Attendee registration is for distributors, retailers, installers, PR/marketing staff and buyers who will meet with exhibitors. Applicants may be required to submit proof of industry employment. Approved domestic attendees registered prior to October 11 will receive their badges in the mail.
Thu, 06/06/2019 - 07:48
Thu, 06/06/2019 - 07:48
Attendee registration is for distributors, retailers, installers, PR/marketing staff and buyers who will meet with exhibitors. Applicants may be required to submit proof of industry employment. Approved domestic attendees registered prior to October 11 will receive their badges in the mail.
Thu, 06/06/2019 - 07:42
SEMA-member companies have posted several new listings for job opportunities in the Classifieds page of SEMA.org.
Sat, 06/01/2019 - 15:33
SEMA News—June 2019
INTERNET
9 Ways Artificial Intelligence Can Work For You
 Scores of software companies are powering their latest productivity apps with AI, including Microsoft. |
While artificial intelligence (AI) is increasingly being applied on a massive scale to alter the very nature of how the world works, it turns out AI is also very good at making everyday drudgery disappear.
Productivity apps powered by AI are emerging, for example, that will help you come up with snappier and more personalized emails, transcribe all your phone calls into searchable text or find just the right photo that goes with the color scheme you’re using for your presentation.
And while most of us are well-acquainted with everyday apps designed to help us work more efficiently, the best of the new incarnations powered by AI have been programmed to learn over time and become ever-smarter at the everyday tasks they’re handling for you.
The latest search tool for Microsoft Office, for example, goes far beyond searching for things that you’re looking for and actually gets to know how you work. The idea: The better the program “knows” you, the better search results it can bring back to you.
“Based on the user’s work patterns, the new search tool makes suggestions on content you may be looking for, actions you can take, and people you might want to connect with—all made to happen using machine learning and Microsoft artificial intelligence,” says Jon Friedman, chief designer, Microsoft Office.
In a phrase, scores of productivity tools are currently being completely remade by AI.
It’s a great time for businesses to take a look at what’s out there, and where the software category is headed.
Here’s a representative sampling:
Personalize Your Emails With an AI Web Crawler: Aizimov (www.aizimov.com) adds a personal touch to your emails by auto-crawling the web for interesting insights on the people your do
business with.
“All you have to put in are four things: first name, last name, email and company,” says Jerome Devosse, Aizimov’s CEO. After that, the software searches Facebook, Twitter, LinkedIn and other social networks to bring back insights about your contacts, including their likes, dislikes and passions.
“If the guy, for example, has done a marathon, I may finish the email by saying, “By the way, I also did a marathon in Rome, here’s my time—how do we compare?” to get their attention,” Devosse says.
Aizomov also works for you after you send your email, collecting info on the types of emails you send that get the best responses, based on tone, length, content and time-of-day sent.
Using these insights, it will put together a draft of an email the next time you want to communicate with your marathon buddy or similar—which you can use as is or customize to your own tastes.
Leverage Microsoft Office’s New AI (https://products.office.com): Stop One for millions of computer users each day, Microsoft Office has been given an AI facelift. It will now automatically transcribe your conference calls into text and even organize that text with automatic
subtitles.
Businesses who use Powerpoint will also appreciate the new Powerpoint-on-AI, which can automatically put together a presentation after you type a line or two of text over each slide you plan to use.
Still other Microsoft Office apps reworked with AI include it’s search function, which is completely powered by AI now. And Cortana, an AI assistant that made its debut in Microsoft Windows 10, has also been integrated into Microsoft Office as another AI-powered app.
Meanwhile, Microsoft is also attempting to make machine learning more accessible to analysts within companies by offering them the ability to write their own machine learning models—without writing a single line of computer code.
The capability was recently integrated into Microsoft’s “Power BI,” a business analytics tool that scans company data for hidden patterns and renders the results into easily understandable reports and visualizations.
“Instead of targeting developers or data scientists, we’ve simplified it and made it broadly accessible for common use cases,” says Arun Ulag, general manager, engineering, at Microsoft. “This means that when an analyst builds a machine learning model in Power BI, it does all the heavy lifting by selecting the best algorithm and features with just a few clicks.
“As an example: a business analyst could leverage the automated machine learning technology to quickly and easily build a model to predict how likely an open sales opportunity is to be won. This could help a sales manager prioritize which high value opportunities to focus on and how likely they are to meet their target.”
Auto-Transcribe Meetings to Text: Eva, Voicea’s AI assistant (www.voicea.com) automatically transcribes the highlights of any meeting into easily readable text for all participants. The app also will email all the notes to everyone who attended the meeting, or just key players.
Plus, its auto-transcription also works for phone conversations.
Send Out for an AI Rewrite: Businesses looking for a different take on some text they’ve just written can turn to Spinnerchief (www.spinnerchief.com). It will rework anything you write from a slightly different perspective. The software has also been designed to ensure the text it produces is optimized for the search engines.
Another AI program in the same genre is Writer (www.ai-writer.com). Writer is designed to learn everything you need to know about a specific topic by crawling the Web and then present the results to you in a text article. The program works best when you instruct it to research an extremely narrow topic.
Index Your Photo Library With AI: Imagga (https://imagga.com) is able to analyze the entire photo library of a business, studying one picture at a time at blazingly fast speed and then tagging each image so you’ll be able to quickly call up any image with a text search.
Find Images for Your Color Theme: Everypixel (www.everypixel.com) bests the other stock images libraries on the Web by offering you the ability to find an image based on the color scheme you’re using for your ad or presentation.
Have an AI Assistant Schedule Your Meetings: There are a number of AI assistants dedicated to using email to auto-schedule meetings for businesses using email. Those worth a try include Julie Desk (www.juliedesk.com), Kono (https://kono.ai), Clara (https://claralabs.com) and Hire Amy (https://x.ai).
Pick an AI Personal Assistant to Your Liking: Unlike task-specific AI apps, AI personal assistants attempt to handle a number of everyday tasks for you simultaneously. It’s a popular AI productivity category, so you’ll have plenty to check out.
Zoom.AI (https://zoom.ai), for example, is designed to help organize your schedule, prepare meeting notes, handle travel logistics, search for files, order a car and more. Braina (www.brainasoft.com) is designed to perform similar functions, as is Vesper (www.vesper.ai/#home).
Joe Dysart is an internet speaker and business consultant based in Manhattan.
646-233-4089
Sat, 06/01/2019 - 15:33
SEMA News—June 2019
INTERNET
9 Ways Artificial Intelligence Can Work For You
Scores of software companies are powering their latest productivity apps with AI, including Microsoft. |
While artificial intelligence (AI) is increasingly being applied on a massive scale to alter the very nature of how the world works, it turns out AI is also very good at making everyday drudgery disappear.
Productivity apps powered by AI are emerging, for example, that will help you come up with snappier and more personalized emails, transcribe all your phone calls into searchable text or find just the right photo that goes with the color scheme you’re using for your presentation.
And while most of us are well-acquainted with everyday apps designed to help us work more efficiently, the best of the new incarnations powered by AI have been programmed to learn over time and become ever-smarter at the everyday tasks they’re handling for you.
The latest search tool for Microsoft Office, for example, goes far beyond searching for things that you’re looking for and actually gets to know how you work. The idea: The better the program “knows” you, the better search results it can bring back to you.
“Based on the user’s work patterns, the new search tool makes suggestions on content you may be looking for, actions you can take, and people you might want to connect with—all made to happen using machine learning and Microsoft artificial intelligence,” says Jon Friedman, chief designer, Microsoft Office.
In a phrase, scores of productivity tools are currently being completely remade by AI.
It’s a great time for businesses to take a look at what’s out there, and where the software category is headed.
Here’s a representative sampling:
Personalize Your Emails With an AI Web Crawler: Aizimov (www.aizimov.com) adds a personal touch to your emails by auto-crawling the web for interesting insights on the people your do
business with.
“All you have to put in are four things: first name, last name, email and company,” says Jerome Devosse, Aizimov’s CEO. After that, the software searches Facebook, Twitter, LinkedIn and other social networks to bring back insights about your contacts, including their likes, dislikes and passions.
“If the guy, for example, has done a marathon, I may finish the email by saying, “By the way, I also did a marathon in Rome, here’s my time—how do we compare?” to get their attention,” Devosse says.
Aizomov also works for you after you send your email, collecting info on the types of emails you send that get the best responses, based on tone, length, content and time-of-day sent.
Using these insights, it will put together a draft of an email the next time you want to communicate with your marathon buddy or similar—which you can use as is or customize to your own tastes.
Leverage Microsoft Office’s New AI (https://products.office.com): Stop One for millions of computer users each day, Microsoft Office has been given an AI facelift. It will now automatically transcribe your conference calls into text and even organize that text with automatic
subtitles.
