Skyjacker Suspensions Chevrolet Silverado 1500

Off-roaders, toy haulers and skilled tradespersons alike have gravitated toward fullsize pickups for years. Even as the pickup segment declines in new-vehicle sales, one fullsize pickup—Ford’s F-Series—still remained the top-selling vehicle in 2008, as it has for more than 25 years.

And owners of fullsize pickups are still spending money on performance parts and accessories. Owners of the Ford F-Series, Chevrolet Silverado and Dodge Ram each spent, on average, more than $2,300 over the last year, according to the latest SEMA Automotive Lifestyles Survey results.

The Ford F-Series, Chevrolet Silverado and Dodge Ram were among the top 10 vehicles displayed at the 2008 SEMA Show. There were a total of 96, 64 and 43, respectively. There were generally three types of each pickup displayed: stock versions, usually displaying a rack system or tool box; street versions, typically with lowered suspensions; and off-road variants, with lift kits and knobby tires.

Turbo Liner Dodge Ram 1500 Laramie

Sales for each of these three fullsize pickups are expected to drop off a bit in 2009 from previous-year sales, but compared to the overall 27% decline in pickup sales in 2008, this year’s sales forecast may provide relief to performance parts manufacturers and sellers that target owners of these vehicles.

In 2009, sales of the Ford F-Series are expected to decrease by 2%, ending with around 488,000 in total unit sales, according to AutoPacific’s 2008 4th Quarter Sales Forecast. According to the report, Dodge Ram sales will grow by just 1% (260,000 units), but Chevrolet Silverado sales will drop off by 5% (462,000 units).

Although new-vehicle sales for these models have declined compared to the highs of a few years past, total registrations for these three pickups have reached more than 30 million across the United States, according to Experian Automotive registration data. There are potentially many on the road today driven by enthusiasts, possibly looking to improve the look, performance, handling and utility of their pickups.

Better Built Ford F-350 Powerstroke

Every year, automotive enthusiasts are surveyed by SEMA, dubbed the Automotive Lifestyles Survey, in order to learn about their accessorization trends and buying behaviors. When sufficient numbers of owners of particular vehicle models are surveyed, their specific personalization habits are profiled.

In this case, owners of F-Series, Silverado and Ram pickups were looked at and results showed, for example, that 68% of enthusiasts who drive F-Series pickups actually purchased their vehicle used, and 92% purchased specialty equipment for their pickups within the last year.

Owners of each of these three pickups, according to survey results, do not waste any time before spending money on specialty equipment. Around 66% of Silverado, 67% of F-Series and 69% of Ram owners purchased specialty equipment within the first two months of vehicle ownership. Modifications made within the last year often included exhaust kits and air intake upgrades, trailer hitches, bedliners and suspension upgrades.

Where these enthusiasts purchase their specialty equipment and find information prior to making their purchase often differed significantly, but they all had one thing in common: each used multiple information sources and shopped at multiple distribution channels (see tables below).

The most recent Automotive Lifestyles Survey was administered in August–September of 2008, with a total of 3,037 complete responses. Enthusiasts surveyed included subscribers to 21 different automotive magazines, as well as visitors to automotive forums and websites. The average age and household income of those surveyed was 40 years old and $91,000, respectively. Had the survey been conducted using a random sample of enthusiasts, the confidence interval would have been +/- 1.78%. (i.e., 95% sure the true population average falls between +/- 1.78% of these values).

For more original SEMA market research, please visit www.sema.org/research.

Filler for eNews

All subscribers of SEMA News will receive a 2009 SEMA Membership Directory.

In these tough times, SEMA is continuing to take the extra steps necessary to create new business opportunities for its member companies, recently resulting in an updated version of the SEMA Membership Directory—the staple not only of all SEMA members, but of any specialty-equipment customer.

SEMA is opposing an effort by some Washington lawmakers to include a national car crushing program in the upcoming economic stimulus package. Vehicles targeted for the scrap pile will likely include Chevy Blazers, Silverados, S-10s and Tahoes; Dodge Dakotas and Rams; Ford Explorers and F-Series; Jeep Cherokees and Wranglers; and any other SUV or truck that obtains less than 18 mpg.

