SEMA News—October 2020

EVENTS

By SEMA New Editors

2020 SEMA Memorial Scholarship and Loan Forgiveness Award Winners Announced

The 2019 SEMA Memorial Scholarship Fund winners at the 2019 SEMA Show in Las Vegas.

The SEMA Memorial Scholarship Fund awarded $307,000 to 106 individuals this year. The financial awards include scholarships for current students and loan-forgiveness awards to employees of SEMA-member companies.

“We’re excited to award this passionate group of individuals with our support as they embark on finding new ways to advance the future of the specialty-equipment aftermarket,” said SEMA Board of Director Chairman Tim Martin. “This year’s winners represent the diversity and young talent that our industry thrives on, and we look forward to how their contributions will drive us forward for years to come.”

More than $3 million has been awarded to more than 1,600 deserving students since the program’s establishment in 1984. The SEMA Memorial Scholarship Fund and the SEMA Loan Forgiveness Program are dedicated to fostering the next generation of automotive aftermarket industry leaders and innovators by helping them get off to a successful start in their education and automotive aftermarket careers.

Online applications for next year’s awards will be accepted November 1, 2020, through March 1, 2021, at www.sema.org/scholarships.

For additional information, contact Youth Engagement Programs Manager Katie Hurst at 909-978-6693 or katieh@sema.org.

2019 SEMA Loan Forgiveness Award Winners

2020 SEMA Scholarship Award Winners

By Ashley Reyes

Customs & Hot Rods of Andice (CHRA) has been named as this week’s SEMA Hot Rod Industry Alliance (HRIA) council spotlight member. In HRIA’s Q&A with Shop Foreman Michael Kaiser, Kaiser tells the story of his collaboration with company owner Harold Chapman, how their crew of craftsmen came to be, the ’33 Ford Roadster build that launched their breakthrough moment, and the ’40 Ford truck that was, and still remains a special build for their shop.  

SEMA: Tell us the story of your shop. How did you start?

Michael Kaiser: Harold Chapman, the shop owner, had started a small hot-rod shop with two guys for his personal cars because he kept getting taken advantage of by several shops. In 2008, Harold contacted me while working at Pinkees Rod Shop. He had seen my work and wanted to add me to the small shop. Upon coming to CHRA in its infancy, I was able to share my vision with Harold for the shop, and he had a similar vision of making it a world-renowned top-shelf custom shop. The deal was if I could run it, he would allow it and facilitate its growth. I hired and let go of several people to find the great crew of craftsman we currently have on tap. Now we have 16 full-time guys, two contractors and an incredible facility.

SEMA: What was your breakthrough moment?   

MK: Our breakthrough moment was our small new crew building a ‘33 Ford Roadster for Harold that went on to win Best Hot Rod in Detroit, America’s Most Beautiful Street Rod and several other large awards that helped us get our foot in the door. In 2016, our crew built Billy Thomas a Riddler Award-winning ‘39 Oldsmobile that went on to win Street Rod of the Year and the Legends Cup, as well as several other top honor awards. We were off to the races.

CHRA is building a host of racecars and high-end cars, including a ’51 Merc, ’41 Willys coupe, ’57 Oldsmobile, ’88 convertible, ’70 Ford F-100 bumpside, ’34 Ford Vicky, ’69 Chevelle, ’57 Cad Beritz, ’55 Buick convertible, ’62 Nova and ’65 Mustang convertible.

SEMA: Tell us about your business now in 2020.

MK: We are building a host of crazy racecars and high-end cars. Some examples are a ’51 Merc tube chassis car with a twin-turbo 540 all-billet for Drag Week, a ’41 Willys coupe—all-wheel drive , active ABS, rear steer, twin-turbo ecoboost V6, chopped sectioned, and scratch-built fenders, along with a ’57 Oldsmobile, ’88 convertible, ’70 Ford F-100 bumpside, ’34 Ford Vicky, ’69 Chevelle, ’57 Cad Beritz, ’55 Buick convertible, ’62 Nova, ’65 Mustang convertible and several more.

