SEMA News—December 2012

INTERNATIONAL
By Linda Spencer

China: A Promising, Emerging Specialty-Equipment Market

Barry Adler (second from left), president of Quick Time Performance, a manufacturer of electronically controlled exhaust cutouts, said that it is important for the company to be in at the early stages of the Chinese specialty-equipment market. “We can help educate them with our products,” he said, “and exporting is the largest growth potential we have. We are putting more money and time into developing this overseas business than in growing our domestic sales.”

Sixteen SEMA-member companies traveled to Shanghai and Beijing on the 2012 SEMA China Business Development Tour to explore growth opportunities for their products. This most recent trip is part of SEMA’s program of one-on-one meetings and fact-finding trips to emerging markets.

As with a similar program for the Middle East, the annual SEMA China Business Development Tour was designed to be a low-cost and high-value way to explore a new market. Activities included two full days of meetings with pre-vetted buyers in Shanghai and Beijing, visits to specialty-equipment shops in both cities, briefings by U.S. government officials based in China and the opportunity to network with both buyers and fellow SEMA members in an informal setting. In addition, trip participants were able to help defray the cost of participating through a three-year, $500,000 Market Development Cooperative Program Grant that SEMA was awarded by the U.S. Department of Commerce.

Though the participating firms manufactured a wide array of performance and exterior and interior styling enhancements, all were unanimous that the potential for sales of their products in China couldn’t be overstated. The most common word used to describe the country’s potential for the size of its specialty-equipment market was “limitless.”

“In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” said Jeff Victer of Prolong Super Lubricants, and SCT President Rick Trudo estimated that his company’s sales in China and other markets outside the United States will surpass its U.S. sales by 2015.

	SEMA-Member Exhibitors on the 2012 SEMA China Business Development Tour  Borla Performance Industries Coverking Crane Cams eBay Motors Gibson Performance Exhaust Injen Technology K&N Engineering, Inc. Keystone Automotive Kicker Maxpro Window Films OMIX-ADA Inc. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology SCT Performance LLC Weld Racing LLC

That’s not to say there aren’t challenges. Among the hurdles mentioned by participants were the need for the Chinese government to do more to deter counterfeiting and the need to adapt products and marketing in China to satisfy local requirements as well as language and
cultural barriers.

“A product that sells well in the United States may not sell in China because the name or model number of the product is deemed unlucky in Chinese culture,” said K&N’s George Hsieh. “On the other hand, if a U.S. company takes the time and effort to develop a product specifically for the Chinese market, it will most likely be well received because it shows respect for Chinese consumers.”

David Borla, sales and marketing manager for U.S. exhaust and induction manufacturer Borla Performance, said that understanding the Chinese automotive culture can be challenging, and it’s important to approach it with an open mind, regardless of how successful you’ve been elsewhere in the world.

Injen’s Ed Rossi identified another hurdle: “The biggest challenge for growth is the amount of cars which can be brought in economically,” he said. “The 100%–140% tax burden the government places on new imported vehicles and the incapability to bring in used cars really limits the amount of vehicles that SEMA-member manufacturers can attach their parts to.”

Nathan Calabrese of OMIX-ADA concurred that the limited number of vehicles in China is a big challenge, but he expressed optimism that the challenge will diminish as the quantity of vehicles increases.

Another challenge identified by exhibitors is China’s fragmented distribution system.

“With the explosive market growth, not every distributor is looking at the market the same way,” Hsieh said. “Some may be looking at short-term profit run rather than long-term business relationships. I believe it is very important to qualify distributors not solely on how much product they can move, but also on how they plan to grow their business and the brand.”

	The market for specialty products has officially spread beyond the main coastal cities of Beijing, Shanghai and Guangzhou. Buyers attended the SEMA event from 14 cities/regions around the country.

Yet, despite these hurdles, the group was optimistic about the growing off-road market, the growing base of consumers and the positive perception of U.S. products in China.

“The growing number of car enthusiasts in China will mean greater demand for aftermarket products for either appearance or performance,” said Kevin Floody, K&N’s international business manager. “One area that seems to continue to grow is the 4x4 market, and it is amazing to see the dominance of U.S.-branded vehicles in this arena along with U.S. brands of aftermarket products.”

Dan Tsuchiya, head of business development at eBay, said that the Chinese will experience a growing need to differentiate and create that special ride as the population becomes more affluent and is exposed to Western influences.

“This market has only tapped into the wealthy Chinese enthusiasts, mostly with international experience,” he said. “There is another 98% or 99% still to be reached. Real growth for any U.S.-based manufacturer will be in emerging countries such as China or Russia, where there is a desire to own Western products. There is a perception—and proof—that U.S.-manufactured products are superior to their domestic-made products.”

For more information about SEMA’s international programs, e-mail Linda Spencer at lindas@SEMA.org. Information on an upcoming trip to the Middle East is available at www.SEMA.org/middleeast.