Businesses who use Powerpoint will also appreciate the new Powerpoint-on-AI, which can automatically put together a presentation after you type a line or two of text over each slide you plan to use.
Still other Microsoft Office apps reworked with AI include it’s search function, which is completely powered by AI now. And Cortana, an AI assistant that made its debut in Microsoft Windows 10, has also been integrated into Microsoft Office as another AI-powered app.
Meanwhile, Microsoft is also attempting to make machine learning more accessible to analysts within companies by offering them the ability to write their own machine learning models—without writing a single line of computer code.
The capability was recently integrated into Microsoft’s “Power BI,” a business analytics tool that scans company data for hidden patterns and renders the results into easily understandable reports and visualizations.
“Instead of targeting developers or data scientists, we’ve simplified it and made it broadly accessible for common use cases,” says Arun Ulag, general manager, engineering, at Microsoft. “This means that when an analyst builds a machine learning model in Power BI, it does all the heavy lifting by selecting the best algorithm and features with just a few clicks.
“As an example: a business analyst could leverage the automated machine learning technology to quickly and easily build a model to predict how likely an open sales opportunity is to be won. This could help a sales manager prioritize which high value opportunities to focus on and how likely they are to meet their target.”
Auto-Transcribe Meetings to Text: Eva, Voicea’s AI assistant (www.voicea.com) automatically transcribes the highlights of any meeting into easily readable text for all participants. The app also will email all the notes to everyone who attended the meeting, or just key players.
Plus, its auto-transcription also works for phone conversations.
Send Out for an AI Rewrite: Businesses looking for a different take on some text they’ve just written can turn to Spinnerchief (www.spinnerchief.com). It will rework anything you write from a slightly different perspective. The software has also been designed to ensure the text it produces is optimized for the search engines.
Another AI program in the same genre is Writer (www.ai-writer.com). Writer is designed to learn everything you need to know about a specific topic by crawling the Web and then present the results to you in a text article. The program works best when you instruct it to research an extremely narrow topic.
Index Your Photo Library With AI: Imagga (https://imagga.com) is able to analyze the entire photo library of a business, studying one picture at a time at blazingly fast speed and then tagging each image so you’ll be able to quickly call up any image with a text search.
Find Images for Your Color Theme: Everypixel (www.everypixel.com) bests the other stock images libraries on the Web by offering you the ability to find an image based on the color scheme you’re using for your ad or presentation.
Have an AI Assistant Schedule Your Meetings: There are a number of AI assistants dedicated to using email to auto-schedule meetings for businesses using email. Those worth a try include Julie Desk (www.juliedesk.com), Kono (https://kono.ai), Clara (https://claralabs.com) and Hire Amy (https://x.ai).
Pick an AI Personal Assistant to Your Liking: Unlike task-specific AI apps, AI personal assistants attempt to handle a number of everyday tasks for you simultaneously. It’s a popular AI productivity category, so you’ll have plenty to check out.
Zoom.AI (https://zoom.ai), for example, is designed to help organize your schedule, prepare meeting notes, handle travel logistics, search for files, order a car and more. Braina (www.brainasoft.com) is designed to perform similar functions, as is Vesper (www.vesper.ai/#home).
Joe Dysart is an internet speaker and business consultant based in Manhattan.
646-233-4089
Sat, 06/01/2019 - 14:28
SEMA News—June 2019
NEW PRODUCTS
By Chad Simon
Mobile-Electronics New Products
Redefining the Future of Mobile Technology
Advanced driver assistance systems (ADAS), including radar blind-spot detection, backup cameras, driver connectivity and collision and lane-departure avoidance systems, continue to gain momentum in the $1.5 billion mobile-electronics industry. These technologies are not only being offered in new vehicles; aftermarket manufacturers have also adapted products to fit many older vehicles that are already on the road. The opportunities in this market are growing. Mobile-electronics products covered a swath of real estate in the North Hall of the Las Vegas Convention Center during the 2018 SEMA Show. The following is a collection of products that were on display in the New Products Showcase last year, along with insight by industry experts.
Advanced Fuel Dynamics The ProFlex Commander is a plug-and-play adaptive E85 management system that constantly monitors fuel blend and optimizes fuel delivery and engine parameters in real time to maximize performance, ensure engine durability, and deliver dyno-proven horsepower and torque gains on E85. Manage fuel blend with the free ProFlex Connect app for iOS or Android. 866-902-3835 |  |
AE Distributing Stamped-steel plates haven’t changed much…until now. The R-Plate is the first digital license plate, allowing owner customization as well as quick online DMV services for registration, personalized plates and more. Add a vehicle or club logo when parked plus personalized messages. Approved in California and Arizona, with more states to come. 818-908-5710 |  |
AeroLidz Aerodynamic 52/50-in. LED light bar silencing cover redirects air around the light bar, removing deafening whistles and howls while protecting the customer’s light bar. The cover is open on the sides and along the entire back to allow airflow for cooling. The inserts are removable, providing a street-legal and customized look. 314-279-5636 |  |
Antigravity Lithium Batteries Antigravity Batteries says that its Re-Start line is the first of its kind with built-in jump starting. It monitors its status and puts itself to sleep just before going dead, with just enough energy to start the vehicle again with a simple press of the restart button on the battery. Start the vehicle, drive away, and never be left stranded again. 310-527-2330 |  |
AutoMeter DashLink is a wireless hardware and app-based data monitoring and logging solution for personal mobile devices and OBD-II compliant vehicles ’96–current. Version 2.0 includes configurable AutoMeter gauges, improved graphics and navigation menus, with one hardware interface for both Apple and Android devices. 866-248-6356 |  |
Blackvue A 4K cloud dash cam. Sony Starvis image sensor. H.265 (HEVC) compression. Built-in GPS and dual-band Wi-Fi. Built-in impact and motion detection. +82-2-6947-4670 |  |
Brandmotion The SummitView Jeep Wrangler Quad Camera With DVR System provides off-roaders with a four-camera system that all ties into a DVR monitor. The cameras assist in parking, general driving and trail riding. The 185-degree-view front winch camera, two rock cameras and a backup camera become like an internal spotter for ensuring that the driver picks the right line. 734-619-1250 |  |
HornBlasters The HornBlasters spare tire delete kit is an all-in-one solution, now with a larger compressor. It uses the vehicle’s stock spare tire lifting 877-209-8179 |  |
Full Throttle Battery Introducing Full Throttle high-performance batteries built to the highest standards and made to be put through the toughest tests. Featuring virgin pure-lead thin plates, over-the-partition welds, brass terminal connections and higher compression rates and valve settings to ensure the power in the battery gets to the accessories efficiently. 805-484-7900 |  |
Kicker Make music personal with the new Kicker 4.0 amp and FlexTune app, compatible with Kicker-equipped GM audio systems. Using a connected device, FlexTune links to a Kicker-equipped system via Bluetooth LE to add bass or increase clarity. Easily tweak the sound using the graphic five-band EQ, then name the preset for easy recall. 405-624-8510 |  |
Zuther Xtreme Technologies The Wrench iD+ measuring tool identifies sizes of bolt heads and nuts, and provides the exact size of the wrench or socket needed. The tool also identifies inside and outside diameters of piping and oZuther ther related objects. Available with powder grey or polished nickel arms, the Wrench iD+ provides sizes in SAE and Metric 1/4in & 6mm through 2 1/8 in & 54 mm ranges. The readout can display results in SAE or metric. Additional features include an LED light, automatic shut-off, a digital display, and and the ability to recall the last size measured. |  |
View all of the mobile-electronics new products from the 2018 SEMA Show New Product Showcase.
Sat, 06/01/2019 - 12:10
SEMA News—June 2019
BUSINESS
By Douglas McColloch
The New State of Hot Rodding
What’s Hot, New and Trending for 2019 and Beyond
 The Las Vegas Convention Center’s Central Hall—also known as Hot Rod Alley—was a hub of activity at the 2018 SEMA Show. Recent sanctioning-body reclassifications have greatly expanded the hot-rod market segment and, with it, the opportunity for ever more imaginative and innovative builds on an expanding number of vehicles. |
If the SEMA Show comprises the body of the automotive aftermarket, Hot Rod Alley might well be said to be its beating heart. For decades, the hot-rod and performance-street segments have led the aftermarket in leading-edge engine, drivetrain and suspension technologies. Given recent industry and technological trends, the hot-rodding market segment only figures to increase in popularity and sales in years to come. As it stands, the hot-rodding segment is an integral part of a $1.26-billion industry, according to the latest available report from the Hot Rod Industry Alliance (HRIA).
