SEMA News—December 2019

BUSINESS

ADAS Problem Solving

Hansen VTF Labs Demonstrates the Opportunity It Has Found in Calibration Services

By Mike Imlay

Hansen VTF Labs general managers Kevin Yen (left) and Steve Korkis prepare to calibrate the lane-departure alert on a Toyota Tacoma. The test-fit center has enhanced its business model with ADAS diagnostic services to meet a growing aftermarket need.

As OEMs roll out an expanding array of advanced driver-assistance systems (ADAS) on their new vehicles, the latest technologies are proving to be a mixed bag for the aftermarket. On one hand, they open new product channels for the industry’s suppliers and retailers. On the other, they present a challenge to collision-repair, customization and installation shops, all of which must contend with the safe functionality of ADAS components on completed projects.

However, every challenge is an opportunity in disguise, and at least one aftermarket service provider is emerging as a case study in leveraging ADAS technologies. Located in Anaheim, California, Hansen VTF Labs was co-founded in 2001 by brothers Chuck Hansen and David Hansen Sr. of Hansen Auto Body & Paint. Drawing upon their collision-repair experience, they set about offering aftermarket manufacturers a creative test-fit center for the research, design and production of high-quality parts. Today, Hansen VTF’s preproduction services include CAD and R&D assistance, jig and mold creation, digital scanning, master part selection, and vehicle test fits. The lab boasts ISO 9001:2015 certification and I-CAR-certified auto body technicians who bring a real-world view to their work.

The Tacoma was elevated to simulate a 6-in. aftermarket lift. The team used Autel MaxiSys ADAS calibration equipment to demonstrate that a simple vehicle software adjustment and calibration would bring the lane-departure feature back into compliance.

In 2019, the company added ADAS calibration to its list of services, giving collision repairers and other aftermarket businesses a speedy, cost-effective alternative to dealership or in-house ADAS calibrations. SEMA News recently toured the facility to see its business model firsthand. Although obviously a technology expert himself, President and CEO Chuck Hansen let his staff take the lead in explaining the lab’s operations.

“We decided that ADAS is something new and is going to be very important, so we have taken the initial investment to purchase equipment, get the training, get the knowledge, and help collision-repair shops improve cycle time,” said Steve Korkis, Hansen VTF Labs general manager. “Yes, they can take a vehicle to a dealer, but we all know the process. You can spend hours there waiting for a service adviser. They write you up, the vehicle goes to the back, and who knows when that technician gets to it? It could be two days, three days or even four days, from what we understand from some of the shops that we work with. So we are presenting same-day turnaround. We get the vehicle in, assess what needs to be calibrated, including pre-scans and post-scans, and then go from there.”

Laser targets on the Tacoma’s wheels helped ensure that all of the calibration equipment was properly aligned. Hansen VTF Labs carefully follows all OEM-specified procedures for each vehicle’s tests.

“After each ADAS calibration we perform a test drive to make sure everything is operating correctly before returning the vehicle to the customer,” added Kevin Yen, also a Hansen VTF general manager. “We want to make sure the vehicle is returned to its pre-collision condition.”

Yen noted that there are both dynamic and static calibrations associated with many ADAS systems, meaning that some functions will calibrate on their own while others will not. The trick is knowing what you’re dealing with—and it can vary from maker to maker and model to model.

The facility also serves as a proving ground for aftermarket products aimed at ADAS-equipped vehicles.

“We’re here to help the aftermarket industry make sure that their products are exact replacements for OE parts and operate the same,” Yen said. “OEMs have released positioning statements saying that aftermarket parts may not work well with their safety systems, so in order for us to fight that claim or statement, we have to get the equipment, get the car—for example, one with an aftermarket bumper and the OEM radar unit in the back—and see if it will calibrate and if that feature will work properly.”

This triangular deflector is used to test and calibrate vehicle radar systems. Placed at the OEM-prescribed distance, it supplies immediate feedback to the ADAS calibration equipment.

The lab’s equipment includes an Autel MaxiSys ADAS calibration unit complete with lasers, radar reflectors and targeting boards for all major manufacturers. The boards consist of differing black-and-white geometric patterns that help aim vehicle cameras. The lasers ensure precise distances, measurements and leveling when calibrating vehicles, and the deflectors act as calibration targets for radar beams.

“We bought the complete [Autel] package,” Yen said. “There are also a number of other manufacturers making ADAS calibration kits. It’s increasing every year.”

Korkis and Yen performed a live demonstration, recalibrating the lane-departure alert on a Toyota Tacoma truck raised to simulate the 6-in. lift of an aftermarket kit. On that particular model, they learned that changing the height measurement in the software and calibration were required for safety compliance.

Ensuring that rearview cameras satisfy FMVSS111 requirements can take a lot of room—and a lot of different targets and patterns for differing vehicle models. Hansen VTF Labs has invested heavily in the proper equipment.

“If we were keeping everything in the systems the same, it would fail the calibration,” Yen explained. “The vehicle doesn’t know the height has changed but if you tell the software that the height of the camera has moved up X amount of distance, it will successfully calibrate.”

Of course, it’s not always so easy. A Toyota Prius was also equipped with a front radar unit hidden behind its grille emblem. After a collision, a repairer shopped for new emblems online and chose a low-cost replacement. But after the repair, the car would suddenly brake for no apparent reason during test drives. The Hansen VTF Labs crew was able to isolate the problem: The replacement part was an incorrect emblem that interfered with the radar, triggering the vehicle’s automatic emergency braking system.

According to Yen, that is an increasingly common pitfall confronting repairers and vehicle modifiers.

“As soon as you remove that emblem and the radar is connected to it, Toyota will recommend that it be recalibrated,” he said. “But [the repair shop techs] are probably not going to know that because they aren’t up to date with OEM position statements. They’re just doing a simple swap of a part and think everything’s fine.”

In another case, a DIY repair to a Mazda 3 with radar sensors mounted behind the rear bumper resulted in failed blind-spot warnings. Although the owner had properly realigned everything during bumper replacement, he reused the original sensor mounts, which appeared undamaged. However, the lab eventually determined that the mounts were imperceptibly bent. Fresh hardware fixed the problem.

Fender replacement on this Mazda 3 disrupted its rear radar unit, even though everything seemed aligned. Testing ultimately determined that an imperceptible bend in the sensor’s mounting bracket was throwing off blind-spot detection.

“A lot of these parts, especially radar units, are very prone to damage,” Yen said. “If you drop one, the OEMs will recommend just to replace it because something inside could have been messed up or damaged at that point and you won’t know until you try recalibrating the radar sensor.”

Those examples illustrate why OEMs are meticulous about their policies and procedures for repairing or replacing parts—and the potential liabilities of failing to follow them. A vehicle won’t necessarily throw a warning light or code to tell you when ADAS components are out of whack. Adding to the confusion, each OEM has different calibration procedures for each of its vehicle models. No wonder that numerous local bodyshops, including mom-and-pop operations, have turned to Hansen VTF Labs’ expertise in ADAS diagnostics.

“We’re definitely educating our local bodyshops,” Korkis said. “Not everyone knows about this yet—for example, windshield replacement businesses. Because there are so many features inside that glass, the cost has gone up just for the windshield glass itself. Now you have to add on [the costs of] additional calibration for that little lane camera that recognizes lane departure.”

Korkis makes final adjustments to the Autel unit for calibration. He will read the scan data from the diagnostic tablet he holds in his right hand. After calibration of the ADAS systems, the truck will go on a test drive to verify the systems perform correctly and safely.

Yen added that even used-car dealers who get their vehicles at auction are feeling the impact of ADAS.

“Not all cars are perfect at the auctions,” he explained. “Some have had some sort of hit in the corner or something. So they’ll buy it because it’s cheaper and fix it back up. We’ve visited many used-car lots to offer this service as well. Like anyone else, they’re not fully aware of these calibrations because there’s not necessarily a message on the dashboard that would tell you that your system is not working properly.”

Will the Hansen VTF Labs business model catch on? Chuck Hansen and his crew believe there’s a pressing need that will only grow with each advancing OE model year. They can envision many more calibration centers popping up soon to address that need for every type of aftermarket company that repairs, restores or modifies new and late-model vehicles. In the meantime, Hansen VTF Labs serves as another example of the specialty-equipment industry’s endless drive to innovate, try new things, and leverage emerging technologies.

SEMA News—December 2019

RETAILER BEST PRACTICES

By Joe Dysart

SEVEN Tactics for Creating Social-Media Buzz

Generating buzz on social media is one part art, one part science.

You can significantly spike visits to your e-commerce site with clever promotional campaigns, which can generate intense fascination for your product or service on social media. As you’ve most likely seen, such campaigns can go viral and attract millions of visits to an e-commerce site. But even those that are less influential can still bring buyers and increase sales at your site.

Below are some of the more popular tactics marketers use to create buzz on social media, along with the tools you can use to analyze how each tactic is working for you.

Host a Contest or Sweepstakes: Popular since the dawn of commerce, the use of contests and sweepstakes has migrated effortlessly to the web. Sign-up is a snap, and news of exciting contests and sweepstakes tends to pass quickly from one friend to another. In addition to social-media exposure, merchants find they’re able to collect numerous email addresses from participants that they’re able to use for other promotional purposes.

Find the Video Angle on Any Buzz You Want to Create: You’ve probably heard it before: Video is one of the most potent mediums for any sort of messaging on the web. Some retailers use video to develop how-to’s on the products and services they offer. Others use it to invite customers and potential customers behind the scenes, where they meet interesting people in your business via authentic interviews and/or profiles. Still other retailers use video to create quirky images for their brands or to imbue their brand with a sense of humor.

The applications are endless, of course. Just be sure that, in the end, you’re using video in some way to generate buzz.

Create Consumer Anticipation for a New Product or Service: Many a consumer imagination has been captured with stories and videos leading up to a new product or service launch by a retailer. The trick, of course, is to tell the story in a riveting way. You may have the talent to do that yourself, or you may want to bring in a promotional specialist to create anticipation. Either way, you can add to the sense of anticipation by enabling your customers to pre-order the new product or service and be among the first to experience it.

Claim and Use Social-Media Hashtags Associated with Your Store: As Twitter users know, hashtags (#) enable people to organize conversations on highly specific topics on Twitter. Not surprisingly, all the most common hashtags (including #autoparts, #autorepair and #autotech) are already in use, but there are still plenty of hashtags you can invent to create conversations about your store on Twitter.

One of the best ways to unearth such hashtags is to use a social-media analysis tool (like many below), which will identify search-engine terms potential customers are using to find the kind of products that you sell. You may discover, for example, that potential customers are frequently using a search term such as “car battery good price Chicago” to find retailers offering competitive pricing on car batteries there.

Grabbing that search term for your store is as easy as turning it into a hashtag (#carbatterygoodpricechicago) and making a post that advertises your auto retail store under that hashtag. The next time someone uses that search term on Twitter, your auto retail store ad will pop up in Twitter’s returns. Moreover, if the hashtag starts getting additional content and competing posts from other Twitter users, you can stay atop of the feed for your hashtag by making additional posts under it.

“Whatever hashtag you come up with, just make sure you test it on all the major social-media platforms,” said Will Blunt, founder of Flypchart (https://flypchart.co). “It might already be in use for another business or subject matter that you don’t want to be associated with.”

Post During Optimal Social-Media Usage: Determining the best moment to post on social media (in terms of being able to reach the largest audience) is an ever-evolving sport that is part art and part science. Sprout Social has been doing it a while and released a study on what’s working best for 2019 (www.sproutsocial.com/insights/best-times-to-post-on-social-media). Essentially, the report offers advice on the best times for your store to post on Facebook, Instagram, Twitter and LinkedIn.

Get Help from Social-Media Influencers: We live in the age of the YouTube star, the Snapchat star, the Instagram star and all sorts of other social-media network stars. Virtually all of those people trade on their fame to advertise for brands, and you might as well join the party.

A quick search of social-media networks will most likely yield influencers who make sense as advertisers/promoters of your brand, but you can also use a number of social-media monitoring tools (see below) that instantly identify influencers who can help push more sales your way.

Stay Engaged: After all the tactics, social media is about being social. Not surprisingly, customers and potential customers there respond most fervently to stores that stay engaged with them and care about what they’re posting.

“If you want to really connect with your audience and get them talking, you need to engage,” said Flypchart’s Blunt. “This is more than just regular old customer service. Participate in social-media conversations and respond to comments on your blog posts and YouTube videos. It takes time, but the payoff is worth it when you build real relationships with your audience.”

Monitoring Your Social-Media Buzz’s Performance

Once you’ve gotten the hang of creating social-media buzz, you’ll want to use one or more monitoring tools to analyze which tactics are working best for you.

“Analytics can give you huge insights into your social-media strategies and optimize what you’re doing so you can spend less time on social media,” said Christian Askin, a digital marketer (www.christianaskin.com). “Analytics are built into nearly every social-media platform and are relatively easy to use, and social-media platforms have worked hard so that non-experts can navigate the information easily.”

Below is a rundown on some of the more popular social-media monitoring tools for that purpose.