Under the plan, the federal government would pay a premium for '99 and newer cars. Click here to oppose the legislation.   

The so-called “Accelerated Retirement of Inefficient Vehicles Act” is "Cash for Clunkers" with a twist. Instead of focusing exclusively on old cars as is typical with scrappage programs, this bill will target any vehicle with lower fuel-economy ratings. Participants will receive a cash voucher to purchase a more fuel-efficient new car or used car (model year 2004 or later) or receive credit for the purchase of public transportation tickets.

Under the legislation, “fuel efficient” means at least 25% better mileage than the CAFE standard. It will be illegal to resell the scrapped vehicles. Bill sponsors want to destroy 4 million pickups and SUVs over the next four years. 

The program will fail to achieve its goal of improving fuel efficiency and stimulating car sales, but will increase unemployment and the cost of used cars and parts. Here’s why:

• Given the minimal $1,500–$4,500 voucher value, the program will lure rarely driven second and third vehicles that have minimal impact on overall fuel economy and air pollution. This is not a wise investment of tax dollars.

• The program will reduce the number of vehicles available for low-income individuals and drive up the cost of the remaining vehicles and repair parts. This is a basic supply-and-demand reality.

• The program will remove the opportunity to market specialty products that are designed exclusively for the targeted pickups and SUVs, including equipment that increases engine performance and fuel mileage. Congress will be enacting a program to eliminate jobs and reduce business revenues in the automotive aftermarket.  

• The idea that the trucks and SUVs must be scrapped in order to save energy is irrational. The program’s “carbon footprint” does not factor in the amount of energy and natural resources expended in manufacturing the existing car, spent scrapping it and manufacturing a replacement car.  

• The program fails to acknowledge driver needs, such as the ability to transport a family, tow a trailer or rely upon the performance, safety and utility characteristics associated with the larger vehicles. Instead, these vehicles will be destroyed.

• There is no evidence that the program will achieve the goal of boosting new-car sales or increasing fuel mileage. Many states have considered scrappage programs in the past as a way to help clean the air or increase mpg, but abandoned the effort because they simply don’t work. The programs are not cost-effective and do not achieve verifiable fuel economy or air-quality benefits.  

• The program will hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country that depend on the used-car market. This industry provides thousands of American jobs and generates millions of dollars in local, state and federal tax revenues.

“Our members, like all business entities, are suffering the effects of the stalled economy,” said Steve McDonald, SEMA vice president of government affairs. “In fact, for our members that market product for newer vehicles, we depend on a thriving and vibrant auto industry to create new business opportunities. We support efforts to spur new-car sales. We don’t, however, support public policy efforts that we are convinced don’t work and will waste tax dollars in the process.”

SEMA Urges You to Oppose This Legislation

Two lawmakers—Senator Diane Feinstein (D-CA) and Representative Henry Waxman (D-CA)—need to hear from SEMA members that their vehicle scrappage legislation is a waste of U.S. taxpayer dollars that will cost American jobs in the specialty auto market.

Click here for talking points and complete information to oppose the legislation.

More than 200 media representatives attended the 2009 MPMC Media Trade Conference (MTC) last week, held at the Embassy Suites near Los Angeles International Airport. Representing trade and consumer publications, journalists and sales staff met with nearly 100 leading motorsports manufacturers for informal, one-on-one meetings to discuss new products and editorial collaborations.

The annual three-day event is organized by the Motorsports Parts Manufacturers Council (MPMC), a SEMA council. 

Following the opening day of meetings, which coincided with President Barack Obama's inauguration, attendees joined the evening reception and media award presentation.

Additionally, the council presented Bill Middaugh with its 2009 Robert E. Peterson Media Award. Given to one individual each year, the award recognizes those who have made a positive impact on the motorsports industry and the MPMC during the past year.

Middaugh recently joined Bobit Business Media as the advertising sales manager for the Hotrod & Restoration magazine and trade show. Prior to that, he served for 18 years at Source Interlink Media on titles such as Hot Rod, Street Rodder, Popular Hot Rodding, Super Chevy, Chevy High Performance, Muscle Mustangs & Fast Fords and High-Performance Pontiac.