William Brekke, principal commercial officer for the U.S. Commercial Service at the American Consulate General in Shanghai, and Daniel Green, director of market access and compliance office at the U.S. Embassy in Beijing, briefed the SEMA delegation at an opening dinner. Pictured here are Green and Rick Trudo (left), president of SCT.		Jeff Victer (left), director of global sales for Prolong Super Lubricants, said that the Chinese market is very important to his company’s strategy because of the country’s size, scope and depth of opportunity. “In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” he said.		“During the visits to tuning shops as well as the one-on-one meetings with buyers, the need and desire for quality American-made products was clear,” said Bill Wines (second from right) of window film manufacturer Maxpro Window Films. “Many shop owners had been burned by poor-quality products and were looking to buy better, longer-lasting products for installation.
Ron Gibson (second right), president, and Shawn Gibson (right), vice president, represented Gibson Performance Exhaust. The manufacturer of exhaust systems, mufflers and headers for trucks and SUVs participated in this program for the first time. SEMA organizes programs annually to China (in the fall) and the Middle East (the spring).		“We see huge opportunities for our products in China,” said Rick Trudo (far right), president of tuning-product manufacturer SCT. “Working with partners such as Carnet and others throughout China, we see a big opportunity for our growth to double in 2013.” Justin Oltz (third from right), SCT’s director of business development, said that the aftermarket community has a unique opportunity to learn from its storied history and apply its expertise to the Chinese market.		“This was our second year at the China Business Development Tour,” said Steve Outhier (far right), director of product planning for Stillwater Designs/Kicker. “The sharing of ideas, strategies and issues with fellow participants is invaluable as we further develop our export trade.” Outhier and Chester Weddle (second from right), the audio firm’s international sales manager for Asia/Pacific, met with buyers at one-on-one meetings.
Injen’s Ed Rossi (center), vice president of sales, provided a steady stream of prospective buyers with information about his firm’s high-performance air-intake systems and stainless-steel exhaust systems. Rossi and Ron Delgado (far left), the company’s president, have been on all three SEMA one-on-one trips—two to China and one to the Middle East. “The Chinese enthusiasts are perfect for our core product line,” Rossi said, “and their hunger for Western products is fueling our drive.		SEMA Vice President of Communications and Events Peter MacGillivray (left) and General Manager Jia Bing of high-end specialty- equipment shop Unique shared a laugh during a visit to the retail outlet. MacGillivray noted that an increasing number of consumers in China are buying into the notion of vehicle personalization. “It is great to see real business develop for our industry,” he said. “It’s truly a pioneering effort that will blossom into business opportunities.”		Scott Mackie (second from right), president of Weld Racing, and Jim Pan (far right), the company’s premium/luxury senior consultant, traveled to China to explore the growth potential for their U.S.-made forged aluminum wheels. “As the emerging middle class in China grows in spending power and surpasses the United States, the Chinese consumer will play a pivotal role in fueling growth within the specialty-equipment market,” Pan said.
Weld Racing President Scott Mackie checked out the aftermarket wheels on display at Shanghai-based company D1 Station.		SEMA Senior Vice President of Operations Bill Miller (left) presented a certificate to Tong Wei (Stone Tong) from Beijing Sky Lu Jingxin Trading Co. Ltd. to commemorate his participation in the second annual SEMA China one-on-one program.		Local retail shops displayed customized vehicles as part of a TunerTribe SEMA celebration.
Coverking President Steve Gupta (left) and Quick Time Performance President Barry Adler (right) viewed the performance products added to a project vehicle at Shanghai-based UDM.		“The Chinese specialty-equipment market has the potential to dwarf any other geographical market of its kind on the planet,” said David Borla (front row, second right), sales and marketing manager for Borla Performance. “The numbers are staggering.”		Sean Holly (far right), president and general manager of Crane Cams, and Steve Iggens (second right), president of the firm’s motorcycle division, talked with buyers during two day-long meetings, the first in Shanghai and the second in Beijing.
From left, Daisy Wang, trade policy specialist at the U.S. Embassy in Beijing; Scott Mackie, president of Weld Racing; Liz Couch, international economist on the auto team at the U.S. Department of Commerce’s Washington, D.C., headquarters; and Ruby Stratz of Keystone shared a bite on the famed Shanghai waterfront known as the Bund. Couch and Wang work year-round with SEMA to create a pro-industry policy toward specialty-equipment products. They spent the week with the SEMA delegation, providing an excellent resource on the Chinese market and exporting in general to participating companies.		China’s growing middle class and Western influences have created tremendous demand for quality U.S.-made products, said George Hsieh (second right), project coordinator for K&N. “In the one-child-only Chinese society, personalization is everything,” he said, “and everyone wants to be different.” Kevin Floody (far right), K&N’s international business manager, added that it is very important for K&N to continue to develop its market in China, since it continues to be one of the fastest-growing international markets available. “The sooner any company can enter into the China market, the sooner that brand starts to become more recognized,” he said.		“The specialty market [in China] is in its infancy, and now is a great time for U.S. companies to become involved,” said Radflo Suspension Technology’s Mike Crosby (third from right). “The off-road segment is growing very rapidly within the country. The opportunities in China are immense for our product line, and we look forward to expansion within this market.” Crosby and Radflo President Glenn Classen (right) met with buyers to explore sales opportunities for their shock absorbers and hydraulic jacks.
Steve Gupta (far right), president of Anaheim-based Coverking, answered questions from interested buyers about the firm’s custom and universal seat covers, car covers and other products.		Keystone’s Ruby Stratz (seated in a white shirt) talked with potential customers during the trip. Keystone was one of 16 companies participating in the second annual SEMA China Business Development Program. This year’s program included stops in Beijing and Shanghai.		The technical knowledge of customizing shops is growing in China. One indicator of the level of performance tuning is the presence of a dyno. Here, the SEMA delegation checks out a dyno in a shop in Beijing.
Tuner Tribe is a vibrant market in Beijing featuring specialty-equipment shops. The SEMA delegation as well as U.S. and Chinese government officials attended the first Tuner-Tribe SEMA celebration of the specialty-equipment industry held this past September.		Sixteen companies and a total of 35 SEMA members participated in the second annual SEMA program in China which involved visits to specialty-equipment shops, one-on-one meeting with leading Chinese buyers from around the country and briefings with U.S. government officials.		“China is a very important destination for our products,” said Nathan Calabrese (far right), director of international sales for Georgia-based OMIX-ADA. “We are fortunate to have a strong presence in China within our niche market already, but there is always room for improvement, development and the ongoing work to keep our presence strong.”