Awario (www.awario.com): A comprehensive monitoring tool, Awario captures mentions of your store on social media and offers statistics on the growth of mentions about your store, sentiment of those mentions, locations of posters and the like. It also matches keywords for your website with people who are using them, and it displays a list of social-media influencers who can help promote your e-commerce site.

Socialbakers (www.socialbakers.com): Socialbakers identifies the kinds of people likely to buy your product or service by analyzing your audience interest, how your content performs, mentions of your store’s brand, and consumer sentiment for your brand. It will also identify influencers you can contact who will most likely do best in promoting your store on social media.

Rival IQ (www.rivaliq.com): This monitoring service tracks posts about your e-commerce site along with likes, comments and similar activity on all major social-media channels, including Twitter, Facebook, Instagram and Pinterest. As a bonus, it also integrates with the free Google Analytics (https://analytics.google.com).

Union Metrics (www.unionmetrics.com): This tool will assess how the social-media content you post is performing on Twitter, Facebook and Instagram. It will also show you when your customer base is most active. And you can use it to identify appropriate influencers you can connect with to promote your store on social medial.

Union Metrics also tracks social-media trends that you can plug into with your own content, and it will show you how you stack up against your competitors.

Hootsuite (www.hootsuite.com): This is an extremely popular social-media monitor tool. It’s very easy to navigate and allows you to easily schedule posts days, weeks or even months in advance. For metrics, Hootsuite offers analysis of your store’s performance on Twitter, Facebook and Instagram, with a number of reports for each.

Sprout Social (www.sproutsocial.com): Use Sprout Social to monitor your store’s performance on Facebook, Twitter, Instagram and LinkedIn. The tool also shows you how you stack up against your competitors.

Keyhole (www.keyhole.co): Keyhole is designed to monitor your store’s performance on Twitter and Instagram. It generates charts on that data, showing how social-media users are engaging with your store, which posts contain keywords associated with your store, consumer sentiment on your brand, and more.

Snaplytics (www.snaplytics.io): This tool is designed for retailers looking to closely monitor how they’re perceived on Instagram and Snapchat. Metrics include how your stories are performing on those networks as well as the growth of your followers.

Squarelovin (www.squarelovin.com): This is another nice tool that specializes in monitoring your store’s presence and influence on Snapchat. Use Squarelovin to track likes and followers, measure the performance of your posts, and assess overall engagement of your brand with Snapchat users.

Tailwind (www.tailwindapp.com): This is an analytics-heavy tool specially designed for Pinterest and Instagram. Track your followers with Tailwind, as well as your store’s performance on your boards, repins of your Pinterest pins, likes, user comments and similar data.

Joe Dysart is an internet speaker and business consultant based in Manhattan.

646-233-4089

joe@joedysart.com

www.joedysart.com

SEMA News—December 2019

BUSINESS

What’s Trending for 2020

SEMA’s Council and Network Leaders Discuss the State of Their Respective Marketplaces

Many of SEMA’s councils and networks are working with the association to expand outreach programs to bring youth into the automotive specialty-equipment industry.

We spoke with SEMA’s council and network leaders to find out what initiatives they are working on, what’s currently trending in their markets and what they envision the future might hold, and also the challenges they face. Common themes include fighting government overreach, the continued growth of advanced driver assistance systems (ADAS) and expanding youth outreach programs.

Tray Smith

Automotive Restoration Market Organization (ARMO) Chair: Tray Smith, H&H Classic Parts

The restoration pie is not really growing; there’s stronger competition for everybody’s piece of the pie. The company that stays out in front with a cutting-edge website and digital marketing strategy is the one that’s going to get the best piece. Manufacturers and retailers must always look out for what’s next. In the hot-rod and restoration market, the square-body truck is the hot thing, so we’re all scrambling to get as much product out there for square bodies as possible. You’ve always got to be looking through a set of binoculars to determine what’s coming down the road.

ARMO sets five new objectives designed to help the market. We’ll look at how those objectives align with Board initiatives and within the ARMO mission statement and we’ll go from there. The big thing we just finished is our council outreach initiative where we went with both
HRIA and SEMA to educate high school counselors about what is available to them through SEMA. It’s all about establishing career paths and bringing the next generation into the automotive aftermarket industry.

For restoration, restomod customization is ruling the roost. Core restoration will always be there, but the restomod and custom car is at the forefront, and we see that reflected in product that we’re selling; more upgrades, more accessories, more conversion products.

One of the biggest challenges for our market is the internet sales tax that has hit us all since the South Dakota vs. Wayfair decision last year. It changed the landscape as far as what businesses must charge for sales tax, and we have to make sure we are compliant with the states that have already initiated the sales tax program and understand the cost to businesses. It’s a little bit scary, but at the same time, it is what it is.

Ian Lehn

Emerging Trends & Technology Network (ETTN) Chair: Ian Lehn, BOOSTane

Vehicle electrification and autonomy will continue to be more prevalent in our industry. However, they shouldn’t be looked at as hurdles, but instead opportunities. These new technologies and trends toward autonomy are opportunities for our industry to look at new business. The other trend we will see is that the landscape of vehicle ownership will continue to evolve. When I turned 15½, the first thing I did was get my buddies to take me from class to the DMV to take my driving test and then I drove back to school. Back then, getting our licenses represented our freedom. We were the last generation who felt that way. Due to ridesharing, it’s no longer necessary to get your license to visit your buddies.

ETTN recognizes that much of the industry views these types of progressions as a hindrance, but I don’t think it needs to be looked at that way. There are many opportunities to capitalize on vehicle autonomy, electrification and internal combustion engine advancements. There are still plenty of youngsters who are into racing and vehicle modification. My daily driver wasn’t the vehicle that I was doing all of my modifications to; it was the car I was rebuilding in my dad’s garage. Those kids still exist; cars are still cool. Since I left my house this morning, I’ve gone in an Uber to the airport, taken a train to the train station and I’m currently on an electric scooter. This is a perfect representation of the way things are going. I don’t necessarily need a daily driver to go about my routine, but that doesn’t mean I don’t have a vehicle at home that I’m working on and buying parts for. Our industry is still alive and well among my generation and younger, but we look different. That shouldn’t be a scary thing; just be willing to adapt.

ETTN is working on a couple projects in their early stages. The first is a vehicle-sharing program, which is designed for businesses that are trying to innovate the next generation of products but need vehicles to be able to do that. For example, people are having a hard time getting their hands on the new C8 Corvette, and the ones who can are finding they’re pretty expensive. Why shouldn’t all companies try to innovate around that new platform? We are trying to offer a network of businesses that say “listen, I have a new C8 Corvette and you have a new Camaro LS1. Let’s trade. Do all the testing and measuring you need to do.” We are trying to be the online dating site for vehicle sharing. We will offer the platform to make the connection, but it’s up to you to set the date and decide where to eat.

The challenges we face today are the same ones the industry has always faced—the stigma that the industry is going to disappear because of new technology. ETTN as a network is always going to try to dispel that line of thinking. Technology shouldn’t be looked at as a roadblock, but instead a pitstop.

Jeffrey Major

Hot Rod Industry Alliance (HRIA) Chair: Jeffrey Major, Bedwood and Parts LLC

As we are seeing with the rest of the aftermarket, pickup accessories also continue to drive growth in the hot-rod segment. For HRIA-member companies, the state sales tax nexus issue has moved front and center and has the potential to be the greatest challenge we have ever faced. Although there are various sources of information, SEMA’s Washington, D.C., office is compiling a state-by-state guideline to assist our member companies. Our members are also challenged with enforcing minimum advertised pricing (MAP) policies with their dealer network. As this can be a sensitive issue, we are researching the methods and enforcement ideas that have proven successful to share with our membership.

Rob Fisher

Motorsports Parts Manufacturers Council (MPMC) Chair: Rob Fisher, E3 Spark Plugs

Many of our member companies are having a good year from a sales standpoint. There seems to be good competitor growth within certain motorsports segments. Just look at the factory stock supercar ranks in both NHRA and NMCA; they have had some solid fields this year. Outlaw drag racing is a perennial favorite. Fan interest is growing as well. I feel positive about the outlook for racing and manufacturers that make parts for race cars. If the economy keeps pace, we should have a good 2020.

We are working on several initiatives as a council, including developing a new “members only” program that will complement our annual Media Trade Conference (MTC). This will fortify our exclusive member benefits, making MPMC membership that much more valuable. We will also add a comprehensive section to the MPMC Business Guidelines Manual (free to all SEMA members) that will cover everything they need to know about remaining emissions compliant, including how to gain an EO from CARB. Finally, we will continue our push to attract new media organizations to attend the MTC. Last year we had 11 new media groups attend the event. Not only do we expect them to return, but we are also pushing for more new media to attend.

Across the board, technology is trending. Embracing digital technologies to help drive sales and connect with customers, automating manufacturing processes, updating facilities technology or simply trying to bring new technologies from other industries to motorsports are all areas where advancing technologies will make an impact. It’s up to us to embrace those technologies and make it a positive impact.

I think the tariffs are still an issue of concern. Regardless of whether or not you manufacture in China, the ongoing trade dispute does have the potential to slow the economy, which nobody wants. Barring that, government overreach is still a primary concern and always will be. The current administration has been more friendly to our industry, but one election can change all of that, so we have to remain vigilant in fighting for our rights.

Dino Perfetti

Professional Restylers Organization (PRO) Chair: Dino Perfetti, Automotive Concepts/Champion Heated Seats

The restyling industry has as many challenges as opportunities. When marketing, selling and installing aftermarket products through new-car dealer franchises, OEMs view restylers as competitors when they are not.

Providing upgrades that consumers desire and deserve is ultimately the purpose of restyling. Not all car buyers want or need the platinum-edition trim level that puts them in financial hardship. The base-model Ford F-150 with added aftermarket leather is an excellent option for many buyers because it offers the luxury of a superior-feeling interior at an affordable price.

One of PRO’s new initiatives at this year’s SEMA Show will be the SEMA PRO Cup Challenge. This is an opportunity for restylers to build and display a vehicle on a dealership’s floor that appeals to many potential buyers while being both affordable and profitable to both the restyler and dealer franchise. The rules for this inaugural year are simple: do not exceed $12,500 MSRP for the package and build the vehicle within 20 labor hours. Sound simple enough? Hardly. The key to a successful build starts with the correct vehicle platform while allowing enough margin for a solid return on investment.

A finished product with a strong curb appeal and highly marketable branding will set apart the winner from the rest of the field. Judging also requires restylers to comply with seamless integration between OEM technology and the chosen aftermarket components. The four restylers selected for these vehicles to be displayed at the SEMA Show will set the stage for further competitions to expand on the anticipated success. The goal is for restylers throughout the country to reproduce these package designs.

Lana Chrisman

SEMA Businesswomen’s Network (SBN) Chair: Lana Chrisman, McLeod Racing

I see our industry as anxious to keep up with the demand for automotive technology that matches the consumer’s way of life. Cars have always represented an extension of our lifestyle and personality. For our industry to remain relevant and for cars to hold their place, it’s going to take entrepreneurs with vision to accommodate the demands of today’s consumers. Automotive performance must go beyond torque and horsepower.

The SBN is working to rebrand itself as a network that we feel will impact both women and men in our industry. The major initiatives we are focusing on this year include career development, industry best practices, mentoring programs and women-owned business programs.

As we have seen in other industries, the women’s movement has been much publicized. SBN has been monitoring this trend and feels confident that the programs we are initiating will provide value to SEMA-member employees and companies. Our career development program will provide resources and skill development for both women and men of all experience levels. The industry best-practices program is still a work in progress, but we hope this program will provide affordable benefits that will make SEMA-member companies more competitive in the job market.

Erika Marquez

Truck & Off-Road Alliance (TORA) Chair: Erika Marquez, Warn Industries Inc.

Our industry continues to grow and there is more expected for next year. According to the “2019 SEMA Industry Perspectives” report, 73% of businesses expect their company’s sales to grow over the next year. It is great to hear that consumer sentiment toward the United States’ economy is positive. In our market segment, we see more of the traditional light-truck accessories retailers diversifying into off-road markets. The pickup segment accounts for the biggest slice of consumer dollars spent on specialty parts with a 29% share, according to
the report.

We just recently finished our long-range plans for our fiscal year 2020, and we hope to recruit new off-road members who are looking for a home within the SEMA community. Ensuring our current light-truck members continue to feel part of our council is a priority, and we have created task forces to preserve and improve the value we offer to our members. A vehicle technology and education subcommittee has also been created to offer the latest vehicle trends and new safety performance technology. Other task forces include regional networking events/community building and communications/social media, which were created to promote all of our networking events and communicate important information to our membership via social media and monthly email updates.

In terms of vehicle sales, the light-truck market continues to grow. However, the consumer demographic is switching as more millennials are purchasing vehicles. Although pickups and SUVs are still experiencing strong sales, CUVs are projected to drive the majority of growth in the light-truck market over the next five years, according to the “SEMA Future Trends Report,” with 69% market share by 2025. Younger generations are looking for style and off-road capabilities without sacrificing performance and fuel efficiency. There is a need for more aftermarket products and accessories to upfit the huge number of CUVs projected to be on the road.

