By SEMA Washington, D.C., Staff

SEMA submitted comments to the U.S. Trade Representative (USTR) recommending removal of the tariffs imposed on goods from China since they have not helped achieve the goal of eliminating China’s unfair practices with respect to technology transfer, intellectual property and innovation. The Section 301 tariffs were imposed more than four years ago and are being reviewed by the USTR to determine whether they should continue, expire or be modified.

Nearly all SEMA members sourcing goods from China have been directly impacted by the 25% tariffs. SEMA observed that the tariffs have had the opposite effect of making U.S. manufacturers less competitive and preventing American companies from growing. They have also increased costs for American consumers and contributed to inflation.

SEMA emphasized that most member companies are small businesses that have tight operating budgets with business models that did not include unexpected tariffs. The ability to absorb or pass along the cost of the tariffs has caused economic strife. Four years later, our companies must still cope with the economic uncertainty as to whether the tariffs will be removed, reduced or extended. There is no deadline for the USTR to complete its review.

For more information, please contact Eric Snyder at erics@sema.org.

SEMA is accepting nominations for its Hall of Fame program, now through March 17.

The award honors individuals in the automotive aftermarket who have enhanced the stature of the industry. Inductees include visionaries, innovators and leaders who have positively impacted what is now a $50.9 billion market. Nominees may be business leaders or contributors from any aftermarket segment or niche.

The SEMA Hall of Fame award honors individuals in the automotive aftermarket who have enhanced the stature of the industry.

“The SEMA community is filled with men and women whose accomplishments are so great that the entire industry is changed for the better,” said SEMA Project Manager of Recognition Programs Chris Standifer. “The SEMA Hall of Fame honors these individuals for their outstanding contributions. Without them, our industry would be significantly different from what it currently is.”

Criteria for the SEMA Hall of Fame are:

• His/her contributions must have extended beyond the local level and reach throughout the national or international level.
• The candidate is and/or has been involved in the specialty-equipment automotive industry and/or SEMA for a minimum of 10 years.
• The candidate must have made outstanding contributions toward enhancing technology, professionalism, dignity and/or general stature and growth of the specialty-equipment automotive industry.
• The candidate must have conducted him/herself with a high degree of integrity both within and outside of the specialty-equipment automotive industry.
• Candidate must be at least 50 years of age prior to the 2023 SEMA Show, or they may be at any age if deceased as long as the nomination is presented at least one year posthumous.

New Hall of Fame inductees will be announced in May. Nominations can be submitted now at www.sema.org/hof.  

  By SEMA Editors

Part of the SEMA Show planning process is securing a hotel that will fit your needs. Location, low price, amenities and ratings are all factors in determining the right place to stay for November.

To make the process quick and affordable, the SEMA Show Block website lists all the hotels available, the prices, distance from Show and more. Hotels booked in the Block are backed by a low-price guarantee. To ensure that your price remains the lowest, SEMA will price-match lower advertised rates, even after your reservations are set.

There are more than 30 properties to choose from in the Show Block. As an added benefit, SEMA provides shuttle service to and from the Show for hotels that are not within walking distance to the Las Vegas Convention Center.

The 2023 SEMA Show takes place October 31–November 3, at the Las Vegas Convention Center.

Exhibitors that would like to be part of the 2023 SEMA Show can get started at www.SEMAShow.com/buyabooth.

Registration for the Show is available www.SEMAShow.com/register.

Ford Bronco, Maverick and Ram 1500 Recognized by Car and Driver in “10Best Trucks and SUVs” List

The ’23 Ford Bronco and ’23 Ford Maverick and also the ’23 Ram 1500 have been recognized by Car and Driver in the “10Best Trucks and SUVs” list. For Bronco, it marks the second consecutive year appearing on a “10Best” list. The vehicles were reviewed on a 100-point scale by Car and Driver editors and selected based on the publication’s criteria: delivering on the vehicle’s intended purpose better than its competition, offering great value and entertaining to drive.

“It’s an honor to see Maverick and Bronco receive this recognition,” said Jim Baumbick, vice president, Ford product development operations, cycle planning and internal combustion engine programs. “Both vehicles are the result of intensely focusing on meeting customer needs and providing iconic vehicles they love to drive.”

This marks the fifth consecutive year the Ram 1500 has earned this award.

“For everyone looking for a full-size pickup, which is a lot of Americans, the Ram 1500 meets all your needs and exceeds expectations. Its coil-spring rear suspension provides luxury-SUV-like ride quality, making the bouncy competition feel like farm trucks,” said Joey Capparella, senior editor, Car and Driver. “The Ram’s interior is its most impressive and delightful attribute featuring carefully selected materials, including leather, metal trim, open-pore wood and the kind of attention to detail we’d expect from a luxury sedan.”

The full list is available now on the Car and Driver website and will be in the publication’s February/March issue, which will be available everywhere by February 7.

