SEMA News—January 2020

INDUSTRY NEWS

Fast Facts

From left: Rogerio Branco, Eaton executive vice president and chief supply chain officer; Brad Fagan, C&U Americas strategic account manager; Andy Doyle, Eaton Global vice president; Jason Stocker, C&U Americas president; and Sean Wu, Eaton Global SCM vice president.

C&U Americas LLC received the 2018 One Eaton Supplier Premier Award from Eaton Corp. Inc. The award was given to C&U Americas in recognition of the company’s exceptional value and outstanding service to Eaton across a number performance metrics. Accepting the award on behalf of C&U Americas were Jason Stocker, president of C&U Americas, and Brad Fagan, strategic account manager for Eaton Corp. The One Eaton Supplier Premier Award is Eaton’s highest supplier award and is given to only a select few organizations in the entire supply chain.

The Automotive Aftermarket Charitable Foundation (AACF) announced the appointment of Interstate Batteries vice president of sales Shannon McWilliams to its board of trustees. Prior to joining the Interstate Batteries team, McWilliams held various executive roles with a focus on driving corporate strategy, sales leadership and product development with Mistral Equity Partners, Capstreet and Westar Capital. He has extensive experience in the automotive aftermarket with Stanley Black & Decker, Mac Tools, Proto and several other hand-tool businesses that focused on technicians and shop performance.

Stowe Cargo Systems expanded its production facility and launched a redesigned website, enabling the company to meet the growing customer demand for its 2-in-1 Toolbox and tonneau cover and strong-box systems. Stowe has also added 6,000 sq. ft. to its production facility in Davisburg, Michigan, in order to increase and optimize manufacturing and inventory space. The expansion includes additional manufacturing floor space and inventory space.

The Automotive Aftermarket Charitable Foundation (AACF) elected Todd Sanders to its board of trustees. Sanders is the senior vice president of professional sales for the Advance Enterprise brands. Prior to the Advance Auto Parts acquisition, Sanders served as vice president of professional markets for Carquest, overseeing the TechNet professional program, Carquest Technical Institute, B2B e-commerce and the company’s national accounts.

Meyer Distributing named Air Lift Co., Camco and Mickey Thompson its vendors of the year in their respective categories. In the truck accessory division, Air Lift stood out with its efforts to communicate and educate dealers and consumers about load support. Camco stood out with its products, service and partnership in the RV and towing industry. Mickey Thomson proved to be a strong partner with a vast array of tires and wheels that appeal to a wide audience.

Kahn Media was selected as the agency of record for Aeromotive Inc. Celebrating 25 years in business, Aeromotive is looking to reinforce its consumer and business-to-business marketing efforts by utilizing Kahn Media’s full suite of services. Kahn Media will handle public relations, digital and content marketing, social-media management, influencer outreach and event marketing support and assist with creative services.

Stertil-Koni expanded its network of exclusive distributors across North America with the addition of Indiana Automotive Equipment, based in Maxwell, Indiana, which has experience in vehicle equipment sales, parts and service. As a Stertil-Koni distributor, Indiana Automotive Equipment has added heavy-duty vehicle lifting systems to its offerings.

Chris Bovis joined Hart Marx Advisors. Bovis previously served as vice president of marketing and business development at Weld Racing, where he created an acquisition-based growth strategy and played an instrumental role in the acquisitions of wheel brands CCW, HiPer Technology and Forgestar from 2015–2017. Bovis started his career with Yokohama Tire Corp. before entering the motor-sport industry as a live-event promoter for some of the largest motorsports events in the United States.

Design Engineering Inc. (DEI) announced two new supervisory positions. Former DEI employee Mike Zenone was rehired as the company’s inside sales supervisor, and John Gabriel was hired as DEI’s powersports division manager. Zenone previously worked for a decade with DEI as the company’s brand manager and manager of business development prior to taking a position at Flaming River Industries, where he worked in sales, customer service, technical assistance and media relations. Gabriel has two decades of experience in the powersports market, first with Russell Performance Products as the company’s national motorcycle sales manager. Prior to joining DEI, he served as an account manager for Progressive Suspension LLC.

