SEMA News - February 2010

SEMA Publishes Guide on How Land-Use Laws Can Limit Off-Roading

Being knowledgeable on issues that affect your customers is good business. On that topic, one of the biggest challenges impacting off-road enthusiasts is the closure of public lands to motorized recreation.

“There are still lots of roads, trails and dunes to traverse, but closure signs are being posted across the country, from North Carolina to California,” said Stuart Gosswein, SEMA’s senior director of federal government affairs. “That’s why we are alerting our member companies to the problem. As companies and consumers become aware of legislative and regulatory actions to restrict off-highway vehicle (OHV) access, they will be in a position to confront unnecessarily restrictive land-use policies.”

Land-use policies developed in Washington, D.C., and elsewhere have a dramatic impact on the availability of off-road trails. Because these laws and regulations are complex, SEMA has created a “Guide to Land-Use Policies & Off-Road Recreation” to help decode the Washington lingo.

The guide provides a broad overview of major laws that restrict access, such as the Wilderness and Endangered Species Acts as well as federal agencies that manage public lands and private organizations that support the hobby. It also includes SEMA position statements that act as guideposts for legislative and regulatory advocacy.

SEMA supports public land decisions that are reasonable and enjoy local community support. Land designated as wilderness would be an example of a decision that has critical consequences, since the designation automatically bans motorized vehicles.

“Wilderness legislation can have a direct impact on your customers,” explained Ethan Landesman, director of the SEMA Action Network. “Imagine a hobbyist installing a suspension kit, off-road lights or a brush guard to enjoy trails in Utah’s Great Basin, Grand Staircase-Escalante, Moab-La Sal Canyons or San Rafael Swell. Now imagine Congress passing a wilderness bill to close more than 9 million acres in Utah to OHV use. Where will your customers turn to go enjoy their hobby? The guide contains information that will help you protect this family-friendly activity.”

The danger to off-road hobbyists is not imaginary. Last Spring, Congress passed and President Obama signed into law the Omnibus Public Land Management Act, which designated more than 2 million acres of wilderness in nine states. It included areas in and around Joshua Tree National Park and the Eastern Sierras in California, Owyhee-Bruneau Canyonlands in Idaho, Mt. Hood in Oregon and Zion National Park in Utah.

In October, the U.S. Forest Service permanently closed the popular 29-mile Upper Tellico River OHV trail system in North Carolina, citing erosion concerns. SEMA and a number of OHV organizations and enthusiasts had urged the Forest Service to take a more measured response instead of simply closing the off-road recreation area.

Congress is now considering the Northern Rockies Ecosystem Protection Act. The bill would set a precedent by using the term “bioregion” as justification for converting 24 million acres in Idaho, Montana, Wyoming, Oregon and Washington into wilderness. SEMA has cautioned lawmakers that there are a myriad of bioregions across America, and it is too simplistic to create one massive ecosystem devoid of motorized activities.

While many bills and regulations are well-intended, they are also over-reaching in scope. For example, they do not “cherry-stem” existing roads and trails within the wilderness or create an alternative designation to allow some motorized recreation opportunities where appropriate. The initiatives don’t acknowledge that many hobbyist groups and clubs help clean and maintain trails on their own time and using their own dollars, thereby preserving the environment and ensuring that future generations can also enjoy the same natural splendor.

Understanding the issues and the players is the first step toward working on behalf of the millions of Americans who want responsible access to public lands or the accompanying economic benefits, whether for companies that market products or local communities that depend upon tourism. Advocacy may include contacting your elected representatives on specific legislation, passing along information to your friends and business partners, and networking with your customers, local car clubs and OHV organizations.

 

 

SEMA News - February 2010

By Yvonne Wang

The Chinese Specialty-Equipment Market

	Liu Yan, CEO/founder of V-Man Tuning (left) poses with Ben Mizban, CEO of California-based T-Rex Grille at a networking session during the 2009 SEMA Familiarization trip to China.

SEMA News is interviewing top distributors/retailers in China in a series of monthly articles to introduce the larger players in the evolving specialty-equipment market in China to the magazine’s readers. For this month’s international insight into China, SEMA spoke with the founder and CEO of V-Man Tuning, Liu Yan. V-Man Tuning is an off-road distributor and installer that was established in 2004 and currently employs 55 people, including 11 installers. The company specializes in performance parts for a wide variety of off-road vehicles. The brands V-Man distributes include TRD, Fox Racing and King Suspensions.

SEMA News: What is the most popular product being installed among retail customers and enthusiasts in your region?