The trade war between the United States and China poses a challenge for our industry. American-made manufacturers that source products impacted by increased tariffs are having to pass some of those increases on to the consumer, and in the long run, this is going to affect the economy and slow consumer spending. Corporate strategies to mitigate this situation cause disruptions in supply chains, and that makes planning difficult. Secondly, customizing and modifying vehicles with factory-installed ADAS technology is something we need to address since these systems are becoming standard equipment on every new light truck produced. SEMA is already working on understanding this technology and helping member companies understand how their businesses will be impacted by it.

Tyson Boyer

Wheel & Tire Council (WTC)Chair: Tyson Boyer, Dill Air Controls Products LLC

The wheel and tire marketplace continues to face challenges as we near the end of 2019. Some of these challenges can be attributed to the slowed growth in new-car sales, major mergers and acquisitions over the last few years, variable raw materials costs and global economic and trade uncertainties, most notably the continued increases in tariffs. These are causing manufacturers in our space to redefine company goals and in some cases to put a hold on their aggressive expansion plans. This means you cannot sit still because the change-opportunity time is ripe. If you are an independent business owner or shop manager, take action! Look at this two dimensionally—internal versus external.

On the internal side, collectively brainstorm for new sales techniques, transform your B2C product offerings, engage in alternative training, dissect your technology in-house and on the e-commerce side, as well as your team’s aptitude in order to constantly deliver beyond the customer’s expectations. Externally, creatively review your current business model and update your customer value propositions to adapt to the rapidly changing digital space. Analyze your partnerships and sourcing strategies. Trust your gut and do not hold back on taking the calculated risk move.

The Wheel & Tire Council is actively working on modernized resources that will provide our segment with education and service practices to better understand and qualify the newest technology in vehicles that you may see today. This includes highlighting the more common in-bay challenges with suggested ways to achieve greater results.

Kirstin Stone

Young Executives Network (YEN) Chair: Kirstin Stone, Derive Systems

The most recent generational shift has really changed the landscape for hiring and retaining employees in the industry. Millennials, who make up the vast majority of the YEN membership at this point, also make up about 50% of the workforce. Too often, we hear about millennials being job-hopping flakes who seek oddball perks, such as nap rooms and ping pong tables. The reality is, though, that this hasn’t played out in the real world.

One of the greatest driving forces for our generation when it comes to choosing an employer is finding purpose in our work, and that’s great news for the aftermarket. Most people in this industry were enthusiasts before their time in the workforce started, so the purpose is built in. The SEMA YEN is dedicated to helping this passionate, driven bunch of young professionals develop their passion for the automotive aftermarket into sustainable, long-term career choices.

As a network, YEN is focused on connecting young professionals in ways that can enhance their careers and grow their industry involvement in the long run. We know that it will ultimately benefit not only the individuals, but also the companies that employ them. This year, that means growing and expanding the Lunch and Learn program and offering new opportunities for networking with likeminded professionals. We’ll also increase our presence and availability on social media, with the ultimate goal of bridging into real-life communication when we can, which has never been more possible than it is now.

SEMA News—December 2019

BUSINESS

What’s Trending for 2020

SEMA’s Council and Network Leaders Discuss the State of Their Respective Marketplaces

Many of SEMA’s councils and networks are working with the association to expand outreach programs to bring youth into the automotive specialty-equipment industry.

We spoke with SEMA’s council and network leaders to find out what initiatives they are working on, what’s currently trending in their markets and what they envision the future might hold, and also the challenges they face. Common themes include fighting government overreach, the continued growth of advanced driver assistance systems (ADAS) and expanding youth outreach programs.

Tray Smith

Automotive Restoration Market Organization (ARMO) Chair: Tray Smith, H&H Classic Parts

The restoration pie is not really growing; there’s stronger competition for everybody’s piece of the pie. The company that stays out in front with a cutting-edge website and digital marketing strategy is the one that’s going to get the best piece. Manufacturers and retailers must always look out for what’s next. In the hot-rod and restoration market, the square-body truck is the hot thing, so we’re all scrambling to get as much product out there for square bodies as possible. You’ve always got to be looking through a set of binoculars to determine what’s coming down the road.

ARMO sets five new objectives designed to help the market. We’ll look at how those objectives align with Board initiatives and within the ARMO mission statement and we’ll go from there. The big thing we just finished is our council outreach initiative where we went with both
HRIA and SEMA to educate high school counselors about what is available to them through SEMA. It’s all about establishing career paths and bringing the next generation into the automotive aftermarket industry.

For restoration, restomod customization is ruling the roost. Core restoration will always be there, but the restomod and custom car is at the forefront, and we see that reflected in product that we’re selling; more upgrades, more accessories, more conversion products.

One of the biggest challenges for our market is the internet sales tax that has hit us all since the South Dakota vs. Wayfair decision last year. It changed the landscape as far as what businesses must charge for sales tax, and we have to make sure we are compliant with the states that have already initiated the sales tax program and understand the cost to businesses. It’s a little bit scary, but at the same time, it is what it is.

Ian Lehn

Emerging Trends & Technology Network (ETTN) Chair: Ian Lehn, BOOSTane

Vehicle electrification and autonomy will continue to be more prevalent in our industry. However, they shouldn’t be looked at as hurdles, but instead opportunities. These new technologies and trends toward autonomy are opportunities for our industry to look at new business. The other trend we will see is that the landscape of vehicle ownership will continue to evolve. When I turned 15½, the first thing I did was get my buddies to take me from class to the DMV to take my driving test and then I drove back to school. Back then, getting our licenses represented our freedom. We were the last generation who felt that way. Due to ridesharing, it’s no longer necessary to get your license to visit your buddies.

ETTN recognizes that much of the industry views these types of progressions as a hindrance, but I don’t think it needs to be looked at that way. There are many opportunities to capitalize on vehicle autonomy, electrification and internal combustion engine advancements. There are still plenty of youngsters who are into racing and vehicle modification. My daily driver wasn’t the vehicle that I was doing all of my modifications to; it was the car I was rebuilding in my dad’s garage. Those kids still exist; cars are still cool. Since I left my house this morning, I’ve gone in an Uber to the airport, taken a train to the train station and I’m currently on an electric scooter. This is a perfect representation of the way things are going. I don’t necessarily need a daily driver to go about my routine, but that doesn’t mean I don’t have a vehicle at home that I’m working on and buying parts for. Our industry is still alive and well among my generation and younger, but we look different. That shouldn’t be a scary thing; just be willing to adapt.

ETTN is working on a couple projects in their early stages. The first is a vehicle-sharing program, which is designed for businesses that are trying to innovate the next generation of products but need vehicles to be able to do that. For example, people are having a hard time getting their hands on the new C8 Corvette, and the ones who can are finding they’re pretty expensive. Why shouldn’t all companies try to innovate around that new platform? We are trying to offer a network of businesses that say “listen, I have a new C8 Corvette and you have a new Camaro LS1. Let’s trade. Do all the testing and measuring you need to do.” We are trying to be the online dating site for vehicle sharing. We will offer the platform to make the connection, but it’s up to you to set the date and decide where to eat.

The challenges we face today are the same ones the industry has always faced—the stigma that the industry is going to disappear because of new technology. ETTN as a network is always going to try to dispel that line of thinking. Technology shouldn’t be looked at as a roadblock, but instead a pitstop.

Jeffrey Major

Hot Rod Industry Alliance (HRIA) Chair: Jeffrey Major, Bedwood and Parts LLC

As we are seeing with the rest of the aftermarket, pickup accessories also continue to drive growth in the hot-rod segment. For HRIA-member companies, the state sales tax nexus issue has moved front and center and has the potential to be the greatest challenge we have ever faced. Although there are various sources of information, SEMA’s Washington, D.C., office is compiling a state-by-state guideline to assist our member companies. Our members are also challenged with enforcing minimum advertised pricing (MAP) policies with their dealer network. As this can be a sensitive issue, we are researching the methods and enforcement ideas that have proven successful to share with our membership.

Rob Fisher

Motorsports Parts Manufacturers Council (MPMC) Chair: Rob Fisher, E3 Spark Plugs

Many of our member companies are having a good year from a sales standpoint. There seems to be good competitor growth within certain motorsports segments. Just look at the factory stock supercar ranks in both NHRA and NMCA; they have had some solid fields this year. Outlaw drag racing is a perennial favorite. Fan interest is growing as well. I feel positive about the outlook for racing and manufacturers that make parts for race cars. If the economy keeps pace, we should have a good 2020.

We are working on several initiatives as a council, including developing a new “members only” program that will complement our annual Media Trade Conference (MTC). This will fortify our exclusive member benefits, making MPMC membership that much more valuable. We will also add a comprehensive section to the MPMC Business Guidelines Manual (free to all SEMA members) that will cover everything they need to know about remaining emissions compliant, including how to gain an EO from CARB. Finally, we will continue our push to attract new media organizations to attend the MTC. Last year we had 11 new media groups attend the event. Not only do we expect them to return, but we are also pushing for more new media to attend.

Across the board, technology is trending. Embracing digital technologies to help drive sales and connect with customers, automating manufacturing processes, updating facilities technology or simply trying to bring new technologies from other industries to motorsports are all areas where advancing technologies will make an impact. It’s up to us to embrace those technologies and make it a positive impact.

I think the tariffs are still an issue of concern. Regardless of whether or not you manufacture in China, the ongoing trade dispute does have the potential to slow the economy, which nobody wants. Barring that, government overreach is still a primary concern and always will be. The current administration has been more friendly to our industry, but one election can change all of that, so we have to remain vigilant in fighting for our rights.

Dino Perfetti

Professional Restylers Organization (PRO) Chair: Dino Perfetti, Automotive Concepts/Champion Heated Seats

The restyling industry has as many challenges as opportunities. When marketing, selling and installing aftermarket products through new-car dealer franchises, OEMs view restylers as competitors when they are not.

Providing upgrades that consumers desire and deserve is ultimately the purpose of restyling. Not all car buyers want or need the platinum-edition trim level that puts them in financial hardship. The base-model Ford F-150 with added aftermarket leather is an excellent option for many buyers because it offers the luxury of a superior-feeling interior at an affordable price.

One of PRO’s new initiatives at this year’s SEMA Show will be the SEMA PRO Cup Challenge. This is an opportunity for restylers to build and display a vehicle on a dealership’s floor that appeals to many potential buyers while being both affordable and profitable to both the restyler and dealer franchise. The rules for this inaugural year are simple: do not exceed $12,500 MSRP for the package and build the vehicle within 20 labor hours. Sound simple enough? Hardly. The key to a successful build starts with the correct vehicle platform while allowing enough margin for a solid return on investment.

A finished product with a strong curb appeal and highly marketable branding will set apart the winner from the rest of the field. Judging also requires restylers to comply with seamless integration between OEM technology and the chosen aftermarket components. The four restylers selected for these vehicles to be displayed at the SEMA Show will set the stage for further competitions to expand on the anticipated success. The goal is for restylers throughout the country to reproduce these package designs.

Lana Chrisman

SEMA Businesswomen’s Network (SBN) Chair: Lana Chrisman, McLeod Racing

I see our industry as anxious to keep up with the demand for automotive technology that matches the consumer’s way of life. Cars have always represented an extension of our lifestyle and personality. For our industry to remain relevant and for cars to hold their place, it’s going to take entrepreneurs with vision to accommodate the demands of today’s consumers. Automotive performance must go beyond torque and horsepower.

The SBN is working to rebrand itself as a network that we feel will impact both women and men in our industry. The major initiatives we are focusing on this year include career development, industry best practices, mentoring programs and women-owned business programs.

As we have seen in other industries, the women’s movement has been much publicized. SBN has been monitoring this trend and feels confident that the programs we are initiating will provide value to SEMA-member employees and companies. Our career development program will provide resources and skill development for both women and men of all experience levels. The industry best-practices program is still a work in progress, but we hope this program will provide affordable benefits that will make SEMA-member companies more competitive in the job market.

Erika Marquez

Truck & Off-Road Alliance (TORA) Chair: Erika Marquez, Warn Industries Inc.

Our industry continues to grow and there is more expected for next year. According to the “2019 SEMA Industry Perspectives” report, 73% of businesses expect their company’s sales to grow over the next year. It is great to hear that consumer sentiment toward the United States’ economy is positive. In our market segment, we see more of the traditional light-truck accessories retailers diversifying into off-road markets. The pickup segment accounts for the biggest slice of consumer dollars spent on specialty parts with a 29% share, according to
the report.

We just recently finished our long-range plans for our fiscal year 2020, and we hope to recruit new off-road members who are looking for a home within the SEMA community. Ensuring our current light-truck members continue to feel part of our council is a priority, and we have created task forces to preserve and improve the value we offer to our members. A vehicle technology and education subcommittee has also been created to offer the latest vehicle trends and new safety performance technology. Other task forces include regional networking events/community building and communications/social media, which were created to promote all of our networking events and communicate important information to our membership via social media and monthly email updates.

In terms of vehicle sales, the light-truck market continues to grow. However, the consumer demographic is switching as more millennials are purchasing vehicles. Although pickups and SUVs are still experiencing strong sales, CUVs are projected to drive the majority of growth in the light-truck market over the next five years, according to the “SEMA Future Trends Report,” with 69% market share by 2025. Younger generations are looking for style and off-road capabilities without sacrificing performance and fuel efficiency. There is a need for more aftermarket products and accessories to upfit the huge number of CUVs projected to be on the road.

