News | Specialty Equipment Market Association (SEMA)

Hanging On to Employees With the Stay Interview

Thu, 12/01/2022 - 12:27

SEMA News—December 2022

INTERNET

Hanging On to Employees With the Stay Interview

Expert Tips to Retain Top Talent

By Joe Dysart

Businesses are finding they can hang onto valuable employees longer by engaging in “Stay Interviews.”

Facing one of the most intense competitions for employees in years, businesses are finding they can hang onto valuable employees longer by engaging in “Stay Interviews.”

Recruiting experts say these interviews ensure current employees feel valued—while uncovering beneath-the-radar problems that could lead to abrupt departures.

Plus, they can also spare businesses the often arduous process of onboarding a promising new hire—if they can find one.

Bonus: There are also a few software packages you can use to fine-tune, monitor, analyze and continually improve on your use of Stay Interviews.

Essentially, Stay Interviews say, “We care about what you have to say, we value you as a part of our organization, we are assessing workplace culture, workplace communication and we want to improve for you as an organization and leaders,” says Matthew W. Burr, owner, Burr Consulting.

Adds Richard Finnegan, an HR consultant who literally wrote the book on the topic, The Power of Stay Interviews for Engagement and Retention: “Senior managers know that unwanted turnover and disengaged employees drag down profits. Conducting Stay Interviews is an effective, fast solution that gives a mega-return on investment in the form of increased revenue and earnings.

“Our research shows that improvements in engagement and retention have direct impacts on revenue produced-per-employee and for the company as a whole,” he added.

Interestingly, Stay Interviews also dispel the common notion that money—and the pursuit of more of it—is the overwhelming reason why employees disappear from workforce rosters.

Says Beverly Kaye, co-author of Hello Stay Interviews, Goodbye Talent Loss: “Most employees who leave don’t start looking for other opportunities because of dissatisfaction with pay, perks or benefits.”

Instead, Kaye says employees are more likely to bolt if one of these key ‘reasons to stay’ are lacking:

Meaningful, challenging work.
A chance to learn and grow.
A good boss.
The sense of being a part of a team.

In a phrase: It’s much better for your business to develop the fine art of conducting Stay Interviews than becoming the master of The Exit Interview.

Here are key tips from recruiting experts on how to develop your own Stay Interview—and save yourself the hassle of going back into the marketplace to experiment with yet another stranger:

Bring in a Software Package to Maximize the Efficacy of Your Stay Interviews: HRSoft (https://hrsoft.com/wp-content/uploads/2016/03/STAYview-Stay-Interview-Software-HRsoft.pdf) offers a specially designed software package—STAYview—to ensure you get the most from your Stay Interviews. The software was designed with HR consultant and author Finnegan.

Key elements of the new software solution include:

Training and guiding managers on conducting Stay Interviews.
Managing the hierarchy—My Team—of who is to be interviewed by each leader in the organization along with the complete workflow.
Developing a customized Stay Interview for each employer.
Producing STAYview Action Plans for each employee—and follow-up interviews.
Producing analytics to show leaders those employees who are likely to separate from the company.
Scheduling with reminder prompts to ensure Stay Interviews get done on schedule.
Increasing visibility of retention and engagement issues.
Providing leaders the tools and confidence necessary to conduct Stay Interviews and act on their results.

Meanwhile, competitor HSD Metrics (https://hsdmetrics.com/stayright) offers its own package for managing Stay Interviews—StayRight. The web-based system handles the entire process, including notifying employees, collecting data from interviews and reporting on results. And the 24/7 web portal displays numerical findings for all data gathered—as well as external benchmarks and commentary.

StayRight also offers charting comparisons, filtered data, robust analytics and reports, which together enable managers to maintain deep insight on the morale of their employees.

Add Employee Pulse Surveys for Additional Insight: Some HR departments also augment Stay Interviews with software that enables them to stay abreast of overall employee morale and engagement.
Use the same script/questions: Burr recommends standardizing the questions you use in your Stay Interview. This will enable managers to analyze information and insights on an employee-by-employee basis.

Plus, the collation and analysis of these standardized interviews—using either off-the-shelf Stay Interview software or a custom software solution—may enable you to develop business-wide policies based on concerns widely shared by your employees, he says.

