SEMA News—March 2020

HERITAGE

By Drew Hardin

Big Cam at the Big Show

Photography Courtesy Bud Lang, Petersen Publishing Company Archive

It’s February 1964 at the Grand National Roadster Show, and Petersen Publishing Company’s Bud Lang captures a rafters-eye view of crowds milling about some of the cars on display at the Oakland Exposition Building.

The ’64 Roadster Show was notable for a number of reasons. Customizer Dean Jeffries debuted his futuristic, bubble-topped Mantaray; and Don Tognotti (who would later run the show) won the America’s Most Beautiful Roadster trophy for his lavender ’14 Ford Model T dubbed the King T.

In the foreground of the photo is the Dorricott and Sheehan Fiat AA/Altered, its hood off to display the 421ci blown Pontiac mill that was stuffed into the tiny drag racer. The Altered would win the America’s Best Competition Car award at the show and later landed on the October 1964 cover of Rod & Custom.

And then there’s that camshaft. Though it looks like its size comes from a photographic composition trick of forced perspective, it is actually a giant camshaft—part of Ed Iskenderian’s Roadster Show display. The cam was more than 8 ft. long, its shaft made from a very thick cardboard tube with about an inch-thick wall. The “lobes” were made from Styrofoam covered in foil, and the ends were made from wood.

We should say “is” rather than “was,” because the mega cam still lives. It hung in Isky’s office for years and was just recently purchased by memorabilia collector/dealer Mike Goyda.

“It is substantial,” Goyda said of the cam, “and took two of us to carry it.”

SEMA News—March 2020

Market Research—Like GPS for Your Business

Chris Kersting

The need for this kind of information in our industry is considerable. The automotive specialty aftermarket has always required companies to adapt and innovate, and now at a more rapid pace than previously. Trends are emerging and receding; product offerings change more rapidly; and the ways specialty parts are marketed and purchased are also evolving over time.

To help businesses better navigate where they are today, where others are, and how best to get to a positive business outcome, the association’s market research team commissions and generates studies that both look at the industry as a whole and delve into specific sectors. The team also combs available outside data to tease out factors that would be relevant to the specialty-equipment industry in order to provide forward-looking data.

There are currently a number of new reports available for download, and SEMA provides them at no charge. One in particular—the monthly “SEMA Industry Indicators” report—looks at a wide range of factors, including new-vehicle sales, auto production statistics, consumer spending and overall economic growth, and it takes into account the strength of the U.S. dollar, interest rates and fuel prices.

As the new year opens, the most recent “SEMA Industry Indicators” report suggests that a broad recession does not appear imminent. Despite slower growth in the economy, American consumers remain optimistic, and underlying fundamentals, such as the labor market, are strong. However, 2019 was challenging for manufacturing. While ongoing uncertainties are beginning to resolve, global growth remains slow, and trade tensions remain high. These hurdles will likely continue to be obstacles in 2020. That said, one current trend toward a weaker dollar could be working on the plus side with regard to international trade.

Weighing these variables is not an exact science, but the SEMA market research team is always happy to work with members who have questions about how to interpret the data with regard to their own businesses.

Another newly released report, the “SEMA Retail Landscape Report,” dives into the ways in which retailers are facing and adapting to a range of business challenges. Today, our industry’s independent retailers are dealing with a rapidly changing business environment. Increased online competition and its effect on consumer expectations and behavior are key shifts with a widespread impact on retail. The “SEMA Retail Landscape Report” offers insights into where opportunities lie for retailers to adapt and become more effective. It paints a picture of how small retailers can stand out from bigger competitors and points to factors that retailers think will shape the industry moving forward.

Specifically, the study found that the majority of the more than 3,000 SEMA-member retailers are primed for continued growth. As long predicted, the internet and e-commerce are becoming normal aspects of doing business, with many brick-and-mortar specialty retailers selling products online or using the internet to advertise and promote their businesses.

Overall, our current research suggests that we can expect a mainly healthy economic year for American small businesses. While there are a few factors with the potential to alter this picture, it appears that the specialty aftermarket will benefit as consumer confidence remains positive.

I urge you to review the latest SEMA market reports, form your own conclusions and then utilize future SEMA reports to help adjust your plans accordingly. If you haven’t taken advantage of SEMA research, make it a habit to visit www.sema.org/research to download the latest studies and add another tool to help your business succeed and prosper.

The Specialty Equipment Market Association may be best known for producing the SEMA Show, but the association also provides a broad range of resources to the industry—often resources that might otherwise be unaffordable to a small business. One of the most important is the ongoing production of research developed to provide insights that help companies make well-informed business decisions—perhaps to guide expansion, make a course correction or add new product lines.

SEMA Member News—March 2020

By Ellen McKoy

Ron Alexander is associate professor of automotive technology at SUNY Morrisville, which offers two- and four-year automotive degree programs.

SEMA Student Programs Pave a Pathway to Aftermarket Careers

Activating the next-generation talent pool is a hot topic. To help inspire future influencers and innovators, SEMA offers resources designed to engage students and provide a pathway to careers in the automotive aftermarket.

The best-known program is the SEMA Memorial Scholarship Fund. Since its founding in 1984, the fund has awarded more than $2.5 million to 1,500-plus college students. Last year alone, SEMA awarded $272,000 to 97 individuals.

Over the years, SEMA has forged relationships with trade schools, colleges and universities known for their automotive-related curriculum through the scholarship program and other outreach efforts. Often, scholarship recipients have the opportunity to visit the SEMA Show.

Attending the Show for the first time is an eye-opening experience—a chance for students to talk to exhibitors, hand out résumés and be amazed by the scope of the specialty-equipment market. They also get to participate in the SEMA Student Program.

Career Day is an integral part of the Student Program. It gives participating exhibitors the chance to connect with bright, young prospects who potentially represent a future workforce. Last year’s event included more than 40 companies and was attended by more than 700 students and faculty.

For insights into how the SEMA programs benefit the students, SEMA Member News reached out to Ron Alexander, associate professor of automotive technology at SUNY Morrisville, and Dr. Jeff Jarvis, president of the University of Northwestern Ohio.

Optimizing Opportunities

Dr. Jeff Jarvis, president of the University of Northwestern Ohio, has been involved in SEMA education programs for nearly three decades.

SUNY Morrisville, part of the State University of New York, is located in rural Madison County. Established in 1908, the college offers more than 80 associate and bachelor’s degree programs as diverse as agriculture, business, social sciences, liberal arts and automotive technology. Automotive areas of study run the gamut.

“We have two- and four-year degree programs,” said Alexander, whose technology department is headed by Associate Professor Ray Grabowski. “We have an advanced-level bachelor’s in technology and a two-year associate’s degree option. The four-year option prepares students to work for OEMs and the aftermarket in research and development. Then there’s a bachelor of business administration degree in automotive management, two-year mechanic courses in automotive technology, and an associate’s degree in auto body.”

