SEMA News - July 2009
RESEARCH

By Jim Spoonhower

Providing Looks, Features and Creature Comforts to Mainstream Consumers and Automotive Enthusiasts Alike

In 2008, retail sales of restyling specialty-equipment products reached $3.958 billion. Restyling product sales currently represent about 12.4% of the total automotive specialty-equipment market.

It wasn’t all that long ago that the OEMs were trumpeting the concept of mass customization. The idea sounds great, particularly to consumers. After all, under mass customization, all vehicle buyers could get exactly what they want because essentially each vehicle would be built to order.

Why all the emphasis on mass customization? Because today’s markets are changing faster than ever, and consumers are becoming more demanding than ever. Customized products are being offered everywhere you look: design your own tennis shoes with Nike; word your own M&Ms; create your own computers; and personalize your cell phone. As consumers become increasingly accustomed to having the products they buy tailored specifically to them, the demand for customized vehicles will grow.

Mass customization was viewed as a solution to address new market realities while still enabling the OEMs to capture mass-production efficiency advantages. Considering the production-cost issues the car companies have, they decided to offer increasing numbers of models and options to satisfy consumer demands.

Traditionally, customization and low cost have been mutually exclusive—mass production provided a low cost, but at the expense of uniformity. Customization was the product of passionate designers and craftsmen. Its expense generally made it the preserve of enthusiasts. Today, mainstream consumers are learning about the possibilities and asking for their vehicles to be exactly what they want.

All of this came about in an attempt to give the consumers what they want. And to think, the performance parts and accessories industry has been built and grown on that very concept.

We know this segment of the industry as restyling. Restylers don’t necessarily limit their attention to a particular vehicle type or a specific OEM, but rather concentrate on personalizing the vehicle to the customer’s wants and expectations. Some restylers work mostly with new-vehicle dealers. Others have built an extensive loyal customer base in their target market. Whether it’s new or used vehicles that are being updated and dressed up, the result is always the same—consumers get a vehicle that is unique to them.

As a result, restyling has grown to be a large piece of the performance parts and accessories industry. In 2008, retail sales of restyling specialty-equipment products reached $3.958 billion. Restyling product sales currently represent about 12.4% of the total automotive specialty-equipment market.

When you look at the industry from the consumer’s perspective, you find that they have a particular result in mind when modifying their vehicles. The off-roader has certain features and capabilities in mind that modifications will provide, the compact-performance tuner has a different set of goals and so it goes with each niche market.

For what we call restyling, the intent of the consumer is to personalize the vehicle in general terms that would not result in it fitting into one of our other defined niche markets.

As consumers become increasingly accustomed to having the products they buy tailored specifically to them, the demand for customized vehicles will grow.

Market Size

To be sure everyone is on the same page, when we refer to the restyling market, we’re including all the products used to modify the exterior and/or interior of vehicles. That covers a wide range of automotive specialty-equipment products, from sunroofs to ground effects and from grille guards to drop-center bumpers.

All of the products found in this market are functional, though, the principal reason for their purchase may be more aesthetic. After all, some consumers purchase these products just because of the vehicle’s look after installation.

Most restyling products are designed to work with or complement the existing lines of the production vehicle. In fact, many concepts and accessories created in the restyling market have become part of production vehicle designs.

The restyling market did not show positive growth in 2008. Much of the cause can be attributed to the amount of business restylers do with new-car dealers and the huge drop in new-car sales last year. Considering that new-vehicle sales dropped from 16.5 million units in 2007 to 13.5 million in 2008, a decrease of 18%, the decrease in restyling sales of 6.34% is almost positive.

As we look at our industry, we typically segment products into one of three categories: accessories and appearance products; performance products; and wheels, tires and suspension products. Many of the vehicle modifications in the restyling market involve automotive accessories. In fact, accessories represent more than 66% of the products sold in the market for 2008. Of the defined niche markets that SEMA studies, accessories has the highest market share in the restyling market.

In 2008, retail sales of restyling specialty-equipment products reached $3.958 billion. Restyling product sales currently represent about 12.4% of the total automotive specialty-equipment market.