The trade war between the United States and China poses a challenge for our industry. American-made manufacturers that source products impacted by increased tariffs are having to pass some of those increases on to the consumer, and in the long run, this is going to affect the economy and slow consumer spending. Corporate strategies to mitigate this situation cause disruptions in supply chains, and that makes planning difficult. Secondly, customizing and modifying vehicles with factory-installed ADAS technology is something we need to address since these systems are becoming standard equipment on every new light truck produced. SEMA is already working on understanding this technology and helping member companies understand how their businesses will be impacted by it.

Tyson Boyer

Wheel & Tire Council (WTC)Chair: Tyson Boyer, Dill Air Controls Products LLC

The wheel and tire marketplace continues to face challenges as we near the end of 2019. Some of these challenges can be attributed to the slowed growth in new-car sales, major mergers and acquisitions over the last few years, variable raw materials costs and global economic and trade uncertainties, most notably the continued increases in tariffs. These are causing manufacturers in our space to redefine company goals and in some cases to put a hold on their aggressive expansion plans. This means you cannot sit still because the change-opportunity time is ripe. If you are an independent business owner or shop manager, take action! Look at this two dimensionally—internal versus external.

On the internal side, collectively brainstorm for new sales techniques, transform your B2C product offerings, engage in alternative training, dissect your technology in-house and on the e-commerce side, as well as your team’s aptitude in order to constantly deliver beyond the customer’s expectations. Externally, creatively review your current business model and update your customer value propositions to adapt to the rapidly changing digital space. Analyze your partnerships and sourcing strategies. Trust your gut and do not hold back on taking the calculated risk move.

The Wheel & Tire Council is actively working on modernized resources that will provide our segment with education and service practices to better understand and qualify the newest technology in vehicles that you may see today. This includes highlighting the more common in-bay challenges with suggested ways to achieve greater results.

Kirstin Stone

Young Executives Network (YEN) Chair: Kirstin Stone, Derive Systems

The most recent generational shift has really changed the landscape for hiring and retaining employees in the industry. Millennials, who make up the vast majority of the YEN membership at this point, also make up about 50% of the workforce. Too often, we hear about millennials being job-hopping flakes who seek oddball perks, such as nap rooms and ping pong tables. The reality is, though, that this hasn’t played out in the real world.

One of the greatest driving forces for our generation when it comes to choosing an employer is finding purpose in our work, and that’s great news for the aftermarket. Most people in this industry were enthusiasts before their time in the workforce started, so the purpose is built in. The SEMA YEN is dedicated to helping this passionate, driven bunch of young professionals develop their passion for the automotive aftermarket into sustainable, long-term career choices.

As a network, YEN is focused on connecting young professionals in ways that can enhance their careers and grow their industry involvement in the long run. We know that it will ultimately benefit not only the individuals, but also the companies that employ them. This year, that means growing and expanding the Lunch and Learn program and offering new opportunities for networking with likeminded professionals. We’ll also increase our presence and availability on social media, with the ultimate goal of bridging into real-life communication when we can, which has never been more possible than it is now.

SEMA News—December 2019

INTERNET

By Joe Dysart

Auto-Curated Content Management Systems

Respite for the Harried Content Marketer

Auto-curated content systems specialize in finding and repackaging web content for use in company marketing campaigns.

Businesses looking to keep visitors glued to their websites and other digital properties with interesting content—including social-media posts, articles, images, videos, podcasts and more—are finding relief with auto-curation tools. Such solutions can be programmed to automatically search out and grab excerpts of interesting content, summarize and repackage them as original posts, and then port the results in a pleasing format to the company’s website, blog or even a social-media account.

“In short, if you want your brand to be well-regarded by your audience, give it something valuable,” said Lisa Murton Beets, research director for Content Marketing Institute (www.contentmarketinginstitute.com), a big believer in the power of content marketing.

Of course, repackaged Tweets, article excerpts, short podcast descriptions and the like will probably never match the draw of fresh, completely original content that is specifically designed for a highly specific audience—namely a company’s existing and potential customers. And marketers dabbling in repurposed content need to use care to publish only excerpts or short summaries of the copyrighted content they find, lest they run into copyright problems with the original creator or owner.

But even with those limitations, many content marketers find that sage use of auto-curated content offers them respite from content marketing’s relentless demand for new stories, posts, images and the like that many refer to as “feeding the beast.”

Even more pressing: There’s always that driving realization that unless a content marketer provides a steady stream of fresh material on his or her website, blog or similar publication, that need will be more than happily fulfilled by a competitor. In fact, 81% of business-to-consumer marketers said that they’re fully invested in using content to attract visitors to their web properties, according to a 2019 survey released by Content Marketing Institute.

Moreover, 57% said that they’ll be spending more on content marketing this year than in 2018, and most said that they’re seeing results from their efforts. Specifically, a full 74% said that the promotional results they’re seeing from their content marketing is much better (or at least somewhat better) than what they saw the year prior.

Much of the attraction of auto-curation content systems is that many solutions can be completely set on autopilot. Simply program in some keywords for the kind of content you’re looking for, and many of the programs will search out, package and publish the repurposed content they find to the web property of your choosing without any intervention.

But equally attractive are the manual curation options embedded in most systems. Those features allow marketers to look over a content stream coming in courtesy of the auto-curation systems, pick and chose what they like best, and then click “publish” to render what they consider to be the cream of the crop in a pleasing format. Many curation tools also enable marketers to mix in some original text, imaging, video and the like so that the resulting production feels more personal and more custom made.

In either case, the resulting creative is extremely versatile. Most auto-curation programs enable you to instantly publish to virtually all major content management systems, including Wordpress, Moveable Type and Buffer. And the curated content is also generally easily ported to e-newsletter management services such as Mailchimp as well as to all the popular social networks.

As a major bonus, many of the auto-curation systems use artificial intelligence to monitor the curated content you actually decide to use and then tweak their future content searches to bring back additional content that more closely mirrors what your prefer. You’ll also find that there are a few auto-curation solutions that are designed for extremely specific needs.

CrowdyNews, for example, specializes in generating a continually refreshed “social-media wall” that pops up next to original articles you’ve already produced and published on your web properties. And Tailwind homes in on users of Pinterest and Instagram who are looking to beef up their presences with curated content that can also be monitored for performance and results.

No matter what your preference, a raft of companies have sprung up during the past few years to help automate the process of securing, packaging, publishing and analyzing curated content online. Below is a representative sampling.

Curata (www.curata.com): Probably the best way to select an auto-curated content system is to study Curata and compare its approach with the others. Essentially, Curata is an extremely high-end, industrial-strength solution and one of the early pioneers in the space. You may not need all of Curata’s bells and whistles, but taking Curata for a test drive is a great way to take a measure of what the industry has to offer.

Like most content-curation systems, Curata can be programmed to grab keyword-specific content for you from websites, blogs, social media and the like and then serve up its findings on an easy-to-use dashboard. You always have the option to have Curata auto-publish the content it brings back as your company newsletter, blog, website or even as a post on social media, but you may want to use its curation tools to eyeball what Curata is offering and publish only what you prefer.

With Curata’s manual curation feature, you also have the option to mix in your own text and images to give your resulting publication a more custom feel.

The system is designed to publish seamlessly to all of the popular content management systems, including Wordpress, Joomla, Drupal, TextPattern, Moveable Type, Buffer, Hubspot and Marketo, and it also seamlessly publishes to social-media networks such as Twitter, Facebook and LinkedIn.

For content sources, Curata relies on more than 100,000 news and other websites that it has identified as reliable over the years, including sites with or without RSS feeds. And you can add your own preferred content sources to the mix to ensure that Curata brings home exactly what you’re looking for.

The beauty of Curata’s search feature is that it relies on artificial intelligence to ideally grow ever smarter about the kind content you consider most useful. It does that by monitoring the specific news and social-media posts that you actually choose to publish from all the offerings it brings back, then tweaks its search rules to ferret out future content that most closely resembles your choices.

With each content choice you make, the AI tweaking process repeats. Theoretically, that relentless refinement ultimately produces a search system in which Curata’s choices and your own become one.

The solution also includes a tool that advises you on how to comply with copyright laws. That advice comes in very handy when you’re thinking of publishing summaries or excerpts of copyrighted work (www.fairuse.stanford.edu/overview/fair-use/what-is-fair-use).

For a great overview of how Curata works, check out its 20-min. demo video (www.tinyurl.com/curatavideo). It’s truly informative and will get your wheels churning on how to use Curata for your own purposes.

For pricing, contact Curata directly.

PublishThis (www.publishthis.com): Another early pioneer in the auto-curation of web content, PublishThis works similarly to Curata by bringing back keyword-specific content that it will auto-publish for you or store in a library to await your final curation. Like Curata, PublishThis ports seamlessly to virtually all of the popular content management systems, email newsletter systems and social-media networks.

You can currently give PublishThis a free test drive. After that, pricing starts at $99 per month.

Scoop.it (www.scoop.it): Another industry veteran, Scoop.it also uses keywords to bring back trending content, which can be auto-published or ported seamlessly to virtually all popular content management systems, e-newsletter publishing systems and social media. As with most other established systems, you can mix in your own text and images, and Scoop.it auto-integrates Google Analytics (https://analytics.google.com/analytics/web) into its system, enabling you to monitor how your content choices are performing on your website, blog or on social media.

Scoop.it offers a free version, with upgrades starting at $14.99 monthly.

Instapaper (www.instapaper.com): Billing itself as a simple tool you can use to capture web content, Instapaper allows you to publish your curated content in a predesigned newspaper format. You’re also able to output to your own website, blog, social media or a newsletter publishing platform such as Mailchimp (www.mailchimp.com).

In a nice bonus, the solution also comes with a subscription widget that you can use to plug into your website, offering you the option to charge for your curated content.

Instapaper offers a free version, with beefed-up alternatives starting at $9 per month.

CrowdyNews (www.crowdynews.com): CrowdyNews takes an interesting approach to auto-content curation by creating a social-media newsfeed that runs next to articles you’ve published on your website or blog. It also uses keywords in a different way, bringing back content from Twitter, Facebook, Instagram, YouTube, Tumbler and Flicker based on the topics of original articles you’ve already published on your web property.

Essentially, CrowdyNews enables you to create real-time, updated news streams on any topic for your website or blog, ensuring that your site always monitors the pulse of trending news. Like many solutions, CrowdyNews uses artificial intelligence to “get smarter” over time about the kind of content that works best for your site.

For pricing, contact the company.

Tailwind (www.tailwindapp.com): This is a unique curation tool that is specifically designed to help users of Pinterest and Instagram drive more traffic to their digital properties there. While Tailwind auto-suggests new content for your Pinterest or Instagram presence based on the kind of content you’re already using, much of its power resides in its performance analytics.

With Tailwind, you can come up with new ideas for content by monitoring what people are posting, and you can pinpoint the keywords that users of Pinterest and/or Instagram are relying on to find your company on either social network.

Need to drill down to analyze your presence by category, the display boards you create, keyword and/or hashtag? No problem, Tailwind has that covered.

If you’re looking to track your growth on either service based on your followers, the boards you create, the images you
re-pin, or user likes or comments, Tailwind nails that, too. Essentially, it is a curation tool that deserves a test drive from anyone looking for a way to continually generate new content on either service and precisely measure the results of that effort.

Tailwind offers a free trial. For pricing, contact the company.

Still other auto-curation solutions to check-out include Shareist (www.shareist.com), Wordpress Plugin MyCurator (www.wordpress.org/plugins/mycurator) and Flockler (www.flockler.com).

Joe Dysart is an internet speaker and business consultant based in Manhattan.

646-233-4089

joe@joedysart.com

www.joedysart.com

SEMA News—December 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

Outdoor Recreation: For the second consecutive year, federal government statistics demonstrated that outdoor recreation is a key driver of the national economy and communities around the country. A U.S. Bureau of Economic Analysis report found that outdoor recreation in 2017 supported 5.2 million jobs and accounted for $778 billion in annual economic impact, which represents 2.2% of the country’s gross domestic product. Some of the largest outdoor recreation activities include motorized recreation, boating and fishing, RVing, biking, hunting, camping and skiing. Courtesy Shutterstock.com

2019: The Year in Review

The laws and regulations that govern how SEMA members do business have a continuous impact on the way automotive specialty-equipment products are made, distributed and marketed. The charge of the SEMA government affairs office is to stay on top of all relevant state and federal legislation and regulations and advocate for industry positions to ensure the best possible outcome for SEMA’s membership. The following are a few examples of critical legislative/regulatory issues addressed by the SEMA government affairs team over the past year.

FEDERAL UPDATE

Collector Car Appreciation Day: The 10th annual Collector Car Appreciation Day (CCAD) took place on Friday, July 12, 2019. Both the U.S. Senate and the House of Representatives introduced resolutions (H. Res. 108/S. Res. 271) to focus attention on the vital role automotive restoration and collection plays in American society. Thousands of Americans gathered at car cruises, parades and other events to celebrate the nation’s automotive heritage. The day is also international in scope, as many Canadian Provinces passed resolutions and hosted events. The next CCAD is set for July 10, 2020.