Liu Yan: Eighty percent of the customers at V-Man Tuning purchase suspension shocks for their off-road vehicles. Titanium front and rear bumpers and grille guards are also gaining in popularity. There is a growing demand for U.S.-manufactured off-road accessories, such as overhead consoles, tool and equipment boxes, rear cargo storage items and high-quality interior accessories that make lengthy adventure trips more convenient and comfortable.

SN: How has the market changed over the past two years?

LY: Consumer demand has significantly increased. Consumers are more aware of brands and have increased their knowledge of the parts and accessories available to improve their vehicles’ performance and functionality.

SN: Who are your typical customers? How much are enthusiasts spending on average?

LY: The amount of money a “typical customer” at V-Man Tuning spends varies widely—anywhere from 20,000–250,000 RMB [Renminbi, Chinese currency] ($3,000–$36,700 USD). The customer who spends $3,000 USD typically puts on exterior accessories, such as front and rear bumper guards and a pair of off-road lights. A customer who spends more than $36,000 USD at V-Man usually modifies the exterior with front and rear guards, tire carriers, roof racks, winch mounts, off-road wheels and tires and chrome or grille inserts. Additionally, that customer would also accessorize the vehicle with a lift kit, such as shocks, stabilizers and steering accessories, and seek engine-performance upgrades, such as superchargers, computer chips and module monitors.

SN: What are the most frequently modified vehicles in your installation center?

LY: The most modified vehicle at V-Man Tuning is the Toyota FJ Cruiser, followed by the Jeep Wrangler and Jeep Cherokee. Also among the vehicles V-Man customizes are the Land Cruiser 80 and Land Cruiser 120, Nissan Paladin, Isuzu Rodeo and Mitsubishi Pajero.

SN: What percentage of the products you sell are imported?

LY: Fifty percent of the products are imported from the United States or Australia, with the remainder of the products domestically manufactured. Most of the products from overseas are performance and handling upgrades, including lift kits, shocks, struts and entire suspensions and accessories. The parts manufactured domestically include exterior restyling products made of steel, aluminum alloy and titanium alloy.

SN: Are you looking for new products? If so, what is your company looking to import into China?

LY: V-Man is seeking engine performance products for Jeep Wranglers and Cherokees and Toyota FJ Cruisers and Land Cruisers. Some examples of U.S.-supplied products the firm is looking for are performance chips, modules, tuner gauges and all engine switches and wiring accessories.

SN: What kind of suggestions do you have for our member companies that are looking to sell into China?

LY: V-Man customers often take extensive off-road trips—including a 10,000-km trip to Tibet—and thus there exists a need for durable products. U.S. companies can gain a better understanding of the market by communicating with Chinese enthusiasts and by participating in the large-scale off-road events that take place throughout China. U.S. companies should also pay attention to the differences in the gasoline in the market, which could affect the use of performance products. For example, there have been repeated problems with a high-quality supercharger which, after a few road trips, would have problems with the engine starter, and the emergency engine light would turn on. These problems do not appear under the same circumstances when the product is utilized in the United States. The problem may be caused by the petrol gas that is used in China, which differs from that found in the United States. In addition, the struts on a suspension kit will wear out quicker than in the United States due to the harsh road conditions and lack of road structure in China.

Contact information for V-Man Tuning is available on SEMA's International homepage, as is a SEMA report on the Chinese specialty-equipment market. Members may also contact Yvonne Wang at yvonnew@sema.org for more information.

 

 

SEMA News - February 2010

By Linda Spencer

Businesses Unite to Oppose Onslaught of Newly Proposed Industry-Threatening Regulations

Suspension and bull-bar products, which make up 50% of all product sales in the 4WD parts and accessories market, were identified as the products most often under attack by the Australian government. Courtesy 4x4 Australia

SEMA News recently talked with Stuart Charity, executive director of the nearly 30-year-old Australian Automotive Aftermarket Association (AAAA), and Ben Bartlett, the AAAA’s national membership manager, about the Australian specialty-equipment market amid increasingly positive news that Australia is well on its way to an economic recovery. There are indications that the automotive industry there has begun to rebound, and the Federal Chamber of Automotive Industries reported growing vehicle sales—with particularly strong SUV sales—and overall sales for the year are expected to reach up to 900,000 in 2009. Spurred by tax rebates for business purchases of vehicles and increased purchasing as growing confidence by consumers increases, the sales gap will be much less than feared just several months ago, although the total isn’t expected to reach the record-setting 1.05 million achieved in 2007.

The AAAA has stepped up its support of the $950 (AU) million specialty-equipment market in recent years with the launch of the Performance, Racing & Tuning Council (PRTC) in late 2005 and the Australian 4WD Industry Council a year later. AAAA represents the overall Australian automotive aftermarket, including the repair and replacement industry as well as firms in the specialty-equipment segment. The group decided to undertake an effort to collect data through council-specific surveys to better understand the scope, interests and needs of the various sectors. Nearly 300 companies participated in two surveys.