Make Sure the Employee’s Manager—and Not HR—Is the Primary Interviewer: Given that an employee generally has a day-to-day relationship with a manager—rather than HR—it’s critical that the manager conduct the Stay Interview, according to Christopher Mulligan, CEO, TalentKeepers.
Be Ready to Be the Listener—and Hear Some Things You’d Rather Not Hear: “The employee should talk the majority of the Stay Interview, as the interviewer listens and takes notes on key points and concerns.

“In order to be effective, the management team must approach these interviews with an open mind and with humility.

“It will be common when the employee may not like something or want a change in their work environment. And it is easy for managers and especially owners to take the criticism personally.

“Leave your ego at home, and be ready to listen for ways you can improve your business and the loyalty of your employees.”

Experiment With the frequency of Your Stay Interviews: Recruiting experts interviewed for this piece were all over the map on how often to schedule Stay Interviews.

Mulligan suggests at least once a quarter with the first interview scheduled within 14 days of the hire.

Michael Murphy, CEO, Platinum Group, agrees: “Frequent—possibly quarterly—check-ins can keep things relevant, addressing what might be top-of-mind for employees.

“The exact frequency will depend on the current climate of the company:

Are there big shifts in direction that might affect people’s well-being?
Or, are there external forces at play that require pivots, where utilizing each employee’s skills to the maximum are essential?”

Kaye thinks as often as once a month could work.

And Meagan Johnson, an expert on fostering optimum workplaces that feature multi-generations (and co-author of Generations, Inc.) thinks a Stay Interview should be scheduled immediately “if you feel that someone’s becoming discouraged, disheartened, burnt out,” or similar.

Adds Peacock: “The most important thing is for the employee to know you will listen on a regular basis.”

Telegraph Clearly That the Stay Interview Will Be a Safe Space for the Employee: The very premise of the Stay Interview—‘Tell me what’s on your mind, good and bad’—demands real trust from the employee.

This means you’ll want to be sure employees are convinced they won’t be penalized for what they say.

Says Mulligan: “Executed properly, stay interviews provide a safe, structured discussion for team members to share their career growth aspirations, how they prefer to be led, engaged and recognized.”

Be Prepared to Dig Deep: The more granular you’re able to get with your Stay Interview, the more likely you’ll be able to effect real, productive change.

Jim Peacock, owner/principal, Peak Careers Consulting, for example, discovered—with a little digging—that one of his employees was secretly pining for some imaging software. She wanted the new tool to enable her work to appear more artistic and professional.

Says Peacock: “This was a minor thing for me and a convenience thing for her. I would never have known if I had not asked her.”

Have Answers Ready for Those Tough Questions: While many managers are reluctant to do Stay Interviews for fear they’ll be unable to deliver on some employee requests, Kaye recommends managers be honest about what they’re actually able to do—and then focus on those capabilities.

“Our research has proved that if managers are willing to hang in and drill deeper,” they’ll be able to find three or four changes for an employee that they’re able to make, Kaye says.

Ensure You Follow Through: Probably the easiest way to sabotage your Stay Interviews is to nod and smile—and then do nothing.

Most employees realize that asking for the moon will get them nowhere. But they’ll also be thoroughly disenchanted if you ask them to share openly and then ignore all their concerns.

Says Platinum Group’s Murphy: “Letting them know they are heard by the actions you take after the interview is the most powerful thing you can do.” Adds Burr: “If the organization fails to act, employees will never trust the process again.”

Joe Dysart is an internet speaker and business consultant based in Manhattan.

646-233-4089

joe@customtechadvisor.com

www.dysartnewsfeatures.com

Show-Go Machine

Thu, 12/01/2022 - 11:29

SEMA News—December 2022

HERITAGE

Show-Go Machine

By Drew Hardin

Photography: Eric Rickman, Petersen Publishing Company Archive

Hot Rod magazine’s October 1959 cover car, a 1923 Model T called Grasshopper, “was one car that shouldn’t ever have to wear a body,” said Eric Rickman, who shot the feature in March 1959. “It covers the best part!” This unpublished outtake shows off why Rickman felt that way—in addition to capturing builders John Geraghty and John Crawford as they prep the car for the camera.