 

SEMA News—December 2012

INTERNATIONAL
By Linda Spencer

China: A Promising, Emerging Specialty-Equipment Market

Barry Adler (second from left), president of Quick Time Performance, a manufacturer of electronically controlled exhaust cutouts, said that it is important for the company to be in at the early stages of the Chinese specialty-equipment market. “We can help educate them with our products,” he said, “and exporting is the largest growth potential we have. We are putting more money and time into developing this overseas business than in growing our domestic sales.”

Sixteen SEMA-member companies traveled to Shanghai and Beijing on the 2012 SEMA China Business Development Tour to explore growth opportunities for their products. This most recent trip is part of SEMA’s program of one-on-one meetings and fact-finding trips to emerging markets.

As with a similar program for the Middle East, the annual SEMA China Business Development Tour was designed to be a low-cost and high-value way to explore a new market. Activities included two full days of meetings with pre-vetted buyers in Shanghai and Beijing, visits to specialty-equipment shops in both cities, briefings by U.S. government officials based in China and the opportunity to network with both buyers and fellow SEMA members in an informal setting. In addition, trip participants were able to help defray the cost of participating through a three-year, $500,000 Market Development Cooperative Program Grant that SEMA was awarded by the U.S. Department of Commerce.

Though the participating firms manufactured a wide array of performance and exterior and interior styling enhancements, all were unanimous that the potential for sales of their products in China couldn’t be overstated. The most common word used to describe the country’s potential for the size of its specialty-equipment market was “limitless.”

“In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” said Jeff Victer of Prolong Super Lubricants, and SCT President Rick Trudo estimated that his company’s sales in China and other markets outside the United States will surpass its U.S. sales by 2015.

	SEMA-Member Exhibitors on the 2012 SEMA China Business Development Tour  Borla Performance Industries Coverking Crane Cams eBay Motors Gibson Performance Exhaust Injen Technology K&N Engineering, Inc. Keystone Automotive Kicker Maxpro Window Films OMIX-ADA Inc. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology SCT Performance LLC Weld Racing LLC

That’s not to say there aren’t challenges. Among the hurdles mentioned by participants were the need for the Chinese government to do more to deter counterfeiting and the need to adapt products and marketing in China to satisfy local requirements as well as language and
cultural barriers.

“A product that sells well in the United States may not sell in China because the name or model number of the product is deemed unlucky in Chinese culture,” said K&N’s George Hsieh. “On the other hand, if a U.S. company takes the time and effort to develop a product specifically for the Chinese market, it will most likely be well received because it shows respect for Chinese consumers.”

David Borla, sales and marketing manager for U.S. exhaust and induction manufacturer Borla Performance, said that understanding the Chinese automotive culture can be challenging, and it’s important to approach it with an open mind, regardless of how successful you’ve been elsewhere in the world.

Injen’s Ed Rossi identified another hurdle: “The biggest challenge for growth is the amount of cars which can be brought in economically,” he said. “The 100%–140% tax burden the government places on new imported vehicles and the incapability to bring in used cars really limits the amount of vehicles that SEMA-member manufacturers can attach their parts to.”

Nathan Calabrese of OMIX-ADA concurred that the limited number of vehicles in China is a big challenge, but he expressed optimism that the challenge will diminish as the quantity of vehicles increases.

Another challenge identified by exhibitors is China’s fragmented distribution system.

“With the explosive market growth, not every distributor is looking at the market the same way,” Hsieh said. “Some may be looking at short-term profit run rather than long-term business relationships. I believe it is very important to qualify distributors not solely on how much product they can move, but also on how they plan to grow their business and the brand.”