Students can also join the school’s automotive club, which hosts car shows and participates in the SEMA Show.

“Through our relationship with SEMA more than 10 years, we’ve brought third- and fourth-year students to the Show as part of the SEMA Student Program,” Alexander said. “It started out as an auto-club field trip, but it’s actually grown into curriculum.”

The for-credit elective is a basic introduction to the aftermarket.

“It’s a special-projects class,” he noted. “Of all the schools that attend the Student Program, we’re the only school that grants college credit for that experience.”

At the Show, students dress to impress—no T-shirts allowed. They visit the New Products Showcase, attend seminars, the new-products awards breakfast and the Young Executives Network reception. They interact with exhibitors and hand out résumés or business cards. At the end of each day, they share their experiences.

“We want the students to understand that this is a networking event, not just a car show, and it’s led to connections over the years,” Alexander said.

Those connections have led to plum jobs or internship opportunities. In one heartwarming example, Alexander recalled meeting a Morrisville graduate at the Show who was working the HMS Motorsport booth—a job he had landed through a prior Student Program connection. He also noted that MOPAR has hired graduates as eastern district managers—an opportunity that arose after MOPAR learned that there’s an East Coast college that offers four-year automotive degrees.

“Once that MOPAR connection was made, it’s been both an internship and a direct-hire opportunity,” Alexander said. “We’ve also made successful connections at Snap-On, Delphi, Borg Warner and others. All of those relationships were created through the SEMA Show.

“The Show has opened our eyes. As we start to develop courses and curriculum, it has broadened our perspective about the aftermarket industry, and it has opened doors to career opportunities for our students. The SEMA Student Program is of real value to both our students and our school.”

Tapping the Talent Pipeline

The University of Northwestern Ohio (UNOH) has a long-standing relationship with SEMA. Founded in 1920 in Lima, Ohio, UNOH is widely known for its automotive curriculum—especially its focus on performance and motorsports. Over the years, many students have earned SEMA scholarships or loan-forgiveness awards, including 12 awardees in 2019. A significant number of graduates have gone on to careers in the aftermarket industry.

“I’ve been personally involved with the SEMA education and the scholarship program for 27 years,” noted Jarvis, who at one time served on the SEMA Scholarship Committee. “I went back as far as I could in my records, and we’ve had over 120 scholarship winners through the years. We bring only scholarship winners to the Show and its education portion. I was surprised to see that about 35% of the scholarship winners have gone on to work directly for SEMA-member companies.”

UNOH consists of five colleges that offer 50 different majors and degree programs, including for business administration, marketing, accounting and, of course, automotive. Besides a bachelor’s degree in automotive management, there are more than a dozen automotive-related associate’s degree and diploma programs.

“One of our colleges is the College of Applied Technology, where we teach automotive diesel, high performance, robotics, alternate fuels and other programs,” Jarvis said. “We also have a sports marketing program as well as degrees in marketing and accounting—things that are not performance-based.”

Jarvis estimated that 20% of UNOH scholarship awardees now work for SEMA-member companies in marketing, sales or management.

“There are opportunities in the industry for those students, but most of the scholarship winners we’ve brought to the SEMA Show through the years have had the technical, hands-on experience,” he said.

In reflecting on the relationship between SEMA and UNOH, Jarvis credited an early-’90s meeting with former SEMA President Chuck Blum and Hall of Famer Harry Hibbler with helping to create a blueprint for the school’s motorsports program.

“Chuck, Harry and I sat down after a SEMA management conference in Phoenix and scratched out our high-performance program on a napkin,” Jarvis recalled. “I brought it back to our faculty, and we came out with the first-ever high-performance motorsports program in 1993. So SEMA and UNOH are intertwined, and in my opinion, it’s a fantastic relationship.”

Jarvis said that the Student Program at the Show that SEMA Manager of Student Programs Juliet Marshall oversees is an important part of the relationship, especially for students who are close to graduating and who get job offers in their chosen career paths.

“It’s a tribute to the industry and to SEMA for their tremendous support of the scholarship program,” Jarvis said. “It’s a home run for the young people. We love SEMA, and we love the SEMA-member companies for what they do to hire our graduates.”

SEMA Member News—March 2020

By Ellen McKoy

Ron Alexander is associate professor of automotive technology at SUNY Morrisville, which offers two- and four-year automotive degree programs.

SEMA Student Programs Pave a Pathway to Aftermarket Careers

Activating the next-generation talent pool is a hot topic. To help inspire future influencers and innovators, SEMA offers resources designed to engage students and provide a pathway to careers in the automotive aftermarket.

The best-known program is the SEMA Memorial Scholarship Fund. Since its founding in 1984, the fund has awarded more than $2.5 million to 1,500-plus college students. Last year alone, SEMA awarded $272,000 to 97 individuals.

Over the years, SEMA has forged relationships with trade schools, colleges and universities known for their automotive-related curriculum through the scholarship program and other outreach efforts. Often, scholarship recipients have the opportunity to visit the SEMA Show.

Attending the Show for the first time is an eye-opening experience—a chance for students to talk to exhibitors, hand out résumés and be amazed by the scope of the specialty-equipment market. They also get to participate in the SEMA Student Program.

Career Day is an integral part of the Student Program. It gives participating exhibitors the chance to connect with bright, young prospects who potentially represent a future workforce. Last year’s event included more than 40 companies and was attended by more than 700 students and faculty.

For insights into how the SEMA programs benefit the students, SEMA Member News reached out to Ron Alexander, associate professor of automotive technology at SUNY Morrisville, and Dr. Jeff Jarvis, president of the University of Northwestern Ohio.

Optimizing Opportunities

Dr. Jeff Jarvis, president of the University of Northwestern Ohio, has been involved in SEMA education programs for nearly three decades.

SUNY Morrisville, part of the State University of New York, is located in rural Madison County. Established in 1908, the college offers more than 80 associate and bachelor’s degree programs as diverse as agriculture, business, social sciences, liberal arts and automotive technology. Automotive areas of study run the gamut.

“We have two- and four-year degree programs,” said Alexander, whose technology department is headed by Associate Professor Ray Grabowski. “We have an advanced-level bachelor’s in technology and a two-year associate’s degree option. The four-year option prepares students to work for OEMs and the aftermarket in research and development. Then there’s a bachelor of business administration degree in automotive management, two-year mechanic courses in automotive technology, and an associate’s degree in auto body.”

Students can also join the school’s automotive club, which hosts car shows and participates in the SEMA Show.

“Through our relationship with SEMA more than 10 years, we’ve brought third- and fourth-year students to the Show as part of the SEMA Student Program,” Alexander said. “It started out as an auto-club field trip, but it’s actually grown into curriculum.”