SEMA: Tell us about the ’40 Ford Truck.

MK: This was and is a very special build for us. Greg Weld was fighting cancer when we first met him. Greg approached me about doing this truck and it was truly a friendship that blossomed. Greg was a car builder himself, a racer and a very knowledgeable guy. I was also fighting cancer, so we bonded both personally and professionally. Greg became a personal mentor for me and we finished the job in a year and a half. Greg was so knowledgeable. He never took the perspective that we were taking too long or that he wanted it done quicker. He knew what was involved. Christian Dotson, our in-house designer, brought the vision to life on paper, and Jay Schluter did killer work on the interior trim. It was a CHRA collaboration.   

SEMA: What advice do you have for young folks contemplating a career in the automotive aftermarket?   

MK: Young folks need to understand it isn’t like they see on the TV shows. It is hard work, long days, and nights and weekends that make you successful. Don’t be misled.

By Ashley Reyes

Customs & Hot Rods of Andice (CHRA) has been named as this week’s SEMA Hot Rod Industry Alliance (HRIA) council spotlight member. In HRIA’s Q&A with Shop Foreman Michael Kaiser, Kaiser tells the story of his collaboration with company owner Harold Chapman, how their crew of craftsmen came to be, the ’33 Ford Roadster build that launched their breakthrough moment, and the ’40 Ford truck that was, and still remains a special build for their shop.  

SEMA: Tell us the story of your shop. How did you start?

Michael Kaiser: Harold Chapman, the shop owner, had started a small hot-rod shop with two guys for his personal cars because he kept getting taken advantage of by several shops. In 2008, Harold contacted me while working at Pinkees Rod Shop. He had seen my work and wanted to add me to the small shop. Upon coming to CHRA in its infancy, I was able to share my vision with Harold for the shop, and he had a similar vision of making it a world-renowned top-shelf custom shop. The deal was if I could run it, he would allow it and facilitate its growth. I hired and let go of several people to find the great crew of craftsman we currently have on tap. Now we have 16 full-time guys, two contractors and an incredible facility.

SEMA: What was your breakthrough moment?   

MK: Our breakthrough moment was our small new crew building a ‘33 Ford Roadster for Harold that went on to win Best Hot Rod in Detroit, America’s Most Beautiful Street Rod and several other large awards that helped us get our foot in the door. In 2016, our crew built Billy Thomas a Riddler Award-winning ‘39 Oldsmobile that went on to win Street Rod of the Year and the Legends Cup, as well as several other top honor awards. We were off to the races.

CHRA is building a host of racecars and high-end cars, including a ’51 Merc, ’41 Willys coupe, ’57 Oldsmobile, ’88 convertible, ’70 Ford F-100 bumpside, ’34 Ford Vicky, ’69 Chevelle, ’57 Cad Beritz, ’55 Buick convertible, ’62 Nova and ’65 Mustang convertible.

SEMA: Tell us about your business now in 2020.

MK: We are building a host of crazy racecars and high-end cars. Some examples are a ’51 Merc tube chassis car with a twin-turbo 540 all-billet for Drag Week, a ’41 Willys coupe—all-wheel drive , active ABS, rear steer, twin-turbo ecoboost V6, chopped sectioned, and scratch-built fenders, along with a ’57 Oldsmobile, ’88 convertible, ’70 Ford F-100 bumpside, ’34 Ford Vicky, ’69 Chevelle, ’57 Cad Beritz, ’55 Buick convertible, ’62 Nova, ’65 Mustang convertible and several more.

SEMA: Tell us about the ’40 Ford Truck.

