Committee Highlights/Action Items 
September 3-5, 2008 – Fall Leadership Days
San Antonio, Texas

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
Engine Repower Council (ERC)
Heavy Duty Distribution Association (HDDA)
Paint, Body & Equipment Specialists (PBES)
Rep Council
Retail
Tool & Equipment
Trim
Car Care Professionals Network CCPN

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

• The Category Management and the Retail Segment Committees agreed that they can both benefit from the synergies of meeting on the same day. Therefore, we will schedule our meetings on Thursdays (segment day) at future Leadership Days.
• The Executive Committee worked through a strategic planning process, the outcome of which will be sent out to the committee by November. The purpose was to revisit the mission and vision and to outline a roadmap to ensure continued success in the coming years.
• The committee agreed that there are opportunities for idea-sharing across other committees including Market Research, Technology Standards & Solutions, Retail and AWDA. Liaisons will participate in these committees and provide updates from their meetings.
• Three new Application Categories have been released: Suspension, Steering and Climate Control report both retail and commercial sales in sub category and segment detail. Further attribute reporting will be available in the coming months.

Education

• Acknowledged Barbara Clark's excellent support and service to the committee.
• Reviewed and discussed recommendations from the education summit.
• Divided into subcommittees to begin work on summit recommendations.
• Set tentative date for Education Committee meeting at AAPEX.
• Reviewed plans for AAIA AAPEX education and acknowledged members who
  worked on the subcommittee.

Government Affairs

• The Government Affairs Committee discussed the progress of the association’s effort to pass the Motor Vehicle Owners’ Right to Repair Act.
  • The federal legislation stalled due to strong opposition from the car companies and their champion in Congress, Rep. John Dingell. The legislation also faced the same problems that many other initiatives encountered, mainly the inability of Congress this year to move any issues that are even remotely controversial. AAIA will be closely watching the elections to determine our federal strategy next year.
  • Despite problems on the federal level, there was significant progress in the Commonwealth of Massachusetts regarding Right to Repair. The Massachusetts Motor Vehicle Owners’ Right to Repair bill garnered strong grassroots support from the state’s independent service facilities. That support led to passage by the Joint Consumer Protection and Professional Licensure Committee and resulted in the legislation being scheduled to floor consideration during the last two days of the session. However, several controversial social and budget issues monopolized the last days of the sessions and we ran out of time. AAIA is working with our team in the commonwealth on a strategy for next year that will build on our momentum from this year.
  • Right to Repair legislation has also been introduced in both the New Jersey Assembly and Senate. AAIA is working with the Coalition for Auto Repair Equality (CARE) and the state repair association to encourage grassroots support for the legislation. We are optimistic that the bill will receive serious consideration in the state late this year and early next.
• The committee developed a plan to increase funding for the Automotive Aftermarket Political Action Committee (AAPAC).
  • AAIA is holding a special fundraiser during September and October. Individuals that contribute to AAPAC during those months will be entered into a special drawing for a Masters package, including hotel and two tickets to the Thursday and Friday rounds. The cost of the promotion is being sponsored by corporate donations to the Political Education Committee.
  • The committee established a permanent task force that will work toward promoting AAPAC to AAIA members and to oversee expenditures to federal candidates made by AAPAC. The task force will be appointed by the chairman of the Government Affairs Committee.
  • The committee directed the staff to establish regular communications with the membership regarding the PAC. These communications will include information on how the money that is donated is expended and the rational for the political campaign donations.
• A plan to build the grassroots activism by AAIA members was reviewed by the committee.
  • The government affairs department sent letters to the program groups and retailers to request that they appoint captains in each state that will be responsible for communicating with their customers regarding the need for a response to either a federal or state initiative. AAIA will follow-up in September with each company to ensure a full response.
  • AAIA is developing a Webinar to educate the captains in each state on the importance of aftermarket grassroots involvement and how they can participate in the program. This Webinar will also be used to work with state groups and CCPN members.
  • The committee hopes to have the program rolled out and operating in time for the next session of Congress which will begin in January.

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 received positive feedback from our Next Step Participants. All are interested in becoming more active with the association.
• LDN’s main goal this meeting was to generate more sponsors for our 2008 AAPEX reception. A task force was created for this event, and a goal was set to pursue more ways to pair sponsorship opportunities for all of our events held throughout the year.
• A “Leaders Night Out” (after-hours networking opportunity) idea was discussed and would be held during next year’s Fall Leadership Days in Boston. Money generated from t-shirts for this event would help the committee with additional sponsorship money.
• Ted Hughes, MAHLE Clevite, will take over as the new 2009 LDN chair, and Sherri Rains, Hopkins Manufacturing, was nominated as the new vice chair.