SEMA Index

In April, the SEMA Performance Parts and Accessories Demand Index (PADI) decreased, going from 30 in March to 26. That translates to approximately 7% of adult American drivers indicating that they had plans to purchase performance parts and accessories sometime within the next three months.

About 4% of consumers said that they were likely to purchase wheels, tires and suspension components; 3% said that they were likely to purchase racing and performance products; and 4% said that they were likely to purchase specialty accessories and appearance products.

On average during the months of February, March and April, fullsize cars (22%) were the most common target vehicles for enhancement or modification, followed by midsize cars (20%), pickups (13%) and compact cars (11%).

When consumers were asked what form their vehicle would take after customization, the most common answer in April was general personalization or restyling (46%), followed by street performance (15%) and off-road (10%).

SEMA began developing the PADI in January 2007. The purpose of PADI is to track anticipated demand among Americans for performance parts and accessories, such as specialty appearance, racing and performance as well as wheels, tires and suspension products.

The PADI is a weighted composite index—set to an initial value of 100 based on demand levels between January 2007 and March 2007. During those months, between 25%–30% of consumers reported plans to purchase performance parts and/or accessories during the next 90 days.

The index and three subindices (for each product segment) are based on the responses to the following questions:

How likely are you to purchase specialty accessories and appearance products, such as interior trim, restyling products, graphics, a sunroof, etc., for your vehicle in the next three months? Would you say very likely, somewhat likely, not very likely or not at all likely?

How likely are you to purchase racing and performance products, such as internal engine parts, drivetrain, exhaust system, fuel system and ignition components designed to improve performance through increased durability, capability or dependability for your vehicle in the next three months? Would you say very likely, somewhat likely, not very likely or not at all likely?

How likely are you to purchase wheels, tires and suspension components, such as specialty shocks, struts, lowering packages, lift kits, custom wheels, performance tires or performance brakes (not including regular brake changes) for your vehicle in the next three months? Would you say very likely, somewhat likely not very likely or not at all likely?

The index is based on a monthly random digit-dial telephone survey to collect the survey data. Typically, it is based on around 1,000 nationwide interviews with adult American drivers. The margin of error is +/- 3.3%.

Although the PADI is not a precise measure of absolute future purchasing activity, it is nonetheless a tool for understanding and predicting industry sales. There are two ways of interpreting the PADI. First is its direction—whether the index is rising or falling. Second is that the values themselves provide a guide as to the degree of change in consumer expectations for purchasing industry products.

So what has all this got to do with the restyling market? Notice that 46% of consumers queried in April were thinking about restyling projects for their vehicles during the following 90 days. When you consider that the data collection is not limited to automotive enthusiasts, it would be easy to draw the conclusion that mainstream consumers are entering our market through the restyling niche. Whether perfecting the new vehicle they just purchased or bringing the existing one up-to-date, increasing numbers of mainstream consumers are finding our industry.

One need only look at how similar many of the vehicles on today’s roads appear to understand why the restyling market has grown so large. After all, these products make each vehicle as individualistic as its owner. They provide the looks, features and creature comforts that just don’t come with production vehicles to mainstream consumers and automotive enthusiasts alike.

A Bright Spot in a Challenging Economy

If you have been paying any attention to the news, you know that GM and Chrysler are eliminating new-vehicle dealer franchises in the United States. We stand to lose nearly 2,000 new-vehicle dealers over the next few months.

The auto industry and the automotive performance parts and accessories industry have become accustomed to new-vehicle sales in the 15–16 million unit range. After all, annual new light-vehicle sales have been above 15 million units every year since 1996—until 2008 when they dropped to 13.5 million.

“AutoPacific forecasts a gradual industry recovery over the next five years as the economy recovers, to just under 15 million units by 2014,” reports Carol Runkle, manager of AutoPacific sales forecast service.

A number of SEMA-member companies have grown to depend on new-vehicle sales to drive their business. So what are they to do? A retailer in Maryland has a workable solution. Mark Miller of Westminster Speed & Sound started noticing that his customers were parking their crew-cab diesel pickups and buying used vehicles that got better gas mileage. Gas prices were making their preferred vehicle just too expensive to drive.

Miller’s customers were soon back in his store looking for ways to “spruce up” their new used car. They wanted some of the features they became accustomed to in their fully loaded trucks. The final straw that connected the dots for Westminster Speed & Sound was the realization that the car manufacturers were also offering low-cost new vehicles without all the options consumers have grown used to.

