Wednesday, December 21, 2016

December 13, 2016


Thank You to Our Sponsor of This Edition of CAWA Connections
Automotive Distribution Network

CAWA Meets with Board of Equalization to Discuss Implementing Lead-Acid Battery Recycling Act
Battery
CAWA met with Senator George Runner (ret), Member, Board of Equalization (BOE) and his staff to hash out details as the implementation of the Lead-Acid Battery Recycling Act of 2016 gets underway. The law takes effect January 1, 2017 with the collection of fees beginning April 1, 2017. See here for the detailed press release. 

CAWA assures its members that the Association will assist them in implementing the Act by highlighting the requirements of compliance. For further information regarding the Act, see CAWA's legislative advocate, Gary Conover, at 916.233.9655 or gary@garyconover.com.
Another member benefit.


Thanks to Cash Contributors and Auction Prize Donors for this Year's Scholarship Fundraiser
CAWA would like to thank the following individuals and companies for their gracious prize and cash donations to this year's scholarship fundraiser. 

Cash contributions came from: Motorcar Parts of America, Worldpac, MAHLE Aftermarket, BBB Industries, Creative Solutions Group, NetDriven, Mort Schwartz, Larry Samuelson, Doug Dexter, Tim Gerrity, Daniel Hanson II, Chuck and Margaret Herr, Stephen Hughes, Paul Kratzer and Tom Walsh. 

Prize donors included: Genuine Parts Company (Sacramento Distribution Center and the Western Division Office), Parts Authority, Robert Bosch Corporation, the Marx Group, NAME Inc., Standard Motor Products, MAHLE Aftermarket, Vantage Marketing Global, Inc. and Precision Meeting Management. 

This year's fundraising event produced a record $26,979 for CAWA's Scholarship Program! 


CAWA Engages The Law Firm of Laxalt & Nomura for Member Legal Consultation in Nevada
Effective January 1, 2017, the law firm of Laxalt & Nomura will provide legal consultation services to Association members. The former legal counsel, for some ten years in Nevada, David Brown, has accepted a judgeship in the Las Vegas Justice Court and can no longer provide legal services. 

Laxalt & Nomura represents the litigation interests of a wide variety of clients, including insurance companies and their insureds, product manufacturers, financial institutions, pharmaceutical companies, retailers, hospitals, automobile dealers, developers, contractors, attorneys, design professionals, real estate professionals, and others. The firm also represents both companies and individuals in business disputes, and represents select individuals in plaintiff personal injury matters. 

The Association's contact will be attorney Daniel Hayward (775.322.1170 or dhayward@laxalt-nomura.com. For further information on the firm, visit www.laxalt-nomura.com

Recall, as a member, you can receive up to ½ hour per month of FREE legal consultation.Another member benefit. 

Laxalt _ Nomura 


IHS Automotive Initial Response to Trump's Election
The IHS Automotive forecasting team has given its initial impressions of the potential effect of Trump's election on the US and wider automotive markets, both in terms of sales and outlook and the regulatory environment. It is too early to assess the potential impact of the Trump presidency on the automotive market, although some potential outcomes can be seen. Click here for further thought and analysis. Source: IHS Markit


Burdensome Tax on Imports Included in Republican Blueprint for Tax Reform
Taxes
The election of Donald Trump has given Republicans in Congress the opportunity to enact comprehensive tax reform. The business community should welcome this, as the plan is designed to lower corporate tax rates; however, businesses that have a global supply chain of any size will be severely impacted by a provision in the reform blueprint labeled as the Border Adjustability Tax (BAT). 

Simply put, the BAT would exempt a business from tax on export sales, subject imports to a new tax and apply a border adjustment to all goods, services and intangibles. Businesses would be denied the ability to take the costs of an import as an expense deduction when calculating taxable income. In addition to eliminating the tax on export income, a company would also receive a rebate or credit in an amount equal to the cost of producing the export, including labor costs. 

See the enclosure ( here) from our national partner, the Auto Care Association, who will be responsible to lobby (on behalf of the industry) any proposed legislation and they are asking for your comments.


