The U.S. House of Representatives passed H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, with strong bipartisan support. The SEMA-supported bill passed by a margin of 357-70 and now awaits consideration in the U.S. Senate's Finance Committee.
The bipartisan $78 billion tax bill allows for the reinstatement of the expensing of research and development (R&D) and investments in equipment, reduces reporting for small businesses using subcontractors, increases the small business expensing cap by nearly 30% and expands the Child Tax Credit through 2025.
SEMA member companies can benefit from the following provisions in the bill:
Restores immediate expensing for R&D for tax years 2021 through 2025:
Currently, businesses must deduct R&D expenses for research done in the United States over five years and over 15 years for research outside the United States.
Allows businesses of all sizes to deduct the cost of their United States-based R&D investments during the year they were made--encouraging American innovation and improving our competitive position versus China and the rest of the world.
The provision delays the date when taxpayers must begin deducting their research or experimental costs over five- and 15-year periods until tax year 2026.
Interest deductibility:
Provides flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
Starting in 2022, employers faced a more restrictive limit on the amount of business interest that they can deduct each year. Instead of using "earnings before interest, taxes, depreciation and amortization," companies can deduct interest expenses only up to 30% of their "earnings before interest and taxes" currently.
100% expensing:
Restores full and immediate expensing for investments in machines, equipment and vehicles.
Currently, businesses can only deduct 80% of the cost of equipment, machinery and vehicles, with the rest of the deduction claimed over the life of each asset.
Expand small business expensing cap:
Increases the amount of investment that a small business can immediately write off to $1.29 million, a $290,000 increase above the current $1 million cap.
Allows a taxpayer to expense the cost of qualifying property rather than recover such costs through tax depreciation deductions, subject to limitation. Qualifying property is defined as tangible personal property, off-the-shelf computer software and qualified real property that is purchased for use in the active conduct of a trade or business.
Cut red tape for small businesses:
Adjusts the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and indexes it for inflation, making the first update to the threshold since the '50s.
The Tax Relief for American Families and Workers Act is the product of bipartisan negotiations by House Ways and Means Committee Chair Jason Smith (R-MO) and Senate Finance Committee Chair Ron Wyden (D-OR). SEMA continues to advocate for legislative measures that benefit our 7,000 member companies that make up the automotive specialty-equipment industry, which supports over 1.3 million jobs across the United States and contributes more than $336 billion to the American economy each year.
For more information, contact Tiffany Cipoletti, SEMA's manager of federal government affairs, at tiffanyc@sema.org.
Skip Barber Racing School Opens New Corporate Headquarters
The Skip Barber Racing School has opened a new facility at VIRginia International Raceway (VIR) in Alton, Virginia, that will serve as the company's corporate headquarters.
Designed to house all Skip Barber entities, the headquarters features a workshop to support the racing school's fleet of vehicles, as well as a fabrication shop and in-house dynamometer. Additionally, the facility was built with new classrooms, a driver-development center, simulators and a gym.
NASCAR officially launched the NASCAR Regional brand and platform, which encompasses the touring and weekly series of NASCAR, including the ARCA Menards Series, ARCA Menards Series East, ARCA Menards Series West, NASCAR Whelen Modified Tour and the Advance Auto Parts Weekly Series.
Formerly NASCAR Roots, the NASCAR Regional brand and platform will better position the sport to grow awareness around those series, the sanctioning body said. In addition, the rebrand ushers in a more organized and recognizable platform that provides concise sightlines of a 'ladder system' from beginning to end.
Crisp Motorsports Park, an asphalt oval track located in Cordele, Georgia, has been renamed Cordele Motor Speedway by its new owners, Greg and Lori Noland. Additional planned changes include a new RV park, restaurant, road course for Legend cars and karts, and more.
The new owners have also appointed Ricky Brooks as the track's new general manager. Brooks is also a managing partner of the SRL National Super Late Model Tour and owner of the SRL Sportsman Series.
The International Motor Sports Association has announced its second class of inductees for the IMSA Hall of Fame. The Class of 2024 includes a lineup of both competitors and vehicles.
A nominating committee of past and present IMSA executives and media members selects the inductees. The Class of 2024 will be honored at the WeatherTech Night of Champions on October 13.
The IMSA Hall of Fame Class of 2024 includes the following:
NASCAR Honors Diversity and Inclusion Advocates, Announces Ally Financial as Partner
NASCAR has announced 10 trailblazers and inclusion advocates as part of the 16th annual NASCAR Drive for Diversity Awards. Among the honorees are crew members, league partners and a public school system--all of which are making a real difference in the sport. And new this year, Ally Financial--the nation's largest digital-only bank and Official Consumer Bank of NASCAR--will be the ceremony's first-ever presenting partner.
Ally, widely known for its commitment to inclusivity on and off the track, entered racing in 2019 as a full-season sponsor of the Hendrick Motorsports No. 48 Team and expanded its presence by becoming an official NASCAR partner in 2023. Ally has since initiated a series of initiatives designed to elevate the contributions of diverse members of the racing community.
The 2024 NASCAR Drive for Diversity Awards recipients are as follows:
Crew Member: Mike Metcalf
Developmental Series Driver: Zach Herrin
Sam Belnavis Industry Ambassador: Jefferson Hodges, Team Penske
Institution: Chicago Public Schools
National Series Driver: Tyler Reddick, 23XI Racing
Outstanding Intern: Chandler Love, University of Miami
SEMA News sources recently captured images of the forthcoming BMW iX3 SUV, one the first of the models built on the manufacturer's "Neue Klasse" (New Class), a new platform designed for electric vehicles.