Tread Lightly! Board Shifts Leadership and Appoints New Member

Tread Lightly!, a U.S.-based nonprofit dedicated to promoting responsible outdoor recreation through stewardship and educational programs, has announced the appointment of a new board member, the election of its new treasurer and re-election of four previously appointed directors. The board’s newest elected member is Nena Barlow, founder and CEO of Barlow Adventures. Barlow will serve a three-year term. Tom Zielinksi, president of Z Performance, will now serve as the Tread Lightly! board secretary.

The re-elected directors include: Harold Phillips, Tread Lightly! board chair and global general manager for BFGoodrich Tires; Tyler Ruby, Tread Lightly! board vice chair and senior director of customer and technical service and LATAM for Webasto; Dave Logan, 4WD School; and Jerome Dzieschiez, senior category manager, merchandising operations, CarParts.com.

Metra Electronics to Host Training Sessions at KnowledgeFest in Las Vegas

Metra Electronics is heading to Las Vegas, February 3–5, to host new training sessions at KnowledgeFest and showcase its latest aftermarket installation products. At the booth will also be a Ford F-150 Lightning, built by Professional Car Audio of Visalia, California, and customized with Metra products. Metra’s training sessions will cover new products launched at the 2022 SEMA Show, including new Shuriken Lithium Series batteries, dash kits, Axxess integration products and DSPs, lighting and audio upgrades for Harley-Davidson and Can-AM Ryker, aftermarket accessories that fit Jeep and Bronco.

TBC Corporation Recognizes 2022 ASE Master Technicians of the Year

TBC Corp. has recently recognized the 2022 ASE Master Technicians of the Year for its retail brands, Tire Kingdom Service Centers and NTB Tire & Service Centers, and franchise brands Big O Tires and Midas. Every year, the National Institute for Automotive Service Excellence (ASE) selects technicians based on specific criteria, including ASE certification level, commitment to total customer satisfaction and community involvement. This year’s winners, listed below, were chosen from approximately 250,000 ASE-certified technicians, were recognized on November 17, 2022, at the ASE Board of Governors Meeting in San Diego:

• Steve Whittenberg, an ASE Master Technician at Big O Tires in Jefferson City, Missouri
• Jacob Boone, an ASE Master Technician at NTB Tire & Service Centers in Washington, Missouri
• Kenneth Veiera, an ASE Master Technician at Tire Kingdom in Hollywood, Florida
• Lorenzo Ramos, an ASE Master Technician at the Leeds West Group Midas location in Tulsa, Oklahoma

John Driscoll Promoted to Southeastern Regional Manager of Mobile and Powersports at Maxxsonics

Effective Monday, January 16, John Driscoll will be promoted from regional sales manager to southeastern regional manager of mobile and powersports at Maxxsonics. Driscoll’s main focus will be on planning territory development, traveling the territory to build new business opportunities and developing new distribution partners to better service the southeastern region.

Driscoll brings more than 30 years of experience in the consumer electronics and powersports industries. He has been a car audio hobbyist since 1986 and started participating in car audio events in 1987, going on to IASCA Finals in 1990, 1991 and 1992. Being one of the first in the nation to be certified as “MECP Installer First Class,” Driscoll worked for several CE retailers, including Audio Express, Circuit City and Ultimate Electronics. In 1997, he started with Current Marketing as a manufacturer’s rep for car and home electronics and continued until 2009, when he became a national sales manager for Cerwin-Vega Mobile. In 2012, he entered the powersports industry with the Arthur Fulmer Companies (Memphis Car Audio and Fulmer Helmets). In 2020, he joined Maxxsonics.

Rob Eberhart of R&R Marketing Named BOLT Lock 2022 Manufacturer’s Representative of the Year

Rob Eberhart of R&R Marketing has been named BOLT Lock’s Manufacturer’s Representative of the Year for 2022. Candidates for BOLT Lock’s Manufacturer’s Representative of the Year award are recognized for excellence in sales and for going beyond the requirements of a superior sales representative by exhibiting comprehensive knowledge of the BOLT “Breakthrough One-Key Lock” technology product line, while building strong
relationships with both existing and prospective accounts.

According to Jason Buckles, BOLT Lock sales account manager, “Rob has been an integral part of BOLT Lock’s growth over the last five-plus years. Through his hard work, BOLT Locks are now available in every O’Reilly Auto Parts store across the country, and we have also been able to gain shelf space in Bass Pro Shops.”

Atturo Tire Corp. Introduces Industry-First Trail Hazard Protection for UTV Tires

Atturo has established a powersports industry-first Trail Hazard protection program to cover tire damage from both on- and off-road use. The Atturo Trail Hazard program will cover all Trail Blade SXS tires anywhere a consumer may go in their UTV. This protection is provided by Atturo at no additional charge to the consumer with every new Atturo Trail Blade SXS tire. Coverage applies to use on any surface—pavement, rocks, trails, sand and open fields. The manufacturer’s Trail Hazard program covers every Atturo Trail Blade SXS tire for: 24 months from the date on the customer’s tire purchase invoice, flat-tire repairs up to $40 per occurrence, and tire replacement when the tire is not repairable.

