|
Click on the Committee name to jump to that summary.
AAIA Standing Committees:
Category Management
Education Committee
Government Affairs
Leadership Development Network (LDN)
Market Research
Marketing & Member Relations
Technology Standards and Solutions
Trade Show
Investment
AAIA Segment Committees:
Automotive Electric Association (AEA)
Auto International Association (AIA)
AWDA Executive Committee
Car Care Professionals Network (CCPN)
Engine Repower Council (ERC)
Heavy Duty Distribution Association (HDDA)
Paint, Body & Equipment Specialists (PBES)
Rep Council
Retail
Tool & Equipment
Trim
AAIA STANDING COMMITTEES:
Audit
- Met with our auditors to review this year’s audit.
- Reviewed the status of AAIA’s internal audit findings.
Category Management
4 new Category Management workgroups were formed to:
- Identify more enhancements for the NPD reports
- Investigate expansion of AAIM panel to include other traditional distributors
- Explore supply side issues, i.e., returns and inventory issues
- Develop an Interchange Pilot project with Caps and Stats
Education
- Approved Google-based format for AAIA education and trainlng directory to recommend to the AAIA board.
- Reviewed 24 proposed AAIA AAPEX education topics collected from Education Committee workgroup, Show Committee members, AWDA members and attendee surveys in preparation for speaker recruitment.
- Demonstrated new aftermarket pages on the www.careervoyages.gov website.
- Discussed concept of an aftermarket career or education week for secondary and post-secondary schools.
Government Affairs
- The government affairs committee reviewed the progress of the Motor Vehicle Owners Right to Repair Act.
- The bill (HR 2057) was introduced in the U.S. House of Representatives on April 22 by Reps. Edolphus Towns (D-NY), Anna Eshoo (D-CA) and George Miller (D-CA). The committee discussed the current pro-consumer environment in Congress and how it might help move right to repair to passage. The committee further observed the extensive legislative agenda now before Congress and how it might make consideration of right to repair more difficult.
- Efforts to pass right to repair in New Jersey also are moving forward. The bill passed by state Assembly by a 49-21 vote back in November and is now pending in the state Senate. AAIA and the Coalition for Auto Repair Equality (CARE) are working with our team on the ground in the state to attempt to get a vote by the Senate Commerce Committee at its next meeting on May 7th. If the Senate does approve the bill, the governor has stated that he will sign it.
- Right to repair also continues to gain strong support in Massachusetts where bills have been introduced in both the House and Senate. This year a sizable coalition of aftermarket, business and consumer groups has been formed to push for passage. This legislation is scheduled for a hearing on June 2nd in the Joint Committee on Consumer Protection and Professional Licensure.
- The committee reviewed the Aftermarket Legislative Summit that was held on March 11 and 12th in Washington, DC.
- The Summit was attended by about 150 people, far below two years ago when we had almost 350. However, there were over 100 meetings with legislators which focused on three main issues: the Motor Vehicle Owners Right to Repair Act, cash-for-clunkers legislation, and the Employee Free Choice Act (also known as card check legislation).
- Despite the smaller attendance, the legislation reception held on the 11th in the Rayburn House Office Building was probably one of the best. Over 400 people including legislators, their staff attended the reception. The attendees had the opportunity to meet and have their picture taken with NAPA sponsored race car driver, Michael Waltrip.
- The legislative briefing on the 11th featured Rep. Wally Herger (R-CA) who is on the Ways and Means Committee. He provided the perspective of the republicans on many of the tax issues now facing Congress. The event also featured briefings on card check legislation and the Motor Vehicle Owners Right to Repair Act.
- Due to concerns related to the current economic downturn, the committee decided to revise its fundraising effort for 2009 as it relates to the Automotive Aftermarket Political Action Committee (AAPAC).
- The “Committee Challenge” which usually only takes place during the spring Leadership Days will now be extended so that it begins in April and will run through the end of September. The prize for the two winning segments and one winning committee will be a dinner cruise at the spring meetings in Hollywood, Florida.
- The committee also announced a new fundraiser in order to ensure more immediate funds will be available for AAPAC. Any eligible AAIA member who donates to personal funds to the AAPAC between the spring committee meetings in April and the Major League Baseball All-Star game on July 14th will be eligible for a raffle. The winner will be awarded two tickets to Fenway Park on September 9th to see the Boston Red Sox host the Baltimore Orioles. Tickets for the raffle were donated by Bobby Segal of Automotive Supply Associates.