The eighth annual California Tire Dealers (CTDA)/1-800EveryRim New Year Luncheon will be held January 29, 2020, in Santa Fe Springs, California, and will feature Tire Industry Association Vice President Dan Nothdurft of Tires, Tires, Tires and SEMA Wheel & Tire Council select committee member George Finch of The Carlstar Group. All tire industry members are welcome to attend; retail tire dealers are invited free of charge.

SEMA News—January 2020

INDUSTRY NEWS

By Douglas McColloch

At the MPMC Media Trade Conference, journalists have the opportunity over three days to network with dozens of industry representatives from some of the world’s leading motorsports parts manufacturers.

Registration Now Open for 2020 MPMC Media Trade Conference

Journalists are invited to sign up for the 2020 Motorsports Parts Manufacturers Council (MPMC) Media Trade Conference, taking place January 21–23, 2020, at the Embassy Suites Orange County Airport North in Santa Ana, California. During the event, journalists will sit down in up to 42 (14 each day) private, uninterrupted meetings with executives from top motorsports parts manufacturers in the industry.

Company representatives come to the meetings with editors to discuss everything from their newest product lines to changes at their companies as well as industry trends. Lunches and breaks also provide further opportunities for meetings and networking.

Media participation is free for all editorial representatives, making it an affordable and efficient way for reporters to get information specific to their audiences’ interests while gathering a year’s worth of content.

Early registration guarantees that reporters will receive the best possible schedules prior to the event. Meetings are scheduled based on the companies that journalists select on their applications, so participants are encouraged to pay close attention to the companies they select. Journalists should also mark “Do Not Meet” for the companies outside of their editorial needs.

For questions regarding the event, visit www.sema.org or contact Juan Torres, SEMA media relations specialist at juant@sema.org or 909-978-6722.

California-based SEMA-member companies can qualify for a $1,500 grant from the state to participate in the upcoming SEMA Middle East Business Development Program. Twenty-six other states have set aside funds as well.

State Grant Moneys Available for Companies to Attend 2020 SEMA Middle East Trip

SEMA has won a $50,000 grant from the state of California. That is good news for California-based businesses, as qualified SEMA-member companies are eligible for $1,500 to help defray the cost of participating in the upcoming SEMA Middle East Business Development Program, March 31–April 7, 2020. Additionally, 26 other states have confirmed with SEMA that they have also set aside funds for qualified SEMA-member companies that are based in their respective states.

The California grant money is in addition to the $1,250 available from the federal government for a total grant of $2,750 to exhibit in a turnkey booth at Custom Show Emirates in the United Arab Emirates and to participate in the first-ever SEMA trip to Saudi Arabia to meet with trade buyers, attend networking events and tour specialty-equipment shops in Riyadh.

More information on grant eligibility and event schedules is available on SEMA’s website (www.sema.org) or by contacting Linda Spencer via email at lindas@sema.org.

While CUVs are currently the fastest-growing new-vehicle segment, pickups still present the greatest opportunities for accessorization, according to the latest “SEMA Accessory Opportunity Report.”

CUVs Represent Fastest-Growing Vehicle Segment, Untapped Market for Accessorization

Even as the vehicle landscape is changing, the market for parts to modify those vehicles is growing, according to the new SEMA research report, “SEMA Accessory Opportunity Report: Top Cars and Trucks,” which provides data-driven insights into the opportunities available to the automotive aftermarket. Designed to help businesses understand which cars and trucks consumers are choosing to personalize, the “SEMA Accessory Opportunity Report” provides an overview of the top vehicles for accessorizing and outlines emerging segments within the $44.6 billion industry.

“The new SEMA report represents the first time we’ve been able to quantify the best opportunities for vehicle customization,” said Gavin Knapp, SEMA director of market research. “Manufacturers and resellers can use this report to understand the current hot vehicles and emerging opportunities.”