So now, this retailer is building a new business around “sprucing up” used vehicles and customizing new low-cost basic models. His customers are now asking for custom wheels to replace the “steelies” that came on the car. They are also looking for rear spoilers, exhaust systems, window tint and technology that used to be standard equipment.

To help with his marketing, Miller even bought a “stripper” model used car to fix up and show his customers what could be done. He chose a car that gets good mileage and is adaptable enough to be easily customized—a 2008 Chevy Cobalt two-door LS coupe. This car looks just like the newer ones on the car lots, but costs a lot less.

Some of the things that this car will get are: power windows; door locks with keyless entry; and remote start. The sound system will get a makeover that will include iPod, Bluetooth and HD radio integration into the original radio plus upgraded speakers, an amplifier and a subwoofer. Westminster Speed & Sound will install an air intake system and exhaust system for more power and improved fuel mileage. There will be new struts, lowering springs and swaybars to improve the handling.

The exterior will get a rear spoiler, some window tint, a new grille, driving lights, backup sensors, a backup camera and a nav system. Miller’s crew will add dampening material to quiet the road noise. This car will become a rolling showcase for all the things a consumer wants, but doesn’t have in their less expensive vehicle.

Everything that goes into the demo car is something everyday people can afford and enjoy. Miller even plans to call on some of his local car dealers and show them the demo car as a way of building more business.

Here is a retailer who connected the dots of what he was seeing happening in his marketplace and adapted his business model. Truly a bright spot in a challenging economy.

—Jim Spoonhower

SEMA News - July 2009

By Stacie Hering

Factors to Consider Include Price, Transport Costs, Tariffs and More

A U.S. company exporting exhaust mufflers to Australia can benefit from zero tariff rates due to a free trade agreement between the United States and Australia. As there is currently no such agreement with Brazil, exports of the same products would be charged a duty rate of 18% to sell the products into that market. Photo Courtesy of ACP

Selling products to overseas markets is an important opportunity often overlooked by manufacturers seeking newcustomers to help weather the economic storm. In the first three months of this year, more than $17.2 billion was generated in overseas sales of U.S. automotive vehicles, parts and engines. Moreover, selling products overseas is not all that different from selling to U.S. customers if the fundamentals are there—a good product at a good price.

There are a number of factors to be considered in identifying the best potential overseas markets, such as identifying any government restrictions on the use of the product; whether local consumers have sufficient disposable income (the ability of consumers to buy discretionary products); and whether the products fit the vehicles on the road in that market. SEMA has the resources to assist members, including information on top-selling vehicles, most accessorized vehicles and up-to-date information on laws. It’s all available online on the SEMA International homepage.

In developing a marketing plan, companies need to assess whether a product is price-competitive. Factors affecting this aspect include the costs to transport your products worldwide—deciding between ocean, freight or air, for example. Other added costs to be factored into determining the wholesale price of the product are any import fees (also referred to as duties or tariffs) charged by overseas governments. These government-imposed fees are product- and country-specific and can vary greatly. Rates are lowest for countries with which the United States has free trade agreements, such as Australia and Canada. They are higher—sometimes significantly—for those countries with which no similar pact exists. Taking this to the product level, a U.S. company exporting exhaust mufflers to Brazil, for instance, would be charged a duty rate of 18%, but those same exhaust mufflers exported to Australia or Canada would not incur any duties or import fees, thus greatly impacting costs.

In the past few years, the process of identifying import fees when exporting has been streamlined by the international adaptation of the Harmonized System. Virtually every country utilizes the same six-digit sequence to every product, known as the harmonized code. For products exported from the United States, this number sequence is also referred to as the Schedule B number.

In developing a marketing plan, companies need to assess whether the product is priced competitively for local consumers. Factors affecting this aspect include the costs to transport products worldwide. Other added costs to be factored into determining the wholesale price of products are any import fees (also referred to as duties or tariffs) charged by overseas governments.

