Business Cycles and Cash Flow in the Automotive Performance Parts and Accessories Industry

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A quick survey was administered to SEMA members in July of 2004, and the respondents were asked a series of questions to determine the effects of business cycles on cash flow and other aspects of business. About 82% of the 98 companies surveyed stated that they do experience peaks sales throughout the year. Over half of the companies surveyed have at least two peaks throughout the year. While it is no surprise that 63.3% of total companies surveyed reported summer as their peak sales season, retailers actually rate summer and spring equally in terms of when peak sales occur. Roughly 60% of all the companies surveyed claimed that the difference between “peaks” and “valleys” range anywhere from 0 – 30%.