- The committee is currently developing a program to recognize the premier AAPAC contributors. Once the criteria for recognition are established, AAIA staff will review past contributions to determine the first set of honorees; and who will be announced at the Fall Leadership Days.
- The committee reviewed Initiatives to Protect Intellectual Property Rights.
- AAIA is supporting legislation to fully fund implementation of the 2008 PRO-Intellectual Property Act, including new anti-counterfeiting enforcement programs and personnel. AAIA will work closely with a new Customs and Border Patrol unit assigned to auto parts counterfeiting issues.
- The committee reviewed the summary of the Anti-Counterfeiting Trade Agreement (ACTA) currently being negotiated by the U.S. and its major trade partners. Other nations will be asked to sign the accord once it is completed. While all member countries of the World Trade Organization (WTO) are bound to provide anti-counterfeiting protections in their markets, the ACTA summary indicates that those WTO commitments would be greatly augmented with strong ACTA provisions patterned after U.S. law. As part of the federal advisory process, AAIA will continue to provide input on this important agreement.
- AAIA will participate in the U.S. Chamber’s two-day Transatlantic IPR Collaboration Conference, where industry and government leaders will benchmark Intellectual Property Rights (IPR)-related policies and practices between the U.S. and the European Union (EU).
- The committee reviewed international market developments.
- AAIA and the China International Auto Parts Expo CIAPE), a division of China’s Ministry of Commerce (MOFCOM), are planning a U.S. Mission to Beijing. A key focus of the Mission’s educational program will be Chinese regulatory and tax issues. This emerging partnership with MOFCOM provides important access for AAIA to raise policy issues with high-ranking Chinese officials.
- The deregulation of the European Union (EU) aftermarket initiated in 2002 has promoted strong growth of the EU’s independent aftermarket channel. But, those pro-competition policies, which are opposed by the OEM’s, are set to expire in 2010. AAIA is supporting the International Federation of Automotive Aftermarket Distributors (FIGIEFA’s) efforts in Brussels to expand and extend the existing policies.
Investment:
- Reviewed AAIA’s portfolio performance as of Aug. 31, 2008.
- Discussed ways the Investment Committee can add additional value to AAIA’s membership.
Leadership Development Network
- LDN discussed joining forces with the AWDA Committee in order to generate Next Step Participants, for Fall Leadership Days 2009 in Boston, within the AWDA segment community.
- The committee had a breakout session in order to brainstorm ideas on upgrading LDN’s mission/goals.
- In an effort to increase the number of members within LDN, the committee has decided to eliminate the $50 fee starting Dec. 31, 2009. Donating money to the committee, however, will still be an option on the membership application.
- The committee was presented with another scholarship opportunity to attend Leadership 2.0. LDN vice chair Sherri Rains, Hopkins Manufacturing Corporation, was chosen to represent LDN in the 2010 session.
Market Research
- Presentations to the Committee were given on the following subjects:
- Automotive Aftermarket Industry Overview by Jonathan Carey, BB&T Capital Markets
- U. S. Aftermarket Channel Forecast by Shane Norton, IHS Global Insight
- Vehicle Repair Cost Analysis by Jim Lang, Lang Marketing Resources, Inc.
- Channel Forecast Issue: Agreed to reconcile growth rates for Auto Parts and Accessories Stores with those reported by The NPD Group: Automotive Aftermarket Industry Monitor.
- Sub-committee to consist of Brett Shanaman (AZ), Dan Kaplan (NPD), Shane Norton (IHS Global Insight) and Ron Rossi (AAIA).
- Channel Forecast Issue: Expand concept to include the following features:
- Forecast for an unspecified number of automotive product categories.
- Forecast for the Medium and Heavy Duty Market.
- Committee to work with IHS Global Insight to review methodology and cost proposals
- Vehicle Repair Cost Analysis: New Car Dealerships vs. Independent Repair Shops. Sub-committee to consider the following issues for the next edition of this research:
- Broadening repair categories to include:
Power Steering Pumps, Calipers, Master Cylinders, Power Brake Boosters, Window Lift/Wiper Motors, etc.
- Compare New vs. Remanufactured products by parts and labor components.
- Categorize repair work by: 0-4 year, 4-8 year, and 8-12 year old vehicles.
- Conduct a similar study for an unspecified number of collision repair categories
- Aftermarket Inventory Assessment. Volunteer subcommittee members were requested to:
- Explore sources and methods for determining the average number of new SKUs entering the Aftermarket annually.