The for-credit elective is a basic introduction to the aftermarket.

“It’s a special-projects class,” he noted. “Of all the schools that attend the Student Program, we’re the only school that grants college credit for that experience.”

At the Show, students dress to impress—no T-shirts allowed. They visit the New Products Showcase, attend seminars, the new-products awards breakfast and the Young Executives Network reception. They interact with exhibitors and hand out résumés or business cards. At the end of each day, they share their experiences.

“We want the students to understand that this is a networking event, not just a car show, and it’s led to connections over the years,” Alexander said.

Those connections have led to plum jobs or internship opportunities. In one heartwarming example, Alexander recalled meeting a Morrisville graduate at the Show who was working the HMS Motorsport booth—a job he had landed through a prior Student Program connection. He also noted that MOPAR has hired graduates as eastern district managers—an opportunity that arose after MOPAR learned that there’s an East Coast college that offers four-year automotive degrees.

“Once that MOPAR connection was made, it’s been both an internship and a direct-hire opportunity,” Alexander said. “We’ve also made successful connections at Snap-On, Delphi, Borg Warner and others. All of those relationships were created through the SEMA Show.

“The Show has opened our eyes. As we start to develop courses and curriculum, it has broadened our perspective about the aftermarket industry, and it has opened doors to career opportunities for our students. The SEMA Student Program is of real value to both our students and our school.”

Tapping the Talent Pipeline

The University of Northwestern Ohio (UNOH) has a long-standing relationship with SEMA. Founded in 1920 in Lima, Ohio, UNOH is widely known for its automotive curriculum—especially its focus on performance and motorsports. Over the years, many students have earned SEMA scholarships or loan-forgiveness awards, including 12 awardees in 2019. A significant number of graduates have gone on to careers in the aftermarket industry.

“I’ve been personally involved with the SEMA education and the scholarship program for 27 years,” noted Jarvis, who at one time served on the SEMA Scholarship Committee. “I went back as far as I could in my records, and we’ve had over 120 scholarship winners through the years. We bring only scholarship winners to the Show and its education portion. I was surprised to see that about 35% of the scholarship winners have gone on to work directly for SEMA-member companies.”

UNOH consists of five colleges that offer 50 different majors and degree programs, including for business administration, marketing, accounting and, of course, automotive. Besides a bachelor’s degree in automotive management, there are more than a dozen automotive-related associate’s degree and diploma programs.

“One of our colleges is the College of Applied Technology, where we teach automotive diesel, high performance, robotics, alternate fuels and other programs,” Jarvis said. “We also have a sports marketing program as well as degrees in marketing and accounting—things that are not performance-based.”

Jarvis estimated that 20% of UNOH scholarship awardees now work for SEMA-member companies in marketing, sales or management.

“There are opportunities in the industry for those students, but most of the scholarship winners we’ve brought to the SEMA Show through the years have had the technical, hands-on experience,” he said.

In reflecting on the relationship between SEMA and UNOH, Jarvis credited an early-’90s meeting with former SEMA President Chuck Blum and Hall of Famer Harry Hibbler with helping to create a blueprint for the school’s motorsports program.

“Chuck, Harry and I sat down after a SEMA management conference in Phoenix and scratched out our high-performance program on a napkin,” Jarvis recalled. “I brought it back to our faculty, and we came out with the first-ever high-performance motorsports program in 1993. So SEMA and UNOH are intertwined, and in my opinion, it’s a fantastic relationship.”

Jarvis said that the Student Program at the Show that SEMA Manager of Student Programs Juliet Marshall oversees is an important part of the relationship, especially for students who are close to graduating and who get job offers in their chosen career paths.

“It’s a tribute to the industry and to SEMA for their tremendous support of the scholarship program,” Jarvis said. “It’s a home run for the young people. We love SEMA, and we love the SEMA-member companies for what they do to hire our graduates.”

SEMA Member News—March 2020

By SEMA Editors

YEN Lunch and Learn

YEN hosts a variety of regional Meet Ups, most often in conjunction with industry events like the meet up during Formula DRIFT Round 8: Title Fight at the Irwindale Speedway in Irwindale, California.

For up-and-coming, under-40 industry professionals, SEMA’s Young Executives Network (YEN) has long provided resources to help its members cultivate connections, sharpen skills and advance their careers through networking and education.

There are face-to-face networking events with fellow members and industry leaders as well as a social-media presence that includes a YEN Facebook page, a private Facebook group and Instagram for day-to-day interaction, plus a YEN website.

The SEMA Launch Pad competition, presented by YEN at the SEMA Show, is considered the network’s flagship program, while the YEN awards reception, also at the Show, is without question the premier networking event of the year.

YEN has also hosted regional Meet Ups—most often in conjunction with industry events. Last year, for instance, a Meet Up was held in October during the Formula Drift Round 8: Title Fight at the Irwindale Speedway in Irwindale, California. In December, another Meet Up took place in Indianapolis during the Performance Racing Industry Trade Show.

But while YEN events at the SEMA Show and regional Meet Ups are always well attended and earn high marks, there are many YENsters and would-be members who are unable to attend those events. With more than 1,500 members spread across the country, the question became how the network could better serve its membership with meaningful and more accessible regional opportunities. The answer lay in a pilot program.

Refocusing on Learning Experiences

With more than 1,500 members spread across the country, YEN leadership looks to better serve its membership with meaningful and more accessible regional opportunities.

Last year, YEN hosted the network’s first-ever Lunch and Learn at the SEMA Garage. Designed to engage young professionals whose employers may be unwilling or unable to send them to the SEMA Show in Las Vegas or to other long-distance industry functions, the initial Lunch and Learn, gave Southern California YENsters an opportunity to network and learn about social-media best practices from an expert presenter.

The event was hailed a success, and YEN has now moved forward with a game plan to present Lunch and Learn events regionally once each quarter. As of press time, tentative locations include Detroit, Michigan; Dallas, Texas; Orlando, Florida; and California.

“Building on the success of last year’s YEN Lunch and Learn at SEMA headquarters [in Diamond Bar, California], the Young Executives Network is excited to announce a new series of networking events to be held throughout the country in 2020,” said YEN Chair Kirstin Stone.

Each event will feature a talk presented by an expert in the field. Topics under consideration include sales strategies, social-media best practices, and entrepreneurship. Following lunch, members will have a chance to network with other young professionals in their area and participate in facility tours of local industry-leading businesses, when possible.

“We’re looking forward to the opportunity to provide even more value to our membership than we have in years past,” Stone said. “Regional networking events with an educational component are a new and exciting way we plan to do that.”