Closer to home, the SEMA Show is undoubtedly the best place to network with international buyers. This year, SEMA exhibitors can take advantage of a powerful new online program to develop contacts with thousands of international buyers from more than 100 countries seeking new products. Buyers and exhibitors can contact each other and begin communications even before arriving in Las Vegas and arranging meetings during Show week. All international buyers and SEMA exhibitors seeking global business should avail themselves of the Center for International Commerce—a centrally located facility with private meeting rooms and complimentary interpretation services. For more information on how to develop your international business at the 2009 SEMA Show, contact Linda Spencer.

For more information on SEMA’s international resources, go to the SEMA International homepage or contact Stacie Hering.

The listing below is a highlight of selected SEMA online resources.

SEMA’s Online Resources

SEMA News - July 2009

By Stacie Hering

Factors to Consider Include Price, Transport Costs, Tariffs and More

A U.S. company exporting exhaust mufflers to Australia can benefit from zero tariff rates due to a free trade agreement between the United States and Australia. As there is currently no such agreement with Brazil, exports of the same products would be charged a duty rate of 18% to sell the products into that market. Photo Courtesy of ACP

Selling products to overseas markets is an important opportunity often overlooked by manufacturers seeking newcustomers to help weather the economic storm. In the first three months of this year, more than $17.2 billion was generated in overseas sales of U.S. automotive vehicles, parts and engines. Moreover, selling products overseas is not all that different from selling to U.S. customers if the fundamentals are there—a good product at a good price.

There are a number of factors to be considered in identifying the best potential overseas markets, such as identifying any government restrictions on the use of the product; whether local consumers have sufficient disposable income (the ability of consumers to buy discretionary products); and whether the products fit the vehicles on the road in that market. SEMA has the resources to assist members, including information on top-selling vehicles, most accessorized vehicles and up-to-date information on laws. It’s all available online on the SEMA International homepage.

In developing a marketing plan, companies need to assess whether a product is price-competitive. Factors affecting this aspect include the costs to transport your products worldwide—deciding between ocean, freight or air, for example. Other added costs to be factored into determining the wholesale price of the product are any import fees (also referred to as duties or tariffs) charged by overseas governments. These government-imposed fees are product- and country-specific and can vary greatly. Rates are lowest for countries with which the United States has free trade agreements, such as Australia and Canada. They are higher—sometimes significantly—for those countries with which no similar pact exists. Taking this to the product level, a U.S. company exporting exhaust mufflers to Brazil, for instance, would be charged a duty rate of 18%, but those same exhaust mufflers exported to Australia or Canada would not incur any duties or import fees, thus greatly impacting costs.

In the past few years, the process of identifying import fees when exporting has been streamlined by the international adaptation of the Harmonized System. Virtually every country utilizes the same six-digit sequence to every product, known as the harmonized code. For products exported from the United States, this number sequence is also referred to as the Schedule B number.

In developing a marketing plan, companies need to assess whether the product is priced competitively for local consumers. Factors affecting this aspect include the costs to transport products worldwide. Other added costs to be factored into determining the wholesale price of products are any import fees (also referred to as duties or tariffs) charged by overseas governments.

Closer to home, the SEMA Show is undoubtedly the best place to network with international buyers. This year, SEMA exhibitors can take advantage of a powerful new online program to develop contacts with thousands of international buyers from more than 100 countries seeking new products. Buyers and exhibitors can contact each other and begin communications even before arriving in Las Vegas and arranging meetings during Show week. All international buyers and SEMA exhibitors seeking global business should avail themselves of the Center for International Commerce—a centrally located facility with private meeting rooms and complimentary interpretation services. For more information on how to develop your international business at the 2009 SEMA Show, contact Linda Spencer.

For more information on SEMA’s international resources, go to the SEMA International homepage or contact Stacie Hering.

The listing below is a highlight of selected SEMA online resources.

SEMA’s Online Resources

SEMA News - July 2009

By Stacie Hering

Factors to Consider Include Price, Transport Costs, Tariffs and More

A U.S. company exporting exhaust mufflers to Australia can benefit from zero tariff rates due to a free trade agreement between the United States and Australia. As there is currently no such agreement with Brazil, exports of the same products would be charged a duty rate of 18% to sell the products into that market. Photo Courtesy of ACP

Selling products to overseas markets is an important opportunity often overlooked by manufacturers seeking newcustomers to help weather the economic storm. In the first three months of this year, more than $17.2 billion was generated in overseas sales of U.S. automotive vehicles, parts and engines. Moreover, selling products overseas is not all that different from selling to U.S. customers if the fundamentals are there—a good product at a good price.

