Motorsports has been a profit stream for many specialty-equipment companies for decades, from those that manufacture and sell parts for race cars and trucks to those that take advantage of the advertising opportunities the often large crowds of spectators at these venues present. SEMA Market Research recently published its 2008 Motorsports and Performance Report. Here are just a few highlights from the report:

• Total manufacturer sales for the Racing niche reached $358 million in 2007, a 4% increase over 2006. The sales of performance parts across all nine specialty-equipment market niches—Light Truck, Off-Road, Street Performance, Racing, Restoration, Restyling, Street Rod & Custom, Compact Performance, and Other—reached $2.43 billion in 2007, up 44% in the last five years and up 72% from 1993.

• The full-length report provides detailed performance-parts sales growth for each of the nine market niches. Manufacturer sales of performance parts for the light-truck market, for example, have grown a total of 33% since 2001, with a jump of 4.3% between 2006 and 2007.

• Across the United States, there are 1,010 oval tracks, 776 dirt tracks, 238 paved tracks, 292 dragstrips and 76 road courses. This means that on any given weekend, there are potentially more than 100 racing events taking place across the country.

• There are approximately 250 sanctioning bodies in the United States. They range from the local track groups that operate by applying the rules of a larger sanctioning body to the official umbrella sanction groups themselves.

• The National Hot Rod Association (NHRA) has 80,000 members and 300,000 participants.  There are 140 member tracks which host more than 5,000 events each year. As with NASCAR, the NHRA has experienced significant growth in television viewership and event attendance. Scarborough Research, a market research service company, indicates that 32.5 million people, 14.5% of the United States population, have some interest in NHRA Drag Racing.

• NHRA fans are very likely to be loyal to NHRA sponsors. For example, 88% indicate that they are likely to purchase NHRA sponsor products over non-sponsor products, according to a study by EventCorp Services Inc., a company that specializes in event market research.

Data from some of the larger and most recognizable sanctioning organizations, including fan demographics and buying preferences, are discussed throughout the pages of the full-length 2008 Motorsports and Performance Report.

The list of sanctioning bodies includes: NASCAR, NHRA, USAC, Grand-Am, SCCA, DHRA and the USHRA.

SEMA members can download their copy of the 2008 Motorsports and Performance Report by visiting www.sema.org/research or by e-mailing research@sema.org.

How do you advertise and promote your business and products? SEMA members recently said that car shows were the number-one avenue for product promotion, according to SEMA market research. From having parts installed on a project car to making actual connections with consumers by having a booth at a show, specialty-equipment companies take advantage of the large crowds of enthusiasts that car shows attract.

But while 52% of SEMA members surveyed earlier this year said they take advantage of a car show, less than a third (28%) indicated that they promote their products via automotive enthusiast online forums.

Preliminary results from SEMA’s 2008 Automotive Lifestyle Study shows that nearly half (47%) of enthusiasts surveyed say they visit automotive forums to gather information on custom parts and accessories prior to making a purchase. And 24% of forum visitors say they do so at least once a day.

SEMA members have an opportunity to reach their target consumer by having a presence on relevant online forums, either to talk about new products, offer expert advice or talk about their presence at past or upcoming car shows.

Each year SEMA surveys automotive magazine subscribers via an online survey sent to subscribers of 21 different magazine titles. Preliminary results from the 2008 Automotive Lifestyles Survey represent nearly 1,900 respondents.

For more original SEMA market research, visit www.sema.org/research.

Over 25% of respondents indicate that they currently own some type of vehicle navigation system, according to results from the Morpace Inc. Omnibus Study fielded in July 2008. The rate of ownership of this technology is highest for married respondents and those earning at least $50,000 annually, and 39% plan to purchase a navigation system in the future.

"This survey confirms that the ownership of navigation systems will continue to grow in the marketplace," states Bryan Krulikowski, vice president, Morpace Automotive Research Practice.

Portability is especially important among those who own or are considering a navigation system. Nearly three-quarters of respondents prefer a navigation system that can be moved from vehicle to vehicle versus a system built into the dashboard of their vehicle or a system integrated into a cell phone.

"Consumers overwhelmingly prefer a system that can be used in multiple household vehicles," says Krulikowski. "Aftermarket manufacturers will surely benefit from this trend, and OEMs are already starting to integrate portable systems into their vehicles."