Holley Announces 2023 Event Dates

Holley Performance Parts has revealed the dates for its high-performance race events, including an all-new gathering for LS enthusiasts in Texas. Holley is again bringing its LS Fest to the west for the Holley LS Fest West, April 28–30, at Las Vegas Motor Speedway in Las Vegas. Holley will then return to Texas for the second annual Holley LS Fest Texas set for Texas Motor Speedway, May 19–20. The Holley LS Fest East will visit Beech Bend Raceway Park in Bowling Green, Kentucky, September 8–10.

The Holley MoParty—a Mopar-based autocross event—is set for September 15–17, at Beech Bend Raceway Park. The Holley Intergalactic Ford Festival will coincide with the NMRA World Finals at Beech Bend, September 28–October 1. Autocross, road courses and related racing events are scheduled.

The Holley High Voltage Experience—which is all about experiencing the community and performance potential of electric vehicles—will return, with 2023 dates and location set to be revealed at a later date. In addition, the Brothers Show & Sign is set for June 11, in Oak Canyon Park in Silverado, California. For more information, visit holley.com/event.

ORMHOF Welcomes Fardad Niknam to Board of Directors

The Off-Road Motorsports Hall of Fame (ORMHOF) has announced Fardad Niknam as the newest member of the ORMHOF board of directors. Fardad will serve a three-year term, 2023–2025. Fardad is the senior director of product planning for Yokohama Tire Corp. An avid motorsports enthusiast with more than 20 years of involvement in the off-road community, Fardad is leading Yokohama’s effort to effectively participate in all forms of off-road racing, events, and sponsorship. Also serving on the current all-volunteer ORMHOF board of directors with Fardad are Frank DeAngelo, Mark McMillin, Frank “Butch” Arciero Jr., Colin Butcher, Dave Cole, Bud Feldkamp, Jeff Furrier, Bob Ham, Josh Hall, Rafael Navarro III, Bonnie Vessels and Rory Ward.

Pertronix Performance Brands Appoints New Vice President of Sales

The group comprising as PerTronix Performance Brands has announced the appointment of Jeff Stacy as its new vice president of sales. This change takes effect immediately. In his new role, Stacy will oversee sales for all brands within the PerTronix Performance family, including PerTronix Ignition, JBA Performance Exhaust, Doug’s Original Headers, Patriot Exhaust, Compu-Fire, Spyke, Aeromotive Inc., Waterman Racing Components and Taylor Cable Products. Stacy brings nearly 40 years of experience in the automotive industry to his new position and has previously served as executive vice president of Aeromotive Inc. and Waterman Racing Components, both part of the PerTronix Performance family of brands.

In his previous position as executive vice president of Aeromotive Inc. and Waterman Racing Components, Stacy guided the companies’ executive leaders in formulating and implementing strategic plans and oversaw operations. He has also served as the Aeromotive Inc. and Waterman Racing Components sales and marketing manager, vice president of operations and vice president. Stacy has also previously worked for Keystone Automotive Operations, Fragola Performance Systems, FK Rod Ends and R&R Marketing Consultants, Inc.

Have some company news you would like to share? Let us know and the news may appear in an upcoming issue of SEMA News. Send your items for consideration to editors@sema.org.

By SEMA Washington, D.C., Staff

Maine State Automotive Enthusiast Leadership Caucus member Representative Shelly Rudnicki introduced SEMA-supported bill (LD 63) to allow on-road registrations for imported vehicles manufactured at least 25 years ago. These vehicles are exempt from federal safety and emissions standards, but current Maine law prohibits vehicles that do not meet these standards from use on public roads.

The state has been actively canceling registrations of certain imported vehicles as a result. Rep. Rudnicki’s bill is necessary to correct the current policy. Since this issue was first introduced in 2021, it has considerable media attention.

The bill currently awaits consideration in the House Committee on Transportation.

Click here to contact lawmakers in support of LD 63.

For more information, please contact Kiley Chapley at kileyc@sema.org.

  By Mike Imlay

Although vehicle electrification grabs major headlines these days, SEMA has kept an eye on the emerging phenomenon for some time now. After all, the specialty-equipment industry thrives on innovation and new platforms for performance and appearance modifications—and electric vehicles (EVs) are no exception.

Deeper understanding of EV architecture and approaches to high-voltage applications were the major attendee takeaways in the expanded 2022 SEMA Electrified exhibit space. Legacy EV utilized Tinkergineering’s Porsche 914 as an integration display for EV conversions.

