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| Slightly less than 48% of retailers reported increased sales through June 2010 compared to last year. Nearly half think sales will be up through October, forecasting on average a 16% increase. |
Optimism among specialty-equipment manufacturers is running high, according to data in a new SEMA Financial Benchmarking report, although that cheer doesn’t run as deep among retailers and distributors on the street level of the industry.
Of manufacturers surveyed for the study, 70% reported increased year-to-date sales through June 2010 compared to the year prior. That’s a 20% increase from data gathered at the beginning of the year.
Manufacturers may be moving more product, but from the looks of the retail and distribution numbers, that product may be sitting in inventory, as nearly 48% of retailers and 52% of distributors reported increased sales through the same period.
Not surprisingly then, 64% of manufacturers expect sales to improve, on average 17.5% when August, September and October numbers are totaled. That’s a little more optimistic than retailers and distributors are projecting, with just 45% of the former, and 50% of the latter, expecting a fall increase. Distributors and retailers who forecast a bump were about even on how much to expect, between 16-18 percent.
All three industry segments cited “poor sales” as their most important business problem. But “government requirements and red tape” as well as “competition from large businesses” factored next-most on the minds of manufacturers, while distributors cite “competition from Internet sales” as their second-most pressing obstacle. Slightly more than 11% of retailers listed “competition from large businesses” as their second worry.
Data is based on retailer, manufacturer and distributor responses in the just-released June SEMA Financial Benchmarking survey. Follow this link to learn more about the SEMA Financial Benchmarking program. Businesses participating in the Financial Benchmarking program receive access to finished reports before it is made available to the rest of the industry. Partcipating is easy; simply click on the appropriate link, whether you're a retailer, manufacturer or distributor.
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| Slightly less than 48% of retailers reported increased sales through June 2010 compared to last year. Nearly half think sales will be up through October, forecasting on average a 16% increase. |
Optimism among specialty-equipment manufacturers is running high, according to data in a new SEMA Financial Benchmarking report, although that cheer doesn’t run as deep among retailers and distributors on the street level of the industry.
Of manufacturers surveyed for the study, 70% reported increased year-to-date sales through June 2010 compared to the year prior. That’s a 20% increase from data gathered at the beginning of the year.
Manufacturers may be moving more product, but from the looks of the retail and distribution numbers, that product may be sitting in inventory, as nearly 48% of retailers and 52% of distributors reported increased sales through the same period.
Not surprisingly then, 64% of manufacturers expect sales to improve, on average 17.5% when August, September and October numbers are totaled. That’s a little more optimistic than retailers and distributors are projecting, with just 45% of the former, and 50% of the latter, expecting a fall increase. Distributors and retailers who forecast a bump were about even on how much to expect, between 16-18 percent.
All three industry segments cited “poor sales” as their most important business problem. But “government requirements and red tape” as well as “competition from large businesses” factored next-most on the minds of manufacturers, while distributors cite “competition from Internet sales” as their second-most pressing obstacle. Slightly more than 11% of retailers listed “competition from large businesses” as their second worry.
Data is based on retailer, manufacturer and distributor responses in the just-released June SEMA Financial Benchmarking survey. Follow this link to learn more about the SEMA Financial Benchmarking program. Businesses participating in the Financial Benchmarking program receive access to finished reports before it is made available to the rest of the industry. Partcipating is easy; simply click on the appropriate link, whether you're a retailer, manufacturer or distributor.
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| The SEMA Show's New Products Showcase is a great way for your company to gain exposure. First submissions are free if entered by October 8. |
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| The SEMA Show's New Products Showcase is a great way for your company to gain exposure. First submissions are free if entered by October 8. |
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| The SEMA Show's New Products Showcase is a great way for your company to gain exposure. First submissions are free if entered by October 8. |
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| The 2010 SEMA Show opens on November 2, the same day as key state, local and federal elections. Don't forget to vote before leaving for the Show. |
This year’s mid-term elections are the most anticipated in recent memory. The current volatile political landscape holds an uncertain future for members of both parties. On November 2, 2010, voters will head to the polls to elect thousands of state and local leaders, including 435 members of Congress, 22 U.S. Senators and 28 governors.
As the balance of power in Washington remains uncertain, the decisions made on Election Day will impact our communities and our industry. Given that most of the specialty-equipment industry will be in Las Vegas attending the SEMA Show, individuals are encouraged to vote prior to leaving for the Show.
SEMA has compiled a complete list of voter registration/absentee ballot forms for all 50 states. Follow this link to find your state and vote early.
SEMA would also like to encourage member companies to post the following helpful link on their websites, directing consumers and industry insiders to absentee voting information: www.semasan.com/main/main.aspx?id=62804
With so much at stake this year, the SEMA Political Action Committee (PAC) encourages you to exercise your civic duty and vote. For more information, contact PAC Administrator Dan Sadowski at dans@sema.org or 202/783-6007 x19
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The U.S. Environmental Protection Agency (EPA) is under pressure from some ethanol producers to raise the ethanol content in gasoline from 10% (E10) to 15% (E15). The EPA is expected to issue a decision later this month on allowing the use of E15 in late-model cars. It could permit the use in other cars at a later date. SEMA opposes the initiative due to concerns that the additional content will harm automobiles of all ages, including special-interest collector and historic vehicles.
A lack of conclusive information regarding E15’s effect on engines of different model years reinforces the need to defer or deny the increase. In addition to the potential harm of E15 on engine components, the EPA has no procedure in place to ensure that mis-fueling does not occur or any plan for ensuring regular gasoline continues to be available for older vehicles. SEMA’s concerns have been echoed by a number of other organizations.
SEMA has mounted an effort to ask President Obama to stop the EPA from raising the ethanol content in gasoline. Follow this link to write the president. For details, contact Stuart Gosswein at stuartg@sema.org.