MK: This was and is a very special build for us. Greg Weld was fighting cancer when we first met him. Greg approached me about doing this truck and it was truly a friendship that blossomed. Greg was a car builder himself, a racer and a very knowledgeable guy. I was also fighting cancer, so we bonded both personally and professionally. Greg became a personal mentor for me and we finished the job in a year and a half. Greg was so knowledgeable. He never took the perspective that we were taking too long or that he wanted it done quicker. He knew what was involved. Christian Dotson, our in-house designer, brought the vision to life on paper, and Jay Schluter did killer work on the interior trim. It was a CHRA collaboration.   

SEMA: What advice do you have for young folks contemplating a career in the automotive aftermarket?   

MK: Young folks need to understand it isn’t like they see on the TV shows. It is hard work, long days, and nights and weekends that make you successful. Don’t be misled.

By SEMA Editors

Truck Hero design engineers created the Ultimate Tailgate truck as a platform to display many of the company’s truck accessories at the 2018 SEMA Show in Las Vegas. The basis for the build is a ’19 Ford F-350 Super Duty dually pickup in Lariat trim, equipped with the 6.7L Power Stroke diesel, producing 450 hp and 935 lb.-ft. of torque.

Truck Hero, a manufacturer of truck and Jeep accessories, announced it will offer its 2018 SEMA Show truck build, “Ultimate Tailgate,” a custom ’19 Ford F-350 Lariat, at the Barrett-Jackson Collector Car Auction in Scottsdale, Arizona, October 23, with all proceeds from the sale benefiting the Building Homes for Heroes organization.

Truck Hero design engineers created the Ultimate Tailgate truck as a platform to display many of the company’s truck accessories at the 2018 SEMA Show in Las Vegas. The basis for the build is a ’19 Ford F-350 Super Duty dually pickup in Lariat trim, equipped with the 6.7L Power Stroke diesel, producing 450 hp and 935 lb.-ft. of torque.

This build’s tailgating claim-to-fame is found in the bed, where an Extang Solid Fold 2.0 folding bed cover conceals a 65-in. LG OLED 4K TV that is remote controlled and fully articulates on a custom bed slide system, complete with a gaming table, YETI cooler and grill. A pair of UnderCover SwingCases swing out from the bed, via remote control, and supply the sounds through Maxxsonics MB Quart speakers.

The truck was turned over to Washtenaw (Michigan) Community College so the crew enrolled in their Custom Cars & Concepts program could work on the truck’s body and paint. Students shaved the exterior door handles before applying the AkzoNobel Modern Classikk Black Hole Black paint. Sikkens Autoclear was also applied, as well as a slew of custom touches, including billet emblems and copper-plated badges.

The truck rides on an ARFT Speed Shop custom-dropped air suspension with a four-link rear and a full Air Lift Performance 3P air management system. The power is put to the pavement through custom 24-in. Fuel Off-Road Dually Maverick wheels that have been copper-plated and accented with black-painted spokes wrapped in 285/40R245 Dilente Bandit tires.

Building Homes for Heroes is a national nonprofit organization that builds and modifies homes and gifts them, mortgage-free, to veterans and their families.

By SEMA Editors

Truck Hero design engineers created the Ultimate Tailgate truck as a platform to display many of the company’s truck accessories at the 2018 SEMA Show in Las Vegas. The basis for the build is a ’19 Ford F-350 Super Duty dually pickup in Lariat trim, equipped with the 6.7L Power Stroke diesel, producing 450 hp and 935 lb.-ft. of torque.

Truck Hero, a manufacturer of truck and Jeep accessories, announced it will offer its 2018 SEMA Show truck build, “Ultimate Tailgate,” a custom ’19 Ford F-350 Lariat, at the Barrett-Jackson Collector Car Auction in Scottsdale, Arizona, October 23, with all proceeds from the sale benefiting the Building Homes for Heroes organization.

Truck Hero design engineers created the Ultimate Tailgate truck as a platform to display many of the company’s truck accessories at the 2018 SEMA Show in Las Vegas. The basis for the build is a ’19 Ford F-350 Super Duty dually pickup in Lariat trim, equipped with the 6.7L Power Stroke diesel, producing 450 hp and 935 lb.-ft. of torque.

