Society of Automotive Engineers 2005 Global Membership and

1. Society of Automotive Engineers 2005 Global Membership and Customer Needs Assessment and Satisfaction Study Together, Listening to the Voice of the Membership and Customer Presented to: Local Sections Board by J.D. Power and Associates April 5,2006 Troy, Michigan

2. Background and Objectives • QIC sanctioned research program beginning in 2001. • This 2005 survey is a comprehensive study, like the 2003 program, and permits a comprehensive trended assessment of member and customer needs. • Research program’s objectives are to explore actionable items related to current member, past member, and non-member customer satisfaction and retention issues related to the full range of SAE activities of: • Membership • Engineering Conferences, Meetings, and Exhibits • Technical Standards (users and committee members) • Local Sections (new questions for 2005: interest in virtual on-line sections; and interest in serving on local sections leadership team) • Student Design Competitions • Collegiate Chapter Meetings (new) • Mentoring (characteristics) • Publications (new) • Professional Development Seminars (new) • A World in Motion (AWIM) (new) • Third in a series of global membership and customer satisfaction studies. This survey was designed to track member and customer satisfaction, value, and renewal levels while adding new survey areas.

3. Methodology • On-Line Global Internet English language survey conducted November 7-30, 2005 • 3,933 total respondents; 10% response rate • Evaluations from four membership/customer groups, two committee groups, and three industry types: Membership / Customer Groups • Local Sections (n=610) • Members (n=2373 = 60.3%) • Student Members (n=201 = 5.1%) • Lapsed Members (n=381 = 9.7%) • Non-Member Customers (n=978 = 24.9%) Committees • Standards Committee members (n=537) • Engineering Meeting Committee members (n=263) Industries • Automotive (including components) (n=1926) • Aerospace (including components) (n=873) • Off-Highway/Truck/Bus (including components) (n=564) • Other (n=570), includes Motor Sports

4. 2005 Evaluations by Country • 72 countries are represented in the survey • Sufficient returns in 12 countries permit a macro-level national analysis SV Canada UK D FR IT USA China Japan Mexico India Australia • Legend: • < 30 survey returns • 30+ survey returns • No Returns

5. Evaluations by Local Sections • There are sufficient returns from 25 U.S. local sections for analysis (n=30+). • U.S. sections in rank order of sample size: • Detroit (n=528), Southern California (n=137), Chicago (n=98), Mid-Michigan (n=95), Dayton (n=87), New England (n=86), Northwest (n=76), Cleveland (n=71), Texas (n=68), Indiana (n=67), Milwaukee (n=62), Arizona (n=58), Carolina (n=53), Philadelphia (n=52), Mid-South (n=51), Washington DC (n=48), Atlanta (n=42), Northern California (n=41), Metropolitan (n=40), Colorado (n=39), Pittsburgh (n=36), Fort Wayne (n=34), Oregon (n=33), Mississippi (n=32), Twin Cities (n=31) • In Canada, an adequate number of evaluations were received from: • Southwestern Ontario (n=83), Central Ontario (n=60), Montreal (n=56), and British Columbia (n=33)

6. Top-Line Summary - SAE Sections -

7. Top-Line Summary • Overall value and satisfaction increases from 2003 (9-10 ratings). Overall SAE performance among customers and members improves for value and satisfaction. Overall value and satisfaction among Local Section participants improves at a greater rate. • Retention and future participation is down slightly (9-10 ratings). Likelihood to continue SAE membership is down slightly from 2003; while future local section participation decreases by a lesser degree.

8. Overall Value by Activity Area 9-10 Diff from 2003 6-10 Diff from 2003 1 5 0 3 4 4 - - - - 0 2 -1 -3 -5 -1 - - - - 67% 52 15 OVERALL VALUE Value for activity area Student Design Competitions 96% Technical Standards Users 82% 80% Engineering Conferences and Exhibits Technical Standards Committee Members 77% Local Sections 71% New in 2005 89%* AWIM 86% Professional Development 81% Publications 77%* Collegiate Meetings * = Small sample size (n<100) - = Trending not available Percentages may not sum due to rounding

9. Overall Satisfaction by Activity Areas 9-10 Diff from 2003 6-10 Diff from 2003 -3 0 -3 -3 -6 0 - - - - 1 3 2 4 0 2 - - - - Overall Satisfaction 73% 54 19 Satisfaction for activity area Student Design Competitions 90%* Technical Standards Users 80% 79% Engineering Conferences and Exhibits Technical Standards Committee Members 74% Local Sections 70% New in 2005 90%* AWIM Professional Development 85% Publications 82% 67%* Collegiate Chapter Meetings - = Trending not available * = Small sample size (n<100) Percentages may not sum due to rounding