To raise industry awareness surrounding this rapidly growing category, the 2019 SEMA Show first debuted SEMA Electrified, a new Show feature exploring EV technologies. For the recent 2022 Show, the section swelled to approximately 60 unique exhibits encompassing 21,000 sq. ft., more than 35 vehicles and numerous electrification components and products. SEMA Electrified also moved to the Las Vegas Convention Center North Hall, taking a more prominent place among other vehicle technology features.

“We’ve been pleased to witness the evolution of electrification in the specialty-performance aftermarket space, and are committed to educating our industry on the opportunities and the innovation taking shape throughout the industry,” said SEMA Vice President of Events Tom Gattuso. “Our efforts for 2022 resulted in the largest SEMA Electrified section we’ve ever had. But in addition to the section, we also saw more EV products and vehicles throughout the rest of the Show than ever before. Having incubated this category for several years now, it’s evident that electrification is becoming extremely popular in our industry and will be here for some time to come.”

The 2022 Volkswagen ID.4 was winner of the 2022 SEMA EV of the Year. SEMA vehicle awards reflect the voting of each year’s Show exhibitors, with this particular award added this past Show.

According to SEMA Director of Vehicle Technology Luis Morales, who played an instrumental role in expanding the exhibit space, the goal for 2022 was to bring Show attendees as much collective EV-related content as possible for business and educational development. Displays and content included new OE vehicle models, conversion kits and components, testing equipment, safety tools, charging solutions, service equipment, customized vehicles and accessories. The exhibit sought to improve business networking among EV-related companies, buyers and sellers; present and showcase new EV products for industry-wide education; and increase awareness of the various EV market opportunities now emerging in the aftermarket industry.

The exhibit was filled with crowds throughout the week and surrounded by positive feedback,” said Morales. “Many folks who were new to the electric market were both surprised and excited to see how far this segment of the industry had progressed, not to mention how much the SEMA Electrified feature itself had grown. From product awareness to integration, the exhibit facilitated many key conversations and takeaways among attendees. Many SEMA Electrified participants said they also benefited from internal connections for product development as well as new ideas for adjusting their business models for future success.”

Everything starts with education. Understanding EV powertrains’ work and safety aspects was a prime focus of the SEMA Electrified live-education stage. Here, attendees got hands-on learning, courtesy the Legacy EV team.

Accessorized late-model vehicles proved that vehicle personalization will continue organically within the aftermarket regardless of a vehicle’s powertrain option. Modified vehicles included the Tesla Model 3, Tesla Model Y, Tesla Model S, Ford F-150 Lightning, Ford Mustang Mach-E, Audi e-tron, and the Polestar 2, among others. The vehicles were provided by many well-known industry names, including Bisimoto, Tjin Edition, Air Design USA, Tsportline/Alpharex, TSK, Levvel Air/Rad Rides, Unleashed Motorsports, Diablo Motorsports, Campworks and Lectron.

Electrification has also been a growing trend among vehicle builders, who continue to break new ground with imaginative vehicle conversions. This has in turn spawned new opportunities for businesses offering electric powertrain components ranging from individual items to complete kit solutions. And here again, SEMA Electrified offered a broad range of display vehicles demonstrating all sorts of innovations. They included a Ford Mustang, Plymouth Satellite, Ford Galaxy, Jeep Wrangler, Chevrolet Apache, Ram Promaster, Factory Five Cobra, Ford F-150, Porsche 914 and Mercury Cougar.

The list of companies providing converted vehicles was also extensive: Inspire EV, Conductive Classics, EV Muscle Cars, Electric 51 Speedshop, Scorpion EV, KTL Restorations, Maxwell Vehicles, Motorcadd, Electrified Veronika and Tinkergineering. In addition, companies like Ampere EV, DANA, Speedhut, Gig Performance, OMNI, Torque Trends, Hypercraft/Stealth EV and Conductive Classics showcased their latest electrification componentry.

“When it comes to an electric conversion, sourcing products may be a challenge and a learning curve, especially if you are new to EVs,” observed Morales. “We provided resources to help industry builders navigate this initial task. For example, Legacy EV and Fuel2Electric were on hand to discuss with attendees the proper path for selecting and sourcing products that are ultimately compatible with each other.”

A variety of different vehicle applications filled SEMA Electrified. From classics to late-models to race vehicles, they were all 100% battery electric vehicles (BEVs) and ranged from Bisimoto’s K3V to Inspire EV’s Mustang.

“Electric performance was also well represented through the display of several race vehicles highlighting new powertrain applications across differing race categories,” added Morales. “We were able to present attendees with a Pikes Peak Tesla Model 3, an electric Toyota GR86 for NASA’s Super Touring Series, a custom-body Porsche 935, a Drift Chevrolet Camaro and a Landspeed vehicle. Our vehicle providers included ENEOS, Hypercraft/Scalar Performance, Bisimoto, AEM EV/Holley and Revolt.