The Neue Klasse lineup will kick off with the BMW iX3 SUV and the BMW i3 sedan, targeting BMW's core market segments. BMW plans to roll out at least six EV models based on the platform within the first two years of production, with the next-generation BMW iX3 slated for release in late 2025.
Spotted testing on frozen lakes in northern Sweden, the design of the upcoming iX3 stays true to BMW's current aesthetic while incorporating elements of the Neue Klasse design language, particularly evident in the front grille and overall proportions, according to insiders.
Underpinning the vehicle is BMW's eDrive technology, featuring round cells similar to Tesla's latest 4680 cells. These taller cells offer improved energy density, faster charging and reduced production costs compared to BMW's current EV architecture, according to experts. With the switch to these advanced cells, the iX3 is expected to deliver a range of more than 375 miles.
Production of the Neue Klasse models will take place at multiple factories worldwide, including facilities in the United States, Hungary and China.
Once the Exclusive Training Tools of Motorsports Pros, Racing Simulators Are Increasingly Fueling Enthusiast Passions
By Bradley Iger
Once dismissed as mere child’s play, simulators have been an integral part of driver development in top-tier racing series like NASCAR and Formula 1
(F1) for a number of years now. While the systems used at this level of motorsports are often highly customized, multi-million-
dollar setups, the simulation technology that’s now available to the general public is reaching a degree of sophistication that isn’t far behind.
“It’s a lot like the trickle-down effect of F1 race car technology into the production cars that will be on the road a few years down the line,” says Nikolas Dubois of Advanced SimRacing in Anjou, Quebec, Canada. “Use of simulators by racing teams really started to ramp up 15 years ago or so, and now we’re seeing a lot of the technology that they were using at that level being integrated into the gear that people are using in their simulators at home.”
And as Steve Paladino of Podium 1 Racing in Franklin, Tennessee, points out, the combination of increasing sophistication and greater accessibility has yielded a compelling training tool for competitors and driving enthusiasts alike. “People often still write off this technology as just a video game. But what they’re missing is that, at this point, the level of accuracy is part of what makes these simulators fun and immersive. At the end of the day, you have to keep in mind that pro drivers wouldn’t use this stuff if it was garbage. And meanwhile the cost of entry continues to go down, while the quality continues to go up.”
Going Down the Rabbit Hole
Although simulation rigs are more advanced than ever before, there’s still a sizable gap—in terms of both fidelity and cost—between the systems that are commonly used for driver training and the bespoke setups that are created by auto manufacturers and teams in top-tier racing series like F1.
“One of the programs that’s considered a standard in the industry is rFactor,” says Dubois. “There’s a version of this that you can use at home, but top-tier teams and automakers typically use rFactor Pro for engineering development. The Pro version is a very different approach; it’s not what you’d call user-friendly and you have to have engineers to work on the models. Just creating one custom car model in rFactor Pro can cost upwards of a quarter of $1 million. The benefit of that is it takes a huge amount of data into account, so you get a greater level of accuracy from it.” And at this level, the expense of model development is just a fraction of the overall cost involved.
The use of simulators by racing teams has ramped up significantly over the past decade or so, and a lot of the immersive technology is now making its way into the home.
“These are seven-figure setups,” says Robbie Montinola of SRO Motorsports in Austin, Texas. “For the most part, these rigs are built into ‘simulation rooms.’ Think of a room that’s about a 1,000 sq. ft. or so, where they’ve built a very realistic, life-sized version of the race car with the same ergonomics as the car they’re campaigning. So, if it’s a F1 car, it could essentially be an F1 tub with large, curved screens that kind of emulate a 360-degree field of view, and they may be using proprietary simulation
software. They also usually have rooms that are connected to those simulator rooms, where engineers and other support staff are monitoring information and communicating with the driver. Very much a NASA-style experience.”
But for a fraction of that cost, enthusiasts and grassroots competitors can now put together comprehensive home simulator rigs to sharpen their skills, familiarize themselves with course configurations, and experiment with different techniques and car setups.
“I think this shift for software developers got started with the NASCAR computer game that was released back in 2003,” notes Cam Murphy of SimGear Motion Simulators in Schaumburg, Illinois. “Before that game, the majority of what was out there seemed to be mainly focused on entertainment rather than realism, from a physics and driving technique standpoint. That game kind of set a new tone for the at-home user in terms of what was possible, and what could be a relevant training tool for real driving. And more recently, the developers behind racing simulators like iRacing, rFactor and Asseto Corsa have really stepped things up. So much of improving on-track performance is about preparation and fine-tuning things through repetition, and that’s exactly what this allows you to do.”
Racing simulators are proving crowd pleasers at automotive gatherings like the annual SEMA Show in Las Vegas, with multiple manufacturers showcasing units of varying levels of sophistication.
Many high-end prosumer setups use direct-drive steering wheels, which create realistic feedback from the tires and suspension using internal magnets rather than a traditional gear set. The wheels’ quick-release system also functions much like the ones used in actual race cars, allowing drivers to swap out steering wheels to more closely replicate the vibe of the race car being recreated in the simulator. Multi-display setups are also common, which allow for a greater degree of peripheral vision, while high-end pedal sets can now emulate the brake system feedback that you’d experience in a real race car. Expired racing seats are often used to establish the proper driver positioning in the simulator, too, and some systems have integrated actuators that can shift the entire rig several inches in any direction to replicate the sensations of squat, brake dive and roll, as well as weight-transfer and road-surface variations.
Although the level of realism that this hardware can create is impressive, it can also be costly; an at-home simulator setup that’s put together with a no-expense-spared approach can easily venture into the $50,000 range. But Murphy is quick to point out that many of those advanced features aren’t necessarily required in order to create a useful system, as the software still does a lot of the heavy lifting.