RPM Act: The Recognizing the Protection of Motorsports (RPM) Act is being considered by the U.S. Congress. The bill clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. Passage of the RPM Act will protect sales beyond emissions-related parts, including racing tires, wheels, brakes, suspension equipment and rollcages. Customers won’t be buying and installing those products if a car or motorcycle cannot be converted into a dedicated race vehicle. The bill has been subject to previous Congressional hearings, and SEMA is working with lawmakers to approve the legislation in the current Congress. To contact your lawmakers, visit www.sema.org/rpm.

Tariffs: SEMA is working with several coalitions of industry associations to oppose the imposition of tariffs on a variety of worldwide products and materials. While SEMA supports the Trump administration’s efforts to create fair and reciprocal trade and to protect intellectual property rights, the association remains concerned that tariffs are not accomplishing that shared objective.

• Steel/Aluminum: The U.S. government has imposed global tariffs on steel (25%) and aluminum (10%). Most of the tariffs began on June 1, 2018, with Argentina, Australia, Brazil and South Korea being exempted based on trade agreements. Mexico and Canada were exempted on May 20, 2019. The tariffs apply to processed raw materials (steel/aluminum plate, sheets, bars, etc.) but not finished products (e.g., wheels, exhaust systems, etc.). U.S.-based companies are eligible for one-year tariff exclusions if they can demonstrate that the foreign-produced material is not made in the United States in reasonably available quantity or satisfactory quality. More than 120,000 company exclusion requests have been received to date.
• Chinese Products: The United States has imposed tariffs on nearly all products from China. The imposition has been staggered with an intent to remove the tariffs if a trade agreement is secured. Trade negotiations are still ongoing.

• $34 billion: July 6, 2018: 25% tariffs imposed on 818 Harmonized Tariff Code (HTC) listings, including miscellaneous metal and rubber parts for auto equipment. Tariffs raised to 30% on October 15, 2019.
• $16 billion: August 23, 2018: 25% tariffs imposed on 279 HTC listings, including many types of plastics. Tariffs raised to 30% on October 15, 2019.
• $200 billion: September 24, 2018: 10% tariffs imposed on 5,745 HTC listings, including most auto parts. Tariffs raised to 25% on May 10, 2019. Tariffs raised to 30% on October 15, 2019.
• $300 billion: September 1, 2019: 15% tariffs imposed on more than 3,000 HTC listings. December 15, 2019: 15% tariffs on virtually all other Chinese products, including cell phones, computer monitors and clothing.

• Imported Autos/Auto Parts: President Trump directed the U.S. Department of Commerce (DOC) to investigate whether to impose tariffs on imported automobiles and auto parts if it is found that they pose a threat to America’s national security (manufacturing base). The DOC completed its report last February, but President Trump has postponed a decision on whether to pursue tariffs until at least November. The DOC report notes concerns about increases in the volume of automobile and auto part imports over the past three decades, along with unease about foreign markets such as the E.U. and Japan that have imposed significant barriers to U.S. automotive exports. A focus of concern is innovations in engine and powertrain technology, electrification, lighter-weight materials, advanced connectivity and autonomous driving. In response to threatened tariffs, SEMA and seven other major trade associations representing the broad scope of the auto industry formed the Driving American Jobs Coalition. The coalition opposes the tariffs as being counterproductive and threatening American companies, workers and consumers.

NAFTA/USMCA: Ratification of the United States-Mexico-Canada Agreement (USMCA) to replace NAFTA is pending before the U.S. Congress. Major provisions include a requirement that vehicles have at least 75% North American content, compared with 62.5% currently. At least 40%–45% of the vehicle content must be made by workers earning at least $16 an hour, which will lead to higher wages in Mexico.

Replica Vehicle Law: A SEMA-supported law enacted in 2015 will allow small auto manufacturers to sell completed replica cars. Those vehicles resemble cars manufactured at least 25 years ago. Companies will be able to produce up to 325 turnkey replica vehicles (per company) in the United States and 5,000 worldwide under a simplified regulatory system. Until now, the federal government’s regulatory system did not differentiate between a company producing millions of vehicles and a business producing a few custom cars. The National Highway Traffic Safety Administration (NHTSA) has yet to take regulatory action to implement the law. The industry is calling on NHTSA to allow production to commence in 2020.

Internet Sales Tax: In 2018, the U.S. Supreme Court issued a decision allowing states to require internet retailers to collect sales taxes even when they have no physical presence in the state. The court overturned the 1992 Quill decision, which required physical presence (nexus) in a state before a retailer could be forced to collect taxes. The state of South Dakota successfully argued that the 1992 decision was obsolete in the e-commerce era. The court upheld a South Dakota law that requires an out-of-state retailer to collect sales taxes if it has an economic presence of $100,000 or more in annual sales or 200 or more transactions. Nearly all other states that collect sales tax now require collection. They have adopted the $100,000 threshold or set higher limits.

E15 Gasoline: The U.S. Environmental Protection Agency (EPA) issued a rule to allow gas stations around the country to sell E15 (gasoline that’s 15% ethanol) year-round. Previously, the EPA prohibited the sale of E15 between June 1 and September 15 due to fuel-volatility concerns that higher blends of ethanol combined with warmer temperatures may lead to increased ground-level ozone formation and smog. SEMA opposes an expansion of E15 sales, which the EPA is pursuing in order to achieve the Renewable Fuel Standard’s artificial mandates to blend large volumes of ethanol into gasoline sold in the United States. Ethanol, especially in higher concentrations such as E15, can cause damage to high-performance parts and vehicles manufactured prior to 2001.

Greenhouse Gases: The EPA is seeking to revoke a waiver issued previously to California to set greenhouse gas emission rules that are tougher than federal standards. The EPA action is being challenged in court, a battle that could last beyond the 2020 elections. The EPA has issued many Clean Air Act waivers over decades, but this will be the first time it has rescinded a waiver. The EPA’s greenhouse gas rule is tied to NHTSA’s Corporate Average Fuel Economy (CAFE) standards, since both rules are based on the amount of carbon emitted as fuel is burned. The Trump administration is arguing that the law governing the CAFE standards does not authorize issuance of a waiver to California. The administration wants to freeze the CAFE standards at 2020 levels (around 37 mpg) rather than reaching the current federally mandated level of 54.5 mpg by model year ’25. Some car companies have signed an agreement with California for a reduced standard of 50 mpg by model-year ’26.

Electronic Tire IDs: NHTSA has concluded that it is technologically possible to provide tire identification number (TIN) data in an electronic format for all tires. The TIN contains information about the tire, including the plant where the tire was manufactured, the tire size and the week/year of manufacture. The electronic data would be a marking or tag within or on the tire sidewall that could be read with a handheld scanning tool. The two electronic TIN candidates are radio frequency identification tags and two-dimensional barcodes. Electronic technology could provide the industry with an easier and more accurate method to scan data as tires are sold rather than relying on paper registrations. The TIN could then be linked to the vehicle identification number, making it a more reliable way to contact the current registered owner in case of a recall. There is no timeframe for pursuing the technology.

Warranty Restrictions: The Federal Trade Commission (FTC) held a one-day workshop to examine ways in which manufacturers may limit third-party automotive replacement and repairs, including limitations on consumer rights under the Magnuson-Moss Warranty Act. Issues covered included the current prevalence of repair restrictions, reasons provided by manufacturers for such restrictions, and whether consumers are aware of their right to install aftermarket products. The workshop also explored the technological and financial impact repair restrictions have on small businesses and consumers. The workshop was a fact-finding effort as the FTC seeks to better understand challenges faced in enforcing the law.

Retirement Plan Legislation: The U.S. House of Representatives passed a bipartisan bill to expand retirement savings programs. The bill would make it easier for small businesses to join multiple employer plans by not requiring businesses to be affiliated. It also increases tax credits for small businesses adopting retirement plans and permits part-time employees to enroll in 401(k) plans. The U.S. Senate is considering a similar bill.

Overtime Pay: The U.S. Department of Labor issued a final rule to raise the cap from $23,660 to $35,568 a year ($455 to $684 a week) for management, administrative and professional employees who are exempt from receiving overtime pay when they work more than 40 hours a week. The pay threshold is frequently called the Fair Labor Standards Act’s “white collar” exemption. In 2016, the Obama administration raised the cap to $47,476 per year, but it was struck down by a federal court. The new rule takes effect on January 1, 2020.

Public Lands Bill: President Trump signed into law a massive public lands bill. It included elements supported by SEMA, such as the California Desert Protection and Recreation Act co-authored by Rep. Paul Cook (R-CA) and Sen. Dianne Feinstein (D-CA) to permanently designate six existing OHV areas. Those areas include Johnson Valley (expanded by 11,000 acres), Spangler Hills, El Mirage, Rasor, Dumont Dunes and Stoddard Valley. The bill also included a provision to permanently designate federal lands within Emery County, Utah. While the provision protects most existing OHV routes within the San Raphael Swell, several trails were lost.

Bonneville Salt Flats: Utah lawmakers have appropriated $5 million toward a program to restore the Bonneville Salt Flats, contingent upon securing federal funds. The monies will be used to create a 10-year, $50 million program to dramatically increase the amount of salt pumped onto Bonneville. The bulk of the monies will come from the federal government, with contributions as well from the motorsports community. Beginning in the ’60s, the salt crust diminished due to historic and current potash mining activities under existing leases from the U.S. Bureau of Land Management. The mine owner has been pumping salt since 1997, but infrastructure renovation and upgrades would increase the volume. As a result, the racing venue should gradually expand from its current 8-mi. length, with a goal of reaching the original 13-mi. length. SEMA, along with other organizations and companies comprising the Save the Salt Coalition, is working with state and federal officials to implement the program.

STATE UPDATE

Arizona—Emissions Exemption: A SEMA-supported law to exempt qualified collectible vehicles from the state’s emissions inspection and maintenance program went into effect June 1. While the bill was signed into law in 2005, the state’s regulatory process delayed implementation. In order to qualify, a vehicle must be either 15 model years old or older or a unique or rare design of limited production and an object of curiosity. In addition, the vehicle must be maintained primarily for use in car club activities, exhibitions, parades or other functions of public interest, or for a private collection and used infrequently. Additionally, the vehicle must have collectible or classic automobile insurance coverage that restricts the vehicle’s mileage or use, or both, and requires the owner to have another vehicle for personal use. The current exemptions for pre-’67 vehicles also remain in effect.

California—Exhaust Noise: California Governor Gavin Newsom signed into law SEMA-supported legislation that immediately restored fix-it tickets for cars suspected of violating the state’s exhaust noise limit. The bill amended a 2018 law, which removed fix-it tickets for such violations and which generated significant concern within the specialty automotive aftermarket industry and enthusiast community. Since 2003, exhaust systems installed on motor vehicles in California with a manufacturer’s gross vehicle weight rating of less than 6,000 lbs., other than motorcycles, may not exceed a sound level of 95 dB when tested under a Society of Automotive Engineers (SAE) procedure.

California—OHV Access: The California Coastal Commission voted to continue permitting off-highway vehicle (OHV) use at the Oceano Dunes State Vehicular Recreation Area (SVRA). During its July 11 meeting in San Luis Obispo, the Commission rejected staff recommendations to further restrict motorized recreational access, with the eventual goal of prohibiting OHV and motorized vehicles at Oceano Dunes SVRA.

Delaware—Street Rods: Delaware Governor John Carney signed into law a bill easing the process of registering a street rod, by favorably changing the existing age and equipment requirements. The new law amends the definition of street rod from a vehicle manufactured before 1970 to one 25 years old or older. The law also removes the requirement that a street rod’s tires be covered by fenders.

Maine—Ethanol: Maine Governor Janet Mills signed a bill into law allowing the sale of ethanol-free gasoline statewide. Previously, only the counties of York, Sagadahoc, Androscoggin, Kennebec, Knox and Lincoln banned the sale of ethanol-free gasoline.

Nebraska—Military Vehicles: Nebraska Governor Pete Ricketts signed into law legislation allowing for the titling and registration of former military vehicles. The new law defines a former military vehicle as “a vehicle that was manufactured for use in any country’s military forces and is maintained to accurately represent its military design and markings, regardless of its size or weight, but is no longer used, or never was used by a military force.” Previously, those vehicles were not allowed to be titled or registered for on-road use in the state.

Nevada—Military Vehicles: Nevada Governor Steve Sisolak signed into law legislation that allows for the titling and registration of retired military vehicles. The new law also authorizes the design and production of a specialty plate for those vehicles. Previously, such vehicles could not be titled or registered for use on highways in the state.

New Brunswick—License Plates: Beginning July 15, 2019, motorists in New Brunswick were no longer required to display a front license plate on passenger vehicles and light trucks. The change removed the requirement to display two license plates on vehicles weighing less than 4,500 kg.

New Mexico—License Plates: Legislation to require registration plates on the front and back of all motor vehicles died when the legislature adjourned. Under current law, all motor vehicles in the state are issued only a single plate. Because of strong opposition, the bill failed to receive a vote on the House floor.

Ohio—License Plates: Ohio Governor Mike DeWine signed into law legislation to allow for the issuance of a single, rear-mounted license plate for motor vehicles. Previously, Ohio required vehicles to display two plates.