Welcome New Members (October 1–November 30)

• Alex Ortega, Aero Exhaust
• William Fikhman, Amazzia
• Ray Liu, APB USA LLC
• Brayden Odette, ASET/Anest Iwata-Medea Inc.
• Stephen Lietzow, Auto Meter Products Inc.
• Jordan Molina, AutoAnything
• Charles Moore, Battle Born Offroad
• Brock White, Bob Cook Sales-LO (Metaire)
• Jason Sanderbeck, Classic Industries/OER
• Brett Morton, Colorado Junk Cars
• Thomas Dillingham, The Detail Garage
• Trevor Clarke, Dirt Nerds Motors
• Tim Germinario, Dirt Nerds Motors
• Tom Sylvester, Dirt Nerds Motors
• Elizabeth Niemi, Edelbrock LLC
• Preston Ryan, Evo Motion
• Jason Sutula, FatFour Customs
• Ryan Snyder, Finch Companies LLC
• Michael Robins, Ford Performance Parts
• Samuel Gearheart, Fueled Motorsports LLC
• Zachary Clevenger, Grand Venturer Inc.
• Joshua McLean, The Higher Class
• Yiel Wuol, The Higher Class
• Keith Printz, Keith Michael Printz
• Travis Doney, Keystone Automotive Operations Inc.
• Chris Thompson, Main Event Brands LLC
• Brandon Smith, Metal Union LLC
• Mike Teal, Motorwerks Marketing
• Monique Teal, Motorwerks Marketing
• Charles Frantz, Navy Run Automotive
• Jacob Cunningham, ORACLE Lighting Inc.
• Brandon Funck, ORACLE Lighting Inc.
• Rachel Higgins, ORACLE Lighting Inc.
• Anthony Hostetler, ORACLE Lighting Inc.
• Justin Perret, ORACLE Lighting Inc.
• Ben Roscher, Platinum Custom truck and Car Care LYD
• Kelly Flynn, Quake LED
• Alex Ramirez, Racing Power Co.
• Alex Kemple, RhinoPro Truck Outfitters
• Brian George, RV Camp Champ
• Chris Behnken, Rvenge Transmissions LLC
• Jesus Delgado, Santa Ana Wheel
• Nina Edstrom-Sitra, SecureTech Innovations Inc.
• J. Scott Sitra, SecureTech Innovations Inc.
• James Sanpakit, SSRTuning
• Nathan Bogya, Tanuki Auto Parts
• Logan Somerville, Tepui Outdoors Inc.
• Mike Sitar Jr., TooHighPsi Performance
• Alec Ainger, Walmart.com
• Sergio Arias, Walmart.com
• David Cuddihy, Walmart.com
• Tim DeCampo, Walmart.com
• Rocky Hamid, Walmart.com
• Matthew O’Keefe, Walmart.com
• Yoona Ro, Walmart.com
• Kevin Shi, Walmart.com
• Michael Davis, WeatherTech

Total YEN Members: 1,375

SEMA Member News—March 2020

By SEMA Editors

YEN Lunch and Learn

YEN hosts a variety of regional Meet Ups, most often in conjunction with industry events like the meet up during Formula DRIFT Round 8: Title Fight at the Irwindale Speedway in Irwindale, California.

For up-and-coming, under-40 industry professionals, SEMA’s Young Executives Network (YEN) has long provided resources to help its members cultivate connections, sharpen skills and advance their careers through networking and education.

There are face-to-face networking events with fellow members and industry leaders as well as a social-media presence that includes a YEN Facebook page, a private Facebook group and Instagram for day-to-day interaction, plus a YEN website.

The SEMA Launch Pad competition, presented by YEN at the SEMA Show, is considered the network’s flagship program, while the YEN awards reception, also at the Show, is without question the premier networking event of the year.

YEN has also hosted regional Meet Ups—most often in conjunction with industry events. Last year, for instance, a Meet Up was held in October during the Formula Drift Round 8: Title Fight at the Irwindale Speedway in Irwindale, California. In December, another Meet Up took place in Indianapolis during the Performance Racing Industry Trade Show.

But while YEN events at the SEMA Show and regional Meet Ups are always well attended and earn high marks, there are many YENsters and would-be members who are unable to attend those events. With more than 1,500 members spread across the country, the question became how the network could better serve its membership with meaningful and more accessible regional opportunities. The answer lay in a pilot program.

Refocusing on Learning Experiences

With more than 1,500 members spread across the country, YEN leadership looks to better serve its membership with meaningful and more accessible regional opportunities.

Last year, YEN hosted the network’s first-ever Lunch and Learn at the SEMA Garage. Designed to engage young professionals whose employers may be unwilling or unable to send them to the SEMA Show in Las Vegas or to other long-distance industry functions, the initial Lunch and Learn, gave Southern California YENsters an opportunity to network and learn about social-media best practices from an expert presenter.

The event was hailed a success, and YEN has now moved forward with a game plan to present Lunch and Learn events regionally once each quarter. As of press time, tentative locations include Detroit, Michigan; Dallas, Texas; Orlando, Florida; and California.

“Building on the success of last year’s YEN Lunch and Learn at SEMA headquarters [in Diamond Bar, California], the Young Executives Network is excited to announce a new series of networking events to be held throughout the country in 2020,” said YEN Chair Kirstin Stone.

Each event will feature a talk presented by an expert in the field. Topics under consideration include sales strategies, social-media best practices, and entrepreneurship. Following lunch, members will have a chance to network with other young professionals in their area and participate in facility tours of local industry-leading businesses, when possible.

“We’re looking forward to the opportunity to provide even more value to our membership than we have in years past,” Stone said. “Regional networking events with an educational component are a new and exciting way we plan to do that.”

Welcome New Members (October 1–November 30)