Government crackdowns on the specialty-equipment market were seen as the biggest threat by members of the PRTC, with 79% of respondents identifying governmental restrictions on their sectors as the largest hurdle to their industry’s health. Firms in the performance, tuning and racing sector reported that local and state government agencies had focused most of their attacks on some of the fastest-growing and healthiest niches—engine and exhaust modifications. These modifications, along with brake and clutch upgrades, topped the highest growth products within this sector.

SEMA News recently talked with Stuart Charity, executive director of the nearly 30-year-old Australian Automotive Aftermarket Association (AAAA), and Ben Bartlett, the AAAA’s national membership manager, about the Australian specialty-equipment market amid increasingly positive news that Australia is well on its way to an economic recovery.

The survey sponsored by the Australian 4WD Industry Council also revealed that government crackdowns are of great concern and that these initiatives are once again directed at the heart of the market. Suspension and bull-bar products, which make up 50% of all product sales in the 4WD parts and accessories market, were identified as the products most often under attack by the government. For example, Australian officials have proposed adopting the European Directive (2005/66/EC), which would ban so-called rigid bull bars. The AAAA believes that it is not possible to design and manufacture any form of effective and commercially viable bull bars that would meet the EU standard and that it would be irresponsible for the Australian government to implement similar restrictions on bull bars. The Australian Transport Safety Bureau is on record as stating that “…there is a dearth of scientifically based studies of the effect of bull bars on road safety.”

The industry has also raised concerns about the challenges faced by suspension manufacturers who are confronted with not only limits in terms of ride height but also the impact of suspension modifications on vehicles equipped with electronic stability control (ESC). The Australian Motor Vehicle Certification Board Working Party proposed a ban on suspension modifications if the vehicle is fitted with a standard electronic stability control (ESC) or an equivalent system. The AAAA has been able to halt the implementation of this provision, made without consultation with the industry, and has elicited a promise that the industry would be involved in any future deliberations affecting member products. Due to these growing legal threats, the AAAA is reportedly increasing its industry advocacy with state, local and national officials.

“We believe that taking a proactive stance on these issues, supported by evidence-based research and testing and working collaboratively with other stake-holder groups, is and will continue to exert significant pressure on the regulators and their ministers,” the group said. Indeed, Charity reported some early successes with ministers in three Australian states overruling their departments and ordering a complete review of ill-conceived and illogical regulation that would have threatened entire sectors of the independent aftermarket in Australia.

Given the rising legal barriers to the sales of customizing products, AAAA-member companies and Australian enthusiasts will no doubt seek continued strong leadership from the AAAA in gaining access to government working panels to provide input and technical advice as well as to educate government officials on the importance of the specialty market in generating Australian tax revenues, job creation and on the overall economy.

 

 

 

SEMA News - February 2010

By Drew Hardin

Photo Courtesy Source Interlink Media Archives

 

Roger Penske gave up a successful racing career to open his first car dealership in 1965, but that didn’t keep him away from the track. He began Penske Racing that same year, and one of his earliest acquisitions was this ’66 Corvette coupe. The car had been used by Chevrolet to develop the L88 engine program, and Penske struck a deal with Zora Arkus-Duntov—who quietly worked around GM’s ban on factory racing support—to buy the car for competition. Penske sent a young West Coast racer named Dick Guldstrand to Detroit to drive the Corvette back to Penske’s operation in Pennsylvania.

Penske hired Guldstrand, George Wintersteen and Ben Moore to drive the Corvette at the Daytona 24-hour endurance race in February 1966 (then called the Daytona Continental). This pre-race publicity photo, distributed by Firestone, shows Penske examining the Firestone Indy tires used in the race.

Penske’s Vette won the Grand Touring class and finished 12th overall with an average speed of 91.68 mph, despite a nighttime crash that destroyed the car’s nose. The team soldiered on by taping flashlights to the remains of the front fenders to meet the race organizer’s lighting rules.

After the victory at Daytona, Penske had the Corvette painted blue with yellow stripes—the colors of his sponsor Sunoco. The car earned another endurance race win at Sebring in that livery, but Penske wouldn’t race sports cars for much longer. He was soon to meet another young driver, Mark Donohue, who would help take Penske Racing to the top tier of American motorsports.

SEMA News - February 2010

By Annie Kang

New Association Benefit Uses Social Media to Deliver Best of SEMA Show to Specialty-Equipment Community

More than 100 exhibitors agreed to participate in the program by agreeing to have opinion leaders visit their booths.