There are a number of factors to be considered in identifying the best potential overseas markets, such as identifying any government restrictions on the use of the product; whether local consumers have sufficient disposable income (the ability of consumers to buy discretionary products); and whether the products fit the vehicles on the road in that market. SEMA has the resources to assist members, including information on top-selling vehicles, most accessorized vehicles and up-to-date information on laws. It’s all available online on the SEMA International homepage.

In developing a marketing plan, companies need to assess whether a product is price-competitive. Factors affecting this aspect include the costs to transport your products worldwide—deciding between ocean, freight or air, for example. Other added costs to be factored into determining the wholesale price of the product are any import fees (also referred to as duties or tariffs) charged by overseas governments. These government-imposed fees are product- and country-specific and can vary greatly. Rates are lowest for countries with which the United States has free trade agreements, such as Australia and Canada. They are higher—sometimes significantly—for those countries with which no similar pact exists. Taking this to the product level, a U.S. company exporting exhaust mufflers to Brazil, for instance, would be charged a duty rate of 18%, but those same exhaust mufflers exported to Australia or Canada would not incur any duties or import fees, thus greatly impacting costs.

In the past few years, the process of identifying import fees when exporting has been streamlined by the international adaptation of the Harmonized System. Virtually every country utilizes the same six-digit sequence to every product, known as the harmonized code. For products exported from the United States, this number sequence is also referred to as the Schedule B number.

In developing a marketing plan, companies need to assess whether the product is priced competitively for local consumers. Factors affecting this aspect include the costs to transport products worldwide. Other added costs to be factored into determining the wholesale price of products are any import fees (also referred to as duties or tariffs) charged by overseas governments.

Closer to home, the SEMA Show is undoubtedly the best place to network with international buyers. This year, SEMA exhibitors can take advantage of a powerful new online program to develop contacts with thousands of international buyers from more than 100 countries seeking new products. Buyers and exhibitors can contact each other and begin communications even before arriving in Las Vegas and arranging meetings during Show week. All international buyers and SEMA exhibitors seeking global business should avail themselves of the Center for International Commerce—a centrally located facility with private meeting rooms and complimentary interpretation services. For more information on how to develop your international business at the 2009 SEMA Show, contact Linda Spencer.

For more information on SEMA’s international resources, go to the SEMA International homepage or contact Stacie Hering.

The listing below is a highlight of selected SEMA online resources.

SEMA’s Online Resources

SEMA News - July 2009

By Stacie Hering

Factors to Consider Include Price, Transport Costs, Tariffs and More

A U.S. company exporting exhaust mufflers to Australia can benefit from zero tariff rates due to a free trade agreement between the United States and Australia. As there is currently no such agreement with Brazil, exports of the same products would be charged a duty rate of 18% to sell the products into that market. Photo Courtesy of ACP

Selling products to overseas markets is an important opportunity often overlooked by manufacturers seeking newcustomers to help weather the economic storm. In the first three months of this year, more than $17.2 billion was generated in overseas sales of U.S. automotive vehicles, parts and engines. Moreover, selling products overseas is not all that different from selling to U.S. customers if the fundamentals are there—a good product at a good price.

There are a number of factors to be considered in identifying the best potential overseas markets, such as identifying any government restrictions on the use of the product; whether local consumers have sufficient disposable income (the ability of consumers to buy discretionary products); and whether the products fit the vehicles on the road in that market. SEMA has the resources to assist members, including information on top-selling vehicles, most accessorized vehicles and up-to-date information on laws. It’s all available online on the SEMA International homepage.

In developing a marketing plan, companies need to assess whether a product is price-competitive. Factors affecting this aspect include the costs to transport your products worldwide—deciding between ocean, freight or air, for example. Other added costs to be factored into determining the wholesale price of the product are any import fees (also referred to as duties or tariffs) charged by overseas governments. These government-imposed fees are product- and country-specific and can vary greatly. Rates are lowest for countries with which the United States has free trade agreements, such as Australia and Canada. They are higher—sometimes significantly—for those countries with which no similar pact exists. Taking this to the product level, a U.S. company exporting exhaust mufflers to Brazil, for instance, would be charged a duty rate of 18%, but those same exhaust mufflers exported to Australia or Canada would not incur any duties or import fees, thus greatly impacting costs.