“iRacing is arguably the standard for consumer-level simulators today, and it continues to get better and better. One really important advancement that has become commonplace now is that they started laser-scanning race tracks, and those scans find every nuance in elevation change, and every nook and cranny in the road surface, and that’s translated into the simulation. And, of course, there’s also been a major development effort to accurately replicate real-world physics. That takes into account everything from the weight, weight distribution, and the aerodynamics of the car to the chassis stiffness, suspension setup, tire compounds and pressures, and track conditions.”
Tire modeling has also become an area of intense focus for many software developers as of late. “As an example, with our official racing simulator, Assetto Corsa Competizione, the developers work closely with both the auto manufacturers as well as Pirelli,” Montinola says. “When we change a tire compound in real life, the simulation is updated with new data from Pirelli to reflect that change in the latest tire model. So the tire model is constantly evolving alongside what is happening in real life.”
And as simulator physics continues to move toward parity with reality, telemetry data is becoming an increasingly complementary training tool.
“Virtual Racing School software allows you to record your iRacing telemetry, and within seconds of completing a race, you can go to their site and compare your telemetry data to their pro drivers,” Paladino explains. “So you can immediately see where you’ve done well and where you can find improvement, corner by corner, tenth by tenth.”
Translating Virtual Seat Time, Real-World Results
The headline benefits of using simulators for driver training are fairly straightforward—virtually unlimited track time, minimal costs after the initial investment, and the opportunity to drive tracks you haven’t physically been to yet. But there are also other advantages of simulators that may not be as immediately obvious.
“The reset button is a big one,” Murphy says with a laugh. “But in all seriousness, that gives you the ability to get on a track and go flat-out without risking the expense of wrecking a race car. You can do hours and hours of track time at that pace and not burn an ounce of fuel, go through a single consumable part, or bend a single fender. It not only allows you to get a general idea of where the limits are, it also provides the visual reference points to keep a track configuration fresh in your mind, so when you’re out on track in real life, you can get into that rhythm quicker.”
And the benefits become obvious when drivers who’ve spent time on a simulator then hop behind the wheel of their real vehicles and put that training to work. “When a driver has the opportunity to focus as much time and effort as they want on certain areas where their technique can improve, or where they are leaving time on the table at a certain corner, those efforts definitely become evident when they take what they’ve learned out to the track for real,” says Dubois. “Every time we get a chance to help a client on the simulator, they’re immediately faster in their real car on the next weekend that they’re at the track. People in the paddock will often ask these folks what they did to progress so quickly because the improvements are so noticeable.”
Although racing simulators have come a long way in recent years, it’s important to note that technological limitations remain today. While haptic systems like those made by D-Box can replicate variations in road surfaces and shifts in weight balance, simulators cannot recreate the sustained G-forces created by long, sweeping corners or high-speed braking zones. It may be easy to shrug this off as simply a compromise in the level of immersion that’s available today but, says Montinola, the implications go deeper than entertainment value.
“The overall feel is still a bit different; no matter how good you are in a real car, people tend to be a bit slower in a simulator. And most real race car drivers tend to be slower than the folks who are purely focused on simulator racing. For racers,
I think there’s a degree of disconnection that we still face with simulation technology without those real-world forces communicating information about things like the coefficient of friction. You may know where those limits are in the car, but it’s harder to pinpoint them in the simulator, outside of just looking at the data.”
SEMA Chairman of the Board Kyle Fickler (left) recently challenged his daughter Danika Fickler, an NHRA Division 5 champion, to a friendly simulator competition at the 2023 SEMA Show Industry Awards Banquet.
Still, as this technology becomes increasingly accessible, simulator training is quickly moving beyond the realm of novelty and becoming an obligatory component of teams’ racing programs.
“Leading into each of our race weekends, you’ll see that a large number of our drivers are on social media talking about how they’re training on the simulators,” Montinola adds. “It’s a part of their process now. Practice session track time is limited on race weekends, so they want to get as much training in on the simulator as they can. That way, when they actually get to the track, they’re just dialing in the race car and then they’re ready to
go qualify.”
And the proliferation of simulator technology is just getting started, Paladino says.
“Simulator racing and training has been huge in Europe for a long time, but America is just now waking up to it. Drive to Survive has brought more visibility to it, and the pandemic created a new level of demand for ways for drivers to train at home. And as a result, I think one of the big things we’re going to see is that it’s going to change some of the entry points into motorsports. I think we’re going to see more and more kids getting their start in simulators who end up being very competitive in the real world. And I think it’s going to help lower the barrier for talented drivers that might not have the opportunity otherwise.”
Dubois says that as the technology becomes more accessible while also becoming more advanced in terms of accuracy and depth, its use as training tool by may eventually become ubiquitous.
“Simulation has come a long way in recent years, but it’s still in its infancy right now, and I think it’s going to be much more mainstream in the near future. Eventually it’s going to be almost mandatory to have a simulator at home for anyone who drives competitively. And that’s because, if you don’t, you’re never going to be as prepared as someone who can train for hours and hours a day if they want to. It’s all about practice.”
Photography courtesy Petersen Publishing Company Archive
In its December 1955 issue, Hot Rod magazine told readers, “Drag racing isn’t new to the Memphis area—they’ve been running top-notch drag meets there for years.” Which is why the NHRA put the southern city on its itinerary for the 1955 Drag Safari. Nearly 40 years later, drag racing in Memphis was again featured in Hot Rod, this time as the venue for the first Fastest Street Car in America Shootout. The cars at that event represented an evolution of the sport that likely would have been unimaginable to those racing in 1955.