While the ’32–’48 roadsters of old may be rodding’s most iconic rides, the definition of what constitutes a “hot rod” has expanded in recent years—in particular since the Goodguys Rod & Custom Association revised its eligibility list in 2018 to include vehicle makes and models up to the ’87 model year in its nationwide show series. Pickups and musclecars, to name but two, are once-neglected categories that now qualify for hot-rod status—and they are, in fact, two of the hottest segments in the market at present.
As with any enthusiast-driven vehicle segment, hot rodding faces a number of challenges in the coming years, while also presenting some intriguing opportunities for future growth. For this article, we contacted some two dozen industry insiders representing manufacturers, fabricators, racers, retailers, media and enthusiasts. What follows is a compilation of their insights.
The State of the Industry
 A hint of future trends, perhaps, the ’19 Chevy Camaro eCOPO concept debuted at the 2018 SEMA Show sporting an all-electric powertrain said to generate 700 hp and 600 lb.-ft. of torque. A number of experts we consulted expect to see an increasing number of “electro-mods” in the coming years. |
Overall, the experts we consulted overwhelmingly agreed that the state of the hot-rod aftermarket is robust and has been on an upswing for most of the past decade. Brian Brennan, network director at Motor Trend Group, said he detected “a noticeable comeback that began about five years ago.” Josh Henning, director of operations and business development at Roadster Shop, said he’s seeing the entry of “more new customers, age groups and interests than I have ever seen in the past 20 years.” Vintage Air Executive Vice President and former HRIA Chair Rick Love has seen a steady increase in growth, adding that “it’s encouraging when I see some of our warehouse distributors stocking up on inventory. That’s an indication that they see a strong market ahead for them, too.”
While agreeing that the state of the industry is strong, Goodguys Gazette Editor Damon Lee sees a gradual change overtaking the market: “The traditional pre-’48 hot-rod market has likely hit a plateau, but we are still seeing great growth in ’60s-and-newer vehicles that fall under the broader definition of a hot rod. Those different types of cars bring different needs with them, and we see the market shifting, adapting and evolving to better
serve them.”
New Trends: Classic Old Pickups, Brand-New Tech
Across the board, the experts we consulted agreed on one of the hottest segments in hot rodding, and one that seems to be driving a lot of growth: pickups. Brennan pointed to the ’73–’87 Chevy as the hottest at present, with ’48–’52 and ’67–’72 bowties close behind. Love concurred.
“For a while, the ’73–’87 Chevy wasn’t all that popular,” he said. “Now, those square-body pickups have just boomed in popularity, and I think that’s going to extend to the ’88–’93s and later models.”
 Pickups are still among the hottest platforms in the hot-rod/performance-street market segment. This restomod ’71 Chevy K-Blazer was a highlight of the 2018 SEMA Show and neatly encapsulates builders Mike and Jim Ring’s current views on the direction of the market: “Seventies trucks are where it’s at.” |
InGear Media head Todd Ryden said that ’70s and ’80s pickups are “absolutely on fire.” Edelbrock President and CEO Don Barry agreed that the segment is “in hyperdrive.” And John McLeod, owner of Classic Instruments and former HRIA chair, noted that older trucks provide an attractive build platform because the entry price is low and good parts are available.
Within the truck segment itself, “the most popular modification is suspension—and air-ride in particular,” said Scott Nelson, operations manager of C-10 pickup specialist GSI Machine & Fabrication. “Advancements in chassis design and air management have really evolved and lent themselves to a more hassle-free and user-friendly experience.” Also garnering notice was the LS engine platform, which Barry observed “is super-hot right now and not going away anytime soon.”
Another growing market segment that nearly all of the experts pointed to is embodied by the trend of applying newer technologies, such as electronically controlled engines, modern comfort features, wireless communications and the like to older vehicle platforms. To Nitro Cool Owner Shawn Parker, the single biggest change in the hot-rod market in recent years has been the wholesale acceptance of ECM-controlled engine assemblies.
Love pointed to the increase in products that enhance the driving experience, particularly with older, rough-riding vehicles. “Those musclecars of the ’60s were famous for having all kinds of horsepower and absolutely terrible braking systems,” he recalled. “Products that improve the overall driving experience are what’s really fueling the growth.” Henning concurred.
“Without a doubt, the leading trend we are seeing on a daily basis is toward modifications that first and foremost enhance the driving experience, to get people enjoying their vehicles faster,” he said. And Trevor Hobson, national sales manager at VSF Racing, said: “We’re seeing a lot more electronics-related upgrades, whether it is fuel injection, power steering, performance management or interior amenities.”
 Sixties-vintage musclecars, once excluded from the hot-rod designation, are now show-eligible and, according to our experts, are driving a great deal of current market growth. This LS3-powered ’69 Camaro built by Kyle Tucker was the winner of SEMA’s 2018 Battle of the Builders competition. |
The experts also agreed that build quality has improved markedly in recent years. Love pointed to “the sheer quantity and quality of reproduction parts, body parts and trim parts that are available now. They have really improved across a whole range of makes and models, and I think that’s fueled a lot of growth.”
In a related vein, Mike and Jim Ring, co-founders of Ringbrothers, explained how advances in computerization have helped to drive the growth of high-quality components: “A couple years ago, we dabbled in scanning and designing body parts for our builds using CAD and then CNC-machining plugs for carbon parts production. The process adds a level of precision to the body that is impossible to achieve by hand.”
Parker also noted changes in enthusiasts’ buying habits and how they have affected build priorities. “The quality of the builds across the board over the past 10 years has been revolutionized,” he said, “I think that’s because a lot less money is being spent on things that used to be high-ticket items. The LS drivetrain, for instance. Nowadays, $2,500 buys a very good used, guaranteed 5.3L/automatic combo, so the guys are spending less on things like that and more on fit and finish items.”
Short-Term Challenges: Taxes, Tariffs and Staffing
A government initiative that a number of the experts felt could have an impact on the market for 2019 and beyond is the potential fallout from the 2018 Supreme Court decision (South Dakota vs. Wayfair) that allows states to charge sales tax from out-of-state sellers, even if the seller has no physical presence in the taxing state.
“We’re seeing a lot of changes in tax codes being enacted in various states, and distributors and manufacturers will now have to start collecting sales tax, submitting that tax and submitting tax returns,” Love said. “It’s another clerical accounting layer that’s being applied to the industry, and it’s going to be a challenge because it’s not something that’s easy to do.”
 While pickups and ’60s pony cars may be the rage at present, there’s still plenty of room in the rodding segment for old-school roadsters like this ’36 Ford built by Jason Graham. Powered by an injected 347ci small-block, it was a finalist at SEMA’s 2018 Battle of the Builders competition. |
While bigger companies may be able to accommodate the state mandates with their existing organizational infrastructure, smaller to midsize companies may face logistical challenges and increased expenses.
“If you’re a smaller company, you’ll either have to contract out to a firm with software tied in that will help you through that, or you’re going to have to hire someone to help you navigate your way through the process,” Love said. “I think a lot of people in the industry—and consumers—don’t realize how much change this is going to bring.”
McLeod echoed that sentiment, saying that the new tax mandates “will change the industry as we know it today.” Hobson claims it’s “the biggest change we’ve seen over the last year, and it will be interesting to see how it plays out over the next 12 to 24 months.”
The experts could not reach a consensus on the market effects being felt as a result of the ongoing United States-China trade war, with roughly equal numbers claiming that their businesses had been either helped or handicapped by the imposition of tariffs. However, all agreed with the sentiments expressed by Barry, who felt that the dispute has cast a question mark over much of the industry.
“I’d like to see this ironed out so that we can put this behind us and say we don’t have to worry about this anymore,” he said.
Another challenge that many companies face in a growing economy with low unemployment is staffing. Henning considered this his company’s biggest challenge in order to keep up with greater demands from a changing customer demographic. The Rings pointed out the challenge of staffing and retaining young talent in their rural location, adding that they’re working with local trade schools to find solutions. McLeod agreed, saying that employee retention is key to expanding business.
The Next Generation: The Millennial Wave
From the ’60s onward, interest in hot rodding has been driven primarily by a now-dwindling Baby Boomer enthusiast demographic, and one challenge facing the industry is the ability to attract a new generation of builders to the hobby.
“This has to be one of our biggest concerns,” Love said, noting the success of SEMA and HRIA youth programs at attracting new hobbyists. Danny Agosta, Steel Rubber Products automotive project coordinator, has noticed a demographic change sweep the segment over the past decade.
“One of the biggest changes I see in the market is the continued growth of Millennials,” Agosta said. “I’m 29, and I remember when I was in my early 20s, I didn’t see many people my age. Now I do.” Henning said that “it’s encouraging to see such an influx of first timers,” and Ryden also noted the growth of newer custom-car shows that are aimed at a younger enthusiast demographic.