The T was named for its mint green paint, but Rickman was far more interested in the liberally chromed chassis and the blown 461-inch Oldsmobile V-8 that he said could propel the car to “130-plus-mph runs.” Tom Beatty provided the 4-71 GMC supercharger, which could be fed either by fuel injection or the dual-quad carburetors seen in the photo. Visible behind the supercharger case is a “Joe Hunt converted Swiss Scintilla magneto.” The bellhousing ahead of the La Salle transmission was punched full of lightening holes, as were the “already light alloy channel framerails” and the backing plates for the rear brakes. “Rear brakes are all there is,” Rickman said, and they needed to be cooled to bring the car down from “draggin’ speeds.”

The front suspension consisted of a dropped Ford axle, transverse spring pack and Monroe shocks, their lower mount combined with the attachment point for the split-wishbone radius arms. In back, a chromed Halibrand quick-change center section “does the thinking for the late pre-war Ford rearend.” Geraghty and Crawford also tapped Halibrand for the magnesium wheels for the front runners and Inglewood slicks.

The seat, such as it is, is a strip of green and white leatherette strung “hammock-style” to the rollbar. The inside of the T’s body was upholstered in matching material, and the simple dashboard held just oil pressure, coolant temperature and fuel pressure gauges and a tachometer.

Rickman said Geraghty and Crawford took “just two months” to build the T, a remarkable achievement in that brief span of time. He said they spent “$3,000 in the process,” about the cost of a brand-new Corvette in 1959.

Google Topics

Thu, 12/01/2022 - 11:15

SEMA News—December 2022

INTERNET

Google Topics:

Another try at ad targeting tech Google hopes you’ll cotton to

By Joe Dysart

Google is struggling for a way to target consumers with ads—without stepping on privacy concerns.

Businesses that employ ad tech companies to run ads for them on digital properties will need to come up with a new strategy by the close of 2023.

That’s when search-engine behemoth Google plans to drop its support for third-party cookies—a web surfer tracking technology that has been fundamental to web advertising since the mid-’90s.

Google’s dramatic decision to ditch third-party cookies has been triggered by a steady flow of surveys in recent years finding that significant numbers of web surfers are fed up with company surveillance of their web use.

A February 2022 survey from the Future of Tech Commission (www.futureoftechcommission.org/press-release-launch-2ndpoll), for example, found that 78% of consumers want laws to force businesses to seek their permission before gaining access to such personal data. Moreover, 75% of those surveyed want to prohibit businesses from collecting any personal data on anyone 16 or younger. And 75% want laws ensuring that businesses are prohibited from pushing inappropriate or harmful content to children 16 or younger on the web—including questionable advertising.

“The findings are clear: Americans everywhere want an internet they can trust,” says Deval Patrick, former governor of Massachusetts, who helped spearhead the survey.

Patrick adds: “When misinformation runs rampant, every community suffers— and we’re running out of time. Our leaders must lead and summon the political will to protect our children, safeguard our privacy, and rein in the undue influence of Big Tech.”

Smarting from those kinds of protests, Google’s original plan on third-party cookies was to drop them from its Chrome browser earlier this year.

But the tech titan decided to hang onto third-party cookies this year after privacy groups vehemently criticized FLoC, a replacement technology it wanted to use as a substitute for third-party cookie tracking.

This time around, Google has yet another new technology it wants to use to replace third-party cookies, dubbed “Google Topics.”

Google’s hope: That this latest replacement tech will satisfy privacy advocates while still enabling advertisers to target web surfers with ads based on how they interact with websites.

Not surprisingly, there’s a great deal of technical detail regarding how Google’s newly proposed tracking technology works.

But boiled down, the tech giant’s latest proposal is really its way of saying to web surfers: “Look, we know we’ve been really nosy in the past about how we track, analyze and target how you surf the web.”

In practice, Google Topics significantly limits the way the Google search engine currently tracks your every movement on the web by studying your use of the Google Chrome browser.

This new answer to web-surfer tracking offers advertisers only a limited, general idea of what interests you—and what you might be interested in buying—as you surf the web.

The result is the new tracking system will only be able to track a handful of broad interest areas, or Topics, that dovetail with how you use your web browser.

Initially, Google’s plan is to track five Topics associated with how you use your browser—along with one more Topic that is chosen at random.

Once Google has tagged your browser with Topics that give advertisers a better idea of your interests and intentions, any given website you visit will be able to “see” three of the Topics Google associated with your web browser—and target ads to you accordingly.

Google is also building in some other privacy controls with Google Topics that it hopes will make the new tracking system more palatable to web surfers and political activists concerned about web privacy.