	The market for specialty products has officially spread beyond the main coastal cities of Beijing, Shanghai and Guangzhou. Buyers attended the SEMA event from 14 cities/regions around the country.

Yet, despite these hurdles, the group was optimistic about the growing off-road market, the growing base of consumers and the positive perception of U.S. products in China.

“The growing number of car enthusiasts in China will mean greater demand for aftermarket products for either appearance or performance,” said Kevin Floody, K&N’s international business manager. “One area that seems to continue to grow is the 4x4 market, and it is amazing to see the dominance of U.S.-branded vehicles in this arena along with U.S. brands of aftermarket products.”

Dan Tsuchiya, head of business development at eBay, said that the Chinese will experience a growing need to differentiate and create that special ride as the population becomes more affluent and is exposed to Western influences.

“This market has only tapped into the wealthy Chinese enthusiasts, mostly with international experience,” he said. “There is another 98% or 99% still to be reached. Real growth for any U.S.-based manufacturer will be in emerging countries such as China or Russia, where there is a desire to own Western products. There is a perception—and proof—that U.S.-manufactured products are superior to their domestic-made products.”

For more information about SEMA’s international programs, e-mail Linda Spencer at lindas@SEMA.org. Information on an upcoming trip to the Middle East is available at www.SEMA.org/middleeast.

William Brekke, principal commercial officer for the U.S. Commercial Service at the American Consulate General in Shanghai, and Daniel Green, director of market access and compliance office at the U.S. Embassy in Beijing, briefed the SEMA delegation at an opening dinner. Pictured here are Green and Rick Trudo (left), president of SCT.		Jeff Victer (left), director of global sales for Prolong Super Lubricants, said that the Chinese market is very important to his company’s strategy because of the country’s size, scope and depth of opportunity. “In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” he said.		“During the visits to tuning shops as well as the one-on-one meetings with buyers, the need and desire for quality American-made products was clear,” said Bill Wines (second from right) of window film manufacturer Maxpro Window Films. “Many shop owners had been burned by poor-quality products and were looking to buy better, longer-lasting products for installation.
Ron Gibson (second right), president, and Shawn Gibson (right), vice president, represented Gibson Performance Exhaust. The manufacturer of exhaust systems, mufflers and headers for trucks and SUVs participated in this program for the first time. SEMA organizes programs annually to China (in the fall) and the Middle East (the spring).		“We see huge opportunities for our products in China,” said Rick Trudo (far right), president of tuning-product manufacturer SCT. “Working with partners such as Carnet and others throughout China, we see a big opportunity for our growth to double in 2013.” Justin Oltz (third from right), SCT’s director of business development, said that the aftermarket community has a unique opportunity to learn from its storied history and apply its expertise to the Chinese market.		“This was our second year at the China Business Development Tour,” said Steve Outhier (far right), director of product planning for Stillwater Designs/Kicker. “The sharing of ideas, strategies and issues with fellow participants is invaluable as we further develop our export trade.” Outhier and Chester Weddle (second from right), the audio firm’s international sales manager for Asia/Pacific, met with buyers at one-on-one meetings.
Injen’s Ed Rossi (center), vice president of sales, provided a steady stream of prospective buyers with information about his firm’s high-performance air-intake systems and stainless-steel exhaust systems. Rossi and Ron Delgado (far left), the company’s president, have been on all three SEMA one-on-one trips—two to China and one to the Middle East. “The Chinese enthusiasts are perfect for our core product line,” Rossi said, “and their hunger for Western products is fueling our drive.		SEMA Vice President of Communications and Events Peter MacGillivray (left) and General Manager Jia Bing of high-end specialty- equipment shop Unique shared a laugh during a visit to the retail outlet. MacGillivray noted that an increasing number of consumers in China are buying into the notion of vehicle personalization. “It is great to see real business develop for our industry,” he said. “It’s truly a pioneering effort that will blossom into business opportunities.”		Scott Mackie (second from right), president of Weld Racing, and Jim Pan (far right), the company’s premium/luxury senior consultant, traveled to China to explore the growth potential for their U.S.-made forged aluminum wheels. “As the emerging middle class in China grows in spending power and surpasses the United States, the Chinese consumer will play a pivotal role in fueling growth within the specialty-equipment market,” Pan said.
Weld Racing President Scott Mackie checked out the aftermarket wheels on display at Shanghai-based company D1 Station.		SEMA Senior Vice President of Operations Bill Miller (left) presented a certificate to Tong Wei (Stone Tong) from Beijing Sky Lu Jingxin Trading Co. Ltd. to commemorate his participation in the second annual SEMA China one-on-one program.		Local retail shops displayed customized vehicles as part of a TunerTribe SEMA celebration.
Coverking President Steve Gupta (left) and Quick Time Performance President Barry Adler (right) viewed the performance products added to a project vehicle at Shanghai-based UDM.		“The Chinese specialty-equipment market has the potential to dwarf any other geographical market of its kind on the planet,” said David Borla (front row, second right), sales and marketing manager for Borla Performance. “The numbers are staggering.”		Sean Holly (far right), president and general manager of Crane Cams, and Steve Iggens (second right), president of the firm’s motorcycle division, talked with buyers during two day-long meetings, the first in Shanghai and the second in Beijing.
From left, Daisy Wang, trade policy specialist at the U.S. Embassy in Beijing; Scott Mackie, president of Weld Racing; Liz Couch, international economist on the auto team at the U.S. Department of Commerce’s Washington, D.C., headquarters; and Ruby Stratz of Keystone shared a bite on the famed Shanghai waterfront known as the Bund. Couch and Wang work year-round with SEMA to create a pro-industry policy toward specialty-equipment products. They spent the week with the SEMA delegation, providing an excellent resource on the Chinese market and exporting in general to participating companies.		China’s growing middle class and Western influences have created tremendous demand for quality U.S.-made products, said George Hsieh (second right), project coordinator for K&N. “In the one-child-only Chinese society, personalization is everything,” he said, “and everyone wants to be different.” Kevin Floody (far right), K&N’s international business manager, added that it is very important for K&N to continue to develop its market in China, since it continues to be one of the fastest-growing international markets available. “The sooner any company can enter into the China market, the sooner that brand starts to become more recognized,” he said.		“The specialty market [in China] is in its infancy, and now is a great time for U.S. companies to become involved,” said Radflo Suspension Technology’s Mike Crosby (third from right). “The off-road segment is growing very rapidly within the country. The opportunities in China are immense for our product line, and we look forward to expansion within this market.” Crosby and Radflo President Glenn Classen (right) met with buyers to explore sales opportunities for their shock absorbers and hydraulic jacks.
Steve Gupta (far right), president of Anaheim-based Coverking, answered questions from interested buyers about the firm’s custom and universal seat covers, car covers and other products.		Keystone’s Ruby Stratz (seated in a white shirt) talked with potential customers during the trip. Keystone was one of 16 companies participating in the second annual SEMA China Business Development Program. This year’s program included stops in Beijing and Shanghai.		The technical knowledge of customizing shops is growing in China. One indicator of the level of performance tuning is the presence of a dyno. Here, the SEMA delegation checks out a dyno in a shop in Beijing.
Tuner Tribe is a vibrant market in Beijing featuring specialty-equipment shops. The SEMA delegation as well as U.S. and Chinese government officials attended the first Tuner-Tribe SEMA celebration of the specialty-equipment industry held this past September.		Sixteen companies and a total of 35 SEMA members participated in the second annual SEMA program in China which involved visits to specialty-equipment shops, one-on-one meeting with leading Chinese buyers from around the country and briefings with U.S. government officials.		“China is a very important destination for our products,” said Nathan Calabrese (far right), director of international sales for Georgia-based OMIX-ADA. “We are fortunate to have a strong presence in China within our niche market already, but there is always room for improvement, development and the ongoing work to keep our presence strong.”