“In addition, SEMA staff got to work with several OEMs to bring such new EV models as the Karma GS6, Lucid Air, Lordstown Endurance and Volkswagen ID.4 to SEMA Electrified. Showcasing these models helped introduce them to various aftermarket companies exploring product opportunities in the electrification market.”

Various powertrain components were on displayed for different outputs, applications and integration capabilities in EV conversions. Displays ranged from individual components, such as these from DANA, to complete conversion kits, a fast-growing segment in this market.

But electric platforms and conversions are only one part of the overall EV equation. For battery-electric cars and trucks to truly take hold with consumers, current infrastructure from charging to service and repair must also advance.

“None of these vehicles would be on the road without a proper charging solution,” noted Morales. “We decided to bring in several participants like Wallbox, Webasto and Lectron to show the different applications available and educate attendees on differing charging requirements and output capabilities.”

SEMA Electrified drew attendees all week with several vehicle debuts, including this National Auto Sport Association- approved Super Touring Series SCR1 by Scalar Performance.

“We also wanted to showcase service and testing tools that relate to electric vehicles,” he added. “These tools are targeted at high-voltage applications. Whether you’re dealing with product development for a late-model vehicle or working on a conversion vehicle application, some of your required EV tools will be different than your traditional shop tools. We partnered with tool suppliers that included Reliable Automotive Equipment, Bendpak, DJS Fabrication, EZ Spare Wheel, Redline Detection and Snap-On to present product and educate attendees.”

In addition, SEMA Electrified hosted education and training sessions and demonstrations. The Inter-Industry Conference on Auto Collision Repair (I-CAR) hosted an exhibit with their EV training cart and associated tools and equipment, explaining the safety protocols for high-voltage vehicles, and Legacy EV presented a series of hands-on education and training sessions relating to electric conversions.

“The Legacy EV program was designed as a preview to their EV training road tour, which is launching in 2023 and will make a stop at the SEMA Garage,” Morales explained. “Meanwhile, Switch Vehicles had multiple presentations throughout Show Week pertaining to EV business development and education. They built an electric kit vehicle from the ground up from opening to close of Show. This gave participants some hands-on experience in the assembly and connection of EV architecture.”

Beyond SEMA Electrified, SEMA Show education tracks relating to EV trends were also greatly enhanced for 2022. Seminars addressed such topics as electric-conversion projects, shop safety and the addition of EV products and services to augment traditional business models and help future-proof a company, shop or retail establishment.

Of course, you can’t talk EVs without considering charging solutions. SEMA Electrified showcased different charging solution models addressing different applications, outputs and requirements. Lectron’s Polestar 2 vehicle demonstrated a variety of such solutions.

“Our role as a trade association and Show is to not only focus light on vehicle and product development, but to educate our industry on the latest trends and information,” noted Gattuso. “The seminars were widely attended, which I believe is a result of shops that are seeing more EV sales and customers coming in to modify and personalize their cars. Our job, really, is to look into the future of what that can mean for our attendees and their businesses.”

Gattuso further said that while the industry is steadily embracing vehicle electrification as a viable, performance-oriented powertrain, the SEMA Show will continue to reflect the breadth of the entire automotive world. This includes ongoing innovations and refinements to gasoline, hydrogen and other alternative propulsion systems.

“Our industry is about exploring the potential and capitalizing on the performance, style and reliability of all types of vehicles,” he said. “To use the old cliché, the acceleration pedal doesn’t know anything other than that pressing it makes the car go fast.

“We just celebrated our 55th SEMA Show. I think over the next 50 years, we’re going to see continued developments and improvements, and it’s exciting to see where our industry is headed.”

Staying Current on Electrification

Through various initiatives and efforts, SEMA embraces technology in the automotive industry and will continue to best position the association for the membership’s benefit. Plans are already underway for an even broader SEMA Electrified section at the 2023 SEMA Show, October 31–November 3, in the Las Vegas Convention Center.

In addition, with the progressive development and adaptation of EVs, hybrid electric vehicles (HEV) and general electrification, SEMA is developing programs and services to assist this emerging aftermarket segment. Whether you’re developing accessories for late-model EVs, components for electric powertrain conversions, or electric racing products, SEMA is ready to help through its SEMA Garage facilities in Detroit, Michigan, and Diamond Bar, California. Visit www.semagarage.com for more information.

2022 SEMA Electrified Exhibitors/Participants

Reflecting the rapidly growing interest in vehicle electrification, modifications and conversions, nearly 50 companies participated in the 2022 SEMA Electrified feature at the annual SEMA Show in Las Vegas—some presenting multiple displays. Brands ran the gamut from specialty parts and accessory suppliers to builders and OE vehicle manufacturers.