For example, Google is currently developing new controls for its Chrome browser that will enable you to see the Topics associated with your browser.

Plus, you’ll also have the option to remove any of the Topics associated with your Chrome browser use that displease you, according to Vinny Goel, product director, Privacy Sandbox, Chrome.

“Soon, we will launch a developer trial of Topics in Chrome that includes user controls—and enables website developers and the ads industry to try it out,” Goel says.

Before getting the green light to launch Google Topics, the search giant will need to secure official approval for its new tracking technology from key governmental bodies across the globe, including the United States and the European Union.

So far, the tech giant has won approval from the United Kingdom via that country’s Competition and Markets Authority.

Says Andrea Coscelli, chief executive, CMA: “While this is an important step, we are under no illusions that our work is done. We now move into a new phase, where we will keep a close eye on Google as it continues to develop these proposals.”

The reason why parting with third-party cookies has been such sweet sorrow for Google is that, privacy concerns aside, it really is a fantastic way of finding out what people are likely to buy based on their web surfing behavior.

Currently, if you visit a number of auto parts websites, for example, and start clicking on mufflers, you’ll most likely start noticing muffler ads popping up on many of the websites you subsequently visit.

Ad tech companies are now able to discern that you’re interested in mufflers by cutting deals with the websites already featuring their ads—who in turn place a third-party cookie in your Google Chrome browser when you visit the site.

That third-party cookie—owned by the ad company—begins tracking your movements on the web the moment it is embedded in your browser.

And with each website you visit featuring advertising from that same ad tech company, another third-party tracking cookie is placed in your Google Chrome Browser, tracking you all the way.

Each new cookie beams back data to the ad tech company about your web movements and preferences. And each enables the ad tech company to develop an ever-deepening interest profile on you, enabling it to target ads to you on other websites featuring its technology—based on your preferences.

The system has worked exceptionally well for Google and advertisers for more than a quarter of a century. But, as noted, has also triggered the ire of more than a few consumers and privacy advocacy groups for nearly as long—users and political activists who feel such tracking violated their privacy and generally made them feel creeped-out.

Consequently, even if Google Topics manages to become the de facto replacement for third-party cookies, web advertising experts recommend that advertisers begin to rely more heavily on other ways to engage with customers including:

Email Marketing Lists: While web advertising fads come-and-go, email marketing keeps on chugging along, offering marketers some of the best ROI for marketers’ efforts, year after year. Marketers build email lists by soliciting email addresses in exchange for providing riveting email newsletters, informative white papers, early notice on new goods and services, discounts and coupons and the like. Expect increasing numbers of businesses to double-down on this tried-and-true marketing tool in coming months.

Old School Advertising: Back in the olden days, marketers would seek out content that matched the goods and services they were selling and place ads there. A bikini retailer might embed its ads in an article about summer vacations, a local beach, or an upcoming Olympic diving competition. These days, they’re calling this old school technique ‘contextual targeting.’ But it’s the same idea: matching ads to content.

Buying Someone Else’s Audience: While you may not have a great deal of data on people who are interested in bikinis, another website—such as a swimsuit publication—may have plenty. Once third-party cookies are phased out, expect more businesses to buy and use info about such potential customers from such websites.

Device Fingerprinting: Similar to third-party cookies, device fingerprinting is an extremely effective tracking technology—but also extremely controversial. Device fingerprinting enables a website to reach down into your device and retrieve all the information about that device that makes it unique to you—the language it runs on, the web browser it uses, the times of day its usually used, its location, its IP address, and similar personalized data. Once an ad tech company has your device fingerprint, it can track you as you move across the web.

Joe Dysart is an internet speaker and business consultant based in Manhattan.

646-233-4089

joe@customtechadvisor.com

www.dysartnewsfeatures.com

Educating Lawmakers: The Path Ahead

Thu, 12/01/2022 - 11:06

SEMA News—December 2022

FROM THE ASSOCIATION

The Path Ahead:

Educating Lawmakers

In 1963, before there was even a SEMA Show, a group of small business entrepreneurs who made parts for early hot rods organized to support the hobby, the enthusiasts, and the motorsports lifestyle. One of their original goals was to have a voice at the table when it came to negotiating with state, federal and regulatory agencies that often proposed overly broad restrictions—failing to perceive less-obvious, often detrimental side effects. Now, 60 years later, it’s clear that SEMA’s watchdog role on behalf of its members in the legislative and regulatory arena continues to be of critical importance to everyone in the industry—hobbyists and motorsports participants included.