• Alex Ortega, Aero Exhaust
• William Fikhman, Amazzia
• Ray Liu, APB USA LLC
• Brayden Odette, ASET/Anest Iwata-Medea Inc.
• Stephen Lietzow, Auto Meter Products Inc.
• Jordan Molina, AutoAnything
• Charles Moore, Battle Born Offroad
• Brock White, Bob Cook Sales-LO (Metaire)
• Jason Sanderbeck, Classic Industries/OER
• Brett Morton, Colorado Junk Cars
• Thomas Dillingham, The Detail Garage
• Trevor Clarke, Dirt Nerds Motors
• Tim Germinario, Dirt Nerds Motors
• Tom Sylvester, Dirt Nerds Motors
• Elizabeth Niemi, Edelbrock LLC
• Preston Ryan, Evo Motion
• Jason Sutula, FatFour Customs
• Ryan Snyder, Finch Companies LLC
• Michael Robins, Ford Performance Parts
• Samuel Gearheart, Fueled Motorsports LLC
• Zachary Clevenger, Grand Venturer Inc.
• Joshua McLean, The Higher Class
• Yiel Wuol, The Higher Class
• Keith Printz, Keith Michael Printz
• Travis Doney, Keystone Automotive Operations Inc.
• Chris Thompson, Main Event Brands LLC
• Brandon Smith, Metal Union LLC
• Mike Teal, Motorwerks Marketing
• Monique Teal, Motorwerks Marketing
• Charles Frantz, Navy Run Automotive
• Jacob Cunningham, ORACLE Lighting Inc.
• Brandon Funck, ORACLE Lighting Inc.
• Rachel Higgins, ORACLE Lighting Inc.
• Anthony Hostetler, ORACLE Lighting Inc.
• Justin Perret, ORACLE Lighting Inc.
• Ben Roscher, Platinum Custom truck and Car Care LYD
• Kelly Flynn, Quake LED
• Alex Ramirez, Racing Power Co.
• Alex Kemple, RhinoPro Truck Outfitters
• Brian George, RV Camp Champ
• Chris Behnken, Rvenge Transmissions LLC
• Jesus Delgado, Santa Ana Wheel
• Nina Edstrom-Sitra, SecureTech Innovations Inc.
• J. Scott Sitra, SecureTech Innovations Inc.
• James Sanpakit, SSRTuning
• Nathan Bogya, Tanuki Auto Parts
• Logan Somerville, Tepui Outdoors Inc.
• Mike Sitar Jr., TooHighPsi Performance
• Alec Ainger, Walmart.com
• Sergio Arias, Walmart.com
• David Cuddihy, Walmart.com
• Tim DeCampo, Walmart.com
• Rocky Hamid, Walmart.com
• Matthew O’Keefe, Walmart.com
• Yoona Ro, Walmart.com
• Kevin Shi, Walmart.com
• Michael Davis, WeatherTech

Total YEN Members: 1,375

SEMA News—March 2020

BUSINESS

By Mike Imlay

“SEMA Retail Landscape Report” Now Available for Download

Unique Market Study Sheds Light on the Business of Selling to Consumers

Despite dynamic changes in the retail environment, automotive specialty retailers remain optimistic about business growth. The first-ever “SEMA Retail Landscape Report” delves into their reasons for optimism, along with the challenges and tactical opportunities they’re finding in an increasingly digital marketplace.

It’s no secret that the retail environment has changed significantly over the past decade. Automotive specialty-equipment retailers in particular are dealing with new pressure points on a number of fronts. But what are the emerging trends that have industry retailers most concerned? And, more importantly, what tools and best practices are they utilizing to adapt? Those questions are at the forefront of a new SEMA market research report.

Titled “SEMA Retail Landscape Report: The Business of Selling to Consumers,” the 104-page study is available for free download at www.sema.org/market-research. The report includes major sections addressing the current state of specialty retail, along with close looks at the specific challenges and opportunities confronting retailers in the automotive aftermarket.

In addition, the report’s “Detailed Findings” section offers a deep dive into statistics touching on a wide variety of hot-button topics. Those include industry trends in sales and database management, marketing, changing customer buying habits and other retail-related issues. The report also contains a wealth of insights into marketing, advertising and communications tools, including social media; online sales and marketing practices; inventory management and shipping issues; and retail systems and processes.

Annual Sales Growth

Throughout the past decade, small businesses have continued to dominate the retail landscape, with general auto parts retail seeing steady growth.

“We know we have a huge sector of our SEMA membership on the retail side of the business,” said Gavin Knapp, SEMA director of market research. “A lot of them are very small companies. Our market research typically helps them understand the broader market or what industry customers are doing, so this report is a departure for us and somewhat different in terms of results. It focuses on the business side of retailing and sets out to help those companies from that standpoint.”

SEMA commissioned an independent research provider, W5 Inc., to execute the project. The study included in-depth telephone interviews and an online survey of people who own or manage specialty automotive retail businesses. Respondents represented businesses serving different sectors of the industry, such as truck accessories, off-road, tuning and speed shops. The report is further supplemented with relevant data from SEMA and third-party sources.

The research shows that small, single-location brick-and-mortar stores remain the backbone of the specialty auto parts retail space. Moreover, most shops get by with a small staff of employees. Sales channels break down as 69% through brick and mortar, 54% via a company website, 48% through phone/catalog sales and 39% through an online marketplace. Outlets with one to four employees represent 46% of the industry, while those with five to nine employees account for 21%.

Retailers Perceptions of Customers

Aftermarket retailers perceive erosion in customer loyalty as a consequence of digital trends. Not only have consumers increased their online shopping but also they come armed with price comparisons from a variety of online sellers when they do enter a brick-and-mortar environment.

“There are a couple of overarching results in the research that I think are important foundationally,” Knapp said. “One is that a lot of the businesses are run by industry enthusiasts. A lot of times, somebody who is an enthusiast will morph into retailing more as a way to stay in the hobby and lifestyle than to actually be a business person. That’s great, but it also sometimes leaves them without some of the business foundations that a lot of those companies are now trying to catch up on.”

Matt Kennedy, SEMA research manager and the project’s lead, said that the researchers also found that a lot of the issues and challenges those companies are facing are really small-business issues in general.

“That kind of gets compounded when you see people who are trying to run a small business and all that entails who are not by inclination or by education business people,” Kennedy said. “They’ve learned by doing and are often wearing too many hats to find an easy way to pick up the extra training and knowledge that would make some of this stuff easier.”

Far from presenting a bleak picture for industry retailers, the study found that many are embracing the rapidly evolving marketplace and finding new opportunities through a number of best practices.

How the Industry Has Changed

Industry retailers now view large online competitors as their greatest concern, with increasing wholesale parts costs also seen as a top challenge. The growing diversity and complexities of parts are also adding pressures on retailers.

Chief Retailer Concerns

Of the major difficulties confronting today’s aftermarket retailers, the SEMA research identified three overlapping concerns: increased competition from the online retail space, eroding consumer loyalty, and the rising costs and complexities of products.

“Online sales are growing and creating all manner of challenges,” Kennedy explained. “That’s as true for our industry as it is elsewhere in retail, if not more so. In all our research, we keep seeing that we’re even ahead of the curve when you look at overall retail versus specialty auto. A lot of businesses that we talked to are definitely feeling the pressure of competition from big online companies and even from smaller competitors who are also in the digital space. It can feel tough for smaller enthusiast retailers to adapt. Online is now a much bigger thing than it was 20 years ago.”

The broader range of competition naturally leads to erosion in customer loyalty, especially for brick-and-mortar outlets. The bottom line, Kennedy said, is that consumers now have more options than ever in terms of learning about products, where to buy them, and even how to install those products themselves.

“While it’s not necessarily a brand-new paradigm, this idea of suddenly having a new source of competition or consumers having other ways to get the stuff they want is definitely something retailers are concerned about,” he said. “Consumers can now go into a store and already have an idea not just of a part they want but also what price they can expect to pay for it elsewhere.”

Knapp noted that, while today’s consumers are indeed more knowledgeable than ever before, the trend is based mainly on self education.