 

SEMA News—December 2012

INTERNATIONAL
By Linda Spencer

China: A Promising, Emerging Specialty-Equipment Market

Barry Adler (second from left), president of Quick Time Performance, a manufacturer of electronically controlled exhaust cutouts, said that it is important for the company to be in at the early stages of the Chinese specialty-equipment market. “We can help educate them with our products,” he said, “and exporting is the largest growth potential we have. We are putting more money and time into developing this overseas business than in growing our domestic sales.”

Sixteen SEMA-member companies traveled to Shanghai and Beijing on the 2012 SEMA China Business Development Tour to explore growth opportunities for their products. This most recent trip is part of SEMA’s program of one-on-one meetings and fact-finding trips to emerging markets.

As with a similar program for the Middle East, the annual SEMA China Business Development Tour was designed to be a low-cost and high-value way to explore a new market. Activities included two full days of meetings with pre-vetted buyers in Shanghai and Beijing, visits to specialty-equipment shops in both cities, briefings by U.S. government officials based in China and the opportunity to network with both buyers and fellow SEMA members in an informal setting. In addition, trip participants were able to help defray the cost of participating through a three-year, $500,000 Market Development Cooperative Program Grant that SEMA was awarded by the U.S. Department of Commerce.

Though the participating firms manufactured a wide array of performance and exterior and interior styling enhancements, all were unanimous that the potential for sales of their products in China couldn’t be overstated. The most common word used to describe the country’s potential for the size of its specialty-equipment market was “limitless.”

“In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” said Jeff Victer of Prolong Super Lubricants, and SCT President Rick Trudo estimated that his company’s sales in China and other markets outside the United States will surpass its U.S. sales by 2015.