For the 2009 SEMA Show, the association not only strove to deliver on its proven traditions but also aimed to introduce new avenues for success. The first-ever Enthusiast Opinion Leader Research Program was conceived in order to keep SEMA-member companies in tune with the current behavior of automotive enthusiasts and to increase consumer knowledge on the best that the specialty-equipment industry has to offer.

The Enthusiast Opinion Leader Research Program, which was coordinated in part with Ford Motor Company, the vehicle manufacturer of the 2009 SEMA Show, collected the views and observations of selected automotive enthusiasts deemed “opinion leaders.” These opinion leaders were invited to day two of the 2009 SEMA Show and asked to review new products, vehicles and trends. Thirty opinion leaders were also divided into two focus groups—light-truck and street-performance—to provide an in-depth, qualitative analysis of their views.

“The information that we gathered from the Enthusiast Opinion Leader Research Program will give SEMA-member companies a better understanding of their end users, which will help them make better-informed business decisions,” said Tom Myroniak, SEMA vice president of marketing and market research. “It will also raise the visibility of their products and we hope help them sell more.”

The first assignment for the participants of the Enthusiast Opinion Leader Research Program was to visit the New Products Showcase and post 10 tweets on Twitter.

The opinion leaders’ first task upon arriving at the Show was to visit the New Products Showcase and post a minimum of 10 “tweets” on the social networking website, Twitter.com, about what they found to be the most interesting or marketable products. The participants’ activity led to SEMA hitting the number 10 spot under Twitter’s global trends topics for November 4, 2009. The participants were asked to include a comment on the product, a product ID and a link to a photo with their tweets. The data was then aggregated by SEMA staff and displayed on SEMA’s consumer website, www.enjoythedrive.com. Participants were also encouraged to post feedback on their personal social networking sites.

Upon completion of the initial assignment, the opinion leaders were free to walk the Show floor with a map of suggested areas to visit. They were encouraged to upload comments, photos and videos on Facebook, Flickr, Twitter and YouTube on the trends and vehicles that caught their attention.

“We had 100% participation from the opinion leaders in the New Products Showcase assignment, which indicates that we had a good pool of enthusiasts in the group,” said Myroniak. “The participants behaved as if they had won Willy Wonka’s Golden Ticket. They were extremely grateful and excited at the opportunity to be involved in this new program.”

Posts from opinion leaders and program hopefuls were made on SEMA’s Facebook page leading up to and after the Show. Since the program’s start, the SEMA fanpage has grown from 2,000 to more than 5,000 fans.

The opinion leaders were selected based on their views, attitudes and behavior as it related to their vehicles and to the specialty-equipment industry—specifically, the light-truck/off-road and street-performance segments. The association also looked for individuals with strong social networks and those who actively demonstrated their passion for the industry through social media.

The opinion leaders uploaded comments, photos and videos about standout trends and vehicles that they observed on the Show floor onto Facebook, Flickr, Twitter and YouTube.

SEMA recruited applicants for the program by making announcements on social networking sites, including Facebook, the SEMA Action Network website and various vehicle-enthusiast forums. Within two weeks, SEMA received more than 2,000 applications, from which 800 were selected. The 800 potentials were then asked to partake in an extensive pre-Show survey as a condition for being selected, with 527 of the candidates who completed the survey being finalized as opinion leaders for the program. The pre-Show survey served as another vehicle to obtain information on the buying behavior and demographics of specialty-equipment enthusiasts.

Exhibitors were also encouraged to take part in the project by agreeing to have opinion leaders visit their booths and view their products. More than 100 companies participated.

While the program was conducted on the second day of the SEMA Show, participants were invited to attend the following day free of charge as well. SEMA held a reception and an awards ceremony for the opinion leaders at the end of the day, recognizing the most active and instrumental participants. Door prizes were also distributed.

The Enthusiast Opinion Leader Research Program post-Show report will be available initially to SEMA Show exhibitors and attendees on www.SEMA.org. It will be available to non-Show participating members at a later date. A decision on whether to continue the Enthusiast Research Program for the 2010 SEMA Show will be based on feedback from the report.

For more information on the Enthusiast Opinion Leader Research Program, e-mail research@sema.org.

 

SEMA News - February 2010

By Annie Kang

High-School Students Showcase Their Engine Skills and Passion at the 2009 SEMA Show

 

	With a time of 44.22, Team Fel-Pro from Joliet Central High School won the first-ever Hot Rodders of Tomorrow Engine Challenge—the Showdown at SEMA.

With the clock ticking and under intense pressure, four teams of high-school students pitted their skills against each other as they disassembled and rebuilt high-performance Chevy 350 engines at the first-ever Hot Rodders of Tomorrow Engine Challenge. Team Fel-Pro from Joliet Central High School in Joliet, Illinois, won the competition, held at the 2009 SEMA Show, with a time of 44.22.

