The aftermarket's support in the nation's capital remains strong at the grass roots level.
Taking in the daunting size of the nation's capital, one feels miniscule by comparison and relevance. But as you go about your daily business, perhaps not even thinking of what's going on in the halls of Congress, there is an aftermarket lobbying effort hard at work helping your company thrive and advocating the issues that might impact you the most.
Lobbying has been around as long as the U.S. government, and it's known that money buys influence with politicians, many of whom are scrambling for any political donation they can get their hands on.
But when you look at the presence the aftermarket has in Congress when compared to other industries, especially the competition, the disparity can be exasperating.
General Motors (GM) and Ford Motor Co. were two of the biggest lobbying spenders between 1998 and 2006, with $71 million and $68 million, respectively, tucked into government pockets, according to the Center for Responsive Politics, a nonprofit and nonpartisan watchdog group that tracks the money that goes through Washington, D.C.
But the aftermarket has what many other industries lack: a truly supportive grass roots base. In fact, if all of the industry's constituents banded together and fully engaged their respective legislators, their voices would resonate far louder than anyone could imagine.And legislators do listen to your concerns if you take the time to call or write, say Washington-based industry representatives.
"Writing letters, meeting with your congressman can do a lot," says Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA).
But the bottom line is a lobbyist is only as good as the money behind him or her.
Federal lobbying in 2006 was $2.45 billion, up 1.7 percent from the previous year, according to the Center for Responsive Politics. However, lobbying money grew 10 percent in 2005, the Center adds.
Last year, the automotive industry contributed about $57 million to government coffers, the group notes, with $13 million coming from the Alliance of Automobile Manufacturers (AAM), $9 million from Ford, $8.7 million from GM, $6 million from Chrysler, almost $5 million from Toyota Manufacturing in North America and more than $1 million from the National Automobile Dealers Association (NADA).
By comparison, the Coalition for Auto Repair Equity (CARE), one of the catalysts for trying to push the Vehicle Owners' Right to Repair Act through Congress, gave $220,000, and the Specialty Equipment Market Association (SEMA) handed over $150,000 in 2006.
A number of aftermarket manufacturers also donated lobbying dollars, but nowhere near the amounts doled out by the carmakers and their interest groups. It's also important to keep in mind that the interests of many of the suppliers are split between the aftermarket and the original equipment industry.
One factor that could be hindering the aftermarket in Washington is the lack of political action committee (PAC) dollars, posits Lowe.
"We could be more influential if we had more money for political action committees," he admits. "And our power stems from that. You have to distinguish yourselves in Washington. You have to show that you can bring something political to bear. We could be more politically influential if we had the political action dollars."He says not all political money is "dirty," as some might think. "Political money helps you get access. People need money to get elected."
The Motor & Equipment Manufacturers Association (MEMA), another group representing an aftermarket constituency, has a staff of just fewer than 10 members who plan to ramp up their presence in Congress.
"This industry has decided to take on a more aggressive and more central role when it comes to legislators in D.C.," says Ann Wilson, MEMA's vice president of government affairs. "We really try to be driven by our membership. We have a government affairs committee that we work with very closely."
A day in the life of a lobbyist
Washington lobbyists are incredibly busy people, especially as they attempt to keep up with legislators and their respective staffers.
"There's not any shortage of things to do," says Lowe, adding a typical day for him is anything but typical. Many days are spent meeting with staff members on Capitol Hill. Other days, he meets with agencies and state representatives; a great deal of the industry's pertinent issues are debated at the state level, like the Right to Repair Act, as well as safety laws and mandatory OEM warranties.
"One of the most important jobs a lobbyist has is to be an educator," says Wilson, who adds whether it involves legislation related to Chinese currency or vehicle safety standards, MEMA is perpetually hard at work informing its members of these issues. of these are easy issues."Though MEMA has limited resources, suppliers are the largest manufacturing sector in the country, says Wilson, who plans to educate Congress in the coming months as to this industry's strengths.
"For every manufacturing job, we create at least five other jobs," she adds.
"When you see the (manufacturers) come together, I think it's pretty powerful," says Steve Handschuh, president and COO of the Automotive Aftermarket Suppliers Association (AASA), a division of MEMA. "Ann works in conjunction with other trade associations in Washington. We're the only association that exclusively represents manufacturers."
Government affairs are an extremely important aspect of MEMA, Handschuh adds. A government affairs committee meets once a quarter, and every board meeting includes a government affairs update, says Handschuh.
For association members who would like to become more involved in government operations, membership on the government affairs committee is open to anyone interested, Wilson shares.
The big issues
Aftermarket lobbyists in Washington are focused on a few key issues vital to the industry's survival.
For AAIA, the biggest concern is passage of the Right to Repair Act (HR 2694), which, at press time, had gathered 23 co-sponsors. The proposal, which has been introduced three previous times at the federal level, seeks access to repair information for independent technicians. U.S. Rep. Edolphus Towns, D-N.Y., introduced the proposal in June.
This time around, says Lowe, there is a component in the proposal that allows for a private right to action, or a consumer's ability to sue an automaker that doesn't make repair information available.
This right to action was stricken from a Right to Repair proposal last year, which caused dissent among lawmakers, especially Democratic legislators who proceeded to remove their sponsorships from the proposed bill. Many Democrats are on board as sponsors of the current proposal.
Lowe says the industry must stress to lawmakers that Right to Repair is, at its core, a consumer issue.
Another prominent concern that transcends all industries is the rising cost of health care.
In the health care realm, independent businesses have been fighting for substantial reform for at least a decade, says Amanda Austin, manager of legislative affairs for the National Federation of Independent Business (NFIB), who spoke at AAIA's Legislative Summit in June.
One such reform, she says, is "pooling," or spreading an insurance plan over a large group, which can lower premiums and better empower small businesses to attain affordable health care coverage. She says the new Congressional makeup can pave the way for health care reform, which has been discussed by Democrats and Republicans.
Additionally, "the states are doing a lot right now on health care. The question is, how are we going to pay for it? Are we going to pay for it on the backs of business?"
Looking ahead to 2008, she adds, "if we have a Democratic president, we'll see some significant movement on a health care bill."
Also being discussed among lobbyists is small business health plan (SBHP) legislation, which would give smaller businesses the same advantages as Fortune 500 companies and unions. AAIA is a member of a group of more than 200 nationwide trade associations, which represent more than 12 million employers and 80 million workers dedicated to endorsing SBHP legislation.
MEMA also has focused its efforts on health care, as well as intellectual property protection and anti-counterfeiting laws, says Wilson. The group is further focused on the federal energy debate.
In addition, MEMA has lobbied for help from the National Highway Traffic Safety Administration (NHTSA) for rewrites of motor vehicle lighting standards.
For now, the associations that represent this industry will keep plugging away at the state and local levels, getting the word out and spreading the grass roots message. But there will be room for improvement for some time.
Says Lowe: "This industry definitely has room to grow as a powerhouse in Washington."