The Drag Safari was the brainchild of NHRA founder and Hot Rod Editor Wally Parks. He put in motion what became a coast-to-coast master class in staging safe and efficient drag-race meets. For three years starting in 1954, he sent NHRA representatives, plus Petersen Publishing Company Photographer Eric Rickman, on the road in a Plymouth station wagon towing a trailer that was full of timing equipment, a public address system, and everything else they would need to put on a race with local hot-rod club members. They also did a fair amount of PR work at their various stops, sitting down with government and law enforcement officials to discuss the NHRA’s responsible way to get car enthusiasts off the streets and into sanctioned competition. Rickman’s photos, along with reels of tape that Safari members used to dictate the event’s results, were mailed back to Hot Rod’s Southern California headquarters and turned into stories that promoted not just the relatively new NHRA but drag racing itself.
The final of Hot Rod’s first Fastest Street Car Shootout in 1992 pitted Max Carter’s Nova (near lane) against Rod Saboury’s Corvette. Carter had spent the weekend sorting out the Nova and drove past Saboury at the top end, clocking an 8.435-second e.t. at 160.37 mph.
The Memphis event took place on an airstrip in Halls, Tennessee, some 70 mi. outside of the city and home track for the Memphis Rodders club. Despite the remote location, “attendance there has been quite good, considering, and the participation keen,” said the editors. On this September weekend, the turnout was “relatively small” at 84 cars, and “a total of 471 timed runs were made before the elimination runs began.” Spectator attendance was estimated at 3,500.
Cars ran in 10 classes, including Stock; Gas, Altered and Competition Coupes/Sedans; Street and Modified Roadsters; Sports Cars; and Dragsters. D Gas had the most entries and was won by Woodie Taylor driving a Studebaker-powered ’46 Ford pickup. “Several dragsters were entered,” said the magazine, “each adding to the event’s excitement.” The Custom
Racing Team of Dallas, with member Bob James driving their Mercury-powered rail, won the class with a top speed of 122.42 mph. James went on to face the top eliminator from the other classes, the Godman & Dyer A Modified Roadster (a much modified Model T with a Mercury Flathead) in the meet’s final run. The Godman & Dyer car left the starting line first, but the Custom Racing Team car caught the T and won, setting the meet’s top speed of
123.11 mph in the process.
FAST FORWARD TO THE ’90s
In its own way, the first Fastest Street Car Shootout some 40 years later was like those early Drag Safari meets in that Hot Rod was attempting to (somewhat) formalize a movement that had been on the rise. The magazine first covered these street brawlers in early 1991 with a feature on Joe Yatooma’s ’69 Camaro and Don Harper’s ’70 Nova, both licensed for the street but also capable of 9-sec. timeslips thanks to tunable chassis, big-block engines and lots of nitrous oxide. Promoter Bill
Coogle gathered this new breed of street/strip cars for a Top Gun Shootout in 1989 and did so again in 1991. Watching the rising tide, Hot Rod collaborated with the National Muscle Car Association to hold its first Fastest Street Car Shootout during the NMCA’s 1992 Finals at Memphis Motorsports Park (later renamed Memphis International Raceway).
Race rules that year were kept “short and sweet” to not “stifle creativity.” Entries were limited to American door-slammers from ’50 and up (in a nod to NMCA rules); minimum weights were set for naturally aspirated and forced-induction engines; combinations of power-adders were not allowed; cars had to meet NHRA safety requirements based on performance level; but they also had to be registered with current tags and equipped with charging and cooling systems, plus head-, tail- and brake lights. To further ensure these cars could function on the street, they were required to complete a series of “parade laps” without overheating or refueling before being allowed to compete in final eliminations.
Saboury’s Corvette, the runner-up in the final, was the only Fastest Street Car competitor that weekend running a naturally aspirated engine, a 632-in. big-block built by Garrett Racing Engines. The Vette was also the weekend’s low qualifier at 8.524 sec.
Hot Rod Editor Jeff Smith and staffer David Freiburger covered the race in a December 1992 story called “8 Seconds Over Memphis.” They likened the gathering of racers to a Hollywood Western, with “gunfighters who came to play” arriving from all over the country. Yatooma and his Camaro were there. So was the winner of the most recent Top Gun Shootout, Max Carter and his big-block-powered ’66 Chevy II, which the story characterized as “a whole lotta motor, but not a lotta car.”
A contingent of first-generation Camaros, sponsored by restoration specialist C.A.R.S. Inc., arrived from Detroit. Racer Rod Saboury came in from Maryland with a ’57 Corvette and a naturally aspirated Garrett Racing Engines big-block that was so new, “its baptism of fire would come with the first round of qualifying.” In all, 25 cars qualified for the Shootout, “from backyard, small-block, non-tubbed Chevelles to thinly disguised race cars.”
Members of the Custom Racing Team, who traveled to the Memphis race from Dallas, pose with their weekend’s trophies.
The durability of these cars “became key right off the bat,” as competitors blew up engines, transmissions and rearends starting with the first qualifying rounds. Expectations for Carter were high, but so were his early timeslips until he discovered cracks in both rearend axle tubes. Danny Scott, whose ’67 Camaro was part of the C.A.R.S. Inc. team, helped him weld up the rear, after which Carter’s e.t.’s began to drop. (Scott helped so many of his fellow competitors that weekend that the magazine gave him “Best Sportsman” honors. He also turned in the second-quickest e.t. of the race.) Saboury, with the only non-nitrous/non-blown car at the race, set low e.t. in qualifying at 8.524 seconds, a mark that would stand as the third quickest of the event.
Danny Scott’s C.A.R.S. Inc.- sponsored ’67 Camaro turned in the second-quickest e.t. of the Shootout at 8.490. His tireless work supporting other competitors earned him Hot Rod’s Best Sportsman award.
