We have arrived at the crucible of the COVID-19 pandemic. Containment measures are tightening to combat a more severe second wave of the virus. Simultaneously, the availability of several highly effective vaccines appears imminent. While not technically mutually exclusive, these two key developments have very different implications for the automotive industry. Our baseline outlook is being squeezed between these two poles. Read more here. Source: HIS Markit

The following Board members have been elected to three year terms:

See your Association in action and participate with your industry colleagues by registering for this virtual meeting on February 11-12, 2021. See the program, including guest speakers, contemporary automotive aftermarket issue discussions, and registration materials here. We hope to “see” you there!

As California enters a new 2-year legislative session, the COVID-19 virus will still have a stronghold over the conduct of the public’s business. Committee hearings and floor sessions will be fewer and will be conducted via virtual testimony for the most part. It seems that legislative members, staff and lobbyists have become accustomed to not doing business in-person.

In order to manage the smooth movement of legislative bills, legislative leaders have strongly suggested to their members a very restricted number of bill introductions this year. Bills will move forward according to leaders and committee chairs inputs and approvals.

Democrats continue to hold super-majorities in each the California Senate and Assembly, as well as every constitutional office. Secretary of State Alex Padilla has been tapped by Governor Newsom to fill the vacancy created by US Senator Kamala Harris’ election as Vice President of the United States. Assemblymember Shirley Weber has been selected by the Governor to replace Padilla. In addition, State Attorney General Xavier Becerra has been selected by President-elect Joe Biden to serve in his cabinet as Secretary of Health and Human Services. All are democrats. Becerra’s replacement, which will eventually be appointed by Newsom, will occur upon Becerra’s approval by the US Senate.

Governor Newsom on Friday unveiled a record $227 billion January spending plan for fiscal year 2021-2022 that marks a dramatic reversal from summer fears of a financial recession. Cash income for the state was fueled by top income-earners submission of capital gains from stock market gains Newsom is proposing immediate action on business stimulus, including a new round of half a billion dollars in small business grants, $430 million in grants and tax credits for expanding businesses or those moving into California, and $71 million in fee waivers for restaurants and other firms forced to close during stay-at-home orders.

Topics appearing to have legislators' interest this year will continue to build upon last year's issues; employee COVID-19 virus protections from employer actions that restrict their use of sick leave, medical coverage and employment repercussions; environmental impacts especially plastic packaging recycling and land disposal issues; homelessness.

For more information or questions, contact our California based legislative advocate, Gary Conover at 916.233.9655 or gary@garyconover.com.

At this moment, how the session might look in Nevada is still an open question. The Legislature is constitutionally required to meet for a maximum of 120 days, beginning the first Monday of February in odd-numbered years, which for the 2021 session will be February 1.

There were two special sessions over the summer to deal with budget issues, both of which were held entirely remotely: while all legislators were on site in Carson City to be sworn in, not all remained at the capitol throughout the sessions and some video- or tele-conferenced in. All testimony was heard via phone in public comment periods, with no more than 2 minutes being allowed to be offered, and there was no in-person access to the building or legislators.

It seems most likely, given the continuing severity of the COVID situation and the timeline for vaccination, that at least the beginning of session will be held virtually, with legislators holding meetings via video- or tele-conference and conducting committee hearings through livestreamed video-conferences. The exact parameters, however, are still unknown. The general consensus seems to be that issues regarding budget and continued COVID response will be prioritized and that they are unlikely to process as many bills as they would in a typical session.

For more information or questions, contact our Nevada based legislative advocate Gabriele McGregor at 205.765.5679 or gabriele@theferrarogroup.com.

See the enclosed report (here) from our legislative advocate in Phoenix, Stuart Goodman. He can be reached at 602.617.5708 or sgoodman@goodmanschwartz.com.

CAWA appreciates their support. Thank you!

See here for more information.

Here are some facts about the human brain and human nature that may shed some light on some areas where you seem to be stuck. Because this is a relatively short article, I’m not going to go into all the psychology and background.

See more discussion here. Source: John Chapin

California’s minimum wage has increased on January 1, 2021 to $14 per hour for employers with 26 or more employees and $13 for employers with 25 or fewer employees.California is the first state in the nation to commit to raising the minimum wage to $15 per hour statewide by 2022 for large businesses, and by 2023 for small businesses. The 2016 law increases the minimum wage over time consistent with economic expansion, while providing safety valves to pause wage increases if negative economic or budgetary conditions emerge.

For more information click here.

The Automotive Aftermarket Charitable Foundation (AACF) has spent over 60 years serving thousands of members in the automotive aftermarket and their families who've suffered from tragedies including sudden death, illness, and life altering accidents. The AACF's mission is to "provide sustainable solutions for those in great need," and is committed to sharing their services and benefits with the automotive aftermarket community of employees, companies, and families.

The AACF welcomes any company to offer this benefit to its employees by participating in their Awareness Partner Program. At no cost to participate, the AACF will provide your company with resources detailing the services offered by the AACF. If you or someone you know needs support or assistance - please call the Automotive Aftermarket Charitable Foundation directly at (772) 286-5500, via email at info@aacfi.org, or visit their website AftermarketCharity.org.

This edition of Market Insights with Mike provides a wrap up of the year’s developments in the automotive aftermarket. Mike Chung, Director of Market Intelligence, Auto Care Association, gives a tour of the “Indicators Amusement Park” with all of its twists, turns and drops. Once strapped in for the ride, Mike will take you on a journey through all the trends the Auto Care Association tracked during 2020, including working from home, distance learning, travel, vehicle sales, industry sentiment and more.

Recreational marijuana is now legal in Arizona after voters approved Proposition 207, and that will pose some new challenges for employers, said Julie Pace, a Phoenix attorney who specializes in employment and cannabis law. There also is confusion about what the implications are for both employers and employees, said Pace, an attorney with Gammage & Burnham, who spoke with Chamber Business News about what business owners need to know in moving forward. See here for details.

Inventory Management Vol. 2 updates some topics in Pete Kornafel's Inventory Management and Purchasing book published in 2004. The original book is still in print, and much of it is still "best practice" for forecasting and purchasing inventory for hard goods distributors.

This Vol. 2 book includes new material on SKU level forecasting with the addition of external data, a big new section on store assortment planning, some "best practice" techniques for managing special situations such as multiple sources, hub-spoke store networks, promotions, category management and supply chain collaboration.

All the content is of my own design with what I feel is "best practice" in each of these areas. And this Vol. 2 has some observations about the future of the automotive aftermarket in the U.S. This includes the impact of the COVID-19 pandemic in the (hopefully) short term, and some longer-term factors that will, over time, profoundly change the aftermarket.

Order here: Inventory Management Volume 2: And Some Observations About the Future of the Automotive Aftermarket: Kornafel, Pete: 9781728369693: AmazonSmile: Books

The CAWA Career Center is more than just a place to post job opportunities. In fact, we offer something of far greater value than other recruitment sites. We are an engagement platform that brings you even closer to the type of talent that you are looking for. Our job board is built around an established community of state and national trade association members, students and industry professionals; creating an opportunity to network with others in the field and build an employer brand that extends beyond the job board. Visit www.cawa.org to begin your search for talent for your company. Another member benefit.