Rhode Island—License Plates: Legislation to allow vehicles with “year of manufacture” (YOM) tags to display a single license plate on the rear of the vehicle, passed the deadline for the governor’s signature or veto and thus became law without being signed. All motor vehicles 25 model years old and older, are currently eligible for courtesy YOM plates in Rhode Island. Previously, those vehicles were required to display both front and rear YOM plates.

Tennessee—Military Vehicles: Tennessee Governor Bill Lee, signed into law legislation that exempts historic military vehicles from the requirement to display license plates. An historic military vehicle is currently defined as being 25 years old or older, manufactured for use in any country’s military, and maintained to represent the vehicle’s military design and markings.

Texas—Assembled Vehicles: Texas Governor Greg Abbott signed into law SEMA-supported legislation creating a specific registration and titling class for former military vehicles and assembled vehicles, including kit cars and dune buggies. The new law provides guidance to the Texas Department of Motor Vehicles on how to treat such vehicles. Previously, there was no specific registration and titling class for certain assembled vehicles, such as
dune buggies.

West Virginia—Motorsports Committee: Governor Jim Justice signed into law legislation to create the West Virginia Motorsports Committee. The committee is tasked with aiding in the development of racing events and facilities throughout the state. The committee will also seek opportunities to promote economic growth and manufacturing jobs related to motorsports.

SEMA News—December 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

Outdoor Recreation: For the second consecutive year, federal government statistics demonstrated that outdoor recreation is a key driver of the national economy and communities around the country. A U.S. Bureau of Economic Analysis report found that outdoor recreation in 2017 supported 5.2 million jobs and accounted for $778 billion in annual economic impact, which represents 2.2% of the country’s gross domestic product. Some of the largest outdoor recreation activities include motorized recreation, boating and fishing, RVing, biking, hunting, camping and skiing. Courtesy Shutterstock.com

2019: The Year in Review

The laws and regulations that govern how SEMA members do business have a continuous impact on the way automotive specialty-equipment products are made, distributed and marketed. The charge of the SEMA government affairs office is to stay on top of all relevant state and federal legislation and regulations and advocate for industry positions to ensure the best possible outcome for SEMA’s membership. The following are a few examples of critical legislative/regulatory issues addressed by the SEMA government affairs team over the past year.

FEDERAL UPDATE

Collector Car Appreciation Day: The 10th annual Collector Car Appreciation Day (CCAD) took place on Friday, July 12, 2019. Both the U.S. Senate and the House of Representatives introduced resolutions (H. Res. 108/S. Res. 271) to focus attention on the vital role automotive restoration and collection plays in American society. Thousands of Americans gathered at car cruises, parades and other events to celebrate the nation’s automotive heritage. The day is also international in scope, as many Canadian Provinces passed resolutions and hosted events. The next CCAD is set for July 10, 2020.

RPM Act: The Recognizing the Protection of Motorsports (RPM) Act is being considered by the U.S. Congress. The bill clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. Passage of the RPM Act will protect sales beyond emissions-related parts, including racing tires, wheels, brakes, suspension equipment and rollcages. Customers won’t be buying and installing those products if a car or motorcycle cannot be converted into a dedicated race vehicle. The bill has been subject to previous Congressional hearings, and SEMA is working with lawmakers to approve the legislation in the current Congress. To contact your lawmakers, visit www.sema.org/rpm.

Tariffs: SEMA is working with several coalitions of industry associations to oppose the imposition of tariffs on a variety of worldwide products and materials. While SEMA supports the Trump administration’s efforts to create fair and reciprocal trade and to protect intellectual property rights, the association remains concerned that tariffs are not accomplishing that shared objective.

• Steel/Aluminum: The U.S. government has imposed global tariffs on steel (25%) and aluminum (10%). Most of the tariffs began on June 1, 2018, with Argentina, Australia, Brazil and South Korea being exempted based on trade agreements. Mexico and Canada were exempted on May 20, 2019. The tariffs apply to processed raw materials (steel/aluminum plate, sheets, bars, etc.) but not finished products (e.g., wheels, exhaust systems, etc.). U.S.-based companies are eligible for one-year tariff exclusions if they can demonstrate that the foreign-produced material is not made in the United States in reasonably available quantity or satisfactory quality. More than 120,000 company exclusion requests have been received to date.
• Chinese Products: The United States has imposed tariffs on nearly all products from China. The imposition has been staggered with an intent to remove the tariffs if a trade agreement is secured. Trade negotiations are still ongoing.

• $34 billion: July 6, 2018: 25% tariffs imposed on 818 Harmonized Tariff Code (HTC) listings, including miscellaneous metal and rubber parts for auto equipment. Tariffs raised to 30% on October 15, 2019.
• $16 billion: August 23, 2018: 25% tariffs imposed on 279 HTC listings, including many types of plastics. Tariffs raised to 30% on October 15, 2019.
• $200 billion: September 24, 2018: 10% tariffs imposed on 5,745 HTC listings, including most auto parts. Tariffs raised to 25% on May 10, 2019. Tariffs raised to 30% on October 15, 2019.
• $300 billion: September 1, 2019: 15% tariffs imposed on more than 3,000 HTC listings. December 15, 2019: 15% tariffs on virtually all other Chinese products, including cell phones, computer monitors and clothing.

• Imported Autos/Auto Parts: President Trump directed the U.S. Department of Commerce (DOC) to investigate whether to impose tariffs on imported automobiles and auto parts if it is found that they pose a threat to America’s national security (manufacturing base). The DOC completed its report last February, but President Trump has postponed a decision on whether to pursue tariffs until at least November. The DOC report notes concerns about increases in the volume of automobile and auto part imports over the past three decades, along with unease about foreign markets such as the E.U. and Japan that have imposed significant barriers to U.S. automotive exports. A focus of concern is innovations in engine and powertrain technology, electrification, lighter-weight materials, advanced connectivity and autonomous driving. In response to threatened tariffs, SEMA and seven other major trade associations representing the broad scope of the auto industry formed the Driving American Jobs Coalition. The coalition opposes the tariffs as being counterproductive and threatening American companies, workers and consumers.

NAFTA/USMCA: Ratification of the United States-Mexico-Canada Agreement (USMCA) to replace NAFTA is pending before the U.S. Congress. Major provisions include a requirement that vehicles have at least 75% North American content, compared with 62.5% currently. At least 40%–45% of the vehicle content must be made by workers earning at least $16 an hour, which will lead to higher wages in Mexico.

Replica Vehicle Law: A SEMA-supported law enacted in 2015 will allow small auto manufacturers to sell completed replica cars. Those vehicles resemble cars manufactured at least 25 years ago. Companies will be able to produce up to 325 turnkey replica vehicles (per company) in the United States and 5,000 worldwide under a simplified regulatory system. Until now, the federal government’s regulatory system did not differentiate between a company producing millions of vehicles and a business producing a few custom cars. The National Highway Traffic Safety Administration (NHTSA) has yet to take regulatory action to implement the law. The industry is calling on NHTSA to allow production to commence in 2020.

Internet Sales Tax: In 2018, the U.S. Supreme Court issued a decision allowing states to require internet retailers to collect sales taxes even when they have no physical presence in the state. The court overturned the 1992 Quill decision, which required physical presence (nexus) in a state before a retailer could be forced to collect taxes. The state of South Dakota successfully argued that the 1992 decision was obsolete in the e-commerce era. The court upheld a South Dakota law that requires an out-of-state retailer to collect sales taxes if it has an economic presence of $100,000 or more in annual sales or 200 or more transactions. Nearly all other states that collect sales tax now require collection. They have adopted the $100,000 threshold or set higher limits.

E15 Gasoline: The U.S. Environmental Protection Agency (EPA) issued a rule to allow gas stations around the country to sell E15 (gasoline that’s 15% ethanol) year-round. Previously, the EPA prohibited the sale of E15 between June 1 and September 15 due to fuel-volatility concerns that higher blends of ethanol combined with warmer temperatures may lead to increased ground-level ozone formation and smog. SEMA opposes an expansion of E15 sales, which the EPA is pursuing in order to achieve the Renewable Fuel Standard’s artificial mandates to blend large volumes of ethanol into gasoline sold in the United States. Ethanol, especially in higher concentrations such as E15, can cause damage to high-performance parts and vehicles manufactured prior to 2001.

Greenhouse Gases: The EPA is seeking to revoke a waiver issued previously to California to set greenhouse gas emission rules that are tougher than federal standards. The EPA action is being challenged in court, a battle that could last beyond the 2020 elections. The EPA has issued many Clean Air Act waivers over decades, but this will be the first time it has rescinded a waiver. The EPA’s greenhouse gas rule is tied to NHTSA’s Corporate Average Fuel Economy (CAFE) standards, since both rules are based on the amount of carbon emitted as fuel is burned. The Trump administration is arguing that the law governing the CAFE standards does not authorize issuance of a waiver to California. The administration wants to freeze the CAFE standards at 2020 levels (around 37 mpg) rather than reaching the current federally mandated level of 54.5 mpg by model year ’25. Some car companies have signed an agreement with California for a reduced standard of 50 mpg by model-year ’26.

Electronic Tire IDs: NHTSA has concluded that it is technologically possible to provide tire identification number (TIN) data in an electronic format for all tires. The TIN contains information about the tire, including the plant where the tire was manufactured, the tire size and the week/year of manufacture. The electronic data would be a marking or tag within or on the tire sidewall that could be read with a handheld scanning tool. The two electronic TIN candidates are radio frequency identification tags and two-dimensional barcodes. Electronic technology could provide the industry with an easier and more accurate method to scan data as tires are sold rather than relying on paper registrations. The TIN could then be linked to the vehicle identification number, making it a more reliable way to contact the current registered owner in case of a recall. There is no timeframe for pursuing the technology.

Warranty Restrictions: The Federal Trade Commission (FTC) held a one-day workshop to examine ways in which manufacturers may limit third-party automotive replacement and repairs, including limitations on consumer rights under the Magnuson-Moss Warranty Act. Issues covered included the current prevalence of repair restrictions, reasons provided by manufacturers for such restrictions, and whether consumers are aware of their right to install aftermarket products. The workshop also explored the technological and financial impact repair restrictions have on small businesses and consumers. The workshop was a fact-finding effort as the FTC seeks to better understand challenges faced in enforcing the law.

Retirement Plan Legislation: The U.S. House of Representatives passed a bipartisan bill to expand retirement savings programs. The bill would make it easier for small businesses to join multiple employer plans by not requiring businesses to be affiliated. It also increases tax credits for small businesses adopting retirement plans and permits part-time employees to enroll in 401(k) plans. The U.S. Senate is considering a similar bill.

Overtime Pay: The U.S. Department of Labor issued a final rule to raise the cap from $23,660 to $35,568 a year ($455 to $684 a week) for management, administrative and professional employees who are exempt from receiving overtime pay when they work more than 40 hours a week. The pay threshold is frequently called the Fair Labor Standards Act’s “white collar” exemption. In 2016, the Obama administration raised the cap to $47,476 per year, but it was struck down by a federal court. The new rule takes effect on January 1, 2020.

Public Lands Bill: President Trump signed into law a massive public lands bill. It included elements supported by SEMA, such as the California Desert Protection and Recreation Act co-authored by Rep. Paul Cook (R-CA) and Sen. Dianne Feinstein (D-CA) to permanently designate six existing OHV areas. Those areas include Johnson Valley (expanded by 11,000 acres), Spangler Hills, El Mirage, Rasor, Dumont Dunes and Stoddard Valley. The bill also included a provision to permanently designate federal lands within Emery County, Utah. While the provision protects most existing OHV routes within the San Raphael Swell, several trails were lost.

Bonneville Salt Flats: Utah lawmakers have appropriated $5 million toward a program to restore the Bonneville Salt Flats, contingent upon securing federal funds. The monies will be used to create a 10-year, $50 million program to dramatically increase the amount of salt pumped onto Bonneville. The bulk of the monies will come from the federal government, with contributions as well from the motorsports community. Beginning in the ’60s, the salt crust diminished due to historic and current potash mining activities under existing leases from the U.S. Bureau of Land Management. The mine owner has been pumping salt since 1997, but infrastructure renovation and upgrades would increase the volume. As a result, the racing venue should gradually expand from its current 8-mi. length, with a goal of reaching the original 13-mi. length. SEMA, along with other organizations and companies comprising the Save the Salt Coalition, is working with state and federal officials to implement the program.

STATE UPDATE

Arizona—Emissions Exemption: A SEMA-supported law to exempt qualified collectible vehicles from the state’s emissions inspection and maintenance program went into effect June 1. While the bill was signed into law in 2005, the state’s regulatory process delayed implementation. In order to qualify, a vehicle must be either 15 model years old or older or a unique or rare design of limited production and an object of curiosity. In addition, the vehicle must be maintained primarily for use in car club activities, exhibitions, parades or other functions of public interest, or for a private collection and used infrequently. Additionally, the vehicle must have collectible or classic automobile insurance coverage that restricts the vehicle’s mileage or use, or both, and requires the owner to have another vehicle for personal use. The current exemptions for pre-’67 vehicles also remain in effect.