Saboury’s strong weekend held up until the Shootout’s final, where, experiencing what the magazine called “high speed power loss that defied a cure,” he met a resurgent Carter. When the lights came down, Saboury notched his best reaction time of the race, but Carter “came from behind to crank an 8.435/160.37 to Saboury’s 8.744/150.27.”
Since that first Shootout, interest in street-car racing has exploded—and evolved. While there have been some detours, there’s a very clear through-line from Memphis in 1992 to today’s drag-and-drive events, including Hot Rod’s pioneering Drag Week. In the ’90s, making the competitors travel 25 mi. of parade laps seemed daunting; today, Drag Week participants have to drive hundreds of miles between race venues and carry all their spares with them. In 1992, street cars making 8-sec. passes was mind-blowing. Thirty years later, Tom Bailey, the 2023 Drag Week champion, averaged 6.7149 seconds over a five-day, nearly 1,000-mi. strip-to-strip road trip in his Sick Seconds 1.0 Camaro, the same car that won the first Drag Week in 2013. And that wasn’t even his quickest Drag Week average. In 2019, aided by a 5.998-sec. run on the last day of competition—the first official Drag Week time in the 5s—Bailey and his second-gen Sick Seconds Camaro averaged 6.299 sec. for that year’s overall win.
And Memphis? Memphis International Raceway, the old Motorsports Park, was a stop on the first Drag Week, upholding a decades-old tradition. That tradition unfortunately ended with the track’s closure in 2022. Drag-and-drive lives on, but it may have to do so without the ghost of Elvis hanging around.
SEMA Council and Network Leaders Identify the Trends and Issues Impacting the Aftermarket in 2024
By MICHAEL IMLAY
Every new year offers an opportunity to reflect on recent challenges and achievements and chart a future course. With the first quarter of 2024 well underway, SEMA magazine again turns to association council and network leaders for their takes on the market trends and issues impacting key industry categories, along with their expectations for the next 11 months. SEMA councils and networks are on the cutting edge of the latest changes and best business practices sweeping their aftermarket segments. These volunteer organizations also play a major role in shaping and growing their respective industries for the benefit of all. Moreover, they provide networking opportunities that can enhance personal, professional and business growth. To learn more about SEMA councils and networks, attend their events, or become an active volunteer member, visit sema.org/councils-networks.
In December 2023, we presented statements from five of SEMA’s nine councils and networks. This month we present insights from the remaining four, based upon interviews with council leadership. What follows has been edited for clarity and
conciseness.
The SBN’s mission is to provide networking, education and recognition opportunities for professional women within the industry. We’re also about encouraging women to join the industry.
Currently, the SBN has more than 700 members and is very diverse. In the past, members were mostly drawn from larger companies, but now we’re seeing membership growing among freelancers and individuals from smaller companies. Female-owned businesses within the industry are also increasing in number—many of them second-generation shops where women have inherited the businesses started by their parents. We’re also seeing growing numbers of women in marketing, as well as those stepping into their own brands and companies.
Last year the SBN celebrated its 30th anniversary. It’s rewarding to see how our network has evolved over the years. We marked the milestone with an all-female Ford Bronco build, which came 10 years after a similar Mustang build. It was amazing seeing our younger women coming in, creating new connections and having the same experience many of us had a decade ago. The Bronco sold for nearly $60,000 on eBay, with proceeds going to SEMA charities.
Other 2023 programs included our second Women Leadership Forum. This women-only symposium is designed to foster networking, learning and personal and professional growth. This March, we will take the symposium to Texas, making it more accessible to women from the East Coast.
We also recently started a male allyship program to advance the conversation about women in the workplace. We have presented three webinars on the topic, and will continue to grow these webinars in 2024. Our main goal this year is to enhance current programs and leverage social media to highlight women’s contributions to the industry. We want to show younger women that they have significant roles to play in the aftermarket. We have also created an internet space where members can freely talk about issues and situations and
share advice.
As we enhance the programs we already have, we are also constantly exploring new ideas to serve SBN members. We look forward to each new generation of industry women who join our network, our conversations, and our ongoing work to network, educate and empower all our members.
Last year’s SBN Bronco build was a major 30-year milestone for the network, which continues to empower women within the aftermarket through a variety of education and professional growth opportunities.
Future Leaders Network (FLN)
Matt Beenen, Mountech, Chair
Jerod Suchy, BuiltRight Industries, Chair-Elect
FLN’s core mission is to cultivate young talent in the automotive aftermarket through education and networking. Since the only limiting factor for involvement is being under the age of 40, our membership is comprised of individuals from every corner and segment of the industry.
Our diverse talent pool also allows us to draw on the experiences of sales, marketing, operations, customer service and engineering professionals. Because of this, FLN generally has a good finger on the pulse of trends and consumer behaviors.
If we could broadly quantify what consumers and enthusiasts want from industry companies, it would be “value and authenticity.” Most of our membership saw last year as one of holding steady, with some members reporting slight growth for their companies or industry categories. Overall, it seemed a year of “normalization” after a couple years of accelerated growth.
We see our industry constantly evolving with technological advancements. Consolidations of brands and supply-chain partners make it more important to leverage individual relationships than ever. Additionally, the hybrid workspace model has made it clear that hiring for cultural fit within your organization (rather than résumé stats alone) is an important component to keeping an engaged and enthusiastic workforce.
FLN members often say that these changes consistently challenge them to think deeply about long-term visions and trends to ultimately find new opportunities within their specific market segment. One opportunity our members are leveraging is
artificial intelligence. Incorporating AI into day-to-day work flows has helped many to optimize their efficiency and provide value to their organizations.