This build’s tailgating claim-to-fame is found in the bed, where an Extang Solid Fold 2.0 folding bed cover conceals a 65-in. LG OLED 4K TV that is remote controlled and fully articulates on a custom bed slide system, complete with a gaming table, YETI cooler and grill. A pair of UnderCover SwingCases swing out from the bed, via remote control, and supply the sounds through Maxxsonics MB Quart speakers.

The truck was turned over to Washtenaw (Michigan) Community College so the crew enrolled in their Custom Cars & Concepts program could work on the truck’s body and paint. Students shaved the exterior door handles before applying the AkzoNobel Modern Classikk Black Hole Black paint. Sikkens Autoclear was also applied, as well as a slew of custom touches, including billet emblems and copper-plated badges.

The truck rides on an ARFT Speed Shop custom-dropped air suspension with a four-link rear and a full Air Lift Performance 3P air management system. The power is put to the pavement through custom 24-in. Fuel Off-Road Dually Maverick wheels that have been copper-plated and accented with black-painted spokes wrapped in 285/40R245 Dilente Bandit tires.

Building Homes for Heroes is a national nonprofit organization that builds and modifies homes and gifts them, mortgage-free, to veterans and their families.

By SEMA Washington, D.C., Staff

The Off-Road Business Association (ORBA) is now publishing a digital magazine to help connect the off-road industry with advocates and consumers.

The current issue focuses on industrial design and features two artists who specialize in graphic art and design, Max Grundy and Tristan Koepfli. Click here to

View the magazine.

By SEMA Washington, D.C., Staff

The Off-Road Business Association (ORBA) is now publishing a digital magazine to help connect the off-road industry with advocates and consumers.

The current issue focuses on industrial design and features two artists who specialize in graphic art and design, Max Grundy and Tristan Koepfli. Click here to

View the magazine.

By SEMA Washington, D.C., Staff

The Off-Road Business Association (ORBA) is now publishing a digital magazine to help connect the off-road industry with advocates and consumers.

The current issue focuses on industrial design and features two artists who specialize in graphic art and design, Max Grundy and Tristan Koepfli. Click here to

View the magazine.

SEMA News—October 2020

BUSINESS

Signs of Growth as the Aftermarket Recovers

New Report: As Restrictions Ease, Americans Look Forward to Driving More

By Kyle Cheng and Douglas McColloch

As shelter-in-place restrictions are eased, Americans are driving more and are eager to begin traveling again. Among those who have postponed trips, three-quarters reported that they’re eager to vacation within the United States, and a nearly equal number expressed an interest in vacationing abroad.

Americans’ finances are, in the aggregate, healthier than they were during the Great Recession. More than two-thirds of respondents said that their income was unchanged from or better than in the previous year. Consumer response in 2009 was more than 20% lower. Americans also have more disposable income than in 2009.

New-car and light-truck sales slumped in 2020, but consumers are growing more optimistic about the market looking forward. Nearly two-thirds of all respondents thought that now is a good time to purchase a new car.

In-store retail sales rebounded sharply in the month of May, with the automotive retail sector registering a 44% gain over the previous month. Additionally, retail foot traffic had returned to nearly 100% of the pre-pandemic baseline by the end of June.

While the automotive specialty-equipment market has seen an overall decline in sales for 2020, it remains a $40-billion-plus industry with robust consumer support. Among enthusiasts, 57% of respondents reported using the extra time afforded by the pandemic to working on their cars and trucks.

Despite the COVID-19 disruption, consumers are more confident, optimistic and in a better financial position today than they were during the Great Recession of 2007–2009. They are shopping more and, as restrictions ease, returning to in-store retail. In May 2020, retail sales at motor vehicle and parts dealers jumped 44% from April—the highest increase ever recorded. Additionally, most consumers think that now is a good time to consider buying a car.

