VACC Industry Policy Advisors John Khoury and Kathy Zdravevski, along with VACC ARD Chair Frank Grocl, attended the 2022 AAPEX and SEMA Show in Las Vegas.
The chamber representatives attended multiple keynotes, seminars, and panel events focussing on best practices, forward-looking strategies, and gathering the resources and insights VACC members need to advance their businesses now and in the future.
Executive Summary
It was great to be back at the epicentre of the automotive aftermarket world in 2022 and, while this year's SEMA/AAPEX conference was slightly down on exhibitors compared to previous pre-pandemic shows, it did not deter people from all over the globe coming together to celebrate once again, reunite with old friends, and learn about the latest advancements in automotive technology. There were plenty of educational seminars to keep the mind busy, primarily focused on the automotive industry's transition towards electrification and the importance of automotive service technicians upskilling to maintain and service an electrified fleet. Another major topic was understanding the importance of proper calibration on advanced driver assistance systems (ADAS).
Many Australians, including VACC representatives, made the journey across the Pacific Ocean to join in on the fun, some of whom will still have aching feet – the sheer size of both conference venues was something to behold, and from all reports this is set to increase again in 2023.
I was fortunate to have Frank Grocl, Chair of VACC’s Automotive Repairers’ Division (ARD), and my colleague, VACC’s industry policy advisor for the body repair, towing and dismantlers divisions, Kathy Zdravevski, accompany me on this trip. The goal was to reconnect with key industry personnel, build new relationships, keep abreast on emerging technologies, and learn more about how the US is transitioning towards vehicle electrification.
In conversation with many people in the know, I was surprised to learn that, other than California, there was little movement towards electrification in the US. Workshop owners were slowly gearing up to ensure they could cater for their clientele, however EV sales are moving at a slow pace due to supply chain issues, lack of infrastructure, and the reluctance of many Americans – particularly in the mid-west and southern states.
Right to Repair (R2R) continues to dominate the policy landscape and no matter which industry association I spoke with, it remained the number one priority for the US aftermarket. Interestingly, Australia has quickly become a source of inspiration when it comes to R2R, since the implementation of the Motor Vehicle Information Scheme. Only a few years ago, the situation was very different. The US has had over 10 years to get this right and, from what I learnt, there is still a long way to go – in part due to the inability for the aftermarket to access service and repair information within telematics systems. There is a huge push for new law reforms across the country – which are currently being blocked by automaker’s due to cyber security concerns. It is envisaged that 2023 will be a year in which key R2R reforms and initiatives will shape the automotive industry moving forward.
Like Australia, other issues impacting the sector, albeit on a much larger scale, are skills shortages, high cost of living and supply chain disruptions. It was reported that many large businesses particularly in the parts and tyre retailing supply chains may not survive the current financial crisis.
Overall, a very worthwhile trip, and I would highly recommend anyone who wants to invest in their business and stay abreast of modern technologies to pencil in November this year and attend one of, if not the largest, automotive aftermarket event on the calendar.
Extract from SEMA/AAPEX Report.
VACC and TACC members can request the full report directly from John Khoury. E: jkhoury@vacc.com.au