In today’s environment of rapid innovation and technological change, adding expert government affairs staff to help the association step up its government affairs activity has been a top priority. The recent hiring of a senior vice president of public and government affairs represents an important step forward in the association’s ability to raise visibility of the specialty-equipment industry among policymakers.

The new senior vice president, Karen Bailey-Chapman, will work to ensure that SEMA has a strong voice in regulatory and policy discussions at both state and federal levels. She is a seasoned public affairs executive who excels at understanding complex policy issues. And her extensive experience in government relations, plus solid relationships on Capitol Hill, will be instrumental in the effort to educate lawmakers, regulators and the public about the specialty-equipment industry, which employs large numbers, fosters innovation and is a major sector of the country’s economy. She will work in close collaboration with SEMA’s communications and legal departments.

The tasks ahead are not insignificant.

Among the challenges is the need to ensure enthusiasts, aftermarket businesses and repair shops have access to the information and tools needed to repair and upgrade today’s more complex vehicles. This “right to repair” effort goes hand-in-hand with the need to make sure that SEMA members can safely modify vehicles with advanced driver-assistance systems (ADAS) technologies that assist drivers and automate vehicle systems. SEMA and industry partners are currently working to develop tests to confirm that vehicles remain in compliance after customization, but the need to convince Congress to consider the aftermarket when pursuing ADAS legislation remains clear.

Another top priority is maintaining off-highway vehicle (OHV) access to public lands, a topic of keen interest to off-road enthusiasts and SEMA-member companies that support the outdoor recreational community. SEMA supports policies that expand responsible OHV recreational opportunities, and opposes land use policies that unnecessarily limit access.

And then there is the 2015 Environmental Protection Agency (EPA) provision making it illegal to convert street vehicles into dedicated race cars. SEMA has been working with allies in Congress to pass the Recognizing the Protection of Motorsports (RPM) Act, which clarifies that it is legal to make emissions-related changes to a street vehicle for the purpose of converting it into a race car used exclusively in competition.

Other ongoing legislative initiatives involve protecting members’ intellectual property rights, addressing warranty denial, eliminating tariffs that impact American consumers and businesses, and coping with electric vehicle mandates that threaten to change the landscape in the coming decade.

The recent Washington Rally provided an opportunity for SEMA members to remind their lawmakers that decisions they make are being closely monitored by the specialty equipment community. Even if you could not attend this year, you can help support your industry by signing up for the SEMA PAC and by defending the hobby through the SEMA Action Network (SAN). Visit www.semasan.com to join SAN, stay up-to-date on important state and federal bills, and help advance our automotive freedoms.

Industry Market Trends, Sector by Sector

Thu, 12/01/2022 - 10:38

SEMA News—December 2022

BUSINESS

Industry Market Trends, Sector by Sector

SEMA Council and Network Leaders Share Their Insights Into What Lies Ahead in 2023 (Part I)

By Mike Imlay

What trends, challenges and opportunities lie ahead for the aftermarket in 2023 and beyond? SEMA News turned to council and network leaders representing our major industry sectors for answers.

The automotive industry—and consequently the aftermarket—has entered a period of unprecedented change. Emerging technologies, new ways of doing business, and market, social and governmental forces are creating a barrage of opportunities and challenges for our industry. As a trade organization, SEMA is committed to helping members navigate industry trends so they can future-proof their businesses, succeed and prosper.

SEMA councils and networks play a vital role in this mission. They offer members a variety of niche-specific programs and activities designed to provide educational and networking opportunities while promoting their particular market segment. They also serve as “think tanks” to help identify segment needs and priorities.

For this two-part series, SEMA News queried the leaders of each SEMA council and network for a SWOT analysis of their industry segments. What follows are insights into the restoration, restyling, and wheel and tire segments, as well as trends relating to career development and opportunities for women. In our January 2023 issue, we will hear from the other segments served by association councils and networks. The statements below are edited for clarity and conciseness.