In the SEMA “State of the American Consumer—July 2020” report, the SEMA market research team explored the current state of consumers within the United States and their outlook for the future. Using data as of July 2020, this quick snapshot looked at how consumers are emerging from the COVID-19 shutdown.

• On the whole, Americans are looking forward to getting back on the road again as stay-at-home restrictions are eased. Fully 75% of Americans reported being eager to travel within the United States, and a similar number expressed an eagerness to travel outside the United States, according to a survey conducted by Directions Research. In a similar vein, 59% were planning to travel by car within the next three months, and more than a third (37%) anticipated travel for work by either train or airliner over the same period.
• Americans are slowly returning to retail stores. Total in-store retail sales increased 17% in the month of May, a record one-month gain over the previous month, and total automotive retail sales jumped 44% over April levels, according to the U.S. Census Bureau. Retail foot traffic, while still down from its pre-pandemic levels, was within 90% of the pre-pandemic baseline by the end of June, according to a study conducted by the NPD Group.
• Consumers report being in a better financial position than they were during the Great Recession. Nearly 70% of Americans reported in May that their current financial position was either better than or unchanged from the previous year, according to a recent survey conducted by the University of Michigan. By contrast, only 46% of Americans took the same position in 2009, and 84% reported that they expected their financial position next year to be better than or unchanged from this year.
• Americans’ levels of disposable income have risen steadily over the last 20 years, even without counting the added economic boost provided by last spring’s federal stimulus program. In May, total disposable income was $16.2 trillion, according to the U.S. Bureau of Economic Analysis.
• Consumer confidence, while having declined 28% since the first of the year, began rebounding in May and is still higher than it was in 2009, according to a University of Michigan survey. Among the reasons most given by respondents for their concerns were the health of the economy (61%), the uncertainty surrounding the duration of the pandemic (60%), the overall state of public health (57%) and the health and well-being of relatives in vulnerable situations (54%).
• Even amid the disruption caused by the COVID-19 pandemic, automotive enthusiasts continued to work on their cars and purchased aftermarket parts. While specialty-equipment retail sales slumped noticeably during the first half of the year, they are forecast to rebound to pre-pandemic levels by 2023, and more than half (57%) of enthusiasts reported using the extra time afforded by the pandemic shutdowns to work on their cars and trucks.

Key Findings

The latest SEMA market report shows an industry that, while having been severely impacted by the pandemic in the short term, has begun to show signs of growth again and continues to enjoy healthy levels of consumer support. Takeaways include:

• Consumers are eager to travel again and are getting back on the road and driving more.
• Consumers are in a better financial position today than they were in 2009. They are also gradually returning to retail stores.
• Consumer confidence has dropped from the previous year, but it still remains higher than during the Great Recession and is on the rebound.
• Consumers increasingly believe that now is a good time to consider purchasing a new car.
• While an overall sales drop-off is expected for the remainder of the year, the automotive specialty-equipment market remains robust and is forecast to return to pre-pandemic sales levels within the next three years.

Download the Report

To learn more, download the new SEMA “State of the American Consumer—July 2020” report at www.sema.org/research.

SEMA News—October 2020

BUSINESS

Signs of Growth as the Aftermarket Recovers

New Report: As Restrictions Ease, Americans Look Forward to Driving More

By Kyle Cheng and Douglas McColloch

As shelter-in-place restrictions are eased, Americans are driving more and are eager to begin traveling again. Among those who have postponed trips, three-quarters reported that they’re eager to vacation within the United States, and a nearly equal number expressed an interest in vacationing abroad.

Americans’ finances are, in the aggregate, healthier than they were during the Great Recession. More than two-thirds of respondents said that their income was unchanged from or better than in the previous year. Consumer response in 2009 was more than 20% lower. Americans also have more disposable income than in 2009.

New-car and light-truck sales slumped in 2020, but consumers are growing more optimistic about the market looking forward. Nearly two-thirds of all respondents thought that now is a good time to purchase a new car.