The most significant challenges to our membership include overreach by the U.S. Environmental Protection Agency/California Air Resources Board, National Highway Traffic Safety Administration, Bureau of Land Management and other enforcement/regulatory bodies. We have consistently helped to get our membership engaged with the SEMA Political Action Committee, stay updated on relevant issues within their segments, and network with members across SEMA councils and networks to help facilitate cooperation on these issues.
We have also received so much positive feedback from our first two Professional Development Program courses that we are adding a second level to the series for individuals who complete level one and wish to further their leadership skills. We are also working on a few proposals to overhaul and bring new vision to the SEMA Launch Pad program.
As always, individuals can engage with FLN by attending our general membership meetings, stopping by one of our many regional networking events, or simply dropping us an e-mail.
Truck and Off-Road Alliance (TORA)
Matt Reasoner, Real Truck, Chair
Dawson D. Druesedow, 4 Wheel Performance, Chair-Elect
TORA membership includes manufacturers, wholesalers, dealers/installers and e-commerce businesses in the truck and off-road space. Our members cater to off-road enthusiasts,
outdoors-people, overlanders, fleet- and work-truck owners, as well as everyday truck owners.
Popular category accessories continue to be bed covers, steps, lifts and wheels and tires. All things considered, our category is holding steady; however, lack of new-truck inventory has been replaced with high interest rates for new-vehicle buyers. We’re also seeing more consumers steering away from “wants” and focusing primarily on “needs” as inflation runs rampant. In contrast, fleet business is one of the bright spots. Many municipalities and corporations spent the past 18–24 months waiting for trucks to become available and are finally seeing the trucks delivered.
Workforce struggles continue to affect all segments of the truck and off-road category. Manufacturers, dealers and warehouse distributors alike are all facing challenges in finding reliable, trustworthy staff seeking long-term employment. These staffing issues have created extended lead times in many cases as manufacturers struggle to keep up with
demand. This ultimately results in a chain reaction that resonates all the way to the end consumer.
On the technology front, as OE manufacturers continue to add new tech into nearly all trim levels of vehicles, we have seen many product categories change to accommodate. One category that has been affected the most is bumpers. Our businesses must ensure that the product is ADAS-compatible without loss of functionality.
As for opportunities, we’ve seen the overlanding category absolutely explode since the pandemic. Racking systems, rooftop tents, storage and security are all growing product segments.
Meanwhile, the economy is the largest challenge for all of us. Amid inflation, the 2024 election and international instability, consumers are seeing less disposable income and are being much more
conservative with how they spend it.
Public land preservation is another issue very close to our hearts. Government overreach continues to run rampant across the nation, and threatens the ability of our customers to recreate responsibly on public land. One of our main objectives as a council is to raise awareness of responsible recreation and engage membership with pressing legal regulations that are threatening our businesses and livelihoods. We’re working closely with SEMA’s Washington, D.C., team to stay abreast of issues.
We are also continuing to work with the side-by-side (UTV) community to bring them more into
the fold. While our method of going to market is somewhat different, we share a common interest in preserving public lands and OHV areas. Any legislation that potentially prevents access is detrimental to both of our communities, and we are stronger
as one voice.
New technologies are rapidly changing wheel and tire design and manufacturing, as well as the ways consumers “test-fit” and purchase the products.
Wheel & Tire Council (WTC)
Michael Lusso, Hennessy Industries, Chair
Brett Kinsfather, Shopmonkey, Chair-Elect
WTC businesses and industry professionals are a diverse group of management and executive-level leaders in the manufacturing, distribution, retail, business services and media sectors of the wheel and tire industry. Our consumers encompass nearly every automotive enthusiast. While vehicle use may vary along with style and performance, wheels and tires are consistently on the’ purchasing radars of enthusiasts.
Overall, the wheel and tire category experienced incremental growth in 2023, with a variety of changes among individual segments, such as growth in the Tier-4 tire segment. While a pullback in some consumer spending had an impact on the more trend-driven wheel and tire combos, other segments have remained strong.
There are other important wheel and tire trends to report as well. First, we’ve seen a shift in demand from larger-diameter, single-use wheels and tires toward multi-use aftermarket wheel-and-tire combos. This shift to a multi-use preference tends to rise when consumers are attempting to maximize their purchases with the disposable income they have available.
Second, technological advancements in ADAS, electric vehicles and connectivity devices continue to grow. All these have vehicle and market impacts well beyond wheels and tires.
Third, over the last couple of years, organizations have continued to consolidate. Most notable are Goodyear’s purchase of Cooper/MT, Wheel Pros’ purchase of Transamerican Auto Parts, and Fox Factory’s purchase of Custom Wheel House.
At the same time, access to technology continues to be ever more affordable. As a result, businesses that once perhaps could not afford the technology required to optimize tire inventories or engage customers with a modern digital-first approach can now do so.
In addition, 3D visualization and customization tools allow customers to virtually test-fit aftermarket wheels on their vehicles before making a purchase, ultimately creating an enhanced digital-first shopping experience. Moreover, advanced sensors embedded in tires can provide real-time data on things like tire pressure, temperature and tread wear. This type of data gathering can not only help drivers properly maintain their tires, it can help the manufacturers and other organizations such as fleets optimize the tires they are either making or maintaining.
The increasing number of EVs on the road also presents an emerging opportunity. Thanks to factors like their increased weight, lower center of gravity, and torque, tires on EVs wear exponentially faster than on ICE vehicles. As a result, tire manufacturers are expanding their EV offerings, while wheel manufacturers are finding ways to reduce unsprung weight.