“Roadkill Nights draws thousands,” Ryden said. “Their Hooptie Challenge is all younger guys working with what they can find to go fast, and LS Fests all seem to draw younger rodders. Take in the Hot Rod Hill Climb, Vintage Torque Fest, Lone Star Throwdown, C10s in The Park and other shows, and you’ll see nothing but younger guys playing with old technology.”
Barry additionally noted the continued strong appeal of drifting among younger enthusiasts on a limited budget.
“It’s mostly young kids who don’t have that much money,” he said. “They tend to self-fund their own cars, but they’re making it happen—and now the sport is getting big. It may still be under the radar of some of the bigger corporate sponsors, but it’s giving younger people an opportunity to get into the sport and have fun with it.”
Love saw an additional reason for optimism, pointing to the growing popularity of pickups and later-model vehicles that can be had for reasonably low prices, which in turn could give younger builders on a budget an entrée to the hobby.
“The price of admission for a pickup is a lot less than a lot of the more-expensive cars,” he said. “I think that a lot of late-’80s GM cars—the Monte Carlos and others that older enthusiasts kind of overlooked—are starting to become more popular now with younger hobbyists.”
Lee added that “one reason Goodguys opened up our events to vehicles through ’87 is the availability of those vehicles and the ease with which enthusiasts can make them strong performers with bolt-on parts.”
Looking Ahead: The Changing Hot-Rod Marketplace
Which leads us to ask: What actually qualifies as a hot rod in the 21st century? The answer, it would seem, is anything on four wheels that builders want to customize.
“From dusty barn finds to four-door fullsize cruisers, slammed Suburbans or Mustang IIs, restified musclecars, Tri-Fives and ’30s rods, they’re all being done,” Ryden observed. “Today, we get to see them all.”
Henning sees market evolution as inevitable: “As the customer base changes, the projects and types of vehicles they’re interested in will change as well—not just in genre or year/model but also the intended use. Builders’ individual needs will make it harder to label or categorize builds or styles.”
Nearly all of the experts we consulted agreed that the new-tech-for-old-iron trend will continue into the foreseeable future. “There seems to be no shortage of new products to be developed,” observed David Hays, owner of Hot Rod Innovations.
According to the latest HRIA market survey, nearly half of all classic-car owners rely on internet searches when shopping for parts. In that vein, many of the experts agreed that a healthy online presence—including social media—will likely be an integral part of any future business model.
“Millennials grew up shopping online,” Agosta reminded. “Many use the internet exclusively to research and order parts.”
Love agreed on the need for an online public profile: “We have a presence on social media, and that’s absolutely crucial to our business.”
On the other hand, Trent Campbell, president of CarBuff Network, cautioned against overreliance on social-media as sites such as Facebook and Instagram continue to grow their user bases.
“Platforms that have worked well for the last 10 years are becoming crowded, making it difficult to create and maintain brand awareness,” Campbell said. He sees old-school relationships and networking as critical to creating a solid brand and said that the industry’s traditional word-of-mouth communications model will always play a key role in the automotive aftermarket.
One relatively new market segment that’s already attracting interest, and which has the potential for tremendous future growth, is electrification. The idea of a hot rod without an internal-combustion engine may seem like heresy to some, but the advent of electric hot rods is upon us, Brennan noted, saying that “we will see more and more examples in the next few years.” As examples, he pointed to Chevrolet’s eCOPO Camaro concept, which was unveiled at the 2018 SEMA Show, as well as a Tesla powertrain in a ’49 Mercury as example of the new-tech/old-car paradigm that was one of the Show’s biggest draws.
Parker concurred: “A lot of it will be legislated, so some of those changes will happen whether we like them or not, but as EVs grow in popularity and successive generations of Priuses get better, we will eventually see the adoption of these newer technologies.”
But Barry noted the volatility surrounding the still-evolving EV market to suggest that the transition to electric rods is likely to happen slowly: “That side of the market is still trying to figure itself out, and it has its own set of challenges. I think that’s why internal-combustion engines are going to be here for quite a while.”
Resources for Hot Rodders
Hot Rod Industry Alliance: SEMA’s Hot Rod Industry Alliance is a council dedicated to preserving the hobby and promoting the industry. To learn more about how your business can get involved and benefit from the community, visit www.sema.org/hria.
SEMA Action Network: The SEMA Action Network (SAN) is a nationwide partnership between vehicle clubs, enthusiasts and members of the specialty auto-parts industry who want to promote and preserve their hobby. Founded in 1997, SAN was designed to raise awareness of legislative threats to the hobby and to promote more favorable legislation. To learn more and join, visit www.semasan.com.
Sat, 06/01/2019 - 12:10
SEMA News—June 2019
BUSINESS
By Douglas McColloch
The New State of Hot Rodding
What’s Hot, New and Trending for 2019 and Beyond
| The Las Vegas Convention Center’s Central Hall—also known as Hot Rod Alley—was a hub of activity at the 2018 SEMA Show. Recent sanctioning-body reclassifications have greatly expanded the hot-rod market segment and, with it, the opportunity for ever more imaginative and innovative builds on an expanding number of vehicles. |
If the SEMA Show comprises the body of the automotive aftermarket, Hot Rod Alley might well be said to be its beating heart. For decades, the hot-rod and performance-street segments have led the aftermarket in leading-edge engine, drivetrain and suspension technologies. Given recent industry and technological trends, the hot-rodding market segment only figures to increase in popularity and sales in years to come. As it stands, the hot-rodding segment is an integral part of a $1.26-billion industry, according to the latest available report from the Hot Rod Industry Alliance (HRIA).
While the ’32–’48 roadsters of old may be rodding’s most iconic rides, the definition of what constitutes a “hot rod” has expanded in recent years—in particular since the Goodguys Rod & Custom Association revised its eligibility list in 2018 to include vehicle makes and models up to the ’87 model year in its nationwide show series. Pickups and musclecars, to name but two, are once-neglected categories that now qualify for hot-rod status—and they are, in fact, two of the hottest segments in the market at present.
As with any enthusiast-driven vehicle segment, hot rodding faces a number of challenges in the coming years, while also presenting some intriguing opportunities for future growth. For this article, we contacted some two dozen industry insiders representing manufacturers, fabricators, racers, retailers, media and enthusiasts. What follows is a compilation of their insights.
The State of the Industry
| A hint of future trends, perhaps, the ’19 Chevy Camaro eCOPO concept debuted at the 2018 SEMA Show sporting an all-electric powertrain said to generate 700 hp and 600 lb.-ft. of torque. A number of experts we consulted expect to see an increasing number of “electro-mods” in the coming years. |
Overall, the experts we consulted overwhelmingly agreed that the state of the hot-rod aftermarket is robust and has been on an upswing for most of the past decade. Brian Brennan, network director at Motor Trend Group, said he detected “a noticeable comeback that began about five years ago.” Josh Henning, director of operations and business development at Roadster Shop, said he’s seeing the entry of “more new customers, age groups and interests than I have ever seen in the past 20 years.” Vintage Air Executive Vice President and former HRIA Chair Rick Love has seen a steady increase in growth, adding that “it’s encouraging when I see some of our warehouse distributors stocking up on inventory. That’s an indication that they see a strong market ahead for them, too.”
While agreeing that the state of the industry is strong, Goodguys Gazette Editor Damon Lee sees a gradual change overtaking the market: “The traditional pre-’48 hot-rod market has likely hit a plateau, but we are still seeing great growth in ’60s-and-newer vehicles that fall under the broader definition of a hot rod. Those different types of cars bring different needs with them, and we see the market shifting, adapting and evolving to better
serve them.”
New Trends: Classic Old Pickups, Brand-New Tech
Across the board, the experts we consulted agreed on one of the hottest segments in hot rodding, and one that seems to be driving a lot of growth: pickups. Brennan pointed to the ’73–’87 Chevy as the hottest at present, with ’48–’52 and ’67–’72 bowties close behind. Love concurred.
“For a while, the ’73–’87 Chevy wasn’t all that popular,” he said. “Now, those square-body pickups have just boomed in popularity, and I think that’s going to extend to the ’88–’93s and later models.”
| Pickups are still among the hottest platforms in the hot-rod/performance-street market segment. This restomod ’71 Chevy K-Blazer was a highlight of the 2018 SEMA Show and neatly encapsulates builders Mike and Jim Ring’s current views on the direction of the market: “Seventies trucks are where it’s at.” |
InGear Media head Todd Ryden said that ’70s and ’80s pickups are “absolutely on fire.” Edelbrock President and CEO Don Barry agreed that the segment is “in hyperdrive.” And John McLeod, owner of Classic Instruments and former HRIA chair, noted that older trucks provide an attractive build platform because the entry price is low and good parts are available.