California—Exhaust Noise: California Governor Gavin Newsom signed into law SEMA-supported legislation that immediately restored fix-it tickets for cars suspected of violating the state’s exhaust noise limit. The bill amended a 2018 law, which removed fix-it tickets for such violations and which generated significant concern within the specialty automotive aftermarket industry and enthusiast community. Since 2003, exhaust systems installed on motor vehicles in California with a manufacturer’s gross vehicle weight rating of less than 6,000 lbs., other than motorcycles, may not exceed a sound level of 95 dB when tested under a Society of Automotive Engineers (SAE) procedure.

California—OHV Access: The California Coastal Commission voted to continue permitting off-highway vehicle (OHV) use at the Oceano Dunes State Vehicular Recreation Area (SVRA). During its July 11 meeting in San Luis Obispo, the Commission rejected staff recommendations to further restrict motorized recreational access, with the eventual goal of prohibiting OHV and motorized vehicles at Oceano Dunes SVRA.

Delaware—Street Rods: Delaware Governor John Carney signed into law a bill easing the process of registering a street rod, by favorably changing the existing age and equipment requirements. The new law amends the definition of street rod from a vehicle manufactured before 1970 to one 25 years old or older. The law also removes the requirement that a street rod’s tires be covered by fenders.

Maine—Ethanol: Maine Governor Janet Mills signed a bill into law allowing the sale of ethanol-free gasoline statewide. Previously, only the counties of York, Sagadahoc, Androscoggin, Kennebec, Knox and Lincoln banned the sale of ethanol-free gasoline.

Nebraska—Military Vehicles: Nebraska Governor Pete Ricketts signed into law legislation allowing for the titling and registration of former military vehicles. The new law defines a former military vehicle as “a vehicle that was manufactured for use in any country’s military forces and is maintained to accurately represent its military design and markings, regardless of its size or weight, but is no longer used, or never was used by a military force.” Previously, those vehicles were not allowed to be titled or registered for on-road use in the state.

Nevada—Military Vehicles: Nevada Governor Steve Sisolak signed into law legislation that allows for the titling and registration of retired military vehicles. The new law also authorizes the design and production of a specialty plate for those vehicles. Previously, such vehicles could not be titled or registered for use on highways in the state.

New Brunswick—License Plates: Beginning July 15, 2019, motorists in New Brunswick were no longer required to display a front license plate on passenger vehicles and light trucks. The change removed the requirement to display two license plates on vehicles weighing less than 4,500 kg.

New Mexico—License Plates: Legislation to require registration plates on the front and back of all motor vehicles died when the legislature adjourned. Under current law, all motor vehicles in the state are issued only a single plate. Because of strong opposition, the bill failed to receive a vote on the House floor.

Ohio—License Plates: Ohio Governor Mike DeWine signed into law legislation to allow for the issuance of a single, rear-mounted license plate for motor vehicles. Previously, Ohio required vehicles to display two plates.

Rhode Island—License Plates: Legislation to allow vehicles with “year of manufacture” (YOM) tags to display a single license plate on the rear of the vehicle, passed the deadline for the governor’s signature or veto and thus became law without being signed. All motor vehicles 25 model years old and older, are currently eligible for courtesy YOM plates in Rhode Island. Previously, those vehicles were required to display both front and rear YOM plates.

Tennessee—Military Vehicles: Tennessee Governor Bill Lee, signed into law legislation that exempts historic military vehicles from the requirement to display license plates. An historic military vehicle is currently defined as being 25 years old or older, manufactured for use in any country’s military, and maintained to represent the vehicle’s military design and markings.

Texas—Assembled Vehicles: Texas Governor Greg Abbott signed into law SEMA-supported legislation creating a specific registration and titling class for former military vehicles and assembled vehicles, including kit cars and dune buggies. The new law provides guidance to the Texas Department of Motor Vehicles on how to treat such vehicles. Previously, there was no specific registration and titling class for certain assembled vehicles, such as
dune buggies.

West Virginia—Motorsports Committee: Governor Jim Justice signed into law legislation to create the West Virginia Motorsports Committee. The committee is tasked with aiding in the development of racing events and facilities throughout the state. The committee will also seek opportunities to promote economic growth and manufacturing jobs related to motorsports.

SEMA News—December 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

By Stuart Gosswein

Outdoor Recreation: For the second consecutive year, federal government statistics demonstrated that outdoor recreation is a key driver of the national economy and communities around the country. A U.S. Bureau of Economic Analysis report found that outdoor recreation in 2017 supported 5.2 million jobs and accounted for $778 billion in annual economic impact, which represents 2.2% of the country’s gross domestic product. Some of the largest outdoor recreation activities include motorized recreation, boating and fishing, RVing, biking, hunting, camping and skiing. Courtesy Shutterstock.com

2019: The Year in Review

The laws and regulations that govern how SEMA members do business have a continuous impact on the way automotive specialty-equipment products are made, distributed and marketed. The charge of the SEMA government affairs office is to stay on top of all relevant state and federal legislation and regulations and advocate for industry positions to ensure the best possible outcome for SEMA’s membership. The following are a few examples of critical legislative/regulatory issues addressed by the SEMA government affairs team over the past year.

FEDERAL UPDATE

Collector Car Appreciation Day: The 10th annual Collector Car Appreciation Day (CCAD) took place on Friday, July 12, 2019. Both the U.S. Senate and the House of Representatives introduced resolutions (H. Res. 108/S. Res. 271) to focus attention on the vital role automotive restoration and collection plays in American society. Thousands of Americans gathered at car cruises, parades and other events to celebrate the nation’s automotive heritage. The day is also international in scope, as many Canadian Provinces passed resolutions and hosted events. The next CCAD is set for July 10, 2020.

RPM Act: The Recognizing the Protection of Motorsports (RPM) Act is being considered by the U.S. Congress. The bill clarifies that the Clean Air Act allows motor vehicles to be converted into dedicated race cars and that it is legal to produce, sell and install race parts for those vehicles. Passage of the RPM Act will protect sales beyond emissions-related parts, including racing tires, wheels, brakes, suspension equipment and rollcages. Customers won’t be buying and installing those products if a car or motorcycle cannot be converted into a dedicated race vehicle. The bill has been subject to previous Congressional hearings, and SEMA is working with lawmakers to approve the legislation in the current Congress. To contact your lawmakers, visit www.sema.org/rpm.

Tariffs: SEMA is working with several coalitions of industry associations to oppose the imposition of tariffs on a variety of worldwide products and materials. While SEMA supports the Trump administration’s efforts to create fair and reciprocal trade and to protect intellectual property rights, the association remains concerned that tariffs are not accomplishing that shared objective.

• Steel/Aluminum: The U.S. government has imposed global tariffs on steel (25%) and aluminum (10%). Most of the tariffs began on June 1, 2018, with Argentina, Australia, Brazil and South Korea being exempted based on trade agreements. Mexico and Canada were exempted on May 20, 2019. The tariffs apply to processed raw materials (steel/aluminum plate, sheets, bars, etc.) but not finished products (e.g., wheels, exhaust systems, etc.). U.S.-based companies are eligible for one-year tariff exclusions if they can demonstrate that the foreign-produced material is not made in the United States in reasonably available quantity or satisfactory quality. More than 120,000 company exclusion requests have been received to date.
• Chinese Products: The United States has imposed tariffs on nearly all products from China. The imposition has been staggered with an intent to remove the tariffs if a trade agreement is secured. Trade negotiations are still ongoing.

• $34 billion: July 6, 2018: 25% tariffs imposed on 818 Harmonized Tariff Code (HTC) listings, including miscellaneous metal and rubber parts for auto equipment. Tariffs raised to 30% on October 15, 2019.
• $16 billion: August 23, 2018: 25% tariffs imposed on 279 HTC listings, including many types of plastics. Tariffs raised to 30% on October 15, 2019.
• $200 billion: September 24, 2018: 10% tariffs imposed on 5,745 HTC listings, including most auto parts. Tariffs raised to 25% on May 10, 2019. Tariffs raised to 30% on October 15, 2019.
• $300 billion: September 1, 2019: 15% tariffs imposed on more than 3,000 HTC listings. December 15, 2019: 15% tariffs on virtually all other Chinese products, including cell phones, computer monitors and clothing.

• Imported Autos/Auto Parts: President Trump directed the U.S. Department of Commerce (DOC) to investigate whether to impose tariffs on imported automobiles and auto parts if it is found that they pose a threat to America’s national security (manufacturing base). The DOC completed its report last February, but President Trump has postponed a decision on whether to pursue tariffs until at least November. The DOC report notes concerns about increases in the volume of automobile and auto part imports over the past three decades, along with unease about foreign markets such as the E.U. and Japan that have imposed significant barriers to U.S. automotive exports. A focus of concern is innovations in engine and powertrain technology, electrification, lighter-weight materials, advanced connectivity and autonomous driving. In response to threatened tariffs, SEMA and seven other major trade associations representing the broad scope of the auto industry formed the Driving American Jobs Coalition. The coalition opposes the tariffs as being counterproductive and threatening American companies, workers and consumers.

NAFTA/USMCA: Ratification of the United States-Mexico-Canada Agreement (USMCA) to replace NAFTA is pending before the U.S. Congress. Major provisions include a requirement that vehicles have at least 75% North American content, compared with 62.5% currently. At least 40%–45% of the vehicle content must be made by workers earning at least $16 an hour, which will lead to higher wages in Mexico.

Replica Vehicle Law: A SEMA-supported law enacted in 2015 will allow small auto manufacturers to sell completed replica cars. Those vehicles resemble cars manufactured at least 25 years ago. Companies will be able to produce up to 325 turnkey replica vehicles (per company) in the United States and 5,000 worldwide under a simplified regulatory system. Until now, the federal government’s regulatory system did not differentiate between a company producing millions of vehicles and a business producing a few custom cars. The National Highway Traffic Safety Administration (NHTSA) has yet to take regulatory action to implement the law. The industry is calling on NHTSA to allow production to commence in 2020.

Internet Sales Tax: In 2018, the U.S. Supreme Court issued a decision allowing states to require internet retailers to collect sales taxes even when they have no physical presence in the state. The court overturned the 1992 Quill decision, which required physical presence (nexus) in a state before a retailer could be forced to collect taxes. The state of South Dakota successfully argued that the 1992 decision was obsolete in the e-commerce era. The court upheld a South Dakota law that requires an out-of-state retailer to collect sales taxes if it has an economic presence of $100,000 or more in annual sales or 200 or more transactions. Nearly all other states that collect sales tax now require collection. They have adopted the $100,000 threshold or set higher limits.

E15 Gasoline: The U.S. Environmental Protection Agency (EPA) issued a rule to allow gas stations around the country to sell E15 (gasoline that’s 15% ethanol) year-round. Previously, the EPA prohibited the sale of E15 between June 1 and September 15 due to fuel-volatility concerns that higher blends of ethanol combined with warmer temperatures may lead to increased ground-level ozone formation and smog. SEMA opposes an expansion of E15 sales, which the EPA is pursuing in order to achieve the Renewable Fuel Standard’s artificial mandates to blend large volumes of ethanol into gasoline sold in the United States. Ethanol, especially in higher concentrations such as E15, can cause damage to high-performance parts and vehicles manufactured prior to 2001.

Greenhouse Gases: The EPA is seeking to revoke a waiver issued previously to California to set greenhouse gas emission rules that are tougher than federal standards. The EPA action is being challenged in court, a battle that could last beyond the 2020 elections. The EPA has issued many Clean Air Act waivers over decades, but this will be the first time it has rescinded a waiver. The EPA’s greenhouse gas rule is tied to NHTSA’s Corporate Average Fuel Economy (CAFE) standards, since both rules are based on the amount of carbon emitted as fuel is burned. The Trump administration is arguing that the law governing the CAFE standards does not authorize issuance of a waiver to California. The administration wants to freeze the CAFE standards at 2020 levels (around 37 mpg) rather than reaching the current federally mandated level of 54.5 mpg by model year ’25. Some car companies have signed an agreement with California for a reduced standard of 50 mpg by model-year ’26.

Electronic Tire IDs: NHTSA has concluded that it is technologically possible to provide tire identification number (TIN) data in an electronic format for all tires. The TIN contains information about the tire, including the plant where the tire was manufactured, the tire size and the week/year of manufacture. The electronic data would be a marking or tag within or on the tire sidewall that could be read with a handheld scanning tool. The two electronic TIN candidates are radio frequency identification tags and two-dimensional barcodes. Electronic technology could provide the industry with an easier and more accurate method to scan data as tires are sold rather than relying on paper registrations. The TIN could then be linked to the vehicle identification number, making it a more reliable way to contact the current registered owner in case of a recall. There is no timeframe for pursuing the technology.

Warranty Restrictions: The Federal Trade Commission (FTC) held a one-day workshop to examine ways in which manufacturers may limit third-party automotive replacement and repairs, including limitations on consumer rights under the Magnuson-Moss Warranty Act. Issues covered included the current prevalence of repair restrictions, reasons provided by manufacturers for such restrictions, and whether consumers are aware of their right to install aftermarket products. The workshop also explored the technological and financial impact repair restrictions have on small businesses and consumers. The workshop was a fact-finding effort as the FTC seeks to better understand challenges faced in enforcing the law.