“Everybody is online now,” Knapp said. “Everybody researches before they buy. It’s the way of the world. They know all the brands that are available, the specs, fitments and competitive pricing.”

However, he hastened to add, there are limits to customers’ expertise, and that plays a large role in the opportunities roadmap that the “SEMA Retail Landscape Report” eventually lays out.

Meanwhile, escalating wholesale parts costs have been a third trouble spot for retailers.

Opportunities for Success

In adjusting their sales and marketing tactics to the new realities, specialty-equipment retailers are placing a greater emphasis on social-media presence and personalized customer service. They are also offering a wider range of high-end products.

“Obviously, costs are also going up,” Kennedy said. “Products are becoming more expensive by virtue of inflation and also just because they’re getting more advanced. Put that against how consumers are more aware of competitive pricing options, and it can feel like a retailer’s margins are getting a little squeezed.

“The reality of it to some extent is that the more things change, the more they stay the same. As vehicles become more advanced, as technology changes, and as more products and more models become available out there, it’s a challenge to keep track of it all. It’s a challenge to make sure you have people who are up-to-date on what they need to know and the tools needed to install those products. You have to be as informed about the options that are out there—if not more so—than the consumers who come into your store.”

Knapp underscored that point.

“More brands, more SKUs—how do you keep up with all of it?” he asked. “How do you know what fits what? And with consumers being more informed as well, retailers have to make sure that they’re fully informed because if they’re not keeping up, customers will know. And they’ll go to a competitor because now there’s going to be a lack of trust.”

Moreover, today’s marketplace often appears toughest on mom-and-pop operations.

“Unfortunately, when we’re talking about small businesses, we’re back to one guy tending to wear a lot of hats,” Knapp observed.

How Retailers Have Adapted

Despite considerable challenges, aftermarket retailers have identified new avenues of opportunity offered by the web, including social media. The Internet has also given retailers access to new processes and systems to find new products and boost sales.

Identifying Opportunities

The good news is that the report nevertheless finds small retailers adapting and even thriving. Despite negative media hype, brick-and-mortar sales have held steady and even grown over the past several years. In fact, 53% of retailers, in general, said they saw sales increases over the past year, with an even more robust 70% anticipating growth in the year ahead. So what accounts for the upbeat picture?

“What we basically did for the opportunity side of the report was ask businesses how they’ve been adapting to their challenges and how they’re finding solutions,” Kennedy said. “We again ended up grouping their answers into three broader themes, because they’re all integrated in some way.”

One successful path for retailers has been to embrace an omni-channel strategy for both marketing and sales. That means maintaining a presence where your customers are—not just online but also wherever they’re researching and looking for ideas. How a retailer executes an omni-channel strategy will vary greatly depending upon its location, size of store and staff, not to mention its particular branding or product niche. Some examples might be web forums and social-media sites, including YouTube, Facebook, Instagram and Pinterest, as well as local car clubs, enthusiast events and other local gatherings.

“We’re not saying that you have to go throw a ton of money into all these different points,” Knapp explained. “It’s more about looking for the best ways you can actively engage your current and potential customers. It’s about being aware of where to find your customers, figuring out the most effective way to reach them and knowing that it’s not as simple as just having a store. The days of placing an ad in the Yellow Pages and waiting for people to roll in are long gone.”

And while many brick-and-mortar outlets have sought to expand their customer reach through online sales, Knapp cautioned against seeing that tactic as some sort of panacea. Yes, a virtual storefront can be a winning strategy, but it must be carefully thought out. It won’t necessarily fit every retail business model and will require much more than a flashy new e-commerce site.

Overall Retailers Are Optimistic

Amid marketplace pressures, retailers still maintain a healthy optimism regarding sales trends. The majority surveyed for the report (53%) have seen sales gains in the past year, and an even greater number (70%) are anticipating growth in the year to come.

“It’s going to give you minimal push if you’re not driving traffic to it,” Knapp asserted. “You have to be involved in events around you, social media and all of those touch points where your customers are getting information—and they’re getting it all over the place.”

In addition to omni-channels, the “SEMA Retail Landscape Report” identifies a focus on “customer experience” as a key component for success.

“It’s not always possible or easy to compete purely on price,” Kennedy observed. “What a decent number of businesses do in response to that is work on competing on service, advice and expertise. If you can’t be the cheapest in town, you can be somebody who gives customers more than one reason to come to your store. It’s about getting your customers to say, ‘I want to go here because they treat me right, they talk about what I need, they offer me the best solutions, or they host events on-site.’”

All told, 57% of retailers surveyed said that they’ve adapted to the changing retail climate by putting more effort into one-on-one or personalized service. That includes engaging with consumers and providing personal advice and expertise through customer service and support via the phone (83%), one-on-one conversations (78%), off-site events (55%), online chats (30%) and video tutorials (17%).

Marketing and Advertising Channels

When it comes to marketing and advertising, retailers have made the transition to digital. Of the channels most often utilized, social media tops the list, with the majority of retailers surveyed also saying it has proven the most successful.

While consumers are indeed more highly informed than ever, they’re also bombarded with information on the internet, notably from social media and enthusiast forums. Helping customers cut through the clutter with experience and sound advice goes a long way toward establishing trust. Some retailers have even reported success offering demo days, learning events and in-store gatherings to share ideas, have some fun and create a community.

The third area of opportunity identified by the research is improved operational efficiencies, which can apply to both people and systems.

“Right now, small companies are universally having problems finding, training and keeping the right people, so there’s an opportunity for those businesses that can do it well,” Knapp said. “Businesses that can step aside from sales for a bit and build in some training appear more able to thrive.”

Businesses should take a long-term approach to staffing, looking for new ways to find and recruit people and establish pipelines with trusted resources. Connect with community organizations, local high schools and junior colleges.

“Knowing people, building relationships and networking is more important now than ever before,” Knapp noted.

Moreover, many retailers seem hindered by solutions they have cobbled together over the years in the area of systems and processes—digital systems for sales, accounting, ordering and the like that don’t “talk” to each other.

“If you can’t move information between your systems or you have to do it manually, that creates a lot of inefficiency,” Knapp pointed out. “It can be hard to invest the time and money needed to improve the situation, but then think of the time and money you’re losing.

“We’re not saying you need a big, fancy integrated system. The reality is that there are national and multinational retailers that are having the same struggles finding their own solutions. It’s more about taking time to think about where there are break points, where you have inefficiencies. How can you create something a little more integrated or seamless that lets you save a few minutes here and there? Those few minutes add up in the long run.”

Even as they adapt and embrace the growing pains, smaller aftermarket retailers can take additional comfort in another key SEMA market research finding.