The most significant challenges facing our segment include the expansion of non-emissions regulations that place additional restrictions on tire manufacturers. For example, Georgia is now making the distributors responsible for tire-sales fee collections, thus impacting supply-chain operations for one state.
SEMA Successfully Mobilizes the Automotive SPECIALTY-EQUIPMENT Industry’s First-Ever SuperPAC
BY KAREN BAILEY-CHAPMAN
SEMA launched its first-ever SuperPAC this past fall to support legislative candidates who would back the repeal of Virginia’s internal-combustion engine (ICE) ban. Debuting as Driving Force Action (DFA), the SuperPAC focused its efforts on helping Governor Glenn Youngkin of Virginia to secure a needed majority in the November elections to accomplish one of his campaign priorities—repealing the ICE ban. While the Governor’s party fell short of capturing the necessary number of seats to get that majority, DFA succeeded in three of the four senate races where it engaged in direct candidate advocacy.
Why Virginia? While most of America chooses its state lawmakers and governors in the same year that they elect their federal lawmakers (even-
numbered years), there are a handful of states that elect their lawmakers in odd-numbered years, and Virginia is among them. Plus, because of the state’s redistricting schedule, every member of the legislature was up for election or re-election because they all had to run in newly drawn districts—a once-in-a-10-year opportunity when voters can vote on everyone in the same cycle (except the governor).
In addition, Virginia is one of the “CARB states.” There are 17 California Air Resources Board [CARB] states that have attached themselves to California’s emissions standards, including in all but three,
California’s impending ban on ICEs. Virginia became a CARB state in 2021 under the previous governor, yet many Virginians did not know this. An attempt to repeal Virginia’s ICE ban in the legislature in early 2023 was stymied by the Democrat-held Senate.
The November election presented the next opportunity to reverse this bad policy in the Commonwealth.
Moving the Needle
Internal polling conducted by SEMA in Virginia in late 2022 showed high unawareness of Virginia’s attachment to California’s emissions laws and regulations. Eighty-one percent of Virginia’s voters had heard little or nothing at all about the ban on ICEs. The same poll showed that once voters learned of the ban, 62% opposed it.
DFA launched its independent campaign just before Labor Day, allowing an eight-week window to educate and mobilize voters on the issue of ICE bans and the state’s EV mandate. Ultimately, the education campaign significantly elevated the issue of the EV mandate ahead of election day. A tremendous groundswell of opposition to this policy—from both thought leaders and the public—showcased how much Virginians (and Americans) want the freedom to choose what they drive.
Two weeks before election day, campaign polling in the four target senate districts where DFA was engaged, found only 16% of Republicans and 12% of Independent voters were unaware of the state’s ICE ban. Unawareness of the issue among Democrat voters was in the low 20s—a significant shift of 60 points or more across all voter groups compared to the statewide poll conducted nine months earlier. The majority of Republicans and Independents in this late poll said they would support the candidate who would repeal the ICE ban.
Post-election analysis of DFA’s digital campaign analytics showed that the campaign reached and engaged more equitably across all age demographics, something rarely seen in today’s policy environment. The campaign garnered more then 13.5 million impressions across four major social networks in just eight weeks.
Key Takeaways
The DFA campaign mobilized constituencies of all types and emphasized the need for our nation’s leaders to reverse track on government mandates that remove your right to decide what kind of car you drive.
One key race that was clearly influenced in this cycle was District 24, where candidate Sheriff Danny Diggs overtook the incumbent
Senator Monty Mason, a staunch supporter of the ICE ban policy and the deciding vote to block the repeal of Virginia’s ICE ban law. Other notable shifts were in District 17, where Emily Brewer defeated Clinton Jenkins, and District 27, where Tara Durant upset Joel Griffin; the candidates who won committed to repealing the EV mandate. The DFA campaign was heavily active in educating voters about the EV mandate in these districts and which candidate was on the right side of the issue. Of note, two of these districts were considered toss-up or lean-Democrat districts: District 17 (Brewer) favored Democrats by three points, and District 24 (Diggs) showed no party advantage in the electorate going into the election season.
Political pundits often refer to Virginia as a bell-wether state. This suggests that Virginia’s odd-year elections provide learnings for federal and other statewide campaigns preparing for the upcoming 2024 election cycle. Virginia’s electorate is also considered a reasonable sampling of, and mimics, the national electorate with the contrasts between voters in the wealthier north (suburban Washington, D.C.) to the rural south and energy-industry-dependent west and the urban centers of the center and east, including a significant military and retired military population. The EV mandate (or ICE ban) was lauded by some media in the run-up to election day as an issue that Republican candidates could run a positive campaign around, compared to the social issues that dominated the campaign otherwise.
There is an essential lesson for the Biden administration and the Environmental Protection Agency (EPA) as they consider a similar federal ICE ban. Clearly, segments of the country are not in favor of a mandate that phases out gas-powered cars.
Our plan is to continue to keep pressure on our elected members on both sides of the aisle and urge them to reevaluate California’s gas car ban in various states and nationally. SEMA sees the federal EV mandates and the creep of California’s laws into other states as a potential topline election issue for the 2024 campaign cycle. For anyone who has watched the Republican presidential candidate debates this cycle, it’s hard to get through the first five minutes without the hopefuls laying their stake in the ground against the vehicle mandates.
Unknown to many voters, emissions standards for 17 states are tied to California Air Resources Board (CARB) mandates.
Why a SuperPAC?
This is a common question. SEMA already has a federal PAC (called the SEMA and PRI PAC), so why does the association now need a SuperPAC?