	SEMA-Member Exhibitors on the 2012 SEMA China Business Development Tour  Borla Performance Industries Coverking Crane Cams eBay Motors Gibson Performance Exhaust Injen Technology K&N Engineering, Inc. Keystone Automotive Kicker Maxpro Window Films OMIX-ADA Inc. Prolong Super Lubricants Quick Time Performance Radflo Suspension Technology SCT Performance LLC Weld Racing LLC

That’s not to say there aren’t challenges. Among the hurdles mentioned by participants were the need for the Chinese government to do more to deter counterfeiting and the need to adapt products and marketing in China to satisfy local requirements as well as language and
cultural barriers.

“A product that sells well in the United States may not sell in China because the name or model number of the product is deemed unlucky in Chinese culture,” said K&N’s George Hsieh. “On the other hand, if a U.S. company takes the time and effort to develop a product specifically for the Chinese market, it will most likely be well received because it shows respect for Chinese consumers.”

David Borla, sales and marketing manager for U.S. exhaust and induction manufacturer Borla Performance, said that understanding the Chinese automotive culture can be challenging, and it’s important to approach it with an open mind, regardless of how successful you’ve been elsewhere in the world.

Injen’s Ed Rossi identified another hurdle: “The biggest challenge for growth is the amount of cars which can be brought in economically,” he said. “The 100%–140% tax burden the government places on new imported vehicles and the incapability to bring in used cars really limits the amount of vehicles that SEMA-member manufacturers can attach their parts to.”

Nathan Calabrese of OMIX-ADA concurred that the limited number of vehicles in China is a big challenge, but he expressed optimism that the challenge will diminish as the quantity of vehicles increases.

Another challenge identified by exhibitors is China’s fragmented distribution system.

“With the explosive market growth, not every distributor is looking at the market the same way,” Hsieh said. “Some may be looking at short-term profit run rather than long-term business relationships. I believe it is very important to qualify distributors not solely on how much product they can move, but also on how they plan to grow their business and the brand.”

	The market for specialty products has officially spread beyond the main coastal cities of Beijing, Shanghai and Guangzhou. Buyers attended the SEMA event from 14 cities/regions around the country.

Yet, despite these hurdles, the group was optimistic about the growing off-road market, the growing base of consumers and the positive perception of U.S. products in China.

“The growing number of car enthusiasts in China will mean greater demand for aftermarket products for either appearance or performance,” said Kevin Floody, K&N’s international business manager. “One area that seems to continue to grow is the 4x4 market, and it is amazing to see the dominance of U.S.-branded vehicles in this arena along with U.S. brands of aftermarket products.”

Dan Tsuchiya, head of business development at eBay, said that the Chinese will experience a growing need to differentiate and create that special ride as the population becomes more affluent and is exposed to Western influences.

“This market has only tapped into the wealthy Chinese enthusiasts, mostly with international experience,” he said. “There is another 98% or 99% still to be reached. Real growth for any U.S.-based manufacturer will be in emerging countries such as China or Russia, where there is a desire to own Western products. There is a perception—and proof—that U.S.-manufactured products are superior to their domestic-made products.”

For more information about SEMA’s international programs, e-mail Linda Spencer at lindas@SEMA.org. Information on an upcoming trip to the Middle East is available at www.SEMA.org/middleeast.