The report shows that fullsize pickups, the Jeep Wrangler and musclecars—traditionally popular in the industry—remain highly desired accessory vehicles. Meanwhile, CUVs are the fastest-selling vehicle segment and may present a growth opportunity for the industry.

Although sales for traditional passenger cars have decreased over recent years, more than 20 million are projected to be sold from 2020–2026. Automotive aftermarket businesses will benefit by understanding where the industry is headed.

To learn more about where the opportunity is for your business and to understand the top-ranked vehicle models for accessorizing, download the report for free at www.sema.org/research.

Auto-shop students from Santa Fe, New Mexico, built and auctioned a ’15 Wrangler in SEMA’s inaugural High School Vehicle Build Program in 2018. For 2020, the program will expand to 10 high schools.

SEMA High School Build Program Expands From One to 10 in Just Two Years

The SEMA High School Vehicle Build Program, now entering its third year, will provide 10 high schools with hands-on learning opportunities and expose hundreds of students to the $44.6 billion automotive specialty-equipment industry. The program will include 10 schools and 10 vehicles, consisting of Jeep Wrangler TJs and Toyota 4Runners. The program aims to engage students in the customization lifestyle and introduce them to career paths within the automotive aftermarket industry.

“We launched this program with the goal of offering students a hands-on learning experience while enhancing existing curriculum in high-school automotive shop courses,” said Katie Hurst, SEMA youth engagement programs manager. “Not only did we reach that goal, but also the program was so successful that now we are expanding it to reach even more high-school automotive shop students.”

Companies interested in donating parts for the builds or learning more about the High School Vehicle Build Program can visit www.sema.org/student-builds or contact Hurst via email at katieh@sema.org.

SEMA News—January 2020

EVENTS

By Douglas McColloch

“SEMA: Battle Of The Builders” to Recap 2019 Competition

A+E’s FYI and HISTORY’s Drive Block to Air in 2020

The finalists for the 2019 Battle of the Builders were announced prior to SEMA Ignited, the SEMA Show’s annual after-hours party. The competition will be aired on A+E Network’s FYI and History Channel’s Drive block in January 2020.

Mike and Jim Ring of Ringbrothers of Spring Green, Wisconsin, captured the top prize at the sixth annual SEMA Battle of the Builders competition at the 2019 SEMA Show, held November 5–8 in Las Vegas. The announcement was made at SEMA Ignited, the official SEMA Show after-party designed to celebrate the builders and showcase products from the trade-only Show.

For the second year in a row, a ’69 Chevrolet Camaro beat more than 300 entrants in the internationally recognized competition. The top four finalists for 2019 were Jim and Mike Ring, with their ’69 Chevrolet Camaro in the Hot Rods category; Randy Borcherding with a ’55 Chevrolet Truck (Truck/Off-Road); Louie Shefchik and his ’68 Iso Rivolta (Sport Compact); and Young Guns winner Brad Swaney with his ’71 Chevrolet C-10. Each builder was recognized with a trophy in his respective class.

BOTB finalists’ vehicles were on display throughout SEMA Show week outside the Las Vegas Convention Center.

The four finalists of this years’ competition will be highlighted along with other featured builders in a new TV special, “SEMA: Battle of the Builders,” scheduled to debut on A+E Networks’ FYI and History’s Drive Block. Visit www.SEMAShow.com/botb for information about show dates and times.

The 2019 SEMA Battle of the Builders competition included submissions from seasoned builders as well as new customizers representing an elite group of individuals who demonstrate extreme talent, creativity and craftsmanship in modifying cars, trucks and SUVs. The Young Guns category (builders age 27 years and younger) continues to evolve and expand, providing the next generation of builders with an opportunity to get their vehicles into the Battle of the Builders competition.

The 12 finalist vehicles were judged one at a time, with every build detail scrutinized and reviewed by an expert panel.