• AEM EV/Holley
• Air Design USA
• Ampere EV
• Bendpak
• Bisimoto
• Campworks
• Conductive Classics
• DANA
• Diablo Motorsports
• DJS Fabrication
• Electric 51 Speedshop
• Electrified Veronika
• ENEOS
• EV Muscle Cars
• EZ Spare Wheel
• Ful2Electric
• Gig Performance
• Hypercraft/Scalar Performance
• Inspire EV
• KTL Restorations/Electric GT
• Juiced Bikes
• Karma Automotive
• I-CAR
• Lectron
• Legacy EV
• Levvel Air/Rad Rides
• Lordstown Motors
• Lucid
• Maxwell Vehicles
• Motorcadd
• Ohm On The Range
• OMNI
• Redline Detection
• Reliable Automotive Equipment
• Revolt
• Scorpion EV
• Snap-On
• Speedhut
• Switch Vehicles
• Tinkergineering
• Torque Trends
• TSK
• Tsportline/Alpharex
• Unleashed Performance
• Volkswagen
• Wallbox
• Webasto

Are you hunting for a new job? The SEMA Career Center has a comprehensive listing of automotive-related job openings around the country. Here are some of the latest jobs posted to the website.

Latest Jobs Added to SEMA Career Center

Manufacturing Process Engineer
Cognito Motorsports

Cognito Motorsports is hiring a manufacturing process engineer responsible for developing and implementing sustainable, scalable manufacturing processes, tooling, equipment and workflows in support of engineering, production, sales and customer-service goals. Candidates should have a B.S. in engineering and Six Sigma, 5S and Lean Manufacturing process training.

Product Manager
Fox Factory Inc.

Fox Factory Inc. is hiring a product manager responsible for bringing new product lines to consumers in an engaging, functional way, while opening new distribution channels. Responsibilities include working creatively and pragmatically to conserve resources and engage the product line’s potential audience; reviewing and managing new business objectives and challenges, existing products, services, technology, operations, and methodologies; collaborating with key stakeholders to make rational recommendations for prioritization of product management activities; and working closely with engineering, sales and marketing teams to ensure they have adequate support to make informed decisions required to meet the company goals for revenue and customer satisfaction. Candidates must have knowledge of key demographics and an innovative perspective on product development.

Auto-Body Technician
Canepa

Canepa is hiring an auto-body technician who is quality-minded, hardworking and dedicated to providing the highest level of workmanship in the industry. Candidates must be highly professional and be able to work individually as well as part of a multi-functional team. A minimum of four years of auto-body experience is required.

By SEMA Editors

Dates and locations have been scheduled for several upcoming SEMA-sponsored shows, measuring sessions and activities.

The 2023 Dakar Rally checkered flag has fallen on Sunday after 5,000 km against the clock with 14 stages across Saudi Arabia, from the Red Sea to the Arabian Gulf via the Empty Quarter desert. Nasser Al-Attiyah wrapped up a fifth car crown and Kevin Benavides finally got the better of Toby Price for his second Dakar Rally bike title as the Red Bull Off-Road Junior Team made history with their maiden win thanks to AJ Jones and Gustavo Gugelmin in T3.

Nasser Al-Attiyah and Mathieu Baumel of the Toyota Gazoo Racing during the finish podium of the Dakar 2023 in Dammam, Saudi Arabia, January 15.

Selected Final Overall Standings

T1 Car Class

1. Nasser Al-Attiyah (QAT) TOYOTA 45:03:15

2. Sébastien Loeb (FRA) BRX +01:20:49

3. Lucas Moraes (BRA) TOYOTA +01:38:31

4. Giniel De Villiers (ZAF) TOYOTA +02:31:12

14. Mattias Ekström (SWE) AUDI +06:51:00

18. Kuba Przygoński (POL) MINI +07:28:50

32. Laia Sanz (ESP) ASTARA +19:18:39

Bikes

1. Kevin Benavides (ARG) KTM 44:27:20

2. Toby Price (AUS) KTM +00:43

3. Skyler Howes (USA) HUSQVARNA +05:04

7. Daniel Sanders (AUS) GASGAS +25:57

12. Štefan Svitko (SVK) KTM +01:50:42

35. Mohammed Balooshi (ARE) HUSQVARNA +09:54:18

T3 Lightweight Prototype

1. AJ Jones (USA) CAN-AM 51:55:53

2. Seth Quintero (USA) CAN-AM +52:05

3. Guillaume De Mevius (BEL) OT3 +01:35:42

4. Cristina Gutiérrez (ESP) CAN-AM +02:56:20

5. Chaleco López (CHL) CAN-AM +02:59:48

10. Ignacio Casale (CHL) YAMAHA +06:53:27

23. Mitch Guthrie Jr. (USA) MCE5 +27:58:08

T4 SSV

1. Eryk Goczal (POL) CAN-AM 53:10:14

2. Rokas Baciuška (LTU) CAN-AM +16:44

For more information on the 2023 Dakar Rally, click here.