Market Research

• How’s Business –
  • Committee members were invited to participate in an informal discussion on the status of their business (either up, neutral or down) relative to last year. A record of their comments will be included with the minutes of this meeting.
• Addition to the Monthly Indicators Report –
  • The above mentioned “How’s Business” discussion identified a need for more frequent financial benchmark data. It was recommended we begin reporting financial data on a quarterly basis (rather than just annually) and include the information with distribution of the Industry Indicators report. Market Research will work with Jonathan Carey at BB&T to get this initiative underway at the earliest possible date.
• 2008 Channel Forecast Model Update –
  • The latest model analysis from Global Insight was reviewed by the Channel Forecast subcommittee which identified the following needs: (1) to understand the methodology used to establish base year calculations for 1997 and 2002 including data elements, sources and weighting factors, (2) to understand what caused the dramatic change in the 2002 base year from the original amount reported at the April meeting and the current amount reported in July, (3) to understand the logic used to derive the growth rates applied to the 2002 base year and (4) to identify any other independent variables used in the forecast and understand how they are applied. It was agreed that the subcommittee would address these issues in a series of follow-up conference calls with Global Insight beginning in the
    next two-three weeks.
• Committee Interest Survey –
  • In review of the survey results, the committee recommended research efforts remain flexible and stay focused on broad based issues affecting the business needs of the industry.
• Factbook Survey –
  • Committee members reviewed and discussed the first draft of this survey designed to gather member feedback on the 2009 Aftermarket eFactbook and the 2009 Aftermarket Factbook & Lang Annual. Committee member recommended various edits to the first draft, which will be incorporated in the second draft and redistributed to the committee for one more review before the final draft is distributed to the AAIA membership in October.
• Comparative Price Review Procedure –
  • It was agreed Market Research should conduct a study regarding relative costs and wait time needed of installed parts at a car dealer compared to an independent repair shop. With assistance from IMR, an RFQ will be designed and distributed in November.
• Hidden Costs of Importing Auto Parts –
  • A study was conducted by AASA in 2007 and reviewed by the AAIA subcommittee. Further research by AAIA was not recommended.

  Marketing and Member Relations

  • Bill Hanvey, Schaeffler Group USA, was named committee chair and Dave Kobuszewski, NASCAR, was named vice chair, replacing Pam Krebs, Bosch, and Tom Marx, The Marx Group, whose terms expired.
  • A draft AAPEX marketing plan presented by representatives of a special subcommittee was reviewed. The subcommittee is a joint initiative whose members represent the AAIA Marketing and Member Relations Committee and the AASA Marketing Executives Council. The plan is the first step in efforts to help increase attendance and add value to AAPEX in conjunction with the AAIA Show Committee and the newly-established AAIA board-level AAPEX Advisory Group. The final plan will include recommendations, strategies and tactics based on qualitative and quantitative research to determine ROI of various AAPEX audiences.
  • Committee recommended that the Car Care Council consider providing an electronic version of the popular Car Care Guide on the new Web site. New electronic format would be viewable – not downloadable.
  • The marketing role of AAIA in addressing the OE and new car dealer threats to aftermarket parts and service was discussed. Key areas to be considered were driving more traffic to independent repair shops, promoting the quality of aftermarket parts and service and what individual companies are doing and could do to promote the quality parts story.

  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.

  Technology Standards and Solutions

  • The Technology Standards & Solutions Committee decided to move forward ith
    incorporating vehicle and equipment information from Power Systems Research in the ACES cataloging standard. By adding information about marine, small engine, farm & agriculture, off-road and heavy duty vehicles, construction and stationary equipment, the Aftermarket Catalog Enhanced Standard will be useful
    to an even greater variety of parts and accessory suppliers and their data partners.
  • A successful Supply Chain Workshop and roundtable discussion opened the door for collaboration with the Supply Chain Council and the Aberdeen Group. Plans were set to conduct a survey to measure aftermarket supply chain efficiency and benchmark the industry against other distribution channels.
  • The committee made significant progress in defining the aftermarket model for governing a Service Oriented Architecture (SOA). SOA is critical to the future development of Web services for use in the aftermarket and AAIA will play a leading role in standardizing the components.
  • The committee recognizes the importance of standards-based Web services in any aftermarket response to OEM vehicle telematics and plans to conduct meetings with key stakeholders in the vehicle information and repair segment to invite support for an aftermarket telematics plan.

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  SEGMENT COMMITTEES

  Automotive Electric Association (AEA)

  • Developing a marketing tool to be used by the current AEA manufacturers to recruit new AAIA/AEA members and annual meeting attendance.
  • Developing a survey to be sent to all AEA members regarding the format of the
    annual membership meeting.
  • Established theme, keynote topic and speaker possibilities for 2009 annual membership meeting.