After the top four vehicle class finalists were announced, they led a SEMA Cruise motorcade to the site of SEMA Ignited.

Mike and Jim Ring of Spring Green, Wisconsin, celebrated their win at Battle of the Builders 2019 alongside their ’69 Chevy Camaro.

Industry experts R.J. DeVera of Meguiar’s, Cam Miller of HS Customs, and Jeremiah Proffitt of Proffitt’s Resurrection Land Cruisers were the competition’s judges and narrowed down the field of nearly 300 entries to the top 10 in each category before selecting the top 12 builds overall. The top 12 finalists were:

Hot Rod

• Eric Peratt—’36 Ford Roadster
• Gary Corkell—’32 Ford Phantom
• Jim and Mike Ring—’69 Chevrolet Camaro

Sport Compact

• Edison Sarkisyan—’55 Porsche 550 Spyder
• Louie Shefchik—’68 Iso Rivolta
• TJ Russell—’91 Porsche 911

Truck/Off-Road

• Darin Smith—’72 Chevrolet
• C-10 Shortbed
• Erik Barnlund—’72 Ford Bronco
• Randy Borcherding—’55 Chevrolet Truck

Young Guns

• Brad Swaney—’71 Chevrolet C-10
• Kyle Ray—’88 BMW E30
• Luke Merrill—’40 Chevrolet Two-Door Sedan

The 12 finalists themselves then took over judging duties for the competition and named Ringbrothers the overall winner.

For more information about the 2019 Battle of the Builders competition or the SEMA Young Guns program, visit www.sema.org/botb, www.semayoungguns.com or SEMA’s YouTube channel.

By SEMA Editors

Gale Banks will be available to talk about identifying and adapting to new technology, entrepreneurship and racing.

SEMA’s Young Executives Network (YEN) presents a Live Chat with American engineer, hot rodder, drag racer and entrepreneur Gale Banks, president and founder of Banks Power. He will be available to talk about identifying and adapting to new technology, entrepreneurship and racing.

Event: YEN Live Chat: Gale Banks—Identifying and Adapting to New Technology
Location: YEN Facebook Page
Date: January 8, 2020
Time: 12:00 p.m.–12:15 p.m. (PST), 1:00 p.m. (MST), 2:00 p.m. (CST), 3:00 p.m. (EST)

This Live Chat is an open Q&A where you will have a chance to communicate directly with Gale as he answers questions regarding how he successfully leads a company defined by innovation in technology.

Join the Live Chat on YEN’s Facebook Page, January 8, at 12:00 p.m. (PST), and come ready with questions to tap into Banks’ expertise.

By SEMA Editors

Gale Banks will be available to talk about identifying and adapting to new technology, entrepreneurship and racing.

SEMA’s Young Executives Network (YEN) presents a Live Chat with American engineer, hot rodder, drag racer and entrepreneur Gale Banks, president and founder of Banks Power. He will be available to talk about identifying and adapting to new technology, entrepreneurship and racing.

Event: YEN Live Chat: Gale Banks—Identifying and Adapting to New Technology
Location: YEN Facebook Page
Date: January 8, 2020
Time: 12:00 p.m.–12:15 p.m. (PST), 1:00 p.m. (MST), 2:00 p.m. (CST), 3:00 p.m. (EST)

This Live Chat is an open Q&A where you will have a chance to communicate directly with Gale as he answers questions regarding how he successfully leads a company defined by innovation in technology.

Join the Live Chat on YEN’s Facebook Page, January 8, at 12:00 p.m. (PST), and come ready with questions to tap into Banks’ expertise.

By SEMA Washington, D.C., Staff

The RPM Act reverses the EPA’s interpretation that the Clean Air Act does not allow a motor vehicle designed for street use—including a car, truck or motorcycle—to be converted into a dedicated racecar.