  By Mike Imlay

The specialty-equipment industry’s record-high sales growth over the past two years has begun to level off and possibly subside, according to the latest SEMA market research. Still, despite ongoing economic uncertainty, supply-chain issues, and rising costs, companies remain optimistic as sales remain solid and above pre-pandemic levels.

“Businesses experienced record-high growth the past two years,” said Gavin Knapp, SEMA director of market research. “We saw growth that was above the industry’s norm, so it makes sense that we’re returning to more normal levels. It’s great to see that most companies are up from 2019 levels.”

Conducted every six months since 2021, the “SEMA State of the Industry” studies are designed to give companies clarity about the overall market during an uncertain time. The disruption from the pandemic made it difficult for SEMA members to understand what the market was going through—and nearly impossible to forecast. Based on data from the automotive specialty-equipment industry, the reports give readers a barometer to gauge how they are currently doing and make predictions about what’s to come.

Available for free download at www.sema.org/research, the fall 2022 version finds that 47% of manufacturers, 48% of distributors, and 44% of retailers expect sales to increase in the coming year. Additional findings include:

• Supply-chain issues continue to be disruptive for the industry. More than 90% of companies say that they are having a moderate or significant impact on operations.
• Inflation and supply-chain issues are resulting in higher costs for businesses. More than 90% of companies reported an increase in supplier or production costs; most (around 80%) are compensating for the high costs by increasing their prices. Despite this, consumer demand and revenue remain strong.
• Ongoing supply-chain issues and high prices are slowing new-vehicle sales. Sales are not expected to return to pre-pandemic levels until 2024 or 2025. Sales for 2022 are expected to fall about a million vehicles short of 2021, at 13.9 million total units. The average price of a new vehicle reached $48,301 in August 2022, a record high. The average price of an electric is even higher, at more than $66,000.

Market Gains

“The purpose of this report is to provide specialty equipment businesses with the data they need to make better, more informed business decisions,” said Knapp. “If you think back to the start of the pandemic, you would never have predicted what has happened to our industry over the last two years. Even with all the weirdness affecting retail and in-person sales, and even with the supply-chain issues, our industry has done really well. It has seen incredible sales growth.”

Reporting from specialty-equipment companies indicates that industry sales had begun to normalize in 2022 after the record sales seen in the prior year. Despite ongoing economic uncertainty, companies also were generally optimistic about sales going into 2023.

“But the reality is this sales growth was never sustainable,” he continued. “We can’t expect an industry with a history of 4% or 5% per-year growth to suddenly see a new reality of 10%–20% annual growth.”

According to Knapp, the slowdown in industry sales is indicative of a return to a more normalized growth curve. Barring any major shakeups, the overall aftermarket will continue its upward climb, but along a trendline that’s much less steep.

When asked about pricing increases, manufacturers, distributors and retailer/installers cited increased supplier and production costs as well as ongoing supply-chain issues as the greatest contributing factors.

That’s not to say that there won’t be headwinds. “Our in industry is definitely optimistic, but there are challenges that we are keeping an eye on,” said SEMA Market Research Manager Kyle Cheng. “Auto sales are down from where they usually are, and our industry thrives on the timeframe around an initial sale for adding parts. Also, while we didn’t really talk about gas prices in this report, that’s also something we’re monitoring. And then inflation is not just affecting consumers, it’s affecting our industry’s businesses as well. With a lot of economists projecting a potential recession, that’s a concern.”

However, as of the report’s release, consumers were still in a spending mood, despite rising costs. This was allowing manufacturers and retailers to deal with upward price pressures by passing them on to end purchasers.

“It was a little surprising to see how many companies raised prices, because at the beginning of the pandemic, companies said that things were getting more expensive, but they weren’t going to pass their costs to consumers. They weren’t at that point then, but now they are,” said Cheng. “Yet, even with all this, the companies we surveyed were still feeling pretty confident in terms of maintaining or even growing their business in 2023,” said Cheng.

Retail Rebound

While hit early on by pandemic lockdowns, industry retailers also appear to have weathered the past two years surprisingly well. Although larger retailers reported comparatively stronger sales, most smaller retailers said they managed to maintain or grow their sales too. In fact, similar to the optimism expressed by industry manufacturers, “retailers are feeling in a much better place now in terms of their customer bases and sales,” said Knapp.

“I think back to a time during the pandemic when manufacturers were doing great, and retailers were asking, ‘Wait, what about us? How do we get people back in our stores?,’” recalled Knapp. “Now we’ve gotten to that place where most people are getting back into stores, out in the public and utilizing traditional retail.”

Across the board, retailers increased their prices in 2022, and expect to continue raising them this year as well.

Cheng added that progress in addressing supply-chain issues has helped buoy retailers. At the height of the pandemic, severe shortages drove many consumers away from brick-and-mortar outlets and toward manufacturer-direct sales channels. Now, however, retailers are sensing a return to more traditional shopping and purchasing patterns.