“Competing at the SEMA Show was really intense, but we blocked it all out and kept to the task,” said Team Fel-Pro member Patrick McCarney. “We were really well-composed, and we went to win.”

Each member of the team, which included Timothy Covarrubia, Brandon W. Gable, James Seeley, Kevin Smith and Jacob Strom, was awarded a $10,000 scholarship from Ohio Technical College (OTC) and a $10,000 scholarship from the University of Northwestern Ohio (UNOH).

With a time of 56:54, championship opponent Team MSD from Elkhart Area Career Center (Elkhart, Indiana) was awarded individual $7,500 scholarships from OTC and UNOH. Eliminated in the qualifying round, Team Hedman Hedders from Loara High School (Anaheim, California) had the third-best time, and its members received $5,000 each from both institutions. The colleges also provided $2,500 scholarships to Team Edelbrock from Van Buren Tech Center (Lawrence, Michigan). OTC and UNOH awarded a total of $250,000 in scholarships to the Hot Rodders of Tomorrow finalists.

The competition required the four teams to remove all of an engine’s parts, excluding the camshaft and crankshaft. The engines then had to be reassembled, with penalties added for mishaps, such as dropped components, improper disassembly or any breakages. The reassembled engines had to be capable of firing up and running if gas, water and oil were to be added.

“This event allowed the students to work with an engine and get it up and running, which is the dream of every young man or woman in auto shop,” said Tim Freeman, founder of Hot Rodders of Tomorrow. “Also, being at the SEMA Show for the first time opened their eyes to the many different avenues that are available to them. They won’t be stuck in just one part of the specialty-equipment industry.”

Jacob Strom of Team Fel-Pro is the perfect example of what Freeman hoped for when he conceptualized the Showdown at SEMA.

“I’ve always had an interest in the automotive industry but never knew how truly awesome it all is,” said Strom. “This event showed me just how generous these companies and the people who run them are. It has been inspiring to be a part of this, and I hope to one day have a place at the SEMA Show.”

	Judging for the challenge was based on fastest time, with penalties added for such mishaps as dropped parts, breakages and improper disassembly or assembly.

Each of the four teams was selected from previous Hot Rodders of Tomorrow events held throughout early- to mid-2009.

“This is our way of bringing youth to SEMA every year and to the specialty-equipment industry—that’s the purpose of this event,” said Jim Bingham, chairman of Hot Rodders of Tomorrow. “A lot of us in the industry have been in it for a long time, and we need to get the youth involved so that we can keep growing.”

The first Hot Rodders of Tomorrow challenge was held in Illinois at the inaugural Race & Performance Expo in March 2008 as an exhibition event. Bingham said that more than 96 high schools have signed on for the 2010 year to participate in five scheduled Hot Rodders of Tomorrow events.

“There is no competitive event in high-school auto shops like there is for football,” said Bingham. “What we are providing are competitive events for these young lads and ladies, and it is really exciting to watch them. I can see them one day working for manufacturers, race teams or distributors.”

With all the enthusiasm garnered by the first Showdown at SEMA, Freeman is hopeful about the possibility of planning another Hot Rodders of Tomorrow challenge at the 2010 SEMA Show.

“This was history in the making, as it was the first Hot Rodders of Tomorrow event at the national level,” said Freeman. “The industry response was overwhelming, and the international attendees—folks from Australia and Canada—just thought it was fantastic. It would be great to see that again.”

 

 

 

SEMA News - February 2010

By Annie Kang

High-School Students Showcase Their Engine Skills and Passion at the 2009 SEMA Show

 

	With a time of 44.22, Team Fel-Pro from Joliet Central High School won the first-ever Hot Rodders of Tomorrow Engine Challenge—the Showdown at SEMA.

With the clock ticking and under intense pressure, four teams of high-school students pitted their skills against each other as they disassembled and rebuilt high-performance Chevy 350 engines at the first-ever Hot Rodders of Tomorrow Engine Challenge. Team Fel-Pro from Joliet Central High School in Joliet, Illinois, won the competition, held at the 2009 SEMA Show, with a time of 44.22.

“Competing at the SEMA Show was really intense, but we blocked it all out and kept to the task,” said Team Fel-Pro member Patrick McCarney. “We were really well-composed, and we went to win.”

Each member of the team, which included Timothy Covarrubia, Brandon W. Gable, James Seeley, Kevin Smith and Jacob Strom, was awarded a $10,000 scholarship from Ohio Technical College (OTC) and a $10,000 scholarship from the University of Northwestern Ohio (UNOH).