Within the truck segment itself, “the most popular modification is suspension—and air-ride in particular,” said Scott Nelson, operations manager of C-10 pickup specialist GSI Machine & Fabrication. “Advancements in chassis design and air management have really evolved and lent themselves to a more hassle-free and user-friendly experience.” Also garnering notice was the LS engine platform, which Barry observed “is super-hot right now and not going away anytime soon.”
Another growing market segment that nearly all of the experts pointed to is embodied by the trend of applying newer technologies, such as electronically controlled engines, modern comfort features, wireless communications and the like to older vehicle platforms. To Nitro Cool Owner Shawn Parker, the single biggest change in the hot-rod market in recent years has been the wholesale acceptance of ECM-controlled engine assemblies.
Love pointed to the increase in products that enhance the driving experience, particularly with older, rough-riding vehicles. “Those musclecars of the ’60s were famous for having all kinds of horsepower and absolutely terrible braking systems,” he recalled. “Products that improve the overall driving experience are what’s really fueling the growth.” Henning concurred.
“Without a doubt, the leading trend we are seeing on a daily basis is toward modifications that first and foremost enhance the driving experience, to get people enjoying their vehicles faster,” he said. And Trevor Hobson, national sales manager at VSF Racing, said: “We’re seeing a lot more electronics-related upgrades, whether it is fuel injection, power steering, performance management or interior amenities.”
| Sixties-vintage musclecars, once excluded from the hot-rod designation, are now show-eligible and, according to our experts, are driving a great deal of current market growth. This LS3-powered ’69 Camaro built by Kyle Tucker was the winner of SEMA’s 2018 Battle of the Builders competition. |
The experts also agreed that build quality has improved markedly in recent years. Love pointed to “the sheer quantity and quality of reproduction parts, body parts and trim parts that are available now. They have really improved across a whole range of makes and models, and I think that’s fueled a lot of growth.”
In a related vein, Mike and Jim Ring, co-founders of Ringbrothers, explained how advances in computerization have helped to drive the growth of high-quality components: “A couple years ago, we dabbled in scanning and designing body parts for our builds using CAD and then CNC-machining plugs for carbon parts production. The process adds a level of precision to the body that is impossible to achieve by hand.”
Parker also noted changes in enthusiasts’ buying habits and how they have affected build priorities. “The quality of the builds across the board over the past 10 years has been revolutionized,” he said, “I think that’s because a lot less money is being spent on things that used to be high-ticket items. The LS drivetrain, for instance. Nowadays, $2,500 buys a very good used, guaranteed 5.3L/automatic combo, so the guys are spending less on things like that and more on fit and finish items.”
Short-Term Challenges: Taxes, Tariffs and Staffing
A government initiative that a number of the experts felt could have an impact on the market for 2019 and beyond is the potential fallout from the 2018 Supreme Court decision (South Dakota vs. Wayfair) that allows states to charge sales tax from out-of-state sellers, even if the seller has no physical presence in the taxing state.
“We’re seeing a lot of changes in tax codes being enacted in various states, and distributors and manufacturers will now have to start collecting sales tax, submitting that tax and submitting tax returns,” Love said. “It’s another clerical accounting layer that’s being applied to the industry, and it’s going to be a challenge because it’s not something that’s easy to do.”
| While pickups and ’60s pony cars may be the rage at present, there’s still plenty of room in the rodding segment for old-school roadsters like this ’36 Ford built by Jason Graham. Powered by an injected 347ci small-block, it was a finalist at SEMA’s 2018 Battle of the Builders competition. |
While bigger companies may be able to accommodate the state mandates with their existing organizational infrastructure, smaller to midsize companies may face logistical challenges and increased expenses.
“If you’re a smaller company, you’ll either have to contract out to a firm with software tied in that will help you through that, or you’re going to have to hire someone to help you navigate your way through the process,” Love said. “I think a lot of people in the industry—and consumers—don’t realize how much change this is going to bring.”
McLeod echoed that sentiment, saying that the new tax mandates “will change the industry as we know it today.” Hobson claims it’s “the biggest change we’ve seen over the last year, and it will be interesting to see how it plays out over the next 12 to 24 months.”
The experts could not reach a consensus on the market effects being felt as a result of the ongoing United States-China trade war, with roughly equal numbers claiming that their businesses had been either helped or handicapped by the imposition of tariffs. However, all agreed with the sentiments expressed by Barry, who felt that the dispute has cast a question mark over much of the industry.
“I’d like to see this ironed out so that we can put this behind us and say we don’t have to worry about this anymore,” he said.
Another challenge that many companies face in a growing economy with low unemployment is staffing. Henning considered this his company’s biggest challenge in order to keep up with greater demands from a changing customer demographic. The Rings pointed out the challenge of staffing and retaining young talent in their rural location, adding that they’re working with local trade schools to find solutions. McLeod agreed, saying that employee retention is key to expanding business.
The Next Generation: The Millennial Wave
From the ’60s onward, interest in hot rodding has been driven primarily by a now-dwindling Baby Boomer enthusiast demographic, and one challenge facing the industry is the ability to attract a new generation of builders to the hobby.
“This has to be one of our biggest concerns,” Love said, noting the success of SEMA and HRIA youth programs at attracting new hobbyists. Danny Agosta, Steel Rubber Products automotive project coordinator, has noticed a demographic change sweep the segment over the past decade.
“One of the biggest changes I see in the market is the continued growth of Millennials,” Agosta said. “I’m 29, and I remember when I was in my early 20s, I didn’t see many people my age. Now I do.” Henning said that “it’s encouraging to see such an influx of first timers,” and Ryden also noted the growth of newer custom-car shows that are aimed at a younger enthusiast demographic.
“Roadkill Nights draws thousands,” Ryden said. “Their Hooptie Challenge is all younger guys working with what they can find to go fast, and LS Fests all seem to draw younger rodders. Take in the Hot Rod Hill Climb, Vintage Torque Fest, Lone Star Throwdown, C10s in The Park and other shows, and you’ll see nothing but younger guys playing with old technology.”
Barry additionally noted the continued strong appeal of drifting among younger enthusiasts on a limited budget.
“It’s mostly young kids who don’t have that much money,” he said. “They tend to self-fund their own cars, but they’re making it happen—and now the sport is getting big. It may still be under the radar of some of the bigger corporate sponsors, but it’s giving younger people an opportunity to get into the sport and have fun with it.”
Love saw an additional reason for optimism, pointing to the growing popularity of pickups and later-model vehicles that can be had for reasonably low prices, which in turn could give younger builders on a budget an entrée to the hobby.
“The price of admission for a pickup is a lot less than a lot of the more-expensive cars,” he said. “I think that a lot of late-’80s GM cars—the Monte Carlos and others that older enthusiasts kind of overlooked—are starting to become more popular now with younger hobbyists.”
Lee added that “one reason Goodguys opened up our events to vehicles through ’87 is the availability of those vehicles and the ease with which enthusiasts can make them strong performers with bolt-on parts.”
Looking Ahead: The Changing Hot-Rod Marketplace
Which leads us to ask: What actually qualifies as a hot rod in the 21st century? The answer, it would seem, is anything on four wheels that builders want to customize.
“From dusty barn finds to four-door fullsize cruisers, slammed Suburbans or Mustang IIs, restified musclecars, Tri-Fives and ’30s rods, they’re all being done,” Ryden observed. “Today, we get to see them all.”
Henning sees market evolution as inevitable: “As the customer base changes, the projects and types of vehicles they’re interested in will change as well—not just in genre or year/model but also the intended use. Builders’ individual needs will make it harder to label or categorize builds or styles.”
Nearly all of the experts we consulted agreed that the new-tech-for-old-iron trend will continue into the foreseeable future. “There seems to be no shortage of new products to be developed,” observed David Hays, owner of Hot Rod Innovations.
According to the latest HRIA market survey, nearly half of all classic-car owners rely on internet searches when shopping for parts. In that vein, many of the experts agreed that a healthy online presence—including social media—will likely be an integral part of any future business model.
“Millennials grew up shopping online,” Agosta reminded. “Many use the internet exclusively to research and order parts.”
Love agreed on the need for an online public profile: “We have a presence on social media, and that’s absolutely crucial to our business.”
On the other hand, Trent Campbell, president of CarBuff Network, cautioned against overreliance on social-media as sites such as Facebook and Instagram continue to grow their user bases.
“Platforms that have worked well for the last 10 years are becoming crowded, making it difficult to create and maintain brand awareness,” Campbell said. He sees old-school relationships and networking as critical to creating a solid brand and said that the industry’s traditional word-of-mouth communications model will always play a key role in the automotive aftermarket.