The Department of Labor's Overtime Rule is Blocked
The U.S. District Court in Texas blocked the Department of Labor's (DOL) overtime rule from going into effect on December 1, 2016. The emergency motion was granted at the request of 21 states, the U.S. Chamber of Commerce, and other like-minded organizations. The lawsuit was filed on the grounds that the DOL has overstepped its authority and put forward an onerous regulation that has to be stopped before the implementation date. See more here. 

Recall, as a member you can receive up to ½ hour FREE legal consultation on matters such as this. See www.cawa.org for the CAWA attorney in your state. Another member benefit.


2017 Chair of the CAWA Board of Directors Participates in Automecanika Shanghai
Michael Antonelli, the 2017 Chair-Elect of the CAWA Board of Directors represented Vantage Marketing Global (his Company) and CAWA at the 2016 Automacanika in Shanghai China. He reported that the event was successful and he was pleased to promote the Association with his colleagues that were in attendance.
Antonelli in Shanghai


The One Key Factor that Leads to Sales Success or Failure
Sales Success
While one could argue that there are many factors determining sales success or failure, Mr. Chapin finds that 99% of the time, success or failure really comes down to one item. If you have this one item in place, success is virtually guaranteed. If you don't, failure is virtually guaranteed. See here for details. Source: John Chapin




CAWA's Major Government Affairs Supporters - Thank You
See the enclosure to view (here) auto care companies and associations that support CAWA's "first line of defense" government affairs program out west. Thanks, too, to the general membership that supported our efforts by paying their dues throughout this past year. Without this cooperation and support, CAWA would not be as effective in its promotion and protection of its members and the industry it serves out west.

Is your company's logo in the enclosure? If not, contact programs@cawa.org.


Auto Parts Stores, Warehouses Can Use Telematics to Compete with the Big Boys
Telematics
The call. The one we dread the most. The "where's my stuff?" call. Be it after five minutes or 50, our customers want to know where the delivery driver is with their parts. For years, the stock answer has been "on the way," or "should be there any minute," but how do we really know that to be true? See how telematics can be useful to you ( here). Source: Tom Dayton, Telematics Talk
 


2016 Dues Non Deductibility Statement
For federal income tax purposes, CAWA dues may be deductible as a business expense but not as a charitable contribution. CAWA estimates that 44% of your dues for 2016 are not deductible as a business expense because they are attributable to lobbying as is in accordance with Internal Revenue Code Section 6033. Contributions to the Political Action Fund are not deductible as a charitable contribution or as a business expense for federal income tax purposes. For more information, consult with your accountant or tax attorney.



Happy Holidays from CAWA Headquarters
Happy Holidays
"CAWA - Representing the Automotive Parts Industry"

Sunday, December 4, 2016

October 25, 2016


Thank You to Our Sponsor of This Edition of CAWA Connections
Automotive Distribution Network


CAWA's Gala Annual Event - Sponsored by Motorcar Parts of America and Featuring Malcolm Sissmore of Delphi

Malcolm Sissmore of Delphi Products & Service Solutions will keynote CAWA's 2016 Gala Dinner to "kick -off" Industry Week in Las Vegas. The gala will be held at Caesar's Palace on Sunday evening October 30, 2016. All proceeds from the event, which is exclusively sponsored by Motorcar Parts of America, will benefit the CAWA Memorial Scholarship Fund (which promotes quality and high standards through education within the auto care industry).

To register for the event click here.
MPA Delphi


Arizona Ballot Propositions Discussed Here

Arizona FlagOur Phoenix based legislative advocate, Stuart Goodman of Goodman Schwartz Public Affairs, has published a voting guide to the ballot propositions to be decided during the November general election in Arizona. The focus is to provide interested parties with an unbiased review of the ballot propositions along with the commonly used arguments utilized by the proponents and opponents of each measure ( click here). For more information or further explanation of the ballot measures contact Mr. Goodman at sgoodman@goodmanschwartz.com or 602.617.5708. Another member benefit.