Prevention of getting lost is ranked as the highest reason for owning a navigation system. Other important reasons include the convenience of not having to pre-plan a route and the ability to change routes "on the fly."

Of those not interested in navigation systems, 36% say it's primarily because they don't need them rather than because of cost; 67% cite they don't travel to unfamiliar places often enough or they don't mind using maps or Internet-based directions. Only 14% cite cost as the primary reason.

SEMA market research shows that sales of navigation systems/video/entertainment products reached $1.53 billion in 2007, a jump of 7% from 2006. Each year, specialty-equipment manufacturers unveil their latest GPS navigation and multimedia systems. At the 2007 SEMA Show for example, stand-alone GPS units accounted for 9.6% of the mobile electronics entries in the SEMA New Products Showcase. Multimedia receivers that come equipped with GPS navigation accounted for 6.6% of the entries.

For more original SEMA market research, visit www.sema.org/research.

Source: "Morpace Reports Ownership of Vehicle Navigation Systems Expected to Grow" (press release), Morpace Inc., August 18, 2008.

Although high fuel-prices have led to an overall decrease in sales within the light-truck category, CUVs have managed to climb out of the downward trend with seven vehicles experiencing improved sales in 2008.

For the first two quarters of 2008, overall light-truck sales (which, for our purposes, include light-duty pickups, SUVs and crossover utility vehicles [CUVs]) were down 17.7%. Pickup sales dropped 23.3%, while SUV sales dropped 32.5%. CUV sales decreased by a mere 1.7%.

“As the U.S. economy experiences a downturn due, in part, to high gas prices, consumers have began to shift their vehicle buying preferences,” said Ty Michael, SEMA market research manager. “While drivers still seek the family hauling capabilities and utility that pickups and SUVs offer, they now find similar attributes in crossover utility vehicles (CUVs), which also offer improved fuel economy and handling compared to their body-on-frame counterparts.”

The Isuzu i-Series was the only pickup that experienced increased sales for January through June 2008 over the same period the previous year, and the Chrysler Aspen experienced an increase on the SUV side. CUVs fared much better, with seven vehicles seeing improved sales so far in 2008.

The top seven CUVs that witnessed a growth in sales within January through June 2008 were: Chevrolet HHR (50,818 units, up 9.6% from the previous year); Jeep Patriot (36,684 units, up 145.1% from the previous year); Ford Edge (68,727, up 16.9% from the previous year); Chevrolet Equinox (42,101 units, up 1.0% from the previous year); GMC Acadia (38,269 units, up 8.5% from the previous year); Buick Enclave (21,757 units, up 291.0% from the previous year); and Suzuki XL7 (17,077 units, up 30.6% from the previous year).

For more original SEMA research, please visit www.sema.org/research.

Despite slumps in pickup sales, the more than 1,000 pickup owners surveyed for a SEMA-commissioned study indicate that consumers within this market segment are still planning to customize their vehicles.

A large component of SEMA’s annual light-truck report consists of Foresight Research’s Pickup Truck Market Accessory Study, commissioned by SEMA. Between February 21, 2008 and April 21, 2008, data regarding products that had been purchased or are going to be purchased were collected along with demographic information. For the 2008 study, owners of nine different fullsize pickup models and eight different midsize or compact pickup models were surveyed.

Table 4 and 5 display the data for the top 10 accessories purchased or planned to be purchased for the five top-selling fullsize and midsize pickups. The heavy-duty trailer hitch is a top pick for three of the fullsize nameplates and two of the midsize nameplates.

"Even with declining pickup truck sales, the truck enthusiasts who are buying new pickups are still spending money to accessorize them,” said Megan McKernan, SEMA market research special projects manager. “It is also important to remember that new pickup sales do not tell the whole story: There are plenty of current pickup truck owners to target. Pickup truck owners whose vehicles are just a couple of years old may just now be deciding to accessorize them."

A complete report and analysis of the data collected from this representative sample will be available in SEMA’s 2008 Light-Truck Personalization Report.

For more original SEMA research, please visit www.sema.org/research.

SEMA Show exhibitors have one week left to reserve their free listings in the SEMA International Buyers' Guide. The annual buyers' guide is shipped to every U.S. embassy and distributed to every international buyer at the SEMA Show and automotive trade shows worldwide. All exhibitors and SEMA members are invited to take advantage of this opportunity.