One relatively new market segment that’s already attracting interest, and which has the potential for tremendous future growth, is electrification. The idea of a hot rod without an internal-combustion engine may seem like heresy to some, but the advent of electric hot rods is upon us, Brennan noted, saying that “we will see more and more examples in the next few years.” As examples, he pointed to Chevrolet’s eCOPO Camaro concept, which was unveiled at the 2018 SEMA Show, as well as a Tesla powertrain in a ’49 Mercury as example of the new-tech/old-car paradigm that was one of the Show’s biggest draws.
Parker concurred: “A lot of it will be legislated, so some of those changes will happen whether we like them or not, but as EVs grow in popularity and successive generations of Priuses get better, we will eventually see the adoption of these newer technologies.”
But Barry noted the volatility surrounding the still-evolving EV market to suggest that the transition to electric rods is likely to happen slowly: “That side of the market is still trying to figure itself out, and it has its own set of challenges. I think that’s why internal-combustion engines are going to be here for quite a while.”
Resources for Hot Rodders
Hot Rod Industry Alliance: SEMA’s Hot Rod Industry Alliance is a council dedicated to preserving the hobby and promoting the industry. To learn more about how your business can get involved and benefit from the community, visit www.sema.org/hria.
SEMA Action Network: The SEMA Action Network (SAN) is a nationwide partnership between vehicle clubs, enthusiasts and members of the specialty auto-parts industry who want to promote and preserve their hobby. Founded in 1997, SAN was designed to raise awareness of legislative threats to the hobby and to promote more favorable legislation. To learn more and join, visit www.semasan.com.
Sat, 06/01/2019 - 12:10
SEMA News—June 2019
BUSINESS
By Douglas McColloch
The New State of Hot Rodding
What’s Hot, New and Trending for 2019 and Beyond
| The Las Vegas Convention Center’s Central Hall—also known as Hot Rod Alley—was a hub of activity at the 2018 SEMA Show. Recent sanctioning-body reclassifications have greatly expanded the hot-rod market segment and, with it, the opportunity for ever more imaginative and innovative builds on an expanding number of vehicles. |
If the SEMA Show comprises the body of the automotive aftermarket, Hot Rod Alley might well be said to be its beating heart. For decades, the hot-rod and performance-street segments have led the aftermarket in leading-edge engine, drivetrain and suspension technologies. Given recent industry and technological trends, the hot-rodding market segment only figures to increase in popularity and sales in years to come. As it stands, the hot-rodding segment is an integral part of a $1.26-billion industry, according to the latest available report from the Hot Rod Industry Alliance (HRIA).
While the ’32–’48 roadsters of old may be rodding’s most iconic rides, the definition of what constitutes a “hot rod” has expanded in recent years—in particular since the Goodguys Rod & Custom Association revised its eligibility list in 2018 to include vehicle makes and models up to the ’87 model year in its nationwide show series. Pickups and musclecars, to name but two, are once-neglected categories that now qualify for hot-rod status—and they are, in fact, two of the hottest segments in the market at present.
As with any enthusiast-driven vehicle segment, hot rodding faces a number of challenges in the coming years, while also presenting some intriguing opportunities for future growth. For this article, we contacted some two dozen industry insiders representing manufacturers, fabricators, racers, retailers, media and enthusiasts. What follows is a compilation of their insights.
The State of the Industry
| A hint of future trends, perhaps, the ’19 Chevy Camaro eCOPO concept debuted at the 2018 SEMA Show sporting an all-electric powertrain said to generate 700 hp and 600 lb.-ft. of torque. A number of experts we consulted expect to see an increasing number of “electro-mods” in the coming years. |
Overall, the experts we consulted overwhelmingly agreed that the state of the hot-rod aftermarket is robust and has been on an upswing for most of the past decade. Brian Brennan, network director at Motor Trend Group, said he detected “a noticeable comeback that began about five years ago.” Josh Henning, director of operations and business development at Roadster Shop, said he’s seeing the entry of “more new customers, age groups and interests than I have ever seen in the past 20 years.” Vintage Air Executive Vice President and former HRIA Chair Rick Love has seen a steady increase in growth, adding that “it’s encouraging when I see some of our warehouse distributors stocking up on inventory. That’s an indication that they see a strong market ahead for them, too.”
While agreeing that the state of the industry is strong, Goodguys Gazette Editor Damon Lee sees a gradual change overtaking the market: “The traditional pre-’48 hot-rod market has likely hit a plateau, but we are still seeing great growth in ’60s-and-newer vehicles that fall under the broader definition of a hot rod. Those different types of cars bring different needs with them, and we see the market shifting, adapting and evolving to better
serve them.”
New Trends: Classic Old Pickups, Brand-New Tech
Across the board, the experts we consulted agreed on one of the hottest segments in hot rodding, and one that seems to be driving a lot of growth: pickups. Brennan pointed to the ’73–’87 Chevy as the hottest at present, with ’48–’52 and ’67–’72 bowties close behind. Love concurred.
“For a while, the ’73–’87 Chevy wasn’t all that popular,” he said. “Now, those square-body pickups have just boomed in popularity, and I think that’s going to extend to the ’88–’93s and later models.”
| Pickups are still among the hottest platforms in the hot-rod/performance-street market segment. This restomod ’71 Chevy K-Blazer was a highlight of the 2018 SEMA Show and neatly encapsulates builders Mike and Jim Ring’s current views on the direction of the market: “Seventies trucks are where it’s at.” |
InGear Media head Todd Ryden said that ’70s and ’80s pickups are “absolutely on fire.” Edelbrock President and CEO Don Barry agreed that the segment is “in hyperdrive.” And John McLeod, owner of Classic Instruments and former HRIA chair, noted that older trucks provide an attractive build platform because the entry price is low and good parts are available.
Within the truck segment itself, “the most popular modification is suspension—and air-ride in particular,” said Scott Nelson, operations manager of C-10 pickup specialist GSI Machine & Fabrication. “Advancements in chassis design and air management have really evolved and lent themselves to a more hassle-free and user-friendly experience.” Also garnering notice was the LS engine platform, which Barry observed “is super-hot right now and not going away anytime soon.”
Another growing market segment that nearly all of the experts pointed to is embodied by the trend of applying newer technologies, such as electronically controlled engines, modern comfort features, wireless communications and the like to older vehicle platforms. To Nitro Cool Owner Shawn Parker, the single biggest change in the hot-rod market in recent years has been the wholesale acceptance of ECM-controlled engine assemblies.
Love pointed to the increase in products that enhance the driving experience, particularly with older, rough-riding vehicles. “Those musclecars of the ’60s were famous for having all kinds of horsepower and absolutely terrible braking systems,” he recalled. “Products that improve the overall driving experience are what’s really fueling the growth.” Henning concurred.
“Without a doubt, the leading trend we are seeing on a daily basis is toward modifications that first and foremost enhance the driving experience, to get people enjoying their vehicles faster,” he said. And Trevor Hobson, national sales manager at VSF Racing, said: “We’re seeing a lot more electronics-related upgrades, whether it is fuel injection, power steering, performance management or interior amenities.”
| Sixties-vintage musclecars, once excluded from the hot-rod designation, are now show-eligible and, according to our experts, are driving a great deal of current market growth. This LS3-powered ’69 Camaro built by Kyle Tucker was the winner of SEMA’s 2018 Battle of the Builders competition. |
The experts also agreed that build quality has improved markedly in recent years. Love pointed to “the sheer quantity and quality of reproduction parts, body parts and trim parts that are available now. They have really improved across a whole range of makes and models, and I think that’s fueled a lot of growth.”
In a related vein, Mike and Jim Ring, co-founders of Ringbrothers, explained how advances in computerization have helped to drive the growth of high-quality components: “A couple years ago, we dabbled in scanning and designing body parts for our builds using CAD and then CNC-machining plugs for carbon parts production. The process adds a level of precision to the body that is impossible to achieve by hand.”
Parker also noted changes in enthusiasts’ buying habits and how they have affected build priorities. “The quality of the builds across the board over the past 10 years has been revolutionized,” he said, “I think that’s because a lot less money is being spent on things that used to be high-ticket items. The LS drivetrain, for instance. Nowadays, $2,500 buys a very good used, guaranteed 5.3L/automatic combo, so the guys are spending less on things like that and more on fit and finish items.”
Short-Term Challenges: Taxes, Tariffs and Staffing
A government initiative that a number of the experts felt could have an impact on the market for 2019 and beyond is the potential fallout from the 2018 Supreme Court decision (South Dakota vs. Wayfair) that allows states to charge sales tax from out-of-state sellers, even if the seller has no physical presence in the taxing state.