The federal PAC is a critically important part of the SEMA Government Affairs team advocacy work. Because SEMA itself cannot donate dollars directly to candidate campaigns, our money is considered corporate dollars, SEMA solicits personal donations from members to fund the traditional federal
PAC that can donate directly to candidate campaigns. The work on building this part of SEMA’s political muscle will continue and work parallel to the SuperPAC.
However, donations to the PAC from an individual and to candidates running for election are capped at $5,000 under federal law. Political enthusiasts know that for campaigns, especially in congressional districts and statewide races like U.S. Senate races, $5,000 is a small amount compared to the millions it takes to run a campaign for Congress. That’s where a SuperPAC comes in.
Under federal and most state laws, SuperPACs can accept corporate dollar donations, and there is no limit on how much can be donated. There are some other rules that SuperPACs must adhere to, such as donor names are disclosed on campaign finance reports and the SuperPAC can’t coordinate with candidate campaigns. You’ll often hear them reported as “independent expenditures” in the media. By creating DFA, SEMA can now directly advocate for or against candidates based on how they stand on our issues. We can utilize corporate dollars to say “vote for” or “vote against” candidates based on the issues important to our industry, and this is a potent tool.
As a result of this year’s efforts, car enthusiasts emerged from this election stronger, more united and more determined than ever to protect our rights. SEMA and DFA hope that those elected will take notice of this issue and recognize the desire of Virginia consumers to have their freedom of vehicle choice protected.
One thing learned from the opinion polling done in both Virginia and SEMA’s national voter research is that Americans, not just Virginians, agree with SEMA regarding the issues that matter to the future of our industry. This includes issues beyond ICE bans and extends to other issues such as Right to Modify, converting street cars into race cars, and access to and use of public lands by the off-road community. In addition to educating and mobilizing SEMA’s community of manufacturers, retailers, distributors, media companies, car clubs, racetracks and enthusiasts in future elections, the association must do the same for the American voters who agree with us. Together, we can effect change at the ballot box, and the DFA SuperPAC is a vital tool to help shape our future.
Those who follow politics know that by February, state legislatures across the United States are fully underway. This is an especially important topic for SEMA members who frequently want to know what our association is doing to effectively engage government leaders and bring about positive outcomes for our industry. Seeing an increase in legislative and regulatory overreach, many are concerned about the automotive specialty-equipment industry’s future.
SEMA members will be pleased to know that their association is forcefully addressing these issue and launching new programs to level the playing field and protect and advance this industry’s interests. You’ll read about one example, SEMA’s new SuperPAC, on p. 66, which effectively ran independent expenditure campaigns supporting several state legislative candidates who favor the repeal of Virginia’s recent internal-combustion engine (ICE) ban.
We believe our industry’s best defense is a strong offense, and with the SuperPAC we’ll play a bigger role in elections than we ever have, bringing the American consumer (and voter) along with us. We will not shy away from forging a political landscape favorable to our businesses. This year you’ll see us combating ICE bans at the state level across the nation. We recently joined the U.S. Chamber of Commerce and trucking organizations in an amicus brief supporting the trucking industry’s challenge to the U.S. Environmental Protection Agency’s approval of California’s zero emissions mandate for medium- and heavy-duty trucks—a critical industry to keep our supply chains functioning.
And that’s just the beginning. For 20 years the environmental lobby has been slowly chipping away at issues affecting our industry, including land use. A recent Bureau of Land Management ruling effectively deprived off-road enthusiasts access to more than 300 miles of trails in Moab, Utah. This ruling denies the good our industry does, from trail maintenance and cleanups to great programs led by organizations like Tread Lightly! As part of our partnership with the Off Road Business Association, we have officially challenged this ruling. Increasingly we’re tackling such issues at the state and federal levels, legislatively and in the courts.
But even as we aggressively pursue favorable legislation and court decisions, we intend to foster good relationships with open-minded government officials. Positively effecting change means winning allies, which often involves education. Many are unaware of the good we do for consumers and our role in automotive innovation. For example, many of the safety systems we take for granted in cars today originated in racing, and aftermarket invention continues to make huge strides toward cleaner performance.
That’s also why we’re building bridges with the U.S. Environmental Protection Agency, the California Air Resources Board and other regulators to create more certainty for our companies where we can. Additionally, we’re stepping up our educational outreach to legislators from state to state and in Washington, D.C. Too frequently, they only hear from one side on these important issues, namely those who don’t have our best interests in mind; we will correct that. In the end, relationships matter, and we will secure them through education, communication and assertive advocacy.
Ron Iskenderian, the son of industry icon Ed Iskendarian and the former vice president of Isky Racing Cams, has passed away at the age of 75. He was the eldest son of Ed and Alice Iskendarian.
"Ron passed away on January 28 from complications of a stroke. He will be sorely missed by all of us," said a company release.
Isky Racing Cams based in Gardena, California, offers camshafts and accessories like valve spring kits and retainers, push rods, hydraulic lifters, bead valve locks and more.
Are you hunting for a new job? The SEMA Career Center has a comprehensive listing of automotive-related job openings nationwide. Below are a few of the latest postings.
Fit Automotive, a custom automotive shop in Fort Myers, Florida, is seeking skilled technicians to join its team. 12-volt experience is wanted, but not required. Responsibilities will include the installation of wheels and tires, suspension components, bumpers, steps, lighting, bed covers and more.
This position's day-to-day work will be focused on building and optimizing store product descriptions, updating pricing, merchandising the store's homepage and collection pages, optimizing in-store searches, creating blog content and other general operations.
SD Wheel is searching for a qualified individual to fill its eCommerce specialist position. This role will report to the director of revenue optimization and will be responsible for analyzing customer behavior, industry trends, managing data and more.
By the SEMA Washington, D.C., office
New Ownership Renames Crisp Motorsports Park
