The automotive aftermarket is a massive economic force, generating $53 billion in annual sales and a total economic impact of $337 billion. At the helm of its most influential organization, the Specialty Equipment Market Association (SEMA), is Mike Spagnola, a lifelong enthusiast who transitioned from building companies to leading the entire industry as SEMA’s CEO.
Spagnola’s automotive journey began from an obsession with the sounds, sights and smells of muscle cars rumbling past his childhood home. His career was then ignited by a $200 scholarship from industry legend Mickey Thompson, which he won as the top student in his high school auto shop class.
Before leading SEMA, Spagnola spent decades in the trenches of the automotive industry, most notably by building Street Scene, a business that became a fixture in the lowered-truck, muscle-car and tuner market. On this episode of the “Only The Strong Survive” podcast, Spagnola shares with host Dan Kahn the vital role SEMA plays in the automotive aftermarket industry and what he has learned from his many years in the business.
Click on the icon above to listen to the entire episode, and here are our five top takeaways:
Advocacy for the industry isn’t flashy, but it is vital.
You have to make your “tent” bigger.
At the SEMA Show, it is about finding a balance between B2B and consumer audiences.
Learning to delegate is a powerful skill.
A shared passion can bond anyone.
Advocating For and Protecting the Industry
One of SEMA’s most critical functions is its extensive advocacy for the industry in Washington, D.C. The organization has tripled its government relations budget to protect enthusiasts’ rights to modify their vehicles and access to public lands for recreation. While it might not get as much attention as the SEMA Show, doing so is vital for the industry’s future.
“We have to stand up for our rights to continue to be able to modify, continue to be able to do off-roading and continue to be able to have racetracks available,” said Spagnola. “In the off-road community, they say, ‘No trails, no sales.’ It is more than just protecting trails; it is really protecting that lifestyle.”
Expanding SEMA’s Tent
Under Spagnola’s leadership, SEMA is actively expanding its reach into the powersports and the off-road lifestyle markets. By bringing these segments further under the SEMA “tent,” the organization hopes to provide better representation and protection for all forms of motorized recreation. SEMA’s recent purchase of the Off-Road Business Association (ORBA) and the inclusion of side-by-sides at the upcoming SEMA Show are a reflection of its commitment.
“Through the purchase of ORBA and some of the other things we are doing, we are really paying attention to the whole off-road community now,” said Spagnola. “We want to make sure they are protected, and we want to see them grow. We are going to be doing a lot of work this year at the SEMA Show and are doing a full powersports area and starting to grow West Hall with trucks, off-road trucks and side-by-sides.”
The Evolution of the SEMA Show
The SEMA Show is easily the largest gathering of the automotive aftermarket industry in the world. However, there has always been a struggle with whether the show should be strictly business-to-business or more consumer-facing. For Spagnola, it is about balancing the needs of all SEMA members while continuing to evolve the show.
“There are still lots of mom-and-pop guys that come to the SEMA Show every year, so we need that business-to-business connection,” said Spagnola. “A lot of people now are just looking for eyeballs and branding. They just want to make sure that the consumer sees them and knows them. If you take a Meguiar’s or even Ford Motor Company, they want to see consumers and show their products to them. So you do need a consumer side, which is what we do now on Fridays and with the outdoor activities.”
Don’t Be Afraid to Delegate
Reflecting on his career, Spagnola identified delegation as one of his greatest early challenges. Early on, he believed in leading by doing every task himself, but he eventually realized the value of empowering his team. He now focuses on providing support and encouragement rather than trying to be “the guy that’s the best at everything.”
“I really had to learn to delegate. I really had to learn to trust. I really had to learn to surround myself with the best people,” said Spagnola. “That even involves your ego sometimes, with saying that you are going to let them do it to the best of their ability and trust them to do it and continue to trust them until there is a reason not to.”
We All Share a Passion
It is not hyperbole to say that we live in extremely polarized times. However, one thing that unites many people, regardless of who they are or where they live, is a shared passion for cars. No matter where Spagnola travels across the world, he always seems to find and form a bond with other car people.
“I’ve said for years I think we could solve world peace if we just talked cars,” said Spagnola. “We find each other, and we share that love and that passion that, I don’t know if I can put the right words together, but you just start to smile and chuckle and find this common ground. People can be so polarized today, yet when you start talking about cars and who they are and what they drive, it’s just fun. It’s just cool”.