U.S. Representatives Patrick McHenry (R-NC) and Raul Ruiz (D-CA) introduced H.R. 5434, the Recognizing the Protection of Motorsports Act of 2019 (RPM Act of 2019). The bipartisan RPM Act of 2019 protects Americans’ right to convert street vehicles into dedicated racecars and the motorsports-parts industry’s ability to sell products that enable racers to compete. SEMA is urging its members and all racing enthusiasts to contact their members of Congress and ask for them to support the bill. To send a letter to your members of Congress (it takes less than 30 seconds), visit www.sema.org/rpm.

The RPM Act reverses the EPA’s interpretation that the Clean Air Act does not allow a motor vehicle designed for street use—including a car, truck or motorcycle—to be converted into a dedicated racecar. This American tradition was unquestioned for nearly 50 years until 2015 when the EPA took the position that converted vehicles must remain emissions-compliant, even though they are no longer driven on public streets or highways. 

“SEMA looks forward to working with Congress to enact the RPM Act and make permanent the Clean Air Act’s original intention that race vehicle conversions are legal,” said Chris Kersting, SEMA president and CEO. “We thank Representatives McHenry and Ruiz for introducing a bipartisan bill that will protect racing and the businesses that produce, install and sell the parts that enable racers to compete."

The RPM Act is well positioned to become law in 2020. The bill cleared several major legislative hurdles in the previous Congress, including passage by the U.S. House Energy and Commerce Committee and hearings in the House and Senate. The bipartisan RPM Act included five other original sponsors: Reps. Richard Hudson (R-NC), Kurt Schrader (D-OR), Bill Posey (R-FL), Gil Cisneros (D-CA) and Michael Burgess (R-TX).

H.R. 5434 is the House counterpart to the Senate’s version of the bill, S. 2602, which was introduced by Senators Richard Burr (R-NC) and Joe Manchin (D-WV) and currently has 28 bipartisan cosponsors. 

Motorsports competition involves tens of thousands of participants and vehicle owners each year, both amateur and professional. Retail sales of racing products make up a nearly $2 billion market annually. Most of the vehicles raced on the estimated 1,300 racetracks operating across the U.S. are converted vehicles that the EPA considers to be illegal.

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

By SEMA Washington, D.C., Staff

The RPM Act reverses the EPA’s interpretation that the Clean Air Act does not allow a motor vehicle designed for street use—including a car, truck or motorcycle—to be converted into a dedicated racecar.

U.S. Representatives Patrick McHenry (R-NC) and Raul Ruiz (D-CA) introduced H.R. 5434, the Recognizing the Protection of Motorsports Act of 2019 (RPM Act of 2019). The bipartisan RPM Act of 2019 protects Americans’ right to convert street vehicles into dedicated racecars and the motorsports-parts industry’s ability to sell products that enable racers to compete. SEMA is urging its members and all racing enthusiasts to contact their members of Congress and ask for them to support the bill. To send a letter to your members of Congress (it takes less than 30 seconds), visit www.sema.org/rpm.

The RPM Act reverses the EPA’s interpretation that the Clean Air Act does not allow a motor vehicle designed for street use—including a car, truck or motorcycle—to be converted into a dedicated racecar. This American tradition was unquestioned for nearly 50 years until 2015 when the EPA took the position that converted vehicles must remain emissions-compliant, even though they are no longer driven on public streets or highways. 

“SEMA looks forward to working with Congress to enact the RPM Act and make permanent the Clean Air Act’s original intention that race vehicle conversions are legal,” said Chris Kersting, SEMA president and CEO. “We thank Representatives McHenry and Ruiz for introducing a bipartisan bill that will protect racing and the businesses that produce, install and sell the parts that enable racers to compete."

The RPM Act is well positioned to become law in 2020. The bill cleared several major legislative hurdles in the previous Congress, including passage by the U.S. House Energy and Commerce Committee and hearings in the House and Senate. The bipartisan RPM Act included five other original sponsors: Reps. Richard Hudson (R-NC), Kurt Schrader (D-OR), Bill Posey (R-FL), Gil Cisneros (D-CA) and Michael Burgess (R-TX).

H.R. 5434 is the House counterpart to the Senate’s version of the bill, S. 2602, which was introduced by Senators Richard Burr (R-NC) and Joe Manchin (D-WV) and currently has 28 bipartisan cosponsors. 

Motorsports competition involves tens of thousands of participants and vehicle owners each year, both amateur and professional. Retail sales of racing products make up a nearly $2 billion market annually. Most of the vehicles raced on the estimated 1,300 racetracks operating across the U.S. are converted vehicles that the EPA considers to be illegal.

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

By SEMA Washington, D.C., Staff

The U.S. Trade Representative (USTR) granted exclusion requests for 44 products from the List 3 Chinese imports subject to 25% tariffs. The products cover a wide variety of commodities, including:

• Light-emitting diode (LED) headlights, light bars and cube lights, of a kind designed to be mounted on off-road, all-terrain vehicles (described in statistical reporting number 8512.20.2040).
• Brake drums of grey cast iron for the motor vehicles of headings 8701 to 8705 (other than tractors for agricultural purposes), with an inside diameter of 38 cm or more but not over 42 cm (described in statistical reporting number 8708.30.5020).
• Brake discs of grey cast iron for the motor vehicles of headings 8701 to 8705 (other than tractors for agricultural purposes), with an outside diameter of 32 cm or more but not over 44 cm (described in statistical reporting number 8708.30.5030).
• Wheel hubs of cast iron, for off-road vehicles of headings 8701 to 8705, each weighing 2 kg or more but not exceeding 4 kg (described in statistical reporting number 8708.99.5300).

Click here for more information.

Questions? Contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The U.S. Trade Representative (USTR) granted exclusion requests for 44 products from the List 3 Chinese imports subject to 25% tariffs. The products cover a wide variety of commodities, including:

• Light-emitting diode (LED) headlights, light bars and cube lights, of a kind designed to be mounted on off-road, all-terrain vehicles (described in statistical reporting number 8512.20.2040).
• Brake drums of grey cast iron for the motor vehicles of headings 8701 to 8705 (other than tractors for agricultural purposes), with an inside diameter of 38 cm or more but not over 42 cm (described in statistical reporting number 8708.30.5020).
• Brake discs of grey cast iron for the motor vehicles of headings 8701 to 8705 (other than tractors for agricultural purposes), with an outside diameter of 32 cm or more but not over 44 cm (described in statistical reporting number 8708.30.5030).
• Wheel hubs of cast iron, for off-road vehicles of headings 8701 to 8705, each weighing 2 kg or more but not exceeding 4 kg (described in statistical reporting number 8708.99.5300).

Click here for more information.

Questions? Contact Stuart Gosswein at stuartg@sema.org.

By SEMA Editors

The SEMA Memorial Scholarship program offers financial assistance of up to $5,000 to help foster the next generation of automotive aftermarket industry leaders and innovators.

SEMA is now accepting applications for the 2020 SEMA Memorial Scholarship Fund for students preparing for careers in the automotive aftermarket industry.

The SEMA Memorial Scholarship program offers financial assistance of up to $5,000 to help foster the next generation of automotive aftermarket industry leaders and innovators. Scholarships are available in a variety of categories, including accounting, sales, marketing and engineering.

“Our goal is to encourage, inspire and support the future leaders of the automotive aftermarket industry,” said SEMA Manager of Student Programs Juliet Marshall. “By providing financial support to promising students, we can successfully open doors of opportunity to those working towards a career in our field.”

The program also grants loan forgiveness awards for employees of SEMA-member companies who have completed a program of study at an accredited university, college or vocational/technical program within the United States.

Applications for the program will be open until March 1, 2020.

Those chosen as scholarship recipients will be invited to attend the annual SEMA Show in Las Vegas, where they will be recognized during an awards luncheon.

To view eligibility requirements, visit www.sema.org/scholarships.

For more information, contact SEMA Manager of Student Programs Juliet Marshall at 909-978-6655 or julietm@sema.org.