In the past few years, the process of identifying import fees when exporting has been streamlined by the international adaptation of the Harmonized System. Virtually every country utilizes the same six-digit sequence to every product, known as the harmonized code. For products exported from the United States, this number sequence is also referred to as the Schedule B number.

In developing a marketing plan, companies need to assess whether the product is priced competitively for local consumers. Factors affecting this aspect include the costs to transport products worldwide. Other added costs to be factored into determining the wholesale price of products are any import fees (also referred to as duties or tariffs) charged by overseas governments.

Closer to home, the SEMA Show is undoubtedly the best place to network with international buyers. This year, SEMA exhibitors can take advantage of a powerful new online program to develop contacts with thousands of international buyers from more than 100 countries seeking new products. Buyers and exhibitors can contact each other and begin communications even before arriving in Las Vegas and arranging meetings during Show week. All international buyers and SEMA exhibitors seeking global business should avail themselves of the Center for International Commerce—a centrally located facility with private meeting rooms and complimentary interpretation services. For more information on how to develop your international business at the 2009 SEMA Show, contact Linda Spencer.

For more information on SEMA’s international resources, go to the SEMA International homepage or contact Stacie Hering.

The listing below is a highlight of selected SEMA online resources.

SEMA’s Online Resources

SEMA News - July 2009

By Stacie Hering

Factors to Consider Include Price, Transport Costs, Tariffs and More

A U.S. company exporting exhaust mufflers to Australia can benefit from zero tariff rates due to a free trade agreement between the United States and Australia. As there is currently no such agreement with Brazil, exports of the same products would be charged a duty rate of 18% to sell the products into that market. Photo Courtesy of ACP

Selling products to overseas markets is an important opportunity often overlooked by manufacturers seeking newcustomers to help weather the economic storm. In the first three months of this year, more than $17.2 billion was generated in overseas sales of U.S. automotive vehicles, parts and engines. Moreover, selling products overseas is not all that different from selling to U.S. customers if the fundamentals are there—a good product at a good price.

There are a number of factors to be considered in identifying the best potential overseas markets, such as identifying any government restrictions on the use of the product; whether local consumers have sufficient disposable income (the ability of consumers to buy discretionary products); and whether the products fit the vehicles on the road in that market. SEMA has the resources to assist members, including information on top-selling vehicles, most accessorized vehicles and up-to-date information on laws. It’s all available online on the SEMA International homepage.

In developing a marketing plan, companies need to assess whether a product is price-competitive. Factors affecting this aspect include the costs to transport your products worldwide—deciding between ocean, freight or air, for example. Other added costs to be factored into determining the wholesale price of the product are any import fees (also referred to as duties or tariffs) charged by overseas governments. These government-imposed fees are product- and country-specific and can vary greatly. Rates are lowest for countries with which the United States has free trade agreements, such as Australia and Canada. They are higher—sometimes significantly—for those countries with which no similar pact exists. Taking this to the product level, a U.S. company exporting exhaust mufflers to Brazil, for instance, would be charged a duty rate of 18%, but those same exhaust mufflers exported to Australia or Canada would not incur any duties or import fees, thus greatly impacting costs.

In the past few years, the process of identifying import fees when exporting has been streamlined by the international adaptation of the Harmonized System. Virtually every country utilizes the same six-digit sequence to every product, known as the harmonized code. For products exported from the United States, this number sequence is also referred to as the Schedule B number.

In developing a marketing plan, companies need to assess whether the product is priced competitively for local consumers. Factors affecting this aspect include the costs to transport products worldwide. Other added costs to be factored into determining the wholesale price of products are any import fees (also referred to as duties or tariffs) charged by overseas governments.