Moreover, although many aftermarket businesses report that they’re still feeling moderate to severe supply-chain disruptions, overall inventories have improved. “Retailers are finding they do have products to sell and are definitely reaping the benefits of that,” Cheng noted.

Large or small, most of the retailers surveyed expected inventories to stay the same or grow in 2023, even as they expected supplier costs to continue to rise. Most also forecasted that their revenues and customer bases would remain stable or increase.

Growth Across Channels

Interestingly, even as retailers regained their footing, manufacturers grew their sales across many channels over the past year. Most manufacturers now sell through a mix of online and in-person channels, with specialty retailer and direct-to-consumer sales making up their biggest sales shares. In terms of online sales, 37% of manufacturers reported an increase in direct-to-consumer sales, compared with 16% saying they increased their online specialty-retailer sales. Just over 20% of manufacturers also said they increased their general online-only retail sales. As for in-store channels, 29% said they grew their sales through independent specialty retailers.

Ongoing supply-chain issues and rising prices are slowing new-vehicle sales. Since vehicle accessorization is often tied to new purchases, this impacts the aftermarket.

This touches upon a hot-button issue of late. Spurred by lockdowns and supply-chain breakdowns, the growth in direct-to-consumer sales has generated some concern among brick-and-mortar retailers who fear a potential loss of business. But SEMA market research indicates that the “threat” to traditional sales channels is likely overstated.

“We consistently find that only around 30% of manufacturers say they sell direct-to-consumer, either through their own website, through some other channel, or in person,” explained Cheng. “Such sales are definitely growing, but the vast majority of sales are still going through other channels, such as distribution networks, wholesalers or straight to the retailers themselves.”

While many companies expressed optimism about their own growth in 2023, their expectations for overall industry growth were more muted given the current economic climate.

Ironically, the bigger a company is, the less likely it is to offer direct-to-consumer sales, added Cheng. Larger manufacturers, with sales of $5 million or more annually, tend to enjoy well-established distribution chains and a healthy presence in retail stores. Only 19% reported utilizing direct-to-consumer channels. By contrast, 39% of companies posting sales under $5 million a year included direct-to-consumer channels in their marketing mix.

“Companies with established brands tend to be our industry’s bigger companies,” explained Knapp. “They have distribution networks and retail knows them, their customers and their brands, and therefore they’ll carry those brands because they know they can sell them.”

“It’s the newer brands or startups and smaller brands fighting to get that name-brand recognition that typically go direct-to-consumer,” Knapp continued. “A lot of times it’s more beneficial for them to try and develop that brand reputation directly with the consumer rather than drive
consumers to general retail where they don’t have the same distribution network set up.”

On the retail side, many businesses saw sales increases over the past year through their company websites (16%), car and truck shows (16%), brick-and-mortar storefronts or shops (18%). Moreover, while online sales may have accelerated during the pandemic, retailers on the whole still report selling more through physical channels (59% of sales) than they do through online channels (41% of sales).

Consumer Sentiment

Of course, the big question now is how much a struggling economy (including a possible recession) might slow future growth. According to Knapp, a lot will ride on the job market and consumer tolerance for inflation.

“For now, the job market is still really good,” he observed. “And if you look at the consumer side, you know there was sort of a feeding frenzy during the pandemic. The attitude seemed to be, ‘We have less things we can do, so let’s focus on the things available to us.’ And even then, consumers saw a lot of price inflation due to long waits and scarcity. So in that regard, I think consumers have gotten used to inflation a lot more than economists have assumed.”

“If you’re a consumer, what the economy means to you is whether you’re taking money in. Are you getting a paycheck every month? So from that standpoint, consumers may not feel a reason to stop buying because they’re not feeling personally in danger. The individual decisions that consumers make are often much different than what economists look at on a global, macro scale.”

For now, there’s every expectation that aftermarket sales will experience some adjustment as they return to pre-pandemic patterns, albeit at higher sales volumes. And even if a recession should take hold, most experts agree it won’t be as deep as the Great Recession just over a decade ago.

“The bottom is not likely to drop out,” concluded Knapp. “The reality is that only about a third of the companies we surveyed said they were slowing down. Two-thirds said they were still maintaining their sales levels or even growing somewhat.”

“That’s really encouraging to see in this time where there are all these headwinds, whether they be related to supply chains, the economy, or even just a sort of backlash after all the tremendous growth we experienced that never could be reasonably sustained for long. In the end, we were always going to have to slow down a little. But with the majority of our companies saying they’re still doing pretty good—and expecting to do well again this year—the industry as a whole is remaining pretty confident.”

Stay Up-to-Date

The complete “State of the Industry—Fall 2022” report is available to download for free at www.sema.org/research. It was also the subject of an in-depth 2022 SEMA Show seminar titled “State of the Specialty-Equipment Industry: Trends and Directions,” now available on demand.