With a time of 56:54, championship opponent Team MSD from Elkhart Area Career Center (Elkhart, Indiana) was awarded individual $7,500 scholarships from OTC and UNOH. Eliminated in the qualifying round, Team Hedman Hedders from Loara High School (Anaheim, California) had the third-best time, and its members received $5,000 each from both institutions. The colleges also provided $2,500 scholarships to Team Edelbrock from Van Buren Tech Center (Lawrence, Michigan). OTC and UNOH awarded a total of $250,000 in scholarships to the Hot Rodders of Tomorrow finalists.

The competition required the four teams to remove all of an engine’s parts, excluding the camshaft and crankshaft. The engines then had to be reassembled, with penalties added for mishaps, such as dropped components, improper disassembly or any breakages. The reassembled engines had to be capable of firing up and running if gas, water and oil were to be added.

“This event allowed the students to work with an engine and get it up and running, which is the dream of every young man or woman in auto shop,” said Tim Freeman, founder of Hot Rodders of Tomorrow. “Also, being at the SEMA Show for the first time opened their eyes to the many different avenues that are available to them. They won’t be stuck in just one part of the specialty-equipment industry.”

Jacob Strom of Team Fel-Pro is the perfect example of what Freeman hoped for when he conceptualized the Showdown at SEMA.

“I’ve always had an interest in the automotive industry but never knew how truly awesome it all is,” said Strom. “This event showed me just how generous these companies and the people who run them are. It has been inspiring to be a part of this, and I hope to one day have a place at the SEMA Show.”

	Judging for the challenge was based on fastest time, with penalties added for such mishaps as dropped parts, breakages and improper disassembly or assembly.

Each of the four teams was selected from previous Hot Rodders of Tomorrow events held throughout early- to mid-2009.

“This is our way of bringing youth to SEMA every year and to the specialty-equipment industry—that’s the purpose of this event,” said Jim Bingham, chairman of Hot Rodders of Tomorrow. “A lot of us in the industry have been in it for a long time, and we need to get the youth involved so that we can keep growing.”

The first Hot Rodders of Tomorrow challenge was held in Illinois at the inaugural Race & Performance Expo in March 2008 as an exhibition event. Bingham said that more than 96 high schools have signed on for the 2010 year to participate in five scheduled Hot Rodders of Tomorrow events.

“There is no competitive event in high-school auto shops like there is for football,” said Bingham. “What we are providing are competitive events for these young lads and ladies, and it is really exciting to watch them. I can see them one day working for manufacturers, race teams or distributors.”

With all the enthusiasm garnered by the first Showdown at SEMA, Freeman is hopeful about the possibility of planning another Hot Rodders of Tomorrow challenge at the 2010 SEMA Show.

“This was history in the making, as it was the first Hot Rodders of Tomorrow event at the national level,” said Freeman. “The industry response was overwhelming, and the international attendees—folks from Australia and Canada—just thought it was fantastic. It would be great to see that again.”

 

 

 

SEMA News - February 2010

By Alysha Webb

Executive Vice President of the Tire Industry Association

	“I’m incredibly impressed at [SEMA’s] effort to bring everyone together. The show has become bigger and better,” said Roy Littlefield, TIA executive vice president.

Roy Littlefield, executive vice president of the Tire Industry Association (TIA), gives lectures to students as part of his “hobby”—a job as an adjunct professor of politics and American history at Catholic University in Washington, D.C. But he isn’t interested in lecturing SEMA about the decline in tire manufacturers’ participation in the annual SEMA Show. He’d rather talk about how to lure the manufacturers back.

“The bottom line is communication,” said Littlefield. “The big companies want to feel like it is their show.”

Exhibitors at the Tire, Wheel & Equipment section of this year’s SEMA Show in Las Vegas numbered more than 290, down 5.1% compared to 2008. That drop was less than the 7.9% total decrease in exhibitors at the Show, but there was a worrisome trend: Many big tire manufacturers weren’t among the exhibitors.

The economy is part of the problem, but it goes beyond that, said Littlefield, 57, who has worked in the tire industry for three decades.

The SEMA Show has been TIA’s national show since 2004. It was a natural choice after TIA was formed in 2002 by merging the International Tire & Rubber Association (ITRA) and the Tire Association of North America. Littlefield went to his first SEMA Show in the mid-’80s, when he was executive director of the Washington/Maryland Service Station and Automotive Repair Association and a member of the ITRA. He has been to every SEMA Show since 2001.

“I’m incredibly impressed at [SEMA’s] effort to bring everyone together,” said Littlefield. “The Show has become bigger and better.”