10. Likelihood to Renew by Activity Areas 9-10 Diff from 2003 6-10 Diff from 2003 90% -2 1 -2 -2 -7 -4 - - - - -3 6 -2 -1 -9 -2 - - - - Overall Likelihood of Renewal 63 27 Retention for activity area Technical Standards Users 92% Technical Standards Committee Members 88% 83% Engineering Conferences and Exhibits 76% Student Design Competitions 75% Local Sections New in 2005 90% Publications 78%* AWIM 77% Professional Development 48%* Collegiate Chapter Meetings * = Small sample size (n<100) - = Trending not available Percentages may not sum due to rounding

11. Establishing Priorities for Improvement- Things to Keep in Mind - • All attributes impact satisfaction, value, and retention, and thus cannot be ignored • Not all items are directly actionable and may require further investigation and clarification • Budget and resource constraints limit the focus on what can be addressed immediately, short term, and long term • There are important segment differences (i.e., age, student members, non-student members, industry, decision makers, etc.) • Focus on what can most effectively be addressed in order to receive the greatest return on investment

12. Local Sections Relationship Between Importance and Performance for Total Members and Customers WORSE BETTER Indicates priority for improvement based on relative gap between performance and importance

13. Local Sections -Priorities of Improvement by Industry Groups- * = Small sample size (n<100) = Area of Improvement = Key Area of Improvement Note: Off-Highway includes commercial vehicle and truck/bus

14. Local Sections -Priorities of Improvement by Industry Groups- * = Small sample size (n<100) # = Among those 36 years of age or older = Area of Improvement = Key Area of Improvement Note: Off-Highway includes commercial vehicle and truck/bus

15. Local Sections -Priorities of Improvement by Age Groups- + = Noted as a priority at the total level = Area of Improvement * = Small sample size (n<100) = Key Area of Improvement

16. Local Sections -Priorities of Improvement by Age Groups- + = Noted as a priority at the total level = Area of Improvement = Key Area of Improvement * = Small sample size (n<100)

17. Local Sections -Priorities of Improvement Among Younger Members- + = Noted as a priority at the total level = Area of Improvement = Key Area of Improvement * = Small sample size (n<100)

18. Suggestions to Increase Local Section Participation Suggestions for Increasing Local Section Participation Diff. from 2003 More convenient locations/times Topics related to my industry Earlier/better notification of meetings Lack of time (cannot increase participation) Interesting/relevant topics (all fields) Technically advanced presentations/demonstrations Better organization/participation by local members 2 -1 4 5 -8 -8 2

19. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Technical Information Relevant to Current Position • Aerospace members have particularly expressed a desire for more activities supporting their area of focus. Possibly having individual meetings so that the main focus of automotive information within sections is not disrupted. “There is not much Aerospace activity in our area so there is not much opportunity to build a significant Aerospace component in our section. Traveling Aerospace presentations might attract more of the few Aerospace engineers in our area but may be of marginal value to the majority…” Professional Member, Aerospace, Male, Age: 65, Pittsburgh Section “It would be nice to see more Aerospace venues but there is also a large group of automotive members so I am sure it is difficult to split the time between automotive and aerospace and still make everyone happy…” Professional Member, Aerospace, Male, Age: 26, Cleveland Section “Little more emphasis on the Aerospace aspects, maybe some joint sessions with the AIAA groups.” Professional Member, Aerospace, Male, Age: 54, New England Section

20. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Earlier Notification of Meetings • Cited as one of the most frequently mentioned ways SAE can help increase section participation, earlier notification of section activities is an area SAE can focus on to help gain increased participation among sections in the near-term. “Earlier meeting notifications online reservation option.” Professional Member, Automotive, Male, Age: 27, Indiana Section “Lately it seems that event notification has been sporadic. I am not sure if events being held has decreased or if there is problems with the notification procedure.” Professional Member, Automotive, Male, Age: 37, Milwaukee Section “Better planning / notification before event to allow time for planning interesting local topics…” Professional Member, Female, Age: 31, British Columbia Section

21. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Quality of presentations – methodology and speakers • More technical topics and speakers was cited as a priority for improvement “Interesting topics presented by highly-informed speakers. The information should be of a higher technical nature than found in trade magazines or other publications …The meetings are valuable only if one can obtain an insight or some understanding of the rationale behind certain design or marketing decision based on information from a true insider – not on information that can be found in a press release” Professional Member, Automotive, Male, Age: 49, British Columbia Section “… Bringing in outside speakers is appreciated.” Professional Member, Aerospace, Male, Age: 71, Wichita Section

22. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Networking • Networking is an opportunity for improvement across all three industries. “I need networking meetings, maybe some group volunteer work. There is a serious lack of leadership and community…post student status” Professional Member, Automotive, Female, Age: 29, Colorado Section “Incorporate more student to professional networking opportunities into section meetings…” Student Member, Male, Age: 23, Mid-Michigan Section “There is a real need for better career building and networking scenarios” Student Member, Automotive, Male, Age: 46, Detroit Section “…Networking opportunities are failing compared to 5-7 years ago – again, there are not enough people, especially at a higher level, participating.” Professional Member, Off-Highway, Male, Age: 32, Milwaukee Section

23. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Networking – Universities • Several specific mentions for improving networking within local sections included utilizing the local universities to increase participation and awareness. “…there doesn’t seem to be much local section activity. I would like to see more networking between the colleges in the area because I am very sure that students, professors, and professional in the area have a lot to share with each other.” Student Member, Automotive, Male, Age: 23, Leigh Valley Section “It would be better if the local section could be more active to increase its influence throughout the campus where I am studying...” Student Member, Male, Age: 23, Mid-Michigan Section “There is a real need for better career building and networking scenarios” Student Member, Automotive, Male, Age: 46, Detroit Section

24. Opportunities for Improvement for Local Sections:Verbatim Comments “What do SAE local sections need to provide to increase your participation?” Traveling – Younger Participants • The inconvenience of traveling is cited among younger participants as a deterrent of attending meetings. Introducing interactive sessions may help address some of the budget and time constraints surrounding traveling for local section participation. “Many of the meetings are held to far away – the last meeting was a 90 minute drive for me, and the next is 2 hours.” Professional Member, Off-Highway, Male, Age: 29, Twin Cities Section “…[SAE can’t do anything], driving to Flint as a student is just inconvenient.” Student Member (engineering committee), Automotive, Male, Age: 21, Mid-Michigan Section “...Is there any way to participate in meetings via the web” Professional Member, Male, Age: 28, Twin Cities Section

25. Interest in Joining Virtual Sections (Global, among current local section participants; n=590) 58%* 56% Members Customers (Non-Members) * = Small sample size (n<100)

26. Interest in Serving on Leadership Team that Plans Meeting Activities (Global, among current local section participants; n=590) • SAE has the ability to contact those who are interested in serving on a leadership team for planning meeting activities. 41% 41%* Members Customers (Non-Members) * = Small sample size (n<100)

27. Conclusions

28. Local Sections-Conclusion- • The top five priorities for improvement for sections are: • Networking opportunities with peers for career / professional development (also seen in 2003). • Across all sectors and several age groups; particularly among those age 30-35. • Technical information relevant to your current job / position (also seen in 2003). • Across all sectors and age groups. • Learning about leading edge research and technological developments (also seen in 2003) . • Aerospace and CV/Off-Highway; young professionals (age 30-35) and experienced professionals (55+). • Quality of presentations – research methodology (new improvement for 2005). • Noted among CV/Off-Highway participants and nearly all age groups (less those younger than 29). • Having good representation of companies / organizations in your field (new improvement for 2005). • Noted among Automotive and CV/Off-Highway participants. Also across several age groups; particularly among those age 30-35. • Increasing Section Participation: • Having earlier notification of meetings, topics related to member’s industry, and more convenient meeting locations are cited as ways to help increase local section participation.

29. Local Sections-Conclusion- • Value and satisfaction with local sections increased over 2003 (9- 10 ratings) • Retention for all activities is down slightly • Age groups and sectors have unique needs • Interest in a virtual on-line section/community and serving on a local section leadership team is slightly higher for members than non-members (9-10 rating) • Ability to follow-up with those interested in serving on a local section leadership team • Not all items are directly actionable and may require further investigation and clarification • Budget and resource constraints limit the focus on what can be addressed immediately, short term, and long term • Focus on what can most effectively be addressed in order to receive the greatest return on investment

30. Questions and Answers

31. Local Sections Trended Overall Summary Metrics by Sector * Small sample (n=30-99) # Insufficient sample (n<30)

32. Local Sections Trended Overall Summary Metrics by Origin and Age * Small sample (n=30-99) # Insufficient sample (n<30)