Closer to home, the SEMA Show is undoubtedly the best place to network with international buyers. This year, SEMA exhibitors can take advantage of a powerful new online program to develop contacts with thousands of international buyers from more than 100 countries seeking new products. Buyers and exhibitors can contact each other and begin communications even before arriving in Las Vegas and arranging meetings during Show week. All international buyers and SEMA exhibitors seeking global business should avail themselves of the Center for International Commerce—a centrally located facility with private meeting rooms and complimentary interpretation services. For more information on how to develop your international business at the 2009 SEMA Show, contact Linda Spencer.

For more information on SEMA’s international resources, go to the SEMA International homepage or contact Stacie Hering.

The listing below is a highlight of selected SEMA online resources.

SEMA’s Online Resources

SEMA News - July 2009

By Drew Hardin
Courtesy Source Interlink Media Archives

Forty-two years ago, the SEMA Show was born in the dark, cold aisles beneath Dodger Stadium in Los Angeles. A year later, the Show enjoyed its first growth spurt as it moved south to the spacious Anaheim Convention Center. The change of venue and industry momentum caused the number of displaying manufacturers to nearly double, from a little more than 100 in 1967 to 192 in 1968. This photo, from Petersen Publishing Co. photographer Pat Brollier, gives you an idea of what the Show floor looked like that week in January.

John Thawley covered the SEMA Show in the March 1968 issue of Hot Rod magazine and offered some interesting statistics, tallied by sister publication Hot Rod Industry News: The automotive specialty-equipment industry recorded more than half a billion dollars in retail sales in 1966, which represented an increase of 330% from comparable sales figures recorded just five years prior. You probably won’t be surprised to hear that the 18-to-24-year-old demographic (still called an “age group” in 1968) accounted for more than 50% of all automotive specialty-equipment sales. But in a measure of how much things have changed, Thawley noted, “The speed shops which serve as the vital link between consumer and manufacturer reported that more than 80% of all sales were cash, which is indicative of the financial stability of the industry sales base.”

SEMA News - July 2009

By Drew Hardin
Courtesy Source Interlink Media Archives

Forty-two years ago, the SEMA Show was born in the dark, cold aisles beneath Dodger Stadium in Los Angeles. A year later, the Show enjoyed its first growth spurt as it moved south to the spacious Anaheim Convention Center. The change of venue and industry momentum caused the number of displaying manufacturers to nearly double, from a little more than 100 in 1967 to 192 in 1968. This photo, from Petersen Publishing Co. photographer Pat Brollier, gives you an idea of what the Show floor looked like that week in January.

John Thawley covered the SEMA Show in the March 1968 issue of Hot Rod magazine and offered some interesting statistics, tallied by sister publication Hot Rod Industry News: The automotive specialty-equipment industry recorded more than half a billion dollars in retail sales in 1966, which represented an increase of 330% from comparable sales figures recorded just five years prior. You probably won’t be surprised to hear that the 18-to-24-year-old demographic (still called an “age group” in 1968) accounted for more than 50% of all automotive specialty-equipment sales. But in a measure of how much things have changed, Thawley noted, “The speed shops which serve as the vital link between consumer and manufacturer reported that more than 80% of all sales were cash, which is indicative of the financial stability of the industry sales base.”

SEMA News - July 2009

By Drew Hardin
Courtesy Source Interlink Media Archives

Forty-two years ago, the SEMA Show was born in the dark, cold aisles beneath Dodger Stadium in Los Angeles. A year later, the Show enjoyed its first growth spurt as it moved south to the spacious Anaheim Convention Center. The change of venue and industry momentum caused the number of displaying manufacturers to nearly double, from a little more than 100 in 1967 to 192 in 1968. This photo, from Petersen Publishing Co. photographer Pat Brollier, gives you an idea of what the Show floor looked like that week in January.

John Thawley covered the SEMA Show in the March 1968 issue of Hot Rod magazine and offered some interesting statistics, tallied by sister publication Hot Rod Industry News: The automotive specialty-equipment industry recorded more than half a billion dollars in retail sales in 1966, which represented an increase of 330% from comparable sales figures recorded just five years prior. You probably won’t be surprised to hear that the 18-to-24-year-old demographic (still called an “age group” in 1968) accounted for more than 50% of all automotive specialty-equipment sales. But in a measure of how much things have changed, Thawley noted, “The speed shops which serve as the vital link between consumer and manufacturer reported that more than 80% of all sales were cash, which is indicative of the financial stability of the industry sales base.”