Unfortunately, the SEMA Show’s size—tens of thousands of buyers attend—has made some tire manufacturers fear that they are getting lost in the crowd, said Littlefield. “Part of the concern is that this Show is so big that the tire section lost its identity,” he said.

Initially the tire industry companies were excited about being part of the SEMA Show, said Littlefield. It represented a chance for manufacturers to meet with suppliers and each other, see new stuff and learn from seminars and colleagues. Indeed, tire and wheel buyers account for the largest SEMA Show attendee category, and their numbers are rising. In 2009, 5,237 registered tire and wheel buyers attended, up from 5,016 in 2007.

This year, more than 290 tire industry companies exhibited at the Show. The tire manufacturers are the ones who are leaving. There are several issues, said Littlefield.

Tire manufacturers spend from $600,000–$5,000,000 a year to be at the SEMA Show, said Littlefield. With that kind of investment, “they want to be able to show all their tires,” he said. Yet they can show only their passenger and retail product lines at the SEMA Show. That leaves out commercial, truck, off-road, agricultural and airline tires as well as retreading truck tire equipment. Manufacturers would also like the SEMA Show to be open to consumers for a few hours, said Littlefield. They see consumers when they participate in auto shows, but at the SEMA Show, “They are only seeing their current customers,” he said.

Bringing the manufacturers back is certainly possible, said Littlefield. And doing so may not take a lot of big things, he said. Maybe it’s just listening more, hearing their concerns and coming up with simple procedures to make things easier for tire manufacturers.

That seems to be happening.

A focus group of top tire manufacturers met recently with TIA executives and SEMA President and CEO Chris Kersting. “We hope it won’t be a one-time meeting,” said Littlefield.

Frequent management changes at TIA—a merger and three executive vice presidents in four years—haven’t helped the communications issue, admited Littlefield. With the focus group, “I think we are on the right track,” he said.

There are many advantages to working closely with SEMA, said Littlefield. For one, it gives the two organizations a stronger voice in Washington, he said. Littlefield should know; he worked on Capitol Hill for four years and currently lobbies for the tire industry.

A trade show competitor is looming on the horizon: In 2010, Crain Communications is expanding its tire technology show to include more than just technology. But Littlefield foresees continuing TIA’s relationship with SEMA.

SEMA and TIA should be working together, Littlefield said: “It’s a natural alliance.”

 

 

SEMA News - February 2010

By Alysha Webb

Executive Vice President of the Tire Industry Association

	“I’m incredibly impressed at [SEMA’s] effort to bring everyone together. The show has become bigger and better,” said Roy Littlefield, TIA executive vice president.

Roy Littlefield, executive vice president of the Tire Industry Association (TIA), gives lectures to students as part of his “hobby”—a job as an adjunct professor of politics and American history at Catholic University in Washington, D.C. But he isn’t interested in lecturing SEMA about the decline in tire manufacturers’ participation in the annual SEMA Show. He’d rather talk about how to lure the manufacturers back.

“The bottom line is communication,” said Littlefield. “The big companies want to feel like it is their show.”

Exhibitors at the Tire, Wheel & Equipment section of this year’s SEMA Show in Las Vegas numbered more than 290, down 5.1% compared to 2008. That drop was less than the 7.9% total decrease in exhibitors at the Show, but there was a worrisome trend: Many big tire manufacturers weren’t among the exhibitors.

The economy is part of the problem, but it goes beyond that, said Littlefield, 57, who has worked in the tire industry for three decades.

The SEMA Show has been TIA’s national show since 2004. It was a natural choice after TIA was formed in 2002 by merging the International Tire & Rubber Association (ITRA) and the Tire Association of North America. Littlefield went to his first SEMA Show in the mid-’80s, when he was executive director of the Washington/Maryland Service Station and Automotive Repair Association and a member of the ITRA. He has been to every SEMA Show since 2001.

“I’m incredibly impressed at [SEMA’s] effort to bring everyone together,” said Littlefield. “The Show has become bigger and better.”

Unfortunately, the SEMA Show’s size—tens of thousands of buyers attend—has made some tire manufacturers fear that they are getting lost in the crowd, said Littlefield. “Part of the concern is that this Show is so big that the tire section lost its identity,” he said.

Initially the tire industry companies were excited about being part of the SEMA Show, said Littlefield. It represented a chance for manufacturers to meet with suppliers and each other, see new stuff and learn from seminars and colleagues. Indeed, tire and wheel buyers account for the largest SEMA Show attendee category, and their numbers are rising. In 2009, 5,237 registered tire and wheel buyers attended, up from 5,016 in 2007.

This year, more than 290 tire industry companies exhibited at the Show. The tire manufacturers are the ones who are leaving. There are several issues, said Littlefield.