Automotive Restoration Market Trends

Reported by Joanna Agosta-Shere,
Chair Elect, SEMA Automotive Restoration Market Organization (ARMO):

Continued growth of the restomod market is a positive trend in our industry, as more people want the traditional look of a vehicle with modern conveniences. This isn’t necessarily a new trend but continues to be popular. I think there is a growing interest in ’80s and ’90s Asian vehicles as well. This is what my generation drove in high school, and that nostalgia is driving the trend.

There are, however, two challenges that I see currently facing our industry segment. The main one, supply-chain disruption, is very universal and still impacting all of our businesses. For the most part, as a manufacturer, we’ve been very fortunate to have suppliers that can regularly provide our raw material but with longer lead times and regularly increased prices. Some of the more niche components in those parts have been more challenging to source, however, and those are needed for the final product.

Secondly, I’ve heard over and over from our members that finding people who have the skills to restore vehicles has exceedingly become difficult. There are not enough people who are trained to do transmission or wiring work for classics. As if the current employment market isn’t challenging enough, the lack of available people with these skill sets makes it tougher for restoration shops and customers to find help.

Looking at long-term opportunities, there’s no denying that electric vehicles (EVs) are in our future. As a segment, we have to figure out how we fit in with this emerging technology. The great thing about the restoration market is that because we’re in a segment that deals with vehicles from the past, we have a long-range crystal ball to prepare for the future.

Vehicles with battery-electric motors will still need tires and wheels. They will still need classic-looking instrument panels. And they will still need interiors. In fact, making these vehicles more environmentally friendly or easier to drive and maintain may create a customer base who didn’t grow up in their dad’s garage tooling around but do appreciate having a fun vehicle to drive around.

ARMO is helping to address these issues in a couple of ways. First, we want to be a forum to help your company get their new products in front of buyers’ eyes. ARMO has been hosting the Hot Product Showcase at Spring Carlisle—one of the largest consumer restoration shows—for many years. As an ARMO member, you’re able to submit products for display at the event for free. Contact our council liason Marcy Yanus at marcyy@sema.org to submit your product.

Secondly, ARMO hosts quarterly membership meetings and panel discussions. In those discussions, topics are brought to us by members so that we can address business needs that they are facing. Past topics have included “General Industry Trends,” “How to Utilize the SEMA Washington Office for Legislative Issues,” and “OE Licensing Education.”

ARMO specifically wants to help our member companies succeed in business. We support networking, education and youth engagement. If you have an interest in learning more about ARMO, please join one of our Virtual Quarterly Panel Discussions or contact us at marcyy@sema.org. We also invite those interested to join us for our annual ARMO Receptions at the SEMA Show. We always love extending the opportunity for you to learn more and speak to other member companies about the value of their ARMO membership.

Career and Leadership-Development Trends

Reported by Nick Caloroso, Chair,
SEMA Future Leaders Network (FLN):

The rapid landscape shift from internal combustion engines (ICE) to EVs has become a catalyst for new ideas and innovation in the automotive aftermarket industry. New business owners, entrepreneurs, engineers, and EV enthusiasts are joining the industry just as quickly.

As a result, SEMA’s Future Leaders Network (FLN), formerly the Young Executives Network (YEN), has shifted efforts to focus on the creation of new opportunities for professional development and career growth. The Dale Carnegie-backed, Professional Development Program (PDP) is the first program of its kind aimed toward welcoming these new leaders into the industry. Members who attend the program are given an opportunity to network with peers and establish deep connections that create value and support.

SEMA has absorbed a large portion of the cost to make this program accessible to businesses of any size. If you are new to the automotive aftermarket industry and looking for opportunities to learn and grow, visit www.sema.org/fln to learn more.

Restyling Industry Trends

Reported by Josh Poulson
Chair, SEMA Professional Restylers Organization (PRO):

Despite some challenges, our restylers and restyling manufacturers remain busy and profitable. Many of the shops around the country have been pivoting to do more retail business instead of the traditional wholesale dealer business. Ideally, most shops we hear from would like to be closer to a 50/50 margin mix of wholesale and retail.

In addition, the film market (window tint, paint-protection and wrap films) continues to grow at a rapid pace. This growth will continue over the next five years, and many core products will remain popular. These include leather interiors, sunroofs, heated seats and truck accessories. As dealership inventories improve, most shops that have built dealer relationships will get busier. That should provide a needed boost to the industry.

One challenge is that many restylers have relied on business from car dealerships, and that has been hurt by the lack of vehicle production and availability. This will continue to be an issue well into 2023, according to many experts.