Retirement Plan Legislation: The U.S. House of Representatives passed a bipartisan bill to expand retirement savings programs. The bill would make it easier for small businesses to join multiple employer plans by not requiring businesses to be affiliated. It also increases tax credits for small businesses adopting retirement plans and permits part-time employees to enroll in 401(k) plans. The U.S. Senate is considering a similar bill.

Overtime Pay: The U.S. Department of Labor issued a final rule to raise the cap from $23,660 to $35,568 a year ($455 to $684 a week) for management, administrative and professional employees who are exempt from receiving overtime pay when they work more than 40 hours a week. The pay threshold is frequently called the Fair Labor Standards Act’s “white collar” exemption. In 2016, the Obama administration raised the cap to $47,476 per year, but it was struck down by a federal court. The new rule takes effect on January 1, 2020.

Public Lands Bill: President Trump signed into law a massive public lands bill. It included elements supported by SEMA, such as the California Desert Protection and Recreation Act co-authored by Rep. Paul Cook (R-CA) and Sen. Dianne Feinstein (D-CA) to permanently designate six existing OHV areas. Those areas include Johnson Valley (expanded by 11,000 acres), Spangler Hills, El Mirage, Rasor, Dumont Dunes and Stoddard Valley. The bill also included a provision to permanently designate federal lands within Emery County, Utah. While the provision protects most existing OHV routes within the San Raphael Swell, several trails were lost.

Bonneville Salt Flats: Utah lawmakers have appropriated $5 million toward a program to restore the Bonneville Salt Flats, contingent upon securing federal funds. The monies will be used to create a 10-year, $50 million program to dramatically increase the amount of salt pumped onto Bonneville. The bulk of the monies will come from the federal government, with contributions as well from the motorsports community. Beginning in the ’60s, the salt crust diminished due to historic and current potash mining activities under existing leases from the U.S. Bureau of Land Management. The mine owner has been pumping salt since 1997, but infrastructure renovation and upgrades would increase the volume. As a result, the racing venue should gradually expand from its current 8-mi. length, with a goal of reaching the original 13-mi. length. SEMA, along with other organizations and companies comprising the Save the Salt Coalition, is working with state and federal officials to implement the program.

STATE UPDATE

Arizona—Emissions Exemption: A SEMA-supported law to exempt qualified collectible vehicles from the state’s emissions inspection and maintenance program went into effect June 1. While the bill was signed into law in 2005, the state’s regulatory process delayed implementation. In order to qualify, a vehicle must be either 15 model years old or older or a unique or rare design of limited production and an object of curiosity. In addition, the vehicle must be maintained primarily for use in car club activities, exhibitions, parades or other functions of public interest, or for a private collection and used infrequently. Additionally, the vehicle must have collectible or classic automobile insurance coverage that restricts the vehicle’s mileage or use, or both, and requires the owner to have another vehicle for personal use. The current exemptions for pre-’67 vehicles also remain in effect.

California—Exhaust Noise: California Governor Gavin Newsom signed into law SEMA-supported legislation that immediately restored fix-it tickets for cars suspected of violating the state’s exhaust noise limit. The bill amended a 2018 law, which removed fix-it tickets for such violations and which generated significant concern within the specialty automotive aftermarket industry and enthusiast community. Since 2003, exhaust systems installed on motor vehicles in California with a manufacturer’s gross vehicle weight rating of less than 6,000 lbs., other than motorcycles, may not exceed a sound level of 95 dB when tested under a Society of Automotive Engineers (SAE) procedure.

California—OHV Access: The California Coastal Commission voted to continue permitting off-highway vehicle (OHV) use at the Oceano Dunes State Vehicular Recreation Area (SVRA). During its July 11 meeting in San Luis Obispo, the Commission rejected staff recommendations to further restrict motorized recreational access, with the eventual goal of prohibiting OHV and motorized vehicles at Oceano Dunes SVRA.

Delaware—Street Rods: Delaware Governor John Carney signed into law a bill easing the process of registering a street rod, by favorably changing the existing age and equipment requirements. The new law amends the definition of street rod from a vehicle manufactured before 1970 to one 25 years old or older. The law also removes the requirement that a street rod’s tires be covered by fenders.

Maine—Ethanol: Maine Governor Janet Mills signed a bill into law allowing the sale of ethanol-free gasoline statewide. Previously, only the counties of York, Sagadahoc, Androscoggin, Kennebec, Knox and Lincoln banned the sale of ethanol-free gasoline.

Nebraska—Military Vehicles: Nebraska Governor Pete Ricketts signed into law legislation allowing for the titling and registration of former military vehicles. The new law defines a former military vehicle as “a vehicle that was manufactured for use in any country’s military forces and is maintained to accurately represent its military design and markings, regardless of its size or weight, but is no longer used, or never was used by a military force.” Previously, those vehicles were not allowed to be titled or registered for on-road use in the state.

Nevada—Military Vehicles: Nevada Governor Steve Sisolak signed into law legislation that allows for the titling and registration of retired military vehicles. The new law also authorizes the design and production of a specialty plate for those vehicles. Previously, such vehicles could not be titled or registered for use on highways in the state.

New Brunswick—License Plates: Beginning July 15, 2019, motorists in New Brunswick were no longer required to display a front license plate on passenger vehicles and light trucks. The change removed the requirement to display two license plates on vehicles weighing less than 4,500 kg.

New Mexico—License Plates: Legislation to require registration plates on the front and back of all motor vehicles died when the legislature adjourned. Under current law, all motor vehicles in the state are issued only a single plate. Because of strong opposition, the bill failed to receive a vote on the House floor.

Ohio—License Plates: Ohio Governor Mike DeWine signed into law legislation to allow for the issuance of a single, rear-mounted license plate for motor vehicles. Previously, Ohio required vehicles to display two plates.

Rhode Island—License Plates: Legislation to allow vehicles with “year of manufacture” (YOM) tags to display a single license plate on the rear of the vehicle, passed the deadline for the governor’s signature or veto and thus became law without being signed. All motor vehicles 25 model years old and older, are currently eligible for courtesy YOM plates in Rhode Island. Previously, those vehicles were required to display both front and rear YOM plates.

Tennessee—Military Vehicles: Tennessee Governor Bill Lee, signed into law legislation that exempts historic military vehicles from the requirement to display license plates. An historic military vehicle is currently defined as being 25 years old or older, manufactured for use in any country’s military, and maintained to represent the vehicle’s military design and markings.

Texas—Assembled Vehicles: Texas Governor Greg Abbott signed into law SEMA-supported legislation creating a specific registration and titling class for former military vehicles and assembled vehicles, including kit cars and dune buggies. The new law provides guidance to the Texas Department of Motor Vehicles on how to treat such vehicles. Previously, there was no specific registration and titling class for certain assembled vehicles, such as
dune buggies.

West Virginia—Motorsports Committee: Governor Jim Justice signed into law legislation to create the West Virginia Motorsports Committee. The committee is tasked with aiding in the development of racing events and facilities throughout the state. The committee will also seek opportunities to promote economic growth and manufacturing jobs related to motorsports.

SEMA News—December 2019

REQUIRED READING

By Juan Torres

The primary focus of SEMA’s dedicated market research department is to develop reports throughout the year that provide insights on the automotive aftermarket industry and consumers. From its annual “SEMA Market Report,” which provides an overview on the state of the U.S. specialty-equipment market, to the monthly “Industry Indicators Report” and the “Modern Muscle Car Accessorizer Report,” the market research department’s work helps industry members stay informed and make better business decisions. The articles below mention some of the data highlighted in these reports.

SEMA News—December 2019

INTERNET

By Joe Dysart

Company Reports That Write Themselves

With Artificial Intelligence, It’s a Snap

A number of artificial intelligence firms offer tools that automatically generate text reports from company databases.

Businesses looking to automatically generate written reports from their databases now have a raft of choices available, thanks to the emergence of writing software that uses artificial intelligence (AI). Such AI-generated writing solutions can drill down into company databases and automatically produce easy-to-understand written reports, unearthing insights about trends and company performance that might otherwise never see the light of day.

“Any time a business can automate administrative and mundane tasks, it’s useful to the enterprise, reduces human error and boosts productivity,” said Brian Everett, senior partner at marketing firm MindShare Strategies.

In a phrase, any data report your business currently produces or may be looking to produce in coming years can be enhanced with AI-generated writing. Fortunately, a number of new toolmakers offering this tech (also referred to as Natural Language Generation or NLG) have emerged during the past few years to help businesses unearth insights trapped in database columns and tables.

More recently, many of the same AI toolmakers are also ensuring that their AI-generated writing solutions integrate tightly with commonly used business intelligence software such as Microsoft Excel, Microsoft Power BI, Microstrategy, Qlik, Spotfire SAP and Tableau. The result is that businesses can auto-generate rich, colorful visualizations of their data—accompanied by easy-to-understand text descriptions of what they’re viewing—by blending AI-generated writing with already existing business intelligence software.

“NLG-driven, multi-dimensional narratives are the breakthrough that [data-generated] visuals were years ago,” said Sharon Daniels, CEO of AI-generated writing toolmaker Arria. “The ‘big data’ problem was partially addressed with the evolution of business intelligence dashboards, but while visuals paint a picture, they’re not the complete picture. With the addition of NLG, business intelligence dashboards are transformed. The ability to access key information in near real time, communicated as if written by the company’s top analyst, without bias and at an NLG writing speed, is truly astonishing. It’s what users are demanding: complete information, faster conclusions and better decision making.”

Added Ann Schnena, a senior product manager at Narrative Science, another AI-generated writing toolmaker: “Instead of forcing people to learn how to analyze spreadsheets or explore dashboards, data storytelling uses simple, easy-to-understand language and one-click collaboration features to ensure that everyone in your company actually understands data, all the time. With ‘data storytelling,’ your team can read a personalized story that tells them what they need to know about their business—tailored specifically to their needs automatically. Data storytelling technology is intelligent. It naturally articulates the most important and interesting information to each employee every day. And it allows employees to share that information with each other.”

The added insights from easy-to-understand prose makes a business intelligence system more accessible to more people, given that not everyone is comfortable making business decisions based on graphics alone, Schnena said.

Moreover, by customizing the kind of text reports that are generated, business users and others are able to zero in on just the kind of information and just the kinds of insights they’re looking for instead of wading through torrents of data. And having an automated report writer in-house also offers businesses the opportunity to generate more reports more often. For example, why be satisfied with a performance report each month when you can auto-produce a performance report each week—or even each day?

Some seasoned users of AI-generated business reports even program their systems to offer an updated report every time a staffer opens a copy of the company’s business intelligence software on a PC.

One caveat, however: Businesses looking to bring AI-generated writing tools in-house should know up front that their ability to fully optimize their use of AI report-generating tools will need some ramp-up time.

“People must invest a significant amount of time and resources to set up and perfect NLG software on the front end,” said Mindshare’s Everett. “After reports and articles are generated, people still need to review and tweak the text to ensure that it makes sense and is error-free.”

One of the best ways to shop for AI-generated writing software is to check out market leaders in the space and then scout around for other solutions that go for less and have fewer bells and whistles but may be just fine for the reports you want. The top three players in AI-generated writing currently are Automated Insights, Narrative Science and Arria, according to a market research report released last year by highly respected market research firm Forrester.

Those three AI-generated writing toolmakers offer solutions that demonstrate the greatest ability to auto-generate richly worded text from data, according to Forrester. The top three also offer the most customization in terms of the kinds of reports that can be generated as well as the number of writing styles that can be used to generate the reports. They also offer solutions in more languages than other market players.

The second tier—also strong performers—are two business intelligence software makers that added AI-generated writing to their existing offerings: SAP and Salesforce, according to Forrester. And on the third tier are “contenders” AX Semantics, Yseop, IBM and Marlabs.

(A free copy of the normally $1,295 Forrester report is available at a link on Yseop’s website: www.resources.yseop.com/nlg-market-guide).

Gartner Group, another highly respected market research firm, came up with a similar list of key players in AI-generated writing in a report (www.gartner.com/en/documents/3942031) released in June 2019. The leaders were Arria, Automated Insights, AX Semantics and Yseop.

Overall, given the great value AI-generated writing does—and will—offer businesses, look for a number of new AI-generated writing providers to emerge during the next few years that will offer ever more powerful and ever more versatile systems. Such solutions will come in the form of standalone solutions such as Automated Insights and Arria NLG, and others will emerge as add-on tools to comprehensive business software suites offered by SAP and Salesforce.

Even if you’re not in the market for AI-generated writing right now, you’re going to want to track this technology closely in coming years, given that it’s poised to dramatically alter the way businesses glean insights from company databases.

Data reports auto-created with AI-generated writing make insight and decision-making at a company much easier because “everyone knows the same story,” said Pooja Parthasarathy, senior product manager at Narrative Science. “There’s no interpretation and there’s no element of guesswork or [alternative] perspective that goes into to it. Everyone is looking at and understanding the same story. Together.”

Joe Dysart is an internet speaker and business consultant based in Manhattan.

646-233-4089

joe@joedysart.com

www.joedysart.com