Trade groups anticipate strong aftermarket trends will continue

“We anticipate that the trend will continue, and we are hopeful for further growth in 2014, particularly given what we just saw at the recent SEMA Show,” Mr. Kersting told Tire Business.

“The annual trade show is a good indicator of the overall industry,” he said. “We saw great participation and energy at the 2014 SEMA Show and are expecting the industry to mirror that trend.”

Figures for 2014 should be strong when they are released, and figures for 2015 should continue that trend, according to Mr. Kersting.

“We're seeing the industry work smarter and looking at new ways of doing business,” he said. “When the economy was struggling, the industry had to re-evaluate. Many manufacturers began exporting as a way to sustain their businesses. Others focused on expanding their product lines and sought cross-marketing opportunities.”

To help members expand their businesses, SEMA introduced the Product Development Center, better known as the “SEMA Garage,” Mr. Kersting said.

“The facility caters to small manufacturing businesses, which is the core of the industry,” he said. “Through the SEMA Garage, SEMA members are able to utilize 3D scanners, 3D printers, the dyno and emissions lab, photo studios and more, all at member-discounted rates,” he said. “The end result is better-quality products produced faster and less expensively than ever before.”

Participation in the 2014 SEMA Show was very strong, and feedback about the show has been very positive, according to Mr. Kersting.

“Our goal is to deliver value to our participants and provide them with a venue where they can conduct and grow their businesses,” he said. “As our team gathers data from the formal post-show survey, we'll better understand what worked and where we might be able to improve.”

SEMA also was pleased with the reception to the 2014 Global Tire Expo-Powered by TIA, according to Mr. Kersting.

“Tires are a key segment of our industry, and we were pleased to see many key brands at the 2014 SEMA Show, including BFGoodrich and Hoosier. We were especially pleased to see tire manufacturers increase their level of engagement.”

BFGoodrich was especially active in the SEMA SCORE Baja 1000 Experience, a brand-new event, Mr. Kersting said.

“We look forward to seeing this new show feature grow, and expect that it will provide greater opportunities for tire manufacturers.”

SEMA has always considered education a major benefit it offers its members, according to Mr. Kersting.

“Although it's been a gradual shift, we've begun to offer more focused (educational) tracks,” he said.

“By collaborating with such groups as TIA, SCRS and I-CAR at the SEMA Show, we are able to provide the industry with sessions that are more relevant and meaningful.”

The SEMA Show Exhibitor Summit has been a SEMA fixture for the past several years, he said. Taking place in Las Vegas several months before the SEMA Show, the summit allows SEMA to give exhibitors quality service and help them get the greatest return on their investment, he said.

The Diamond Bar-based association also targets part of its education program on the next generation, Mr. Kersting said.

“We have an initiative to identify and support aspiring leaders who will be able to help the industry grow.

“Meanwhile, we continue to reach out in hopes of introducing high school and college students to careers in our industry through programs such as the SEMA Scholarship Foundation and our internship program.”

For the ACA, it will be hard to top 2014.

That was, according to Kathleen Schmatz, ACA president and CEO, arguably the association's very best year in its history, though don't think for a second the ACA is content to rest on its laurels.

“Business is pretty darn good for most of our members,” Ms. Schmatz told Tire Business. With new expertise within the staff and plans for a brand new event for ACA members and the aftermarket, the outlook continues to be bright for the association in 2015, she said.

2014 was the year in which the ACA rebranded itself, changing its name April 1 from the previous Automotive Aftermarket Industry Association.

“The purpose of the rebranding was twofold,” Ms. Schmatz said. “First, to rename and rebrand the industry from the automotive aftermarket industry to the auto care industry, and, second, to rename and rebrand our association to the Auto Care Association to reflect the industry we represent.”

The ACA is both pleased and surprised how quickly the rebranding has been accepted, according to Ms. Schmatz.

“Before rebranding, our staff would waste valuable time in meetings with policymakers just explaining our industry before getting down to business,” she said. “Rebranding has been effective in addressing that challenge.

“We are also seeing widespread use of the term ‘auto care industry' among member companies and the trade media. We are delighted and encouraged to see that people get it.”

Rebranding wasn't the only ACA action that was well-received both within and outside the industry, she added.

“We had record participation on inspection lands and events for National Car Care months in April and October,” she said. “We just concluded the most successful AAPEX (Automotive Aftermarket Products Expo) Show ever. We gained some international expertise traveling to many trade shows and events, and co-sponsored a first Latin Auto Parts Expo. We co-hosted an international summit in Frankfurt on telematics.”

Ms. Schmatz hinted that there will be a new event in 2015—to be announced probably at the close of the first quarter—that should help to make 2015 as successful as 2014.

The ACA also will participate actively in 2015 in appropriate international events, she said, but the crux of its trade show efforts will always be AAPEX. “You can count on AAPEX to continue to grow in terms of celebrating the industry and linking buyers and sellers,” she said.

One of the ACA's biggest successes in 2014 came early in the year, when passage of the Motor Vehicle Owners' Right to Repair Act by Massachusetts voters led to a memorandum of understanding (MOU) between auto makers and the aftermarket. In the MOU, the auto makers pledged to provide independent auto repairers and do-it-yourselfers, accessibly and at a reasonable price, with the same repair and diagnostic information and tools they give their franchised dealers.

The Massachusetts law and MOU appear to be working, Ms. Schmatz said. But the ACA is still concerned that the auto makers' service information websites are difficult to navigate.

“The Auto Care Association would like to see the manufacturers work on their sites to make them more intuitive,” she said. The ACA would like to see auto makers work on their sites to make them simpler, and it looks forward to the model year 2018 requirement that auto makers make their diagnostic information available via generic personal computers, she said.

In 2015, the ACA will continue what Ms. Schmatz called “a steady rebranding drumbeat” on behalf of its members, as well as improving association benefits and services. Among the 2015 programs she mentioned were:

• Expanding the ACA's visibility and influence on the federal and state government levels;
• Implementing a strong international trade promotion program for ACA members;
• Introducing a website that will establish the ACA as the source of information on auto care jobs and careers for young people;
• Advancing the Car Care Aware consumer information campaign to make motorists aware of the benefits of regular vehicle maintenance and repair; and
• Continuing work on the telematics issue in an effort to create open technology standards to ensure that consumers have the right and ability to decide where their vehicle data are sent.

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To reach this reporter: [email protected].