- Determine the inventory impact of new SKUs at various levels of distribution.
- Assess the cash flow impact as new parts migrate through the distribution system.
- Propose ways manufacturers and their customers can work together to improve economic efficiencies across the distribution system
- Consider updating the Aftermarket Consumer: DIY vs. DIFM study last produced in 2005
- Sub-Committee to review 2005 content for today’s relevance
- Sub-Committee to write specifications and prepare RFQ
- Consider changing committee name from Market Research to Market Intelligence Committee
Marketing & Member Relations
- Committee is considering hosting and demonstrating a Community Car Care Event with vehicle inspection lanes in conjunction with the Fall Leadership Days in Boston in September. The event would involve repair shops, retailers, automotive students from local school and others.
- A subcommittee was created to work with AAIA and Car Care Council staff on plans to take further advantage of the current widow of opportunity that exists as a result of new car dealerships closing and consumer confusion about protecting their vehicle warranty.
- A Car Care Aware Fair exhibit will be held for the first time at AAPEX for the purpose of taking the “Be Car Care Aware” campaign to the aftermarket where they are in one place at one time. The exhibit will be on the show floor and will include displays by a number of aftermarket companies and organizations involved in consumer education outreach.
Technology Standards and Solutions
- Extensions were approved for the Aftermarket Catalog Enhanced Standard (ACES) Vehicle Database by adding Mexican vehicle coverage from 1995 and later as well as the addition of several segments of “Othermotive” – power sports, motor cycles, lawn and garden, Class 8 Trucks and more. These new vehicle and engine records will be published beginning in July 2009
- The ACES cataloging standard is also being revised in July to support the addition of application images (such as exhaust diagrams) and other “digital assets” to the electronic application records
- The Sales Information Standard (SiS) was modernized and re-released in support of the sales data requirements of sales rep agencies
- Minor revisions to the Product Information Exchange Standard (PIES) were approved and are scheduled for release in July
- The Committee agreed to take custody and encourage use of the EDI Super Spec developed by Gcommerce to support electronic document exchange
- The committee approved the divestiture of PartnerShip Network and support the plan whereby the communication software is available directly from O’Reilly Auto Parts and supported by Gcommerce
Trade Show
- Bill Glasgow reported on the 2008 show. Exhibits are down 4 percent.
- Bill reported that Kathleen Schmatz, Steve Handschuh, Bob McKenna and Arlene Davis and SEMA representatives traveled to Las Vegas to meet with the Las Vegas Convention and Visitors Authority, Harrah’s Hotels, MGM and the Venetian, to ask for help for this year’s AAIW. No word yet on what kind of concessions they would provide.
- Arlene Davis reported on the AAPEX Joint Marketing and Promotions Committee Meeting that was held Aug. 12 in Chicago. The committee’s focus was to create a marketing plan for the 2009 show. The group is working on a promotions plan that will include the new tagline – “The AAPEX Experience.”
- Arlene reported on the Aug. 21 AAIA AAPEX Board task force meeting. The staff gave the participants a complete report on AAPEX. After the presentation, the participants discussed the next steps for AAPEX strategy and asked staff to begin a comprehensive survey program including quantitative and qualitative information about what the value of the show is to them.
- Paul Meyer reported on the focus groups that he held with Tool & Equipment, Retail and CCPN. Paul’s participation in the meetings were a direct result of the Board task force meeting. He will be following up with more qualitative focus groups and direct phone call surveys. Once that is complete, Paul will work on creating a quantitative survey.
- Committee reviewed all AAIA events at AAPEX. They agreed that the AAIA Town Hall needed to pay for itself and will work with staff to secure a second sponsor. NASCAR agreed to allow a second sponsor as long as it was a licensee.
- The Show Committee will host their winter meeting at HDAW in Orlando so that committee members will have the opportunity to see the event. The meeting is scheduled for Thursday, Feb. 19.
SEGMENT COMMITTEES
Automotive Electric Association (AEA)
- Finalized plans for 2009 AEA Annual Membership Meeting in San Diego.
- Discussed extensively the possibility of combining the Annual Membership Meeting with HDAW in the future.
- Elected new chairman, Diane Kenny, Denso Sales California.
Automotive International Association (AIA)
- The board’s strategic plan for membership expansion calls for a “Why AIA” piece, to provide greater visibility for member benefits, especially government affairs activism. A new slogan was adopted: “Supporting Free & Fair Trade Since 1981,”and the new piece will underscore that the association fights the regulatory battles members can’t fight daily.