All exhibitors that sign up for the free listing by Friday, September 5 will receive a complimentary “We Export” sign for their booths, signaling to international buyers at the SEMA Show your interest in selling overseas. A copy of the form is available online at www.SEMAShow.com/ibg.

Questions? Contact Linda Spencer at lindas@sema.org.

More than 4,000 international buyers have pre-registered to attend the 2008 SEMA Show. Exhibitors: Find out which international buyers are interested in your products by visiting www.SEMAShow.com/tradeleads.

SEMA Show exhibitors are invited to attend the largest industry international networking event of the year, designed to bring together international buyers and manufacturers. A registration form is available online at www.SEMAShow.com/happyhour.

Note that pre-registration is required, and while there is no cost for this November 5 event, invitations are on a space-available basis only.

Questions? Contact Linda Spencer at lindas@sema.org.

Filler for eNews

Honoring a 24-year tradition of awarding scholarships to students pursuing careers in the automotive industry, SEMA is awarding 93 students more than $130,000 in scholarships for the 2008–2009 academic year. The SEMA Memorial Scholarship Fund began awarding scholarships to students pursuing careers in the automotive industry in 1984.

"SEMA is pleased to reward the hard work of these students and provide financial assistance to support their education and career goals,” said Paul “Scooter” Brothers, SEMA Scholarship Committee chairman. "We are consistently amazed by what our scholarship winners have accomplished in their academic careers. By investing in the education of these young people, we are investing in the future of our industry. Their academic achievements, as well as their leadership and volunteer activities, speak to their commitment to make a difference in the automotive industry.”

The program rewards the best and brightest students engaged in studies leading to a career in the automotive specialty-equipment market or a related field. 

• Sophomores enrolled in two-year universities or colleges, and students in vocational or technical schools received $1,000.
  

• Graduates and undergraduates with at least a junior standing at a four-year school received $2,000–$4,000. To qualify for the scholarships, each student must have a minimum 2.5 grade-point average and be enrolled in an accredited university, college or proprietary program.

Although SEMA affiliation is not a requirement of the scholarships, added consideration is given to employees of, and relatives of employees at, SEMA-member companies. This year, seven scholarships were awarded to relatives and employees of SEMA-member companies, including:

• Daniel Kaskinen, Kaskinen Auto Sales
• James Kuklewski, ADAC Technologies (ADAC Plastics Inc.)
• Patrick Stasko, Design Engineering Inc.
• Joe Von Dohlen, Flowmaster Inc.
• Mitchell Langford, Stylin' Trucks (Division of Whitney Automotive Group)
• Austin Dodd, Midwest Wheel Companies
• Martin Balgach, National Business Media

As a benefit of SEMA membership, SEMA also presented the Loan Forgiveness Scholarship Award to qualified graduates with outstanding student loans, who have worked at a SEMA-member company for at least one year. This program was developed four years ago as further incentive for students to seek employment in the automotive specialty-equipment industry upon graduation. Seven employees of SEMA-member companies received $1,000 paid directly to their loan company to satisfy outstanding student loans.

The complete list of 2008 scholarship winners is listed below.

Students who are interested in applying for scholarships from SEMA’s Memorial Scholarship Fund during the 2009–2010 academic year should contact education@sema.org or visit www.sema.org/scholarship.

2008 SEMA Memorial Scholarship Winners, Four-Year, Two-Year

• Brandon Anderson, De Anza College, CA
• Casey Arthur, University of Northwestern Ohio, OH
• Cliff Backler, Minnesota State University Mankato, MN
• Nathan Bailey, Montgomery County Community College, PA
• Rick Ballard, Weber State University, UT
• Raynor Bemis, University of Northwestern Ohio, OH
• James Benham. Jr., University of Northwestern Ohio, OH
• Heath Blake, Wilkes Community College, NC
• Nicholas Brownson, University of Northwestern Ohio, OH
• Brittany Bruce, Northeast Mississippi Community College, MS
• Justin Campbell, University of Northwestern Ohio, OH
• Mark Cleland, University of Northwestern Ohio, OH
• Natasha Cramer, Dunwoody College of Technology, MN
• Rena Crockett, Community College Baltimore County, Catonsville, MD
• Adam Crook, Lake Superior College, MN
• Joseph Dahlhausen, Montana State University, Northern, MT
• Ryan Deschambault, Algonquin College in the Ottawa Valley, ON Canada
• Eric Doke, University of Northwestern Ohio, OH
• Grant Feichter, University of Cincinnati, OH
• Andrew Fida, Georgia Institute of Technology, GA
• Thomas Fischer, Southern Illinois University Carbondale, IL
• Derek Flint, University of Northwestern Ohio, OH
• Joshua Frank, OR
• Jack Frederick, Pittsburgh State University, KS
• Eric Gardner, Weber State University, UT
• Andrew Garrett, University of Northwestern Ohio, OH
• Matt Garwick, University of Northwestern Ohio, OH
• Eric Geistkemper, Hawkeye Community College, IA
• Wei-Yun Gibson, Colorado State University - Pueblo, CO
  