“We’re seeing a lot of changes in tax codes being enacted in various states, and distributors and manufacturers will now have to start collecting sales tax, submitting that tax and submitting tax returns,” Love said. “It’s another clerical accounting layer that’s being applied to the industry, and it’s going to be a challenge because it’s not something that’s easy to do.”
| While pickups and ’60s pony cars may be the rage at present, there’s still plenty of room in the rodding segment for old-school roadsters like this ’36 Ford built by Jason Graham. Powered by an injected 347ci small-block, it was a finalist at SEMA’s 2018 Battle of the Builders competition. |
While bigger companies may be able to accommodate the state mandates with their existing organizational infrastructure, smaller to midsize companies may face logistical challenges and increased expenses.
“If you’re a smaller company, you’ll either have to contract out to a firm with software tied in that will help you through that, or you’re going to have to hire someone to help you navigate your way through the process,” Love said. “I think a lot of people in the industry—and consumers—don’t realize how much change this is going to bring.”
McLeod echoed that sentiment, saying that the new tax mandates “will change the industry as we know it today.” Hobson claims it’s “the biggest change we’ve seen over the last year, and it will be interesting to see how it plays out over the next 12 to 24 months.”
The experts could not reach a consensus on the market effects being felt as a result of the ongoing United States-China trade war, with roughly equal numbers claiming that their businesses had been either helped or handicapped by the imposition of tariffs. However, all agreed with the sentiments expressed by Barry, who felt that the dispute has cast a question mark over much of the industry.
“I’d like to see this ironed out so that we can put this behind us and say we don’t have to worry about this anymore,” he said.
Another challenge that many companies face in a growing economy with low unemployment is staffing. Henning considered this his company’s biggest challenge in order to keep up with greater demands from a changing customer demographic. The Rings pointed out the challenge of staffing and retaining young talent in their rural location, adding that they’re working with local trade schools to find solutions. McLeod agreed, saying that employee retention is key to expanding business.
The Next Generation: The Millennial Wave
From the ’60s onward, interest in hot rodding has been driven primarily by a now-dwindling Baby Boomer enthusiast demographic, and one challenge facing the industry is the ability to attract a new generation of builders to the hobby.
“This has to be one of our biggest concerns,” Love said, noting the success of SEMA and HRIA youth programs at attracting new hobbyists. Danny Agosta, Steel Rubber Products automotive project coordinator, has noticed a demographic change sweep the segment over the past decade.
“One of the biggest changes I see in the market is the continued growth of Millennials,” Agosta said. “I’m 29, and I remember when I was in my early 20s, I didn’t see many people my age. Now I do.” Henning said that “it’s encouraging to see such an influx of first timers,” and Ryden also noted the growth of newer custom-car shows that are aimed at a younger enthusiast demographic.
“Roadkill Nights draws thousands,” Ryden said. “Their Hooptie Challenge is all younger guys working with what they can find to go fast, and LS Fests all seem to draw younger rodders. Take in the Hot Rod Hill Climb, Vintage Torque Fest, Lone Star Throwdown, C10s in The Park and other shows, and you’ll see nothing but younger guys playing with old technology.”
Barry additionally noted the continued strong appeal of drifting among younger enthusiasts on a limited budget.
“It’s mostly young kids who don’t have that much money,” he said. “They tend to self-fund their own cars, but they’re making it happen—and now the sport is getting big. It may still be under the radar of some of the bigger corporate sponsors, but it’s giving younger people an opportunity to get into the sport and have fun with it.”
Love saw an additional reason for optimism, pointing to the growing popularity of pickups and later-model vehicles that can be had for reasonably low prices, which in turn could give younger builders on a budget an entrée to the hobby.
“The price of admission for a pickup is a lot less than a lot of the more-expensive cars,” he said. “I think that a lot of late-’80s GM cars—the Monte Carlos and others that older enthusiasts kind of overlooked—are starting to become more popular now with younger hobbyists.”
Lee added that “one reason Goodguys opened up our events to vehicles through ’87 is the availability of those vehicles and the ease with which enthusiasts can make them strong performers with bolt-on parts.”
Looking Ahead: The Changing Hot-Rod Marketplace
Which leads us to ask: What actually qualifies as a hot rod in the 21st century? The answer, it would seem, is anything on four wheels that builders want to customize.
“From dusty barn finds to four-door fullsize cruisers, slammed Suburbans or Mustang IIs, restified musclecars, Tri-Fives and ’30s rods, they’re all being done,” Ryden observed. “Today, we get to see them all.”
Henning sees market evolution as inevitable: “As the customer base changes, the projects and types of vehicles they’re interested in will change as well—not just in genre or year/model but also the intended use. Builders’ individual needs will make it harder to label or categorize builds or styles.”
Nearly all of the experts we consulted agreed that the new-tech-for-old-iron trend will continue into the foreseeable future. “There seems to be no shortage of new products to be developed,” observed David Hays, owner of Hot Rod Innovations.
According to the latest HRIA market survey, nearly half of all classic-car owners rely on internet searches when shopping for parts. In that vein, many of the experts agreed that a healthy online presence—including social media—will likely be an integral part of any future business model.
“Millennials grew up shopping online,” Agosta reminded. “Many use the internet exclusively to research and order parts.”
Love agreed on the need for an online public profile: “We have a presence on social media, and that’s absolutely crucial to our business.”
On the other hand, Trent Campbell, president of CarBuff Network, cautioned against overreliance on social-media as sites such as Facebook and Instagram continue to grow their user bases.
“Platforms that have worked well for the last 10 years are becoming crowded, making it difficult to create and maintain brand awareness,” Campbell said. He sees old-school relationships and networking as critical to creating a solid brand and said that the industry’s traditional word-of-mouth communications model will always play a key role in the automotive aftermarket.
One relatively new market segment that’s already attracting interest, and which has the potential for tremendous future growth, is electrification. The idea of a hot rod without an internal-combustion engine may seem like heresy to some, but the advent of electric hot rods is upon us, Brennan noted, saying that “we will see more and more examples in the next few years.” As examples, he pointed to Chevrolet’s eCOPO Camaro concept, which was unveiled at the 2018 SEMA Show, as well as a Tesla powertrain in a ’49 Mercury as example of the new-tech/old-car paradigm that was one of the Show’s biggest draws.
Parker concurred: “A lot of it will be legislated, so some of those changes will happen whether we like them or not, but as EVs grow in popularity and successive generations of Priuses get better, we will eventually see the adoption of these newer technologies.”
But Barry noted the volatility surrounding the still-evolving EV market to suggest that the transition to electric rods is likely to happen slowly: “That side of the market is still trying to figure itself out, and it has its own set of challenges. I think that’s why internal-combustion engines are going to be here for quite a while.”
Resources for Hot Rodders
Hot Rod Industry Alliance: SEMA’s Hot Rod Industry Alliance is a council dedicated to preserving the hobby and promoting the industry. To learn more about how your business can get involved and benefit from the community, visit www.sema.org/hria.
SEMA Action Network: The SEMA Action Network (SAN) is a nationwide partnership between vehicle clubs, enthusiasts and members of the specialty auto-parts industry who want to promote and preserve their hobby. Founded in 1997, SAN was designed to raise awareness of legislative threats to the hobby and to promote more favorable legislation. To learn more and join, visit www.semasan.com.
Sat, 06/01/2019 - 11:11
SEMA News—June 2019
INTERNATIONAL
By Linda Spencer
Connecting With Middle-East Buyers
SEMA Business Development Program Forges Valuable Relationships
 First-time exhibitor Specialty Vehicle Engineering Inc./DBA Hamburger’s Superchargers Inc. attracted lots of attention among local buyers. Vice President of Marketing David Hamburger (second right) noted that he and Sales Manager P.K. Krwawecz (third right) enjoyed their first SEMA overseas business trip, especially explaining the features and benefits of Hamburger’s superchargers to potential UAE clients. The company will be also participate in the association’s upcoming trip to Australia. |
One hundred and fifty-seven SEMA-member companies have traveled to the United Arab Emirates (UAE) with the association to take part in the SEMA Middle East Business Development Program and Custom Show Emirates trade show since the inaugural trip there in 2012. While certain trends, vehicle mixes and other factors have changed in the intervening eight years since the first trip, some fundamentals are consistent, including the following.
The Importance of Building Relationships Before Business in the Gulf
“Business in the Middle East is based on relationships,” said Mark Whitney, owner of Performance Analysis. “Coming over to the show and meeting the customers is the best way to build those relationships and grow your business in the market.” Added Ace Chatoo, regional sales manager and Middle East sales manager for MW Company: “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.”