Bobit Business Media's Bill Middaugh (middle), recipient of MPMC's Robert E. Petersen Media Award, with SEMA President and CEO Chris Kersting (left) and MPMC Chairman Bill Floyd.

“Bill has always been a strong supporter of the industry and the council,” said MPMC Chairman Bill Floyd, of AFCO/Dynatech. “Regardless of what company he is with or what his job title is, Bill always supports MPMC member companies and strives to get them exposure through both advertising and editorial. The council is happy to acknowledge him with this award.”

Joining Middaugh as candidates for the 2009 award were John Dianna from Buckaroo Communications, Michael Ferrara from Hard Media, Rob Kinnan from Source Interlink, James Lawrence from POWER TV Media, Jerry Pitt from Source Interlink, and Steve Wolcott from ProMedia.

SEMA Technical Consultant Jim McFarland (left) and SEMA General Counsel Russ Deane discuss the Green Rod Project with media. A collaboration between member companies and the association, overseen by McFarland, the Green Rod Project yielded a retrofit kit of emissions-related aftermarket parts capable of meeting 2008 California smog-check standards.

The dates and location for the 2010 conference will be announced in the near future. To learn more about how the event operates, click here.

To learn about attending as a media representative, contact Della Domingo at dellad@sema.org.

For additional coverage of the MTC, click here to view more than 70 video-shorts from SearchAutoParts.com.    

The SEMA eNews staff had the opportunity to meet with a broad cross section of the motorsports manufacturer community. Here are some of the folks we had the pleasure to check in with, and in some cases, meet for the first time.

Rich Barsamian, Vice President, Sales, Grant Products International

SLP Performance Parts President Ed Hamburger

J.R. Granatelli, President, Granatelli Motor Sports

Frank DiFranco, National Sales Manager, World Products

Skyjacker Suspensions Director of Marketing & Operations Lee McGuire

CP Pistons Manager of Marketing and Promotions Cindy Verkooij

Susan Robinson, Sales Manager, Maradyne High Performance Fans

Joe Krivickas, Territory Rep, Precision Turbo & Engine

Turbonetics Marketing Manager Tyler Tanaka

Tracie Parker, Marketing Manager, and Kyle Snyder, Performance Market Analyst, Garrett by Honeywell

Nitrous Supply owner and N20 guru Mike Thermos

Greg Krause and Don Meziere of Meziere Enterprises

Hedman Performance Group’s Director of Sales Vic Wood and Marketing Director Marc Lewis

Todd Arey, President/CEO, Pyrotek E3 Spark Plugs

Horace Mast, Engineer, Mast Motorsports

Bill Floyd, Vice President, Sales for AFCO/Dynatech and MPMC Chairman

Cherry Bomb's Matt Graves

Keith Jones from Total Seal

Chris Thomson, National Sales Director, Airaid Filter Company and SEMA Board member

Ted Hughes Team Leader Program Development, and Trey McFarland, Sales & Marketing, from Mahle Motorsport

J. Bittle, President, Advanced Automotive Engineering Inc.

Energy Suspension’s Jeff Bonnett and Sales Manager Mike Papazian

Dennis Overholser, Executive Vice President, Painless Performance and Hot Rod Industry Alliance (HRIA) Chairman-Elect

Amsoil's Director of Advertising Ed Newman and Director of Filtration and Aftermarket Products Karl Dedolph III

Flex-a-lite Consolidated’s Marketing Manager Michelle Radin

SPX Corporation’s Senior Product/Marketing Manager Joe Young and Marketing Manager Bart Ivic

Kevin Bennett, Vice President, Powermaster Motorsports

To learn about the MPMC and exhibiting at the conference, visit www.sema.org/mpmc or contact Jim Skelly at jimsk@sema.org.

Filler for eNews

With the Internet the top influencer in consumers’ buying decisions, the way we do business has changed forever, according to Aaron Kahlow, founder and CEO of Online Marketing Connect. In order to keep SEMA members relevant to such changes in the marketing world, SEMA hosted the webinar, “Social Media: A New Way to Take Your Business to the Top,” presented by Kahlow. 