“The type of retail that’s doing well now is specialty retail—retail that’s focused on a certain niche or a certain type of experience,” Knapp said. “The great thing is that’s exactly what our guys are doing. They don’t need to compete with Amazon or try to be Amazon. They just need to be who they are and make sure that their customers know it.”

For Kennedy, that means “being authentic and telling your company’s brand story. In comparison, the big guys online may be great repositories of products at a good price, but they’re kind of faceless. Give yourself a face. Put that face out there. Tell your story. Make people relate to you, and you’ve got the edge.”

SEMA News—March 2020

BUSINESS

By Mike Imlay

“SEMA Retail Landscape Report” Now Available for Download

Unique Market Study Sheds Light on the Business of Selling to Consumers

Despite dynamic changes in the retail environment, automotive specialty retailers remain optimistic about business growth. The first-ever “SEMA Retail Landscape Report” delves into their reasons for optimism, along with the challenges and tactical opportunities they’re finding in an increasingly digital marketplace.

It’s no secret that the retail environment has changed significantly over the past decade. Automotive specialty-equipment retailers in particular are dealing with new pressure points on a number of fronts. But what are the emerging trends that have industry retailers most concerned? And, more importantly, what tools and best practices are they utilizing to adapt? Those questions are at the forefront of a new SEMA market research report.

Titled “SEMA Retail Landscape Report: The Business of Selling to Consumers,” the 104-page study is available for free download at www.sema.org/market-research. The report includes major sections addressing the current state of specialty retail, along with close looks at the specific challenges and opportunities confronting retailers in the automotive aftermarket.

In addition, the report’s “Detailed Findings” section offers a deep dive into statistics touching on a wide variety of hot-button topics. Those include industry trends in sales and database management, marketing, changing customer buying habits and other retail-related issues. The report also contains a wealth of insights into marketing, advertising and communications tools, including social media; online sales and marketing practices; inventory management and shipping issues; and retail systems and processes.

Annual Sales Growth

Throughout the past decade, small businesses have continued to dominate the retail landscape, with general auto parts retail seeing steady growth.

“We know we have a huge sector of our SEMA membership on the retail side of the business,” said Gavin Knapp, SEMA director of market research. “A lot of them are very small companies. Our market research typically helps them understand the broader market or what industry customers are doing, so this report is a departure for us and somewhat different in terms of results. It focuses on the business side of retailing and sets out to help those companies from that standpoint.”

SEMA commissioned an independent research provider, W5 Inc., to execute the project. The study included in-depth telephone interviews and an online survey of people who own or manage specialty automotive retail businesses. Respondents represented businesses serving different sectors of the industry, such as truck accessories, off-road, tuning and speed shops. The report is further supplemented with relevant data from SEMA and third-party sources.

The research shows that small, single-location brick-and-mortar stores remain the backbone of the specialty auto parts retail space. Moreover, most shops get by with a small staff of employees. Sales channels break down as 69% through brick and mortar, 54% via a company website, 48% through phone/catalog sales and 39% through an online marketplace. Outlets with one to four employees represent 46% of the industry, while those with five to nine employees account for 21%.

Retailers Perceptions of Customers

Aftermarket retailers perceive erosion in customer loyalty as a consequence of digital trends. Not only have consumers increased their online shopping but also they come armed with price comparisons from a variety of online sellers when they do enter a brick-and-mortar environment.

“There are a couple of overarching results in the research that I think are important foundationally,” Knapp said. “One is that a lot of the businesses are run by industry enthusiasts. A lot of times, somebody who is an enthusiast will morph into retailing more as a way to stay in the hobby and lifestyle than to actually be a business person. That’s great, but it also sometimes leaves them without some of the business foundations that a lot of those companies are now trying to catch up on.”

Matt Kennedy, SEMA research manager and the project’s lead, said that the researchers also found that a lot of the issues and challenges those companies are facing are really small-business issues in general.

“That kind of gets compounded when you see people who are trying to run a small business and all that entails who are not by inclination or by education business people,” Kennedy said. “They’ve learned by doing and are often wearing too many hats to find an easy way to pick up the extra training and knowledge that would make some of this stuff easier.”

Far from presenting a bleak picture for industry retailers, the study found that many are embracing the rapidly evolving marketplace and finding new opportunities through a number of best practices.

How the Industry Has Changed

Industry retailers now view large online competitors as their greatest concern, with increasing wholesale parts costs also seen as a top challenge. The growing diversity and complexities of parts are also adding pressures on retailers.

Chief Retailer Concerns

Of the major difficulties confronting today’s aftermarket retailers, the SEMA research identified three overlapping concerns: increased competition from the online retail space, eroding consumer loyalty, and the rising costs and complexities of products.

“Online sales are growing and creating all manner of challenges,” Kennedy explained. “That’s as true for our industry as it is elsewhere in retail, if not more so. In all our research, we keep seeing that we’re even ahead of the curve when you look at overall retail versus specialty auto. A lot of businesses that we talked to are definitely feeling the pressure of competition from big online companies and even from smaller competitors who are also in the digital space. It can feel tough for smaller enthusiast retailers to adapt. Online is now a much bigger thing than it was 20 years ago.”

The broader range of competition naturally leads to erosion in customer loyalty, especially for brick-and-mortar outlets. The bottom line, Kennedy said, is that consumers now have more options than ever in terms of learning about products, where to buy them, and even how to install those products themselves.

“While it’s not necessarily a brand-new paradigm, this idea of suddenly having a new source of competition or consumers having other ways to get the stuff they want is definitely something retailers are concerned about,” he said. “Consumers can now go into a store and already have an idea not just of a part they want but also what price they can expect to pay for it elsewhere.”

Knapp noted that, while today’s consumers are indeed more knowledgeable than ever before, the trend is based mainly on self education.

“Everybody is online now,” Knapp said. “Everybody researches before they buy. It’s the way of the world. They know all the brands that are available, the specs, fitments and competitive pricing.”

However, he hastened to add, there are limits to customers’ expertise, and that plays a large role in the opportunities roadmap that the “SEMA Retail Landscape Report” eventually lays out.

Meanwhile, escalating wholesale parts costs have been a third trouble spot for retailers.

Opportunities for Success

In adjusting their sales and marketing tactics to the new realities, specialty-equipment retailers are placing a greater emphasis on social-media presence and personalized customer service. They are also offering a wider range of high-end products.

“Obviously, costs are also going up,” Kennedy said. “Products are becoming more expensive by virtue of inflation and also just because they’re getting more advanced. Put that against how consumers are more aware of competitive pricing options, and it can feel like a retailer’s margins are getting a little squeezed.

“The reality of it to some extent is that the more things change, the more they stay the same. As vehicles become more advanced, as technology changes, and as more products and more models become available out there, it’s a challenge to keep track of it all. It’s a challenge to make sure you have people who are up-to-date on what they need to know and the tools needed to install those products. You have to be as informed about the options that are out there—if not more so—than the consumers who come into your store.”

