By Ashley Reyes
Even amid the economic uncertainty of the last year, 55% of automotive aftermarket manufacturers are reporting expected growth in the coming year, up from only 44% last Fall, according to the new "SEMA State of the Industry-Fall 2023 Report," which is now available for download at sema.org/market-research.
The report is the latest study in the "SEMA State of the Industry" biannual series that explores the current state of the automotive specialty equipment industry, including how businesses are doing, key industry trends and metrics, challenges and opportunities along with an outlook for 2024 and beyond.
"Our latest 'SEMA State of the Industry' report shows that despite inflation and current economic turmoil, including the UAW strike, aftermarket sales continue to grow," said SEMA Market Research Director Gavin Knapp. "While there has been softening sales for some firms, two-thirds of industry companies are reporting stable or growing sales over the last year."
Other key findings from the report include:
- Even with inflation and other uncertainty in the market, one-third of manufacturers report double-digit growth over the last year.
- Inflation continues to impact the industry, with more than half of manufacturers indicating their prices have increased in the last year. Nearly 90% of companies say that increased supplier costs are the key driving factor.
- New-vehicle sales continue to rebound, projected more than 16 million in 2024, though an extended UAW strike could further restrict supply.
- The truck sector continues as the top market for the industry, with the majority of manufacturers and retailers viewing the off-road segment as a growth opportunity.
As the automotive specialty-equipment market continues to evolve, the report will provide aftermarket companies with the data and insights they need to navigate the industry's landscape and make more informed business decisions. SEMA Business Members can download the report for free at sema.org/market-research.
In addition, attendees of the 2023 SEMA Show, October 31-November 3 in Las Vegas, are invited to attend the "State of the Specialty-Equipment Industry: Trends and Directions" education seminar, Wednesday, November 1, 1:00 p.m. PDT in the North Hall, Room N256. Led by SEMA Market Research Director Knapp, the seminar will help attendees gain an understanding of how the specialty-equipment market has fared in 2023 and where it is headed going into 2024. Register for the seminar at this link.