William Brekke, principal commercial officer for the U.S. Commercial Service at the American Consulate General in Shanghai, and Daniel Green, director of market access and compliance office at the U.S. Embassy in Beijing, briefed the SEMA delegation at an opening dinner. Pictured here are Green and Rick Trudo (left), president of SCT.		Jeff Victer (left), director of global sales for Prolong Super Lubricants, said that the Chinese market is very important to his company’s strategy because of the country’s size, scope and depth of opportunity. “In the near future, I believe the potential for the Chinese specialty-equipment market could easily be 10 times the size of the U.S. market,” he said.		“During the visits to tuning shops as well as the one-on-one meetings with buyers, the need and desire for quality American-made products was clear,” said Bill Wines (second from right) of window film manufacturer Maxpro Window Films. “Many shop owners had been burned by poor-quality products and were looking to buy better, longer-lasting products for installation.
Ron Gibson (second right), president, and Shawn Gibson (right), vice president, represented Gibson Performance Exhaust. The manufacturer of exhaust systems, mufflers and headers for trucks and SUVs participated in this program for the first time. SEMA organizes programs annually to China (in the fall) and the Middle East (the spring).		“We see huge opportunities for our products in China,” said Rick Trudo (far right), president of tuning-product manufacturer SCT. “Working with partners such as Carnet and others throughout China, we see a big opportunity for our growth to double in 2013.” Justin Oltz (third from right), SCT’s director of business development, said that the aftermarket community has a unique opportunity to learn from its storied history and apply its expertise to the Chinese market.		“This was our second year at the China Business Development Tour,” said Steve Outhier (far right), director of product planning for Stillwater Designs/Kicker. “The sharing of ideas, strategies and issues with fellow participants is invaluable as we further develop our export trade.” Outhier and Chester Weddle (second from right), the audio firm’s international sales manager for Asia/Pacific, met with buyers at one-on-one meetings.
Injen’s Ed Rossi (center), vice president of sales, provided a steady stream of prospective buyers with information about his firm’s high-performance air-intake systems and stainless-steel exhaust systems. Rossi and Ron Delgado (far left), the company’s president, have been on all three SEMA one-on-one trips—two to China and one to the Middle East. “The Chinese enthusiasts are perfect for our core product line,” Rossi said, “and their hunger for Western products is fueling our drive.		SEMA Vice President of Communications and Events Peter MacGillivray (left) and General Manager Jia Bing of high-end specialty- equipment shop Unique shared a laugh during a visit to the retail outlet. MacGillivray noted that an increasing number of consumers in China are buying into the notion of vehicle personalization. “It is great to see real business develop for our industry,” he said. “It’s truly a pioneering effort that will blossom into business opportunities.”		Scott Mackie (second from right), president of Weld Racing, and Jim Pan (far right), the company’s premium/luxury senior consultant, traveled to China to explore the growth potential for their U.S.-made forged aluminum wheels. “As the emerging middle class in China grows in spending power and surpasses the United States, the Chinese consumer will play a pivotal role in fueling growth within the specialty-equipment market,” Pan said.
Weld Racing President Scott Mackie checked out the aftermarket wheels on display at Shanghai-based company D1 Station.		SEMA Senior Vice President of Operations Bill Miller (left) presented a certificate to Tong Wei (Stone Tong) from Beijing Sky Lu Jingxin Trading Co. Ltd. to commemorate his participation in the second annual SEMA China one-on-one program.		Local retail shops displayed customized vehicles as part of a TunerTribe SEMA celebration.
Coverking President Steve Gupta (left) and Quick Time Performance President Barry Adler (right) viewed the performance products added to a project vehicle at Shanghai-based UDM.		“The Chinese specialty-equipment market has the potential to dwarf any other geographical market of its kind on the planet,” said David Borla (front row, second right), sales and marketing manager for Borla Performance. “The numbers are staggering.”		Sean Holly (far right), president and general manager of Crane Cams, and Steve Iggens (second right), president of the firm’s motorcycle division, talked with buyers during two day-long meetings, the first in Shanghai and the second in Beijing.
From left, Daisy Wang, trade policy specialist at the U.S. Embassy in Beijing; Scott Mackie, president of Weld Racing; Liz Couch, international economist on the auto team at the U.S. Department of Commerce’s Washington, D.C., headquarters; and Ruby Stratz of Keystone shared a bite on the famed Shanghai waterfront known as the Bund. Couch and Wang work year-round with SEMA to create a pro-industry policy toward specialty-equipment products. They spent the week with the SEMA delegation, providing an excellent resource on the Chinese market and exporting in general to participating companies.		China’s growing middle class and Western influences have created tremendous demand for quality U.S.-made products, said George Hsieh (second right), project coordinator for K&N. “In the one-child-only Chinese society, personalization is everything,” he said, “and everyone wants to be different.” Kevin Floody (far right), K&N’s international business manager, added that it is very important for K&N to continue to develop its market in China, since it continues to be one of the fastest-growing international markets available. “The sooner any company can enter into the China market, the sooner that brand starts to become more recognized,” he said.		“The specialty market [in China] is in its infancy, and now is a great time for U.S. companies to become involved,” said Radflo Suspension Technology’s Mike Crosby (third from right). “The off-road segment is growing very rapidly within the country. The opportunities in China are immense for our product line, and we look forward to expansion within this market.” Crosby and Radflo President Glenn Classen (right) met with buyers to explore sales opportunities for their shock absorbers and hydraulic jacks.
Steve Gupta (far right), president of Anaheim-based Coverking, answered questions from interested buyers about the firm’s custom and universal seat covers, car covers and other products.		Keystone’s Ruby Stratz (seated in a white shirt) talked with potential customers during the trip. Keystone was one of 16 companies participating in the second annual SEMA China Business Development Program. This year’s program included stops in Beijing and Shanghai.		The technical knowledge of customizing shops is growing in China. One indicator of the level of performance tuning is the presence of a dyno. Here, the SEMA delegation checks out a dyno in a shop in Beijing.
Tuner Tribe is a vibrant market in Beijing featuring specialty-equipment shops. The SEMA delegation as well as U.S. and Chinese government officials attended the first Tuner-Tribe SEMA celebration of the specialty-equipment industry held this past September.		Sixteen companies and a total of 35 SEMA members participated in the second annual SEMA program in China which involved visits to specialty-equipment shops, one-on-one meeting with leading Chinese buyers from around the country and briefings with U.S. government officials.		“China is a very important destination for our products,” said Nathan Calabrese (far right), director of international sales for Georgia-based OMIX-ADA. “We are fortunate to have a strong presence in China within our niche market already, but there is always room for improvement, development and the ongoing work to keep our presence strong.”

 

SEMA News—December 2012

INDUSTRY NEWS

Spy Photos

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

---

Porsche 918 Spyder Hybrid

When It Hits: Porsche says the Hybrid 918 Spyder will begin to arrive in the United States near the end of 2013.