Knapp underscored that point.

“More brands, more SKUs—how do you keep up with all of it?” he asked. “How do you know what fits what? And with consumers being more informed as well, retailers have to make sure that they’re fully informed because if they’re not keeping up, customers will know. And they’ll go to a competitor because now there’s going to be a lack of trust.”

Moreover, today’s marketplace often appears toughest on mom-and-pop operations.

“Unfortunately, when we’re talking about small businesses, we’re back to one guy tending to wear a lot of hats,” Knapp observed.

How Retailers Have Adapted

Despite considerable challenges, aftermarket retailers have identified new avenues of opportunity offered by the web, including social media. The Internet has also given retailers access to new processes and systems to find new products and boost sales.

Identifying Opportunities

The good news is that the report nevertheless finds small retailers adapting and even thriving. Despite negative media hype, brick-and-mortar sales have held steady and even grown over the past several years. In fact, 53% of retailers, in general, said they saw sales increases over the past year, with an even more robust 70% anticipating growth in the year ahead. So what accounts for the upbeat picture?

“What we basically did for the opportunity side of the report was ask businesses how they’ve been adapting to their challenges and how they’re finding solutions,” Kennedy said. “We again ended up grouping their answers into three broader themes, because they’re all integrated in some way.”

One successful path for retailers has been to embrace an omni-channel strategy for both marketing and sales. That means maintaining a presence where your customers are—not just online but also wherever they’re researching and looking for ideas. How a retailer executes an omni-channel strategy will vary greatly depending upon its location, size of store and staff, not to mention its particular branding or product niche. Some examples might be web forums and social-media sites, including YouTube, Facebook, Instagram and Pinterest, as well as local car clubs, enthusiast events and other local gatherings.

“We’re not saying that you have to go throw a ton of money into all these different points,” Knapp explained. “It’s more about looking for the best ways you can actively engage your current and potential customers. It’s about being aware of where to find your customers, figuring out the most effective way to reach them and knowing that it’s not as simple as just having a store. The days of placing an ad in the Yellow Pages and waiting for people to roll in are long gone.”

And while many brick-and-mortar outlets have sought to expand their customer reach through online sales, Knapp cautioned against seeing that tactic as some sort of panacea. Yes, a virtual storefront can be a winning strategy, but it must be carefully thought out. It won’t necessarily fit every retail business model and will require much more than a flashy new e-commerce site.

Overall Retailers Are Optimistic

Amid marketplace pressures, retailers still maintain a healthy optimism regarding sales trends. The majority surveyed for the report (53%) have seen sales gains in the past year, and an even greater number (70%) are anticipating growth in the year to come.

“It’s going to give you minimal push if you’re not driving traffic to it,” Knapp asserted. “You have to be involved in events around you, social media and all of those touch points where your customers are getting information—and they’re getting it all over the place.”

In addition to omni-channels, the “SEMA Retail Landscape Report” identifies a focus on “customer experience” as a key component for success.

“It’s not always possible or easy to compete purely on price,” Kennedy observed. “What a decent number of businesses do in response to that is work on competing on service, advice and expertise. If you can’t be the cheapest in town, you can be somebody who gives customers more than one reason to come to your store. It’s about getting your customers to say, ‘I want to go here because they treat me right, they talk about what I need, they offer me the best solutions, or they host events on-site.’”

All told, 57% of retailers surveyed said that they’ve adapted to the changing retail climate by putting more effort into one-on-one or personalized service. That includes engaging with consumers and providing personal advice and expertise through customer service and support via the phone (83%), one-on-one conversations (78%), off-site events (55%), online chats (30%) and video tutorials (17%).

Marketing and Advertising Channels

When it comes to marketing and advertising, retailers have made the transition to digital. Of the channels most often utilized, social media tops the list, with the majority of retailers surveyed also saying it has proven the most successful.

While consumers are indeed more highly informed than ever, they’re also bombarded with information on the internet, notably from social media and enthusiast forums. Helping customers cut through the clutter with experience and sound advice goes a long way toward establishing trust. Some retailers have even reported success offering demo days, learning events and in-store gatherings to share ideas, have some fun and create a community.

The third area of opportunity identified by the research is improved operational efficiencies, which can apply to both people and systems.

“Right now, small companies are universally having problems finding, training and keeping the right people, so there’s an opportunity for those businesses that can do it well,” Knapp said. “Businesses that can step aside from sales for a bit and build in some training appear more able to thrive.”

Businesses should take a long-term approach to staffing, looking for new ways to find and recruit people and establish pipelines with trusted resources. Connect with community organizations, local high schools and junior colleges.

“Knowing people, building relationships and networking is more important now than ever before,” Knapp noted.

Moreover, many retailers seem hindered by solutions they have cobbled together over the years in the area of systems and processes—digital systems for sales, accounting, ordering and the like that don’t “talk” to each other.

“If you can’t move information between your systems or you have to do it manually, that creates a lot of inefficiency,” Knapp pointed out. “It can be hard to invest the time and money needed to improve the situation, but then think of the time and money you’re losing.

“We’re not saying you need a big, fancy integrated system. The reality is that there are national and multinational retailers that are having the same struggles finding their own solutions. It’s more about taking time to think about where there are break points, where you have inefficiencies. How can you create something a little more integrated or seamless that lets you save a few minutes here and there? Those few minutes add up in the long run.”

Even as they adapt and embrace the growing pains, smaller aftermarket retailers can take additional comfort in another key SEMA market research finding.

“The type of retail that’s doing well now is specialty retail—retail that’s focused on a certain niche or a certain type of experience,” Knapp said. “The great thing is that’s exactly what our guys are doing. They don’t need to compete with Amazon or try to be Amazon. They just need to be who they are and make sure that their customers know it.”

For Kennedy, that means “being authentic and telling your company’s brand story. In comparison, the big guys online may be great repositories of products at a good price, but they’re kind of faceless. Give yourself a face. Put that face out there. Tell your story. Make people relate to you, and you’ve got the edge.”

SEMA News—March 2020

REQUIRED READING

By Juan Torres

By SEMA Editors

YEN’s next live chat features entrepreneur Tate Morgan, owner and creator of the Gambler 500.

SEMA YEN presents a live chat with entrepreneur, owner and creator of the Gambler 500, Tate Morgan.

This live chat is an open Q&A where you will have a chance to communicate directly with Morgan as he answers questions regarding how he successfully created the Gambler 500 and off-roading cars for fun and profit.

Join the live chat on YEN’s Facebook page and come ready with questions to tap into Morgan’s expertise!

Date: Wednesday, March 4, 2020
Time: 12:00 p.m.–12:15 p.m. PST
Location: YEN Facebook Page (www.facebook.com/SEMAYEN)
Contact: Bryan Harrison, Director of Councils & Networks