A longer-term challenge is how OEMs will sell their vehicles. The dealership model isn’t going away; however, the process for selling new vehicles has been interrupted and will continue to evolve. There probably won’t be as many cars on a dealer’s lot, and the OEMs would love to push the “build to order” model if Americans prove willing to wait for their vehicles. If this happens, the Restyling industry will need to evolve with the trend and make sure our products are still presented to consumers at the time of sale.

Our PRO council continues to host our annual PRO Cup Challenge at the SEMA Show each year. This year, we had seven restyling shops from around the country building realistic packages on everyday vehicles found on the road. PRO manufacturers had the opportunity to see how their products can be packaged together with others to create a distinct package that can be easily replicated in any restyler’s local market. Many restylers were in attendance to take these ideas back to their own markets.

Outside of the Show, we are also scheduling our ongoing regional sales/installer training sessions that allow shops to send their sales and/or technicians for training from manufacturer instructors in multiple categories. We will continue to announce these dates and locations starting early 2023.

On the emerging technology front, we at PRO don’t really fear the growth of EVs. In fact, we embrace them! Whether a customer has an EV or an ICE vehicle, they want it to stand out and look different from others on the road. We restyle many EVs currently, and as more and more products come out for these vehicles, PRO will be at the forefront of working with car dealers to offer these products.

One of the biggest things we at PRO pride ourselves on is the fact that everything we discuss and do is aimed at making money for our members. Most of our engaged members are owners and executives who want to grow business and be more profitable. We welcome new members from throughout the category.

Industry Businesswomen’s Trends

Reported by Cathy Clark, Chair,
SEMA Businesswomen’s Network (SBN):

More and more women are joining our industry, and with that comes an increase in women in leadership within the industry. The SEMA Board of Directors, for example, currently has four female members. This increase in women also means there are many opportunities for involvement.

Our All Female Bronco Build has introduced a number of women, both within and outside our industry, to the opportunities that await them. We also plan to have an educational series in 2023 that will help men learn to become allies for industry women. The more we do to make women feel comfortable and welcome in the automotive aftermarket, the more women that will join us. Diversity brings new ideas and change and can only lift our industry to new levels.

The biggest issue that I’ve seen for industry women is that some believe they lack the technical knowledge required to make an impact or answer technical questions accurately. We’ve seen it time and time again at trade events where a man will bypass a woman to address a technical question to another man. In a number of instances, the man answering then directs the person right back to the woman because she is the expert on that subject. If we can help bring more awareness to the industry and its members that women are just as knowledgeable about the automotive aftermarket as men, we can help eliminate instances like this.

I think we see more opportunities than challenges for industry women in the next five to 10 years. With the cost of a college education rising, more and more people are looking to trade schools to get their education for a future career. SEMA needs to be out in the high school championing automotive schools as a viable and profitable option to youth. More women than men are attending traditional universities at this time, and I feel that we should challenge ourselves to make sure that more women than men are enrolling in technical colleges as well.

The biggest way that we are helping women in our industry is by providing them networking, educational, and recognition opportunities. Our All Female Bronco Build has had more than 300 women want to volunteer (and counting) so far. We prioritized women-owned and/or -led manufacturers for the products that we put on the vehicle. We also had our first Women’s Leadership Forum in March of 2022 and will have it again in March of 2023. It’s an opportunity for women to get together to collaborate on issues that they have faced in their careers and learn from each other and professional speakers.

SBN is not exclusively women only. We are open to male members and leadership. We are looking to increase the number of women in our industry and make it the best possible experience for them. My dream would be that the SBN one day becomes unnecessary. That would mean that women are treated and recognized as equals in the industry. We are on our way, but still have a long road ahead of us.

We are here to serve industry women. We want to provide services, activities and opportunities that they feel are needed. We are very approachable and always love hearing new ideas. You can easily volunteer on any of our task forces and committees, and it doesn’t require a ton of commitment (usually just one phone call per month). Get involved. The more you put into it, the more you get out of it.

Wheel and Tire Industry Trends

Reported by Mike Lusso,
Chair-Elect, SEMA Wheel and Tire Council (WTC):

Based on input from WTC members, we see many positive wheel and tire trends going into 2023. In general, supply-chain issues seem to finally be resolving. Losses for 2022 have seemed to stabilize, and our RTO customers are increasing. Also, there has been development in electric vehicle (EV) technology across all major brands, along with the tires and wheels that support those vehicles. The development of non-pneumatic tires continues as well.