• Roy Grauberger, Morgan Community High School through Brush High School, CO
• John Graves, SUNY Delhi, NY
• Jason Gray, University of Northwestern Ohio, OH
• Daryl Green, Minnesota State University Mankado, MN
• Autumn Hawkins, University of Northwestern Ohio, OH
• Sean Hayes, South Dakota School of Mines & Technology, SD
• Bryan Haywood, University of Northwestern Ohio, OH
  
• Justin Hockenberry, Colorado State University, Pueblo, CO
• Robert Jobe-Shields, Southwest Tennessee Community College, TN
• Jason Kawakami, Honolulu Community College, HI
• Karalei Kaye, College of Marin (IVC), CA
• Thomas Kuznicki, University of Northwestern Ohio, OH
• Justin Lindke, University of Northwestern Ohio, OH
• Mark Mallory, Southwestern Community College, NC
• Clayton Manning, Colorado State University, Pueblo, CO
• Mike Marr, Chemeketa Community College, OR
• Jason May, University of Northwestern Ohio, OH
• Marcus McKean, University of Northwestern Ohio, OH
• Mark McKinney, University of Northwestern Ohio, OH
• John McMillan, Belmont Abbey College, NC
• Diane Melville, Miami-Dade Honors College, FL
• Douglas Meyung, University of Northwestern Ohio, OH
• Sean Miller, Northwood University, MI
• John Narcisco, Art Center College of Design, CA
• Blaine Olson, Lincoln College of Technology, CO
• Brent Opiela, Northwood University, MI
• Eric Oswald , Chemeketa Community College, OR
• Spencer Pearson, Minnesota State University Mankado, MN
• Ryan Roybal, CA
• Anthony Rusciano, College of Marin (IVC), CA
• Jay Schwanger, University of Northwestern Ohio, OH
• Deepak Sequeira, Greenville Technical College, SC
• Matthew Shinabery, University of Northwestern Ohio, OH
• Hiroko Shono, St. John's University, NY
• Charles Smith, Lakeshore Technical College, WI
• Jeremy Snavely, University of Northwestern Ohio, OH
• Andrew Spurr, Bluegrass Community & Technical College, KY
• Steven Steely, Delta College, MI
• Molly Stephens, Marian College, IN
• William Wegner, Minnesota State University, Mankato, MN
• Dan Welle, Universal Technical Institute, CA
• Clayton Workman, Washington State Community College, OH
• Rumi Yamaguchi, Truman College, IL
• Seth Zombory, Ferris State University, MI

2008 Scholarship Winners - Graduates and SEMA Dependents or Employees

• Martin Balgach, Vermont College/Union Institute & University, VT
• Yakira Braden, University of Wisconsin, Madison, WI
• Austin Dodd, Grand View College, IA
• Daniel Kaskinen, Northwood University, MI
• James Kuklewski, Grand Valley State University, MI
• Mitchell Langford, Kent State University, OH
• Randolph Leach, Colorado State University, CO
• Weason Liang, Northwest University, Kellogg School of Management, IL
• Reza Saeidpourazar, Clemson University, SC
• Patrick Stasko, University of Cincinnati, OH
• Joe Von Dohlen, Pacific Union College, CA
• Sarah Warren, UCLA, School of Engineering, CA

2008 SEMA Loan Forgiveness Scholarship Winners

• Christopher Batsch, California State University, Long Beach, CA
• Jason Fashner, University of North Florida, FL
• Daniel Felsted, Mercy College, NY
• Michael Goodman, Universal Technical Institute, FL
• Patrick Hill, University of Central Florida, FL
• Michael Malloy, Drexel University, PA
• Melanie White, CSU Chico, CA