What Priddy Says: With an official introduction some time away, select journalists are already driving similar prototypes in Germany. The 918 Spyder prototypes are still a bit rough around the edges, but this is currently the closest anyone has gotten to the vehicle here in the United States.

2014 Chevrolet Silverado HD

2014 Infiniti G37

When It Hits: The on-sale date for the updated G37 will be sometime in the third quarter of 2013, and it will be sold throughout the United States, Europe and Asia.

What Priddy Says: Even though this vehicle is clad with an obnoxious black and white appliqué, there is still no mistaking it for the next G37. In addition to the sedan, coupe and convertible versions, as well as diesel and hybrid offerings are expected.

---

 

Porsche Panamera

When It Hits: With the next-generation Panamera planned for the ’16 model year, Porsche is freshening the current version with a facelift for the ’14 model.

What Priddy Says: Based on the size and shape of the camouflage, the freshened Panamera resembles—headlamp- and fascia-wise—the future signature look of the Panamera Sport Turismo Concept recently introduced in Paris.

 

---

SEMA News—December 2012

INDUSTRY NEWS

Spy Photos

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

---

Porsche 918 Spyder Hybrid

When It Hits: Porsche says the Hybrid 918 Spyder will begin to arrive in the United States near the end of 2013.

What Priddy Says: With an official introduction some time away, select journalists are already driving similar prototypes in Germany. The 918 Spyder prototypes are still a bit rough around the edges, but this is currently the closest anyone has gotten to the vehicle here in the United States.

2014 Chevrolet Silverado HD

2014 Infiniti G37

When It Hits: The on-sale date for the updated G37 will be sometime in the third quarter of 2013, and it will be sold throughout the United States, Europe and Asia.

What Priddy Says: Even though this vehicle is clad with an obnoxious black and white appliqué, there is still no mistaking it for the next G37. In addition to the sedan, coupe and convertible versions, as well as diesel and hybrid offerings are expected.

---

 

Porsche Panamera

When It Hits: With the next-generation Panamera planned for the ’16 model year, Porsche is freshening the current version with a facelift for the ’14 model.

What Priddy Says: Based on the size and shape of the camouflage, the freshened Panamera resembles—headlamp- and fascia-wise—the future signature look of the Panamera Sport Turismo Concept recently introduced in Paris.

 

---

SEMA News—December 2012

INDUSTRY NEWS

Spy Photos

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

---

Porsche 918 Spyder Hybrid

When It Hits: Porsche says the Hybrid 918 Spyder will begin to arrive in the United States near the end of 2013.

What Priddy Says: With an official introduction some time away, select journalists are already driving similar prototypes in Germany. The 918 Spyder prototypes are still a bit rough around the edges, but this is currently the closest anyone has gotten to the vehicle here in the United States.

2014 Chevrolet Silverado HD

2014 Infiniti G37

When It Hits: The on-sale date for the updated G37 will be sometime in the third quarter of 2013, and it will be sold throughout the United States, Europe and Asia.

What Priddy Says: Even though this vehicle is clad with an obnoxious black and white appliqué, there is still no mistaking it for the next G37. In addition to the sedan, coupe and convertible versions, as well as diesel and hybrid offerings are expected.

---

 

Porsche Panamera

When It Hits: With the next-generation Panamera planned for the ’16 model year, Porsche is freshening the current version with a facelift for the ’14 model.

What Priddy Says: Based on the size and shape of the camouflage, the freshened Panamera resembles—headlamp- and fascia-wise—the future signature look of the Panamera Sport Turismo Concept recently introduced in Paris.

 

---

SEMA News—December 2012

INDUSTRY NEWS

Spy Photos

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

---

Porsche 918 Spyder Hybrid

When It Hits: Porsche says the Hybrid 918 Spyder will begin to arrive in the United States near the end of 2013.

What Priddy Says: With an official introduction some time away, select journalists are already driving similar prototypes in Germany. The 918 Spyder prototypes are still a bit rough around the edges, but this is currently the closest anyone has gotten to the vehicle here in the United States.

2014 Chevrolet Silverado HD

2014 Infiniti G37

When It Hits: The on-sale date for the updated G37 will be sometime in the third quarter of 2013, and it will be sold throughout the United States, Europe and Asia.

What Priddy Says: Even though this vehicle is clad with an obnoxious black and white appliqué, there is still no mistaking it for the next G37. In addition to the sedan, coupe and convertible versions, as well as diesel and hybrid offerings are expected.

---

 

Porsche Panamera

When It Hits: With the next-generation Panamera planned for the ’16 model year, Porsche is freshening the current version with a facelift for the ’14 model.

What Priddy Says: Based on the size and shape of the camouflage, the freshened Panamera resembles—headlamp- and fascia-wise—the future signature look of the Panamera Sport Turismo Concept recently introduced in Paris.

 

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

---

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

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SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

---

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

---

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

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

---

SEMA News—December 2012

BUSINESS
By Steve Campbell

Trends for 2013

A Look to the Future With SEMA Council Leaders

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

---

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

---

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

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

---

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

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

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

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

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

---