Kahlow discussed a survey completed by InformationWeek, which resulted in the following breakdown of top influences in buying decision:

• Internet: 39%
• TV: 18%
• Radio: 12%
• Magazine: 3%
• Newspaper: 2%
  

Kahlow stated that marketing is no longer about the brand push or the best product, but is instead about the emotional brand experience and the ease of use and self-ownership. He also commented that the handshake is rarely the first point of contact for the customer today and that online interaction is now the customer’s first touch.

Kahlow revealed how to apply social media to your business by participating in blogs, forums, communities (social networks), video sharing and Wiki’s (a website that allows visitors to add, remove, edit and change content). He provided the following examples of success that you can review:

• Blog: iLounge, HackingNetflix and StarbucksGossip
• Forum: ItToolBox
• Community: LinkedIn
• Video sharing: YouTube.com and vMix.com
• Wiki: Wikipedia

However, Kahlow cautioned that not all of these applications are right for your business. “You have got to find one or two that are most applicable based on your marketing strategy,” he said. Kahlow advised members to ask themselves: “Who is my audience and what do they want?”
 
Kahlow emphasized the importance of finding the right social media application by presenting findings from a CoreMetrics web study. The study states that 30% of customers who read blogs and posts are more likely to make a purchase than those who do not, and 80% who contribute to blogs and posts are more likely to make a purchase.
 
For an audio or PDF download of this presentation, click here.

Mark your calendar for these following upcoming SEMA webinars:

"Business Efficiency 101: Using Product Information to Increase Sales, Boost Image and Reduce Costs—Sponsored by SEMA BTC," February 5, 2009, 10:00 a.m.—11:00 a.m. (PST)

"Job Costing Systems That Will Boost Your Cash Flow," February 19, 2009, 10:00 a.m.—11:00 a.m. (PST)

To download past SEMA webinars and to view upcoming sessions, click here.

SEMA's next webinar will cover the importance of accurate product eCataloging information, and the problems that inaccurate information can cause for your specialty parts and accessories business.

Presenter Scott O'Toole will demonstrate the basics of standardized retail product eCataloging formats and sections of the data standards (Aftermarket Catalog Exchange Standard and Product Information Exchange Standard) in easy-to-understand layman’s terms during this webinar sponsored by the SEMA Business Technology Committee (BTC).

What: "Business Efficiency 101: Using Product Information to Increase Sales, Boost Image and Reduce Costs"
When: Thursday, February 5, 2009, 10:00 a.m.–11:00 a.m. (PST)
Presenter: Scott O’Toole, Manager, Product Pricing and PIES Compliance, Motor State Distributing

Click here to register for the February 5 SEMA webinar.

Also, don't forget to mark your calendar for SEMA's upcoming webinar, "Job Costing Systems That Will Boost Your Cash Flow."

Participate in this session to discover how to effectively monitor and evaluate your overall operating expenses for your business. SEMA  Accounting Director Tom Aiono will discuss the basics of job costing and other simple tools that you can use now to manage the cash flow in your company. Topics that will be discussed include how to identify problems and uncertainties, how to use the Cost-Volume-Profit (CVP) analysis and how to make predictions about the future of your business.

What: "Job Costing Systems That Will Boost Your Cash Flow"
When: Thursday, February 19, 10:00 a.m.–11:00 a.m. (PST)
Presenter: Tom Aiono, SEMA Accounting Director

Click here to register for the February 19 SEMA webinar.

SEMA's Webinar Program: The SEMA webinar program brings the world-class business seminars featured during the SEMA Show right to your desktop. Different business-building sessions are constantly added to the program, offering members the latest insight and practices from today’s leading speakers.

All SEMA webinars are conducted live and are open to all employees of SEMA-member companies free of charge. To participate, all you need is a computer with Internet access and a telephone. All previous SEMA webinars are available for download by clicking here. To view upcoming presentations that you can attend via telephone and Internet, click here.

Filler for eNews