  Automotive International Association (AIA)

  • Reviewed plans for enhancing AIA Events at AAPEX – supported this year by a record $100,000 plus in sponsorship support from a record 31 sponsors. The IA
    Section at AAPEX will feature a first-ever 30 booth Indian government-rganized
    pavilion and more than 25 new AIA supplier members. AIA and the Korean government organizers of their pavilion in the AIA Section, have partnered to provide 60 member companies a new educational program on the U.S. aftermarket. The AIA booth/lounge will feature ongoing demonstrations of the new online AIA import specialist certification tests.
  • Agreed to conduct a strategic planning meeting to address AIA’s role, and the
    services and benefits it will offer members, in the fast-changing import nameplate
    aftermarket.
  • Discussed the significant industry interest in the new AIA Web site and planned
    enhancements to ensure the site will be the international gathering place for
    members sand prospects. In addition, will initiate a major push for members to
    populate and use the site’s Find It and Promote It features.

   

  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

  • Gil LaCroix gave update on Dynamacs CRM program. The council is looking for a standardized CRM program that they can recommend to AAIA rep members.
  • Ryan Vernon from the Technical Committee discussed the updates necessary for the SIS (Sales Information Standards) that have been available on the AAIA Web site, but not been used by the manufacturers. He will update the flat file and create an XML interchange.
  • Paul Meyer visited the council to get their recommendations on long-term
    strategy for AAPEX.
  • Bill Glasgow gave an AAPEX update report.
  • The council agreed to invite someone from MANA to come to the spring meeting.
  • The Council is developing a “Compensation Menu,” which is a list of services that are provided by manufacturers’ representatives over and beyond selling products. George Keeley agreed that as long as no prices are mentioned, a “suggested” list can be available for agencies to use to negotiate with individual companies. They would like to add this information as an addendum to the current contract form they use. Jim Shapiro and Bill Lorenz will discuss with Barry Maloney, the council’s legal advisor, to get his approval on this addendum.
  • Gary Swarberg gave a demonstration of a Webinar program he is currently using at his company. The council will have further discussion about other available services at the spring meeting.

   

  Retail

  • Discussed the new segment structure and scheduling.
  • Smith Barney presented on Gas Prices and the Impact on the Retail Sector.

  Tool and Equipment

  • How’s Business –
    Committee members were invited to participate in an informal discussion on the status of their business (either up, neutral or down) relative to last year. A record of their comments will be included with the minutes of this meeting.
  • Total Size and Trend of Tool and Equipment Market –
    How big is this market segment. This issues has surfaced several times recently and it was decided a subcommittee should be formed to solicit sales data from leading segment manufacturers in the industry. The idea would be for these manufacturers to periodically send their data to AAIA Market Research for use in estimating the total market. All input will be kept confidential at AAIA. The subcommittee, consisting of Jan Akerberg, Chuck McCourt and Bill Thompson, agreed to help sell the program to manufacturers and Jan volunteered to make initial contacts to get the ball rolling.
  • Rising Health Care Costs –
    In review of the T&E Interest survey completed in April, rising health care costs were considered one of the main issues facing their segment of the industry today. Committee members asked AAIA to help formulate a plan, especially for small companies with 50 to 100 employees. Ron Rossi agreed to discuss with senior staff members and report back at the Spring meeting or sooner via separate memo.
  • Strategic Planning with Paul Meyer –
    Paul conducted a short 45-minute market research focus group to gain input on the future of AAPEX. Questions included: What is the bigger picture? Where are we going with this show? How can we gain greater value at AAPEX? What keeps you coming back? Why do you continue to attend AAPEX? Are attendees spending less time at AAPEX? Has it gotten better, worse or stayed the same? Do you recommend folks go to AAPEX? What is your #1 reason for attending AAPEX?
  • Other Issues –
    The review of the segment Interest Survey was not completed and needs to be carried forward to the agenda of the spring meeting.
    Barry Halbritter volunteered to circulate follow-up information as part of his AAPEX Show subcommittee.
  • Old Business Issues Open For Follow-up –
    Almost two-thirds (64 percent) of Interest Survey respondents indicated a
    strong interest in forming a subcommittee to study and recommend
    consultants or software available to monitor product level business trends.
    Volunteers were noted.
    Almost eight out of 10 (78.6 percent) respondents agreed to the proposal
    to link member distributors to each T&E segment manufacturer in the
    database. Liaisons will follow up with the IT Department to check feasibility
    of creating a searchable online database of distributors that carry specific
    products by manufacturer.
    The Manufacturers’ Survey conducted last year summarized the number of
    suppliers related to each major product category. A discussion followed
    identifying possible next steps including the need for staff liaison to meet
    with IT support to assess the feasibility. A follow up will be provided at the
    next meeting.  

   

  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.