Additionally, there is a continued influx of low-cost advertising opportunities within new social channels. With opportunities such as TikTok and a growing app presence in the automotive industry, the decreased performance of Facebook and Google can now be translated to new channels where new consumers exist. A wider network equals more first-time
conversions.

Meanwhile, as EVs continue to be adopted by both enthusiasts and standard users, the mentality of modification is finding its way to a wider range of enthusiasts. I typically categorize Tesla enthusiasts as “tech enthusiasts,” not “car enthusiasts.” However, it doesn’t matter what label they carry, as they are both modifying their vehicles the way they feel best.

In the area of business challenges, EV and advanced driver-assistance systems (ADAS) technologies are driven by market consumption, and shop owners need education to support the vehicles they see in the shop. Wheels and tires are the first things to hit the road, so we need good education around the effects they bring to the vehicle. There will also be new challenges in wheel and tire manufacturing, pricing, training and staffing. In fact, training and retention of front-line personnel is still a major opportunity.

From the restoration segment to wheels and tires, electrification ranks as a hot-button challenge—and opportunity—for SEMA-member businesses. But further innovations to traditional powertrains will also figure prominently in the aftermarket’s future.

There may also be hesitation to embrace and spend on emerging technologies due to cost. But those who do so now will be ahead of the curve when the economics rebound. They will be stronger for it. The more companies hold back, the more it hurts other companies. We need to push forward.

With supply-chain issues somewhat easing, we are also seeing overseas brands that had issues fulfilling demand during the pandemic starting to flood the market. However, for industry businesses, challenges remain. For instance, parts for testing machinery are up to 200 days out in some cases, and materials testing delays can be up to five months.

Plus, with inflation consumers are starting to stretch their dollars. We are seeing an “emptying out” of demand in the Tier-2 space with more consumers seeking Tier-3 supply. As always, the rich remain rich, and Tier-1 brands seem to be holding their own fairly well in comparison to other tiers. However, for truck buyers, being an enthusiast is going from “really expensive” to “too expensive.” The results are individuals leaving the segment for a more affordable “non-lifted” segment.

Some other developments to watch relate to lighter wheels, higher-torque vehicles, newer EV winter tires, rolling resistances and regulation. The latter includes California’s explorations of rolling-resistance and wet-grip minimum mandates, which may disproportionately impact the specialty tire market. Federal agencies tend to adopt such policies nationwide.

Our biggest need is industry education and advocacy on emerging technologies and the market. Many don’t understand the issues—or are clouded by personal opinions about EVs, grid infrastructure, economics and the effects of inflation. We have used our connections with larger organizations to advise government about their impacts using data and insights provided by SEMA. We are lobbying for exemptions that will benefit the entire wheel and tire aftermarket.

Additionally, we have several education initiatives for 2023 that will educate SEMA members on changes to vehicles and how they affect wheels and tires. Our programs will include topics like rolling resistance, tread wear and traction, and how EVs are affected. The WTC Education Committee goes to great lengths to inform are members and to keep businesses on top of these and other topics. We invite businesses in our segment to contribute their feedback and keep us informed of their needs.

Editor’s Note: The viewpoints expressed in this article are those of our council and network sources and do not necessarily reflect the official positions of SEMA or its Board of Directors.

Thriving Through a Private-Equity Sale

Thu, 12/01/2022 - 10:05

By Eric Colby

Many employees hear things like “the company’s for sale” or “we’re being sold to a private-equity firm” and conjure up an image of Michael Douglas playing the role of Gordon Gekko, the ruthless slick-haired Wall-Street tycoon. They see the man who said “greed is good” taking over their company, firing everyone and counting the checks after he sells the business.

That rarely happens, and as former SEMA Chairman of the Board Wade Kawasaki, explained in a webinar entitled “Thriving During Corporate Climate Change,” a private-equity investor purchasing a company can actually be a boost for the business.

“They’re going to want to win, increase the size of the company, increase their market share,” Kawasaki said during the webinar. “To me, the best way to keep your job is to not worry that you’re going to lose it.”

A visit to the Coker Museum should be on the bucket list of any vintage car enthusