it’s a sign to pick it up and put it back where it belongs,”

The result is proactive customer service that can increase sales while simultaneously deterring would-be thieves. Even simple eye contact and a smile that conveys engagement can be a powerful preventative strategy. But even as retailers strive to counteract theft from the shelves and at the counter, they shouldn’t neglect the stealing that can go down after hours.

“Nighttime break-ins are also common,” noted Bob Corwin, senior vice president of Alliant Insurance Services, which specializes in specialty-equipment business coverage. “That gets back in to, at a minimum, having an alarm system with both motion detection and entry and exit door monitors—the contact points, if you will. We’ve even seen a loss where somebody went on the roof and took all the copper wire out of a store’s conduits, so some companies have actually put pressure detectors on the roof as well.”

Then, of course, there’s employee dishonesty.

“A common scenario is someone at a register who appears to be ringing up an order and taking cash, but they don’t really ring up the order and instead pocket the cash,” Corwin said. “Plus the other person [the supposed customer] walks out the door with whatever the item is.”

Other obvious examples of employee theft include siphoning off inventory, forging financial instruments, and misuse of company credit cards or purchasing authority.

“They go online, they buy a little for themselves, they buy a little over here,” Corwin explained. “Something is then drop-shipped in a different location for them, and they’re selling the product on the side.”

The answer, Corwin said, is a rigorous accounting system with substantial checks and balances.

“That also gets into tight inventory control methods that keep the owner and company accountant aware of products that are purchased,” he said. “They go on the shelf; we have an inventory of what’s there; and when we sell five, we see money for five. We know that X number of products sold should lead to X number of dollars. And if there’s a discrepancy, we need to go after the discrepancy and figure out what happened.”

Ideally, retailers should run their inventory forensics monthly, with daily spot checks as well. Tight inventory controls can also help guard against theft taking place outside a retailer’s operation.

“We’ve seen delivery companies steal items, so that gets into the need for monthly forensics,” Corwin said. “Some companies also do weekly accounting.”

In Corwin’s mind, it’s about observing “how everything comes in, how it’s accounted for, and how it’s sold and goes out the door—and all the operational issues that fall into play somewhere in between.”

In that regard, a rigorous system of checks and balances should also apply to cash drawers, which Shay believes should be counted by someone other than the cashiers. He pointed to a procedure in his own business where all cash, check, debit and credit card transactions were tracked in a daily spreadsheet and reconciled against bank card and bank deposit slips.

“When you go to the bank and they stamp it, that very same form had better come back,” he said. “I like to think that there was no way you could fool me by playing with the cash at that point, but to make sure of it, even my office manager knew that at a minimum of one time a week, I would come in and count everything. Coins, ones, fives, everything.”

Retail
Regular and scrupulous inventory checks against receivables and sales invoices can help catch theft of supplies and merchandise early on, thereby preventing escalating losses from dishonest employees, vendors or delivery personnel. Courtesy: Shutterstock.com

Breaking Routines

Shay added that it’s a good practice for retail owners to add an element of unpredictability to everything they do.

“When you go to work, do you go to work about the same time every day?” he asked. “Do you park in the same place? Do you drive the same vehicle? Do you go to lunch about the same time? Do you take a day off between Monday and Sunday? Is it always the same day off? Mix up your routine.”

Corwin further noted that limiting access to video and computer equipment helps eliminate tampering with what could be crucial evidence, should theft somehow take place. However, despite even the best efforts to protect against theft, incidents may still occur—which underscores the need for properly tailored insurance.

“Crime is sometimes an overlooked coverage area,” Corwin said. “Although retailers may not be destroyed as they might be in, say, a fire, loss from theft can be significant. There are certainly ways to prevent losses from occurring, but the other side of the equation is making sure that there’s crime insurance in place in various categories beneficial to an organization—even if it’s a low limit of insurance. If you don’t have insurance, getting that money or those goods back is highly unlikely, whatever happened, even with employee theft that’s prosecuted.”

The good news is that retailers can find insurance protection against a surprisingly broad range of potential crimes without necessarily breaking the bank.

“I don’t want my clients to be insurance rich and cash poor, because it can sometimes be expensive,” Corwin said. “On the other hand, some insurance coverage areas can be really affordable. You should buy based on what your budget allows and what you can afford. That makes sense and is always number one. The goal is to protect the assets of the corporation, whatever they may be.”

A good broker will review every aspect of the business and its practices with a fine-tooth comb to help determine vulnerabilities and make recommendations for appropriate coverage.

Executive Summary

Theft remains one of the leading causes of “retail shrinkage,” and there’s seemingly no end to the sneakiness of would-be thieves. There are, however, many best practices for minimizing an operation’s vulnerability to light-fingered shoppers, employees and vendors. They include:

  • Physical countermeasures such as cameras, mirrors, signage and highly visible aisles within a store.
  • Rigorous inventory and accounting systems, with checks and balances to monitor merchandise, finances and cashflow.
  • Introducing an element of unpredictability into your operating procedures.
  • Perhaps most importantly, fostering a retail climate of customer and employee engagement.

    Knowing that even the best efforts to thwart criminals can fail, proper crime insurance tailored to your operation adds an extra layer of protection should the unthinkable occur.

“The application work we provide steps through questions that are really generalized,” Corwin explained. “Others get very specific about the best practices that we’re looking for. When I’m interviewing a company for crime insurance, I go step by step through the application process to assess what they may or may not be doing as it relates to that process of procuring insurance. We look at the financial information of an organization—annual sales, assets, number and types of employees, how you audit—all of the things that lead back to getting the right limit of insurance for the organization.”

Building a better mousetrap isn’t easy. Unfortunately, criminals can be extremely smart about exploiting a retailer’s vulnerabilities, and there’s seemingly no end to the ways they can abscond with a retailer’s merchandise and profits. Vigilance may seem the keyword for thwarting them, but as Shay again summed up, it’s really about much more.

“I see it as having systems in place, proactiveness and engagement, whether it’s engagement with your customer or engagement with your employees,” he said.

Keep that in mind, and you’ll always have the edge in protecting your business.

About the Experts

Bob Corwin is a senior vice president with Alliant Insurance Services, which specializes in insurance coverage for all types and sizes of aftermarket and performance industry businesses. He can be reached at bcorwin@alliant.com.

Tom Shay is the principal of Profit Plus Solutions Inc. and a frequent speaker on retailing topics, including retail practices for the specialty-equipment industry. He can be reached at 727-464-2182 or visit www.profitsplus.org.