Participating in SEMA Overseas Trips Is Designed for Those Visiting the Market for the First Time as Well as Those With Existing Customers in the Region
“For those with existing distribution in the market, traveling to the region allows for a review of relationships and time to strengthen partnerships,” said Bob Scheid, director of business development for McLeod Racing LLC. “The importance of being face-to-face with our customers in the Middle East each and every year was evident again this year. Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.”
| Companies Participating in the 2019 SEMA Middle East Business Development Program | |
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Josh Abbott, global sales manager for Borla Performance Industries, agreed. His company has participated on each of the SEMA overseas trips, including the eight to the Middle East. “We once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners and had the opportunity to learn about the market itself,” he said. “The UAE continues to be one of the most rewarding territories in the Gulf Cooperation Council (GCC) for Borla Performance.”
Jeff Hermann is product manager for powered vehicles at FOX. His company also has distribution in the UAE. “The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” he said. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”
Dan Muldowney, CEO of Motorsports Fuel and Equipment/RACE GAS, enjoyed visiting the market for the first time and saw potential for his company and other SEMA members. “We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” Muldowney said. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!”
In fact, 100% of the participants—both returning and new to the market—reported in a post-event survey that they developed leads and plan to actively seek to turn those leads into sales over the next 12 months.
The Growing GCC Racing Scene Provides Sales Opportunities fo U.S. Companies
The Gulf region receives worldwide attention for hosting F1 races on state-of-the-art circuits in Bahrain and the UAE, and rumors that Dakar racing might be coming to the region is also good news. But some of the best opportunities are with the more grassroots events that involve passionate car enthusiasts with various levels of expertise and vehicle customization, including drag racing; drifting; karting and many other types of on- and off-track racing; sand dragging; dune climbing; and desert rallies, such as the Abu Dhabi Desert Challenge. That translates into a great and growing opportunity for U.S. companies.
“The majority of engine, brake, suspension and other products to make vehicles in the Gulf region race-ready are coming from the United States,” according to Saeed Al Marzouqi, the CEO of Custom Show Emirates.
The Automotive Specialty-Equipment Market Continues to Evolve
 Ron Scudder (center), international sales manager for BDS Suspension, met with local business representatives during the consumer and trade event. Each SEMA member was provided with a 3x3-m. turnkey booth at the three-day Custom Show Emirates. |
One of the latest niches to explode is the UTV market, and it’s creating opportunities for U.S. manufacturers of aftermarket parts for those popular vehicles. Trucks (particularly the Nissan Patrol and Toyota Land Cruiser) have long been among the most popular off-road vehicles and are easy to spot on any trip into the desert, though sand cars, UTVs and ATVs are the fastest-growing segment.
“The UTV market in the gulf region is growing at a good pace,” said first-time exhibitor Saniya Bindrani, inside sales for Demon Powersports. “SEMA made it easier to connect with buyers and help us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market.”
Custom Show Emirates Is the Largest Show in the Gulf and a Great Venue for U.S. Companies to Raise Brand Awareness, Strengthen Relationships With Exhibiting Customers and Meet Potential New Distributors
The SEMA delegation exhibited in turnkey booths at the Abu Dhabi-based show. More than 32,000 attended this year’s event, which featured local distributors in addition to the displays by the manufacturers, such as those in the SEMA section. This year, the show added new sections for RVs, UTVs/ATVs, sand buggies and power motorsports. The event also featured a wide array of competitions, including an “engine battle” between a U.S. and UAE company in which the company producing the most horsepower was named the winner. There was also a biker build-off and a custom car competition as well as drifting demonstrations in front of packed bleachers.
“By participating in the SEMA UAE Business Development Program and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov, founder and CEO of OBD Solutions.
n “The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.
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| “The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.” | “We had a good mix of trade buyers from several GCC countries present again this year who were ready to conduct business,” said David Reyna (right), international sales for DeatschWerks Fuel Systems.
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“The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” said Jeff Hermann (left), product manager for powered vehicles at Fox Factory. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”
| “The UTV market in the gulf region is growing at a good pace,” commented Saniya Bindrani (not pictured), inside sales at Demon Powersports/Rugged ATV UTV Products/PD International. “SEMA made it easier to connect with buyers and helped us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market. I think the biggest struggle today is finding the right customers to help us in that adventure.” Pictured above is Sarankan Sri (right), Demon Powersports R&D/sales representative. | |
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Jay Crouch (left) attended the UAE show as director of global business development for Injen Technology. The California-based company has been actively developing their brand and distribution network in the Middle East. That effort includes regular trips to the region.
| “The SEMA Middle East Business Development Program provides insights into a developing automotive market and customer base in the region,” said Bill O’Roake (left), international sales manager at Mickey Thompson Performance Tires & Wheels. “The SEMA group does a great job of organizing the entire experience, including potential new customer contacts. It is also a great show from an enthusiast’s perspective. If you want to sell more products in the Middle East, learn how to market in the region and meet the right types of distributors and dealers who will succeed in marketing your brand, I would recommend attending.” | |
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| CEO Rick Fung (second from right) and Vice President of Sales Bryan Ingram (right) attended the UAE event for MotoshieldPro. “We are grateful for our experience and time with SEMA in Abu Dhabi. As a result of being an exhibitor, we are now connected directly with distributors for our products. Overall the event has generated meaningful, impactful and strategic connections into the GCC. We look forward to exhibiting again next year,” commented Ingram, a first-time exhibitor. | “The yearly Middle East is a great opportunity for the entire MW Company portfolio of brands as well as other manufacturers within the automotive aftermarket to reach one of the fastest-growing international business populations,” said Ace Chatoo (right), regional sales manager at MW Company. “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.” | |
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| “By participating in the SEMA UAE Business Development Conference and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov (third left), CEO of OBD Solutions. “The program helped us uncover opportunities we would not have on our own.” | “I have found that the customers know what they want and are very intelligent about the products that are available,” said Mark Whitney (left), owner of Performance Analysis. “The customers that come up to your booth already know your product and are so happy to see you in their market.” | |
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| In addition to exhibiting in a turnkey booth, each participant visited specialty-equipment shops in Dubai and Abu Dhabi and were briefed by a panel of top buyers. Representatives of SEMA-member companies such as Joe Krivickas (left), site manager for Precision Turbo and Engine, also attended a market overview with U.S. government representatives in the region. | “We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” said Daniel Muldowney (center right), CEO of Motorsports Fuel and Equipment Inc. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!” | |
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Chris Cosentino (center), chairman of Sherwood Innovations, and Alice Nassar (right), the company’s marketing coordinator. The company, which traveled with SEMA to the Middle East for the first time, will also be participating in the upcoming trip to Australia.
| “The importance of being face to face with our customers in the Middle East each and every year was evident again this year,” said Robert Scheid (left), director of business development for McLeod Racing LLC. “Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.” | |
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| “We were most gratified to see so much brand recognition for VP from the multiple countries in the region,” said Peter Coleman (right), business development manager for VP Racing Fuels. “We had the opportunity to discuss both our current distribution and potential to expand further, and SEMA’s actions in extending our influence in this lucrative market were very much appreciated.” | “The Middle East SEMA experience has provided us with increased opportunities for product development and sales of brake systems for SUVs, off-road and armored vehicles that we would not have been aware of without our participation in the event,” said Robert Roese (right), business development for Wilwood Engineering. “I cannot say enough about the positive experience of meeting so many new customers.” | |
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The SEMA Middle East program provided participants with the opportunity to not only network with overseas buyers but also with each other. Pictured here, the group gathered for the opening session.
| The 2019 SEMA Middle East event kicked off with a panel of top buyers. Among the topics discussed was the growing racing scene in the UAE and the Gulf region and how it is translating into increased sales for U.S. companies. The buyers of racing and off-road products talked about the challenges and opportunities of doing business in the region, the positive partnerships they have formed with U.S. companies, and their current needs for additional suppliers. | |
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| Liz Couch from the U.S. Department of Commerce’s headquarters in Washington, D.C., briefed the SEMA delegation on doing business in the region. She was joined by U.S. government representatives based in the UAE, Kuwait and Saudi Arabia. | Eight shops in Abu Dhabi and Dubai were included on a tour of specialty-equipment businesses this year. During one visit, Mark Link (right), president and COO of Race Gas, chatted with the general manager of a high-end racing/performance installer in Dubai. | |
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| Delegation members participated in one of two tours of shops. The first group selected the installers, retailers and distributors of products for car performance and racing (primarily drag racing and drifting), and the other visited shops specializing more in styling and engine performance for trucks and off-road racing. “It always brings a big smile to my face to see Wilwood products on American musclecars all over the world. Especially when they are on ones that have been restored to such a spec as this 6.2L supercharged SS,” commented Charles Dixie (left), who works in sales and engineer for Wilwood Engineering. | The delegation visited some of the leading UAE shops for specialty-equipment products, including a shop that offered installations, retail and online sales under one roof.
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