In-store retail sales rebounded sharply in the month of May, with the automotive retail sector registering a 44% gain over the previous month. Additionally, retail foot traffic had returned to nearly 100% of the pre-pandemic baseline by the end of June.

While the automotive specialty-equipment market has seen an overall decline in sales for 2020, it remains a $40-billion-plus industry with robust consumer support. Among enthusiasts, 57% of respondents reported using the extra time afforded by the pandemic to working on their cars and trucks.

Despite the COVID-19 disruption, consumers are more confident, optimistic and in a better financial position today than they were during the Great Recession of 2007–2009. They are shopping more and, as restrictions ease, returning to in-store retail. In May 2020, retail sales at motor vehicle and parts dealers jumped 44% from April—the highest increase ever recorded. Additionally, most consumers think that now is a good time to consider buying a car.

In the SEMA “State of the American Consumer—July 2020” report, the SEMA market research team explored the current state of consumers within the United States and their outlook for the future. Using data as of July 2020, this quick snapshot looked at how consumers are emerging from the COVID-19 shutdown.

• On the whole, Americans are looking forward to getting back on the road again as stay-at-home restrictions are eased. Fully 75% of Americans reported being eager to travel within the United States, and a similar number expressed an eagerness to travel outside the United States, according to a survey conducted by Directions Research. In a similar vein, 59% were planning to travel by car within the next three months, and more than a third (37%) anticipated travel for work by either train or airliner over the same period.
• Americans are slowly returning to retail stores. Total in-store retail sales increased 17% in the month of May, a record one-month gain over the previous month, and total automotive retail sales jumped 44% over April levels, according to the U.S. Census Bureau. Retail foot traffic, while still down from its pre-pandemic levels, was within 90% of the pre-pandemic baseline by the end of June, according to a study conducted by the NPD Group.
• Consumers report being in a better financial position than they were during the Great Recession. Nearly 70% of Americans reported in May that their current financial position was either better than or unchanged from the previous year, according to a recent survey conducted by the University of Michigan. By contrast, only 46% of Americans took the same position in 2009, and 84% reported that they expected their financial position next year to be better than or unchanged from this year.
• Americans’ levels of disposable income have risen steadily over the last 20 years, even without counting the added economic boost provided by last spring’s federal stimulus program. In May, total disposable income was $16.2 trillion, according to the U.S. Bureau of Economic Analysis.
• Consumer confidence, while having declined 28% since the first of the year, began rebounding in May and is still higher than it was in 2009, according to a University of Michigan survey. Among the reasons most given by respondents for their concerns were the health of the economy (61%), the uncertainty surrounding the duration of the pandemic (60%), the overall state of public health (57%) and the health and well-being of relatives in vulnerable situations (54%).
• Even amid the disruption caused by the COVID-19 pandemic, automotive enthusiasts continued to work on their cars and purchased aftermarket parts. While specialty-equipment retail sales slumped noticeably during the first half of the year, they are forecast to rebound to pre-pandemic levels by 2023, and more than half (57%) of enthusiasts reported using the extra time afforded by the pandemic shutdowns to work on their cars and trucks.

Key Findings

The latest SEMA market report shows an industry that, while having been severely impacted by the pandemic in the short term, has begun to show signs of growth again and continues to enjoy healthy levels of consumer support. Takeaways include:

• Consumers are eager to travel again and are getting back on the road and driving more.
• Consumers are in a better financial position today than they were in 2009. They are also gradually returning to retail stores.
• Consumer confidence has dropped from the previous year, but it still remains higher than during the Great Recession and is on the rebound.
• Consumers increasingly believe that now is a good time to consider purchasing a new car.
• While an overall sales drop-off is expected for the remainder of the year, the automotive specialty-equipment market remains robust and is forecast to return to pre-pandemic sales levels within the next three years.

Download the Report

To learn more, download the new SEMA “State of the American Consumer—July 2020” report at www.sema.org/research.