House Passes Bill to Delay Overtime Rule

The U.S. House of Representatives passed the Regulatory Relief for Small Businesses, Schools and Nonprofits Act ( H.R. 6094) to delay the implementation of the U.S. Department of Labor's overtime rule from Dec. 1, 2016 to June 1, 2017. 

The bill passed by a vote of 246-177, just before Congress adjourned for its pre-election recess. The bill was introduced by Rep. Tim Walberg, R-Mich. and quickly gathered 76 co-sponsors. Upon passage Congressman Walberg said, "We all agree we need to modernize our nation's overtime rules, but small businesses, nonprofits, and colleges and universities should not be hurt in the process." 

The rulemaking, released this past May, made significant changes to the existing exemption from overtime regulations, including doubling the salary threshold to $913 per week ($47,476 per year). There are currently two lawsuits pending on the rulemaking that were filed in the state of Texas on Sept. 20. The bill has moved to the Senate where its future is unknown. President Obama has already threatened to veto the legislation.



Changes in Workers Compensation Law Coming Soon

There is a significant change in workers' compensation which will impact those that currently have coverage excluded for owners, partners or managing members. If you currently have corporate owners with less than 15% ownership, you will not be able to excluded them. If you are an LLC you can only exclude managing members. Many LLCs have members who are not managing members so this will need to be changed. Note, all excluded people on a workers' compensation policy will need to sign a new waiver of coverage prior to January 1 2017. 

For further information click here and to discuss how this may impact your business, please contact our insurance partner, Glen Dailey of Armstrong & Associates at 800.632.2777 or gdailey@armstrongprofessional.comAnother member benefit. 



DIY Outlet Share Changes - How Does this Impact Your Business

"As the Do-It-Yourself (DIY) light vehicle market recorded a modest sales uptick from 2010 to 2015 at user-price, a significant portion of DIY product share shifted among the six major groups of DIY outlets. Half of the six DIY outlet groups increased their DIY product share, while DIY share losses were suffered by the other three outlet groups. Retail Auto Parts Stores achieved the largest DIY product share gain, followed by the residual category of Other Outlets (which includes Internet sales) and Discount Stores/Mass Merchandisers. Jobbers, Vehicle Dealers, and Drugstores/Supermarkets each controlled less DIY product share in 2015 than five years earlier." For further information regarding DIY impacts, click hereSource: Jim Lang, Aftermarket iReports


A Lot of Members Have Faced This Issue Before - What About You?

Legal QuestionsA repair garage customer paid me, via company check, for parts he had purchased through my business. Obviously, the customer had a business account at the bank. The check bounced. Now I cannot collect the money he owes me. Isn't this illegal? Is there a statute that says it's so? Is my only option to take him to small claims court? However, if it's illegal and criminal, is there any authority I could turn to in order to report this law violation? 

See our attorney's answer to this problem ( here). Recall, as a member you can receive up to ½ hour each month of FREE legal consultation regarding situations such as the one described here. See www.cawa.org for the attorney in your state. Another member benefit.



Do You Import Through the Ports in Seattle and/or Los Angeles/Long Beach?

The following message could be important for any of our members that import through Seattle or the Los Angeles/Long Beach gateways that are saddled with empty Hanjin containers they've been unable to return. Effective immediately, Hanjin Shipping will allow ALL Hanjin OWNED empty containers to be terminated at either Terminal 46 in Seattle or Pier T in Long Beach. This DOES NOT apply to leasing company containers OR Hanjin SALS/LEASE-BACK containers. 

The attached list ( here) indicates Hanjin OWNED containers that are in the Southern California / Pacific Northwest vicinity and are eligible for return to HJS at the TTI facilities. If it is not on the lists, it cannot be terminated to HJS! Also attached are contacts for all of the major leasing companies; contact them for disposition of their containers ( here).



CAWA Members Meet Your New STAPLES Representative

This is Michele Heumann and I am excited to introduce myself as your Staples Advantage account manager. I will be your point of contact. 

Here is my contact information: (888) 224-3784 ext. 4174; (407) 475-4174 (Direct); fax- (800) 501-7658; email: Michele.Heumann@staples.com ; website www.staplesadvantage.com .

StaplesAdvantage.com offers much more than just office supplies. I am here to provide solutions for EVERYTHING your company needs to succeed. As always, our award winning customer service team (1-877-826-7755) will be able to assist you with:
  • Small orders
  • Returns/exchanges
  • Tracking orders and backordered Items
  • Product research
See the enclosure for more information on our products ( here). Another member benefit. 



Here are FIVE Top Reasons to Post Your Position on CAWA's Auto Care Industry Job Board

Sales
The CAWA Careers Industry Job Board is not only a source for invaluable information, including standards, guidelines and education, but we are also one of the best resources for finding the most qualified candidates in the industry. With the Industry Job Board, you'll have the tools to find experienced applicants at your fingertips. For more information on this industry specific career center for companies recruiting and individuals looking to see what auto care jobs are available, contact our President & CEO, Rodney Pierini, at 800.332.2292, ext. 1 or admin@cawa.orgAnother member benefit.


"CAWA - Representing the Automotive Parts Industry"
Copyright 2016, All Rights Reserved 

Sunday, October 9, 2016

October 4, 2016



Thank You to Our Sponsor of This Edition of CAWA Connections
Delphi


Malcolm Sissmore of Delphi to Keynote CAWA's Annual Gala During Industry Week

Malcolm Sissmore of Delphi Products & Service Solutions will keynote CAWA's 2016 Gala Dinner to "kick -off" Industry Week in Las Vegas. The gala will be held at Caesar's Palace on Sunday evening October 30, 2016. All proceeds from the event, which is exclusively sponsored by Motorcar Parts of America, will benefit the CAWA Memorial Scholarship Fund (which promotes quality and high standards through education within the auto care industry).

To register for the event click here.
MPA Delphi 


Telematics - The Sought After Data from the Vehicle - Do You Know the Latest Statistics?

Access to embedded vehicle telematics is a significant issue for the independent auto care industry. Telematics could be either a very real threat to the industry or a tremendous competitive business opportunity. Recently, the Auto Care Association conducted research regarding telematics in preparation for educating consumers, industry members and policy-makers. See the enclosure ( here) to understand the findings of this most important research.

Telematics
Telematics


Increased E-tailing in Auto Parts Channel Presents Distribution Challenges

Electronic retailing, or e-tailing, is the fastest growing trend in the automotive aftermarket, according to the Auto Care Association. The shift to e-tailing in the automotive aftermarket will grow at about 17 percent a year during the next 20 years, from a $6 billion market in 2014. Given those numbers, auto parts e-tailing should reach $13 billion in 2019 and $24 billion in 2024. See more information regarding e-tailing in Richard McKeon's blog ( here).


CAWA Has a New Insurance Partner in Arizona and Nevada

CAWA is proud to announce a new insurance partner in Arizona and Nevada. Reliable Risk Management will actively partner with CAWA by providing exclusive insurance solutions to our members. As your independent broker their team works for you, not the insurance company. Through their current involvement in the auto care industry on a local and national level, they stay current with changes relevant to CAWA Members. For more information on Reliable Risk Management see the enclosure ( here). Another member benefit. 

Reliable Risk Management


Employers Should Have Reasonable Suspicion for Drug Testing Workers

"Can I drug test my employee who is acting strangely and not answering questions correctly? His behavior is very suspicious." 

Every California employer can require pre-employment drug testing as one of the last steps in the hiring process. Once someone is an employee, however, he/she has a higher expectation of privacy. See the enclosed article ( here) from our colleagues at the California Chamber of Commerce. 

Recall, too, as a CAWA member you can receive up to ½ hour a month of FREE legal consultation on matters such as this. See www.cawa.org for the attorney in your state.  Another member benefit.
 

Governor Signs Battery Bill - CAWA Will Keep You Informed of Your Responsibilities as a Battery Manufacturer - Retailer - Distributor
AB 2153 ( here) represents a collaborative effort to codify an extremely effective recycling program for lead acid batteries and also enact a method to fund the clean-up of the communities around a former lead acid battery recycling facility in the Los Angeles area, which is in Assemblymember Garcia's district. CAWA, along with the Auto Care Association, Battery Council International and Coalition for Auto Repair Equality (CARE) joined efforts to ensure the legislation addressed the lead contamination problem while not disrupting the current existing successful battery recycling system or imposing fees on the retail industry.  

