CAWA remains opposed to Assembly 701 (Gonzalez) related to warehouse distribution centers, as amended on September 3rd.

California is home to thousands of warehouse distribution centers, many of which are located in regions where good jobs can be difficult to come by. Distribution centers provide quality jobs to hundreds of thousands of working-class Californians.

Today, this sector is booming: according to U.S. Department of Labor data, wages in the transportation and warehousing sector have risen more than 17% in the past year. See the letter expressing why the Association and many other business groups are opposed to AB 701 here.

Unfortunately, as of this date, the bill passed the legislature and is now on the governor’s desk for his signing. Stay tuned…

To stay apprised of issues impacting the automotive aftermarket, learn of local trainings and events coming to your area, in addition to the many benefits CAWA offers its members, see how you can get connected via website, newsletter, social media. See here for more details.

IMR Inc., the industry’s leading full-service automotive market research firm, has released its latest insights on independent repair shops’ ecommerce purchasing behavior. IMR Inc., the industry’s leading full-service automotive market research firm, has released its latest insights on independent repair shops’ ecommerce purchasing behavior.

In July of 2021, IMR Inc. interviewed 500 independent repair shops, nationally representative by location in the U.S., to understand their use of public ecommerce websites like Amazon, eBay, RockAuto, JC Whitney and others, for the purchasing of automotive parts.

In 2019, 36.2% of independent repair shops indicated that they purchase parts from these public ecommerce websites, while in 2020, 74.7% indicated public ecommerce websites as a method of parts purchasing. As of July 2021, 50.2% of shops are using public ecommerce websites to purchase parts and 45% of shops reported that they are purchasing “a little less” or “a lot less” from public ecommerce websites, compared to last year.

See more information here. Source: Aftermarket Business World

The legislation, in part, protects consumers who purchase revived salvage vehicles. It combines and renames the current brake and lamp program to the vehicle safety inspection program and provides BAR the authority to develop additional inspection criteria through regulation. See the Coalition’s letter encouraging the Governor to sign AB 471 here.

Thanks to all the members of the Coalition who served on CAWA’s Vehicle Safety Inspection Task Force that guided the association through the legislative process.

California’s Labor Commissioner has weighed in with a series of Frequently Asked Questions about who pays for the cost of COVID testing and vaccination, and whether wages and expenses are owed to the employee.

See discussion here. Source: Our Friends at the California Chamber of Commerce

Aftermarket retail sales have performed well despite the decrease in vehicle miles traveled. As noted, the state of the industry is strong—IHS Markit forecasts the aftermarket to rebound strongly this year.

After losing 5.3% in 2020, the industry is projected to climb 11.2% in 2021, then by 4-5% per year from 2022-2024, according to the Auto Care Association and AASA Channel Forecast Model. The strong rebound is more pronounced for the automotive aftermarket than it is for the general economy. The Conference Board expects 6.6% year-over-year growth in U.S. GDP in 2021, and the Congressional Budget Office expects the economy to grow by 7.4% in 2021, then 3.1% in 2022, according to The Washington Post.

The automotive aftermarket demonstrated its resilience and adaptability since the onset of the pandemic. While challenges persist, confidence abounds that all aspects of the supply chain will continue to demonstrate their resolve, innovation and agility throughout the balance of the year and into 2023.

See more information here. Source: Auto Care Insider Weekly

Alternative power vehicles currently make up only 1% of light vehicles in operation, according to SEMA. Eighteen of the top 20 global automakers, which together represent around 90% of new car registrations worldwide in 2020, plan to widen their portfolio of alternative power models and scale up their production of electric vehicles. However, three-quarters of Americans still prefer gas or diesel and have concerns about charging infrastructure, driving range and price. Also, alternative power vehicles remain a niche market for the specialty-equipment industry, accounting for just 1% of specialty-equipment retail sales in 2020. See complete article here. Source: aftermarketNews

Paying too much for AUTO INSURANCE? We have access to new markets!

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See information enclosed here. Contact Glen Dailey at 800.632.2777 or gdailey@armstrongprofessional.com.

Nevada Governor Sisolak's last directive prior to the delegation of authority over most mitigation measures to the local governments on June 1 provided that the state's mask policy would automatically mirror the recommendations of the Centers for Disease Control.

In alignment with the recently updated CDC guidance on masking, Governor Sisolak issued a directive (see enclosed here) which requires that as of Friday, July 30, Nevadans in counties defined by the CDC as being at substantial or high risk of transmission of COVID for at least two weeks in a row (currently, all Nevada counties) must wear masks in indoor public spaces, regardless of vaccination status. The CDC's determination of risk level is based on case rate and test positivity, and more information can be found here.

The Coalition believes the reforms included in legislation will help address longstanding, systemic supply chain and port disruption issues which have been further exacerbated by the COVID-19 pandemic.

The ongoing supply chain challenges that face the nation’s exporters and importers are having a significant effect on their economic recovery during the pandemic. While the supply chain has been stretched from end-to-end, there are systemic issues that need to be addressed in the maritime cargo sphere. For many years, the issue of detention and demurrage has been a problem leading to significant cost increases for cargo owners and truckers, many times due to issues beyond their control.

The Coalition certainly welcomed the Interpretive Rule on Detention and Demurrage as published by the Federal Maritime Commission, but we need more than just “guidance” that is not being followed by ocean carriers nor marine terminals, leading to hundreds of millions of dollars in unfair penalties against US shippers and their transportation partners. The legislation will seek to formalize this rule and truly define the parameters for these charges.

See the full support letter here.

For federal income tax purposes, CAWA dues may be deductible as a business expense but not as a charitable contribution. CAWA estimates that 42% of your dues for 2021 are not deductible as a business expense because they are attributable to lobbying as in accordance with the 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.