Tire manufacturers spend from $600,000–$5,000,000 a year to be at the SEMA Show, said Littlefield. With that kind of investment, “they want to be able to show all their tires,” he said. Yet they can show only their passenger and retail product lines at the SEMA Show. That leaves out commercial, truck, off-road, agricultural and airline tires as well as retreading truck tire equipment. Manufacturers would also like the SEMA Show to be open to consumers for a few hours, said Littlefield. They see consumers when they participate in auto shows, but at the SEMA Show, “They are only seeing their current customers,” he said.

Bringing the manufacturers back is certainly possible, said Littlefield. And doing so may not take a lot of big things, he said. Maybe it’s just listening more, hearing their concerns and coming up with simple procedures to make things easier for tire manufacturers.

That seems to be happening.

A focus group of top tire manufacturers met recently with TIA executives and SEMA President and CEO Chris Kersting. “We hope it won’t be a one-time meeting,” said Littlefield.

Frequent management changes at TIA—a merger and three executive vice presidents in four years—haven’t helped the communications issue, admited Littlefield. With the focus group, “I think we are on the right track,” he said.

There are many advantages to working closely with SEMA, said Littlefield. For one, it gives the two organizations a stronger voice in Washington, he said. Littlefield should know; he worked on Capitol Hill for four years and currently lobbies for the tire industry.

A trade show competitor is looming on the horizon: In 2010, Crain Communications is expanding its tire technology show to include more than just technology. But Littlefield foresees continuing TIA’s relationship with SEMA.

SEMA and TIA should be working together, Littlefield said: “It’s a natural alliance.”

 

 

SEMA News - February 2010

By Alysha Webb

Incoming President of Tire Industry Association

	“I have been involved with tire dealers all around America. I care about my customers and learned about the business and their needs, not just digital needs,” said Wayne Croswell, ASA Tire Systems president and TIA president.

When his software company asked him to become vice president of operations for a newly acquired tire industry company, tires had “no appeal for me whatsoever,” said Wayne Croswell. That was 32 years ago. Now, Croswell is president of ASA Tire Systems and the new president of the Tire Industry Association (TIA).

“I fell in love with the industry and the people, and it got into my blood,” he said.

Croswell, 54, has a computer science degree from Boston University. A computer programmer might not seem like a natural tire guy, but most tire dealers and retreaders rely on specialty software to manage their businesses. ASA Tire Systems is now the largest division of ASA International Ltd., in which Croswell is a group vice president.

“I have been involved with tire dealers all around America,” Croswell said. “I care about my customers and learned about the business and their needs, not just digital needs.”

It was customers who pushed ASA to begin exhibiting at the SEMA Show. Dealers began telling ASA more than a decade ago, “You gotta go to SEMA,” said Croswell. “We went there first just to walk the aisles, and we were blown away.” The next year, ASA bought a 10- x 10-foot Show booth.

But those were the days before there was a special tire and wheel section, and ASA was so small that its customers couldn’t find the company at the SEMA Show, said Croswell. “We were beyond a needle in a haystack,” he said.

ASA stuck it out, continuing to exhibit for the next few years. Then, in 2004, the tire industry combined its exhibits at the SEMA Show, and the tire and wheel section was created. “All of a sudden, our customers could find us,” said Croswell. “[The SEMA Show] became a huge success for us. Now we have a 20 x 30 booth.”

Retreaders and tire dealers—ASA’s customers—are coming to the SEMA Show in growing numbers. There were 5,237 registered tire and wheel buyers in 2009, compared to 5,016 in 2007. But as president of TIA, Croswell is concerned about another trend—the declining number of tire manufacturers exhibiting at the Show.

Just before Christmas, TIA gathered the major tire manufacturers in Washington, D.C., to talk about how to make the SEMA Show work better for them. SEMA President and CEO Chris Kersting was there at the beginning of the focus group, then took leave of the meeting so that the manufacturers could have a frank discussion with TIA, Croswell said.

“The challenge is to make [the tire and wheel section] a show within a show,” he said. “I want to do whatever we can to make the manufacturers feel that our presence is obvious inside the SEMA world.”

Making the SEMA Show the best it can be for TIA members is also important for TIA as an organization, Croswell said. The SEMA Show is a big revenue stream for TIA, which uses the money for training programs for its members, government affairs and other activities.

“Being an association, we have limited places to go for revenue,” said Croswell. “Our members need to help support us, and a big part of that is participating in the SEMA Show.”

For Croswell, who is an avid soccer player and sports fan, making the SEMA Show work for the tire companies is more than just his job. “I do have a passion for the industry, the dealers and the [Tire Industry Association] members,” he said. “You don’t have to just be selling tires.”