"The final bill signed by the Governor represents a working compromise which addresses the environmental issues of concern as well protect the current lead acid battery recycling system between retailers and consumers, which boast over a 98% success rate", according to Rodney Pierini, CAWA President & CEO. 

To see Governor Brown's support language for AB 2153 click on this link:https://www.gov.ca.gov/docs/AB_2153_Signing_Message.pdf

AutoCare Assn Battery Council CARE 

What is CAWA's PAC and Why Do We Have One?
The Association created a Political Action Committee (PAC). A PAC allows CAWA to: sponsor legislative bills to promote and protect its members and the industry it serves, as well as, award political contributions to increase the visibility and understanding of the Association and its members' issues.

In short, a PAC allows an individual business to make a greater impact in the public policy arena than if they acted alone. The PAC also educates members of the legislatures on issues and situations that matter most to the Association and its membership. Absent these efforts, elected officials might not realize the importance of our industry to their constituency or how issues they are deciding might impact both auto care businesses and their customers, the motoring public. Thus, the CAWA PAC helps strengthen our Association's voice by supporting key decision-makers who truly understand our industry and the work we do. The political climate is constantly changing and it is important that we have resources to help look out for the best interests of our industry.

Every member has the opportunity to contribute to the PAC when they pay their dues invoice. It's not a lot of money but it does contribute to the overall effectiveness of the PAC and sustains it into the future.

For more information on the PAC and where the funds go, contact Rodney Pierini, President & CEO at 800.332.2292 or admin@cawa.org.

Dealer Bay Bounceback - A Reality?
Vehicle Dealers were the fastest growing light vehicle repair outlet group in the U.S. from 2000 through 2007. Dealers added $4 billion in product volume through their service bays over that eight-year span and were on course to replace Service Stations and Garages as the largest light vehicle repair outlet group. However, all that changed abruptly as the Great Recession of 2008 stormed in, triggering a catastrophic service bay sales decline for Dealers that was unprecedented in the car and light truck repair market. Vehicle Dealer bay business bottomed in 2012, down more than $3 billion in product sales from just five years earlier. But all that is now behind them, and in the past four years Vehicle Dealers have reversed their fortunes in the car and light truck repair market. Read more here: http://www.ireporthub.com/cawa/post5.html.Source: The Lang Aftermarket iReport
 

Is Selling Changing? What Do You Think?
Sales
While the internet, social media, and advances in technology have altered some of the peripheral aspects of selling, the foundational principles and keys that lead to sales success have remained the same. For example, 99.9% of the time failure in sales is due to a lack of activity. In other words, not making enough calls. Now that we have the internet, some sales reps spend hours looking up background information on prospects before they call them. This is a mistake. Look up the information a prospect would reasonable expect you to have, but don't spend hours being perfect. Just look up some quick information and make the call. For more on selling ideas, see the enclosed article ( here) by John Chapin.

Can You Fire Someone Because They're Not a Good 'Fit' for Your Culture?
Most employers understand that they may not terminate someone for being a member of a protected class (or otherwise having protection under the law). But in states where at-will employment is the law of the land (all states except Montana), any other reason is fair game. Theoretically, then, an employee who isn't getting along with his or her coworkers (and who has no contractual promise of employment) could be fired for a lack of chemistry. However, one recent case reminds employers that they must consider both the company's actual reason for termination and also what could appear to be the reason for firing an employee. Read more hereSource: Katie Loehrke

What's New in Credit Card Processing that You Should Know?
The last couple years have brought about a lot of changes within the merchant services industry, from new security measures to new methods of payment, and everything in between. Click here a brief run-down of the more notable changes and updates. Feel free to call our partner, Todd Lazar at 888.737.7762 for more information on processing credit cards. Another member benefit.
Superior Financial Systems 
"CAWA - Representing the Automotive Parts Industry"