- Despite the challenging economy, sponsorship sales for AIA Events at AAPEX are on track and could raise as much as $90,000 for AIA’s popular Fabulous Networking Reception and Luncheon/Awards Program.
- AIA’s new online import parts specialist certification tests will be enhanced with the addition of a new online test resource guide, that will include a custom search with AIA manufacturers’ websites, catalogs, publications, and business websites. Test questions will be solicited from AIA segment members and will be acknowledged. AIA member companies also will be asked if they have tech hotlines.
- To provide AIA members with more comprehensive information on the import aftermarket, the board is developing new member tools, including an “Import Resource Guide,” a “Best Practices Guide” and a market “performance indicator” report.
Automotive Warehouse Distributors Association (AWDA)
- Discussed and further developed AWDA’s Strategic Plan. Areas of oncentration:
- Goal – Advocacy
- Better communicate positions and policies to members and prospects by utilizing member network and AAIA communication vehicles.
- Work with AAIA and outside resources (e.g. state associations) to track and communicate state/local issues to AWDA members.
- Goal Area – Leadership
- Develop process for integrating AWDA officers into AAIA’s Board in order to improve communication and better apply AWDA’s resources and strengths for the betterment of the industry.
- Create procedure for enhanced, two-way communication between AWDA Board and AAIA Standing Committees.
- In recognition of their key role in distribution, formalize participation of Program Group leaders in AWDA’s board meetings.
- Goal Area – Networking
- Return AWDA one-on-one meetings to Sunday and Monday prior to AAPEX 2009.
- Enhance capability and reach of AWDA’s meeting scheduling process by
2009.
- Work with U of A to develop and offer distributor-specific education during AAPEX 2009 and beyond.
- Utilize group extranets to communicate with members and prospects that
belong to various groups.
- Adopted policy for spending from AWDA’s reserve fund that set maximum annual expenditure as the average of the past three years return on investments.
- Met with members of the manufacturing community and AASA staff during
annual Distributor-Manufacturer Forum immediately following Leadership Days.
Car Care Professionals Network (CCPN):
- Dave Caracci, a past chairman of AAIA, having been called in to assess segment progress and performance, presented a summary of his findings to the board. Research and recommendations were discussed and unanimously accepted by board vote.
- Mitch Schneider and Dave Caracci presented an introduction to the CCPN Online Community focusing on its use as a tool to achieve CCPN’s Mission: To represent, support, elevate and improve automotive service and repair businesses by providing a national platform. And, to promote communication and networking between service professionals, manufacturers, distributors and others.
- Schneider had placed a presentation on repair community metrics: Key Performance Indicators for the Service Segment, on the Connect site and after the break led a discussion on how such tools could be used to engage the repair community in a discussion designed to increase management skills, abilities and awareness.
- Sue Kalish, AAIA’s senior director of education, and Jim Dykstra, presented current plans for the CCPN Roundtable discussions to be presented at AAPEX this November.
Engine Repower Council (ERC):
- ERC Poster distribution program is progressing well. Ken Carter, Steve Rich and Rick Sparks reported that they had distributed the first batch and were in the process of distributing the second batch. The posters were designed by Babcox and have a clear “Repower Your Engine Message.”
- ERC’s Web site will have text in Spanish and English. The translated text will be updated on the Web site in the coming weeks.
- ERC plans to add a consumer testimonial section to the site and will feature “Minivan Mom,” “Enthusiast,” “Pick-up Truck Guy” and “Million Mile Vehicle.”
- ERC Committee members will attend AAPEX this year and plan to visit manufacturers that may want to consider joining the council.
- Sue Kalish surveyed the ERC Committee to determine the educational programs that ERC members and prospective members would want or need. The group agreed that business practices were key.
Paint, Body and Equipment Specialists (PBES):
- PBES Committee members finalized the PBES 2008 Town Hall program. The own Hall will be held Friday, Nov. 7, from 7:30 a.m. - 9:30 a.m., at the Mandalay Bay Hotel and Convention Center during NACE. The featured speaker is business growth expert Steven Little. The committee set a goal of $37,000 in sponsorship and to date has raised $35,500.
- Committee members want to revitalize the research program for their segment. They have decided to start by collecting six-eight KPI’s on a quarterly basis.
- PBES is working with ComCept and Perfection, the two largest software providers for PBES jobbers to create reports that can be used by Profit Planning Group for the PBE Benchmarking Study. By making it as easy as pressing a button, the committee hopes to increase participation in the 2010 study.
- Committee members have decided to add a technology fair to their spring conference scheduled for Tuesday, May 12 - Thursday, May 14. They plan to make technology a focus of the conference. Other sessions that they are working on are Consumer Trend Analysis, Collision and Estimation Data Analysis, AIG Spokesperson, to provide insight into the insurance industry and other topics.
- PBES is exploring the possibility that PBES jobber members could be called upon to serve on an advisory panel for State Farm. All committee members agreed that this would be a great value to jobbers.
Heavy Duty Distribution Association (HDDA)
- Completed their new strategic plan, with special emphasis on strategies to unite industry groups – as has been accomplished with HDAW – to achieve other key objectives such as access to repair information, and to ensure delivery of valued services to HD companies.
- Strategized about the composition of the HDDA Board and the development of the distributor membership base.
- Initiated planning for an HDDA reception on Sunday preceding Heavy Duty Aftermarket Week (HDAW), as a mixer for golf outing participants, as well as arriving conference attendees.
Rep Council
- Susannah Hart from Manufacturers’ Representatives Educational Research Foundation (MRERF) spoke on the educational opportunities available to the rep community.
- Bryan Shirley from Manufacturers’ Agents National Association (MANA) spoke on the challenges facing today’s reps and some ways to meet the challenges.
- Gil LaCroix presented a webinar on the progress of the CRM software.
Retail
- Discussed the new segment structure and scheduling.
- Smith Barney presented on Gas Prices and the Impact on the Retail Sector.
Tool and Equipment
- Agreed to a mid-summer conference call on 7/15 with the agenda distributed prior to call.
- Discussed observations on current business trends:
- The impact of new products continues to drive volume
- The most diversified Distributor customers are seeing growth
- Bill Glasgow’s report on AAPEX:
- Show is down 195 paid exhibitors and 1,006 booths sold versus this time last year
- T&E is down 26 paid exhibitors and 82 booths sold versus this time last year
- Overall, 255 exhibitors representing 800 booths are currently undecided
- Bill is projecting a 7% decline in buyer registrations
- Discussed VISION Show for installers and suggested Bill take a look
- Using Bill’s list of undecided exhibitors, committee members agreed to make selected phone calls in an effort to help boost attendance. Staff liaison to coordinate with staff.
- Aaron Lowe provided a brief update on Government Affairs:
- Right-to-Repair passed in the NJ house and is pending Senate vote in May.
- MA bill is slated for hearing June 2 and was introduced earlier in the House.
- A lot of PAC money is being used in MA and NJ to fund Right to Repair.
- Cash for Clunker’s proposal and the CardCheck proposal were discussed
- The High Cost of Health Insurance:
- Reviewed opportunity available through the National Association of Wholesaler-Distributors (NAW) as outlined on their website: http://www.naw.org
- NAW Health Insurance Program offers insured and comprehensive group PPO plans designed for NAW direct members, and members of NAW’s member associations
- All members including AAIA members (not just distributors) are eligible to participate.
- Action Items: Interested committee members were encouraged to compare costs of their existing programs to NAW’s program and report back . Staff liaison to review opportunity with AAIA senior staff and provide feedback to committee.
- T&E Market Size and Trend Analysis:
- Reviewed proposed project template
- Agreed to used product categories as defined by Babcox 2009 Buyers Guide
- Template to incorporate total U. S. product category size estimates by representative manufacturers, then average all and total to determine overall market size.
- All information to be held confidential by AAIA staff liaison.
- Committee recommended working with HTI to obtain elements of their marketing information. Babcox to provide T& E research for committee members.
- Action item: Subcommittee to be organized by chairman and staff liaison
Trim
AAIA Trim Committee met to plan for their upcoming 2009 Convention in Las Vegas.
- The committee decided to increase exhibitor registration fees to cover the growing cost of staging the events at the convention.
- The committee discussed whether to pre-schedule appointments for the one-on-one meetings that are held at its annual convention. However, it was decided that the current system of making all appointments on-site would be retained due to the efficiency and networking opportunities that are provided by the appointment-making session held on the first day of the event.
- The committee further discussed the education session that will be held on the second day of the convention. It was determined that the session will focus on managing inventory, which is a major component of the profitability of both member wholesalers and distributors.
- The committee also decided to hold its 2010 convention in San Antonio. Staff is investigating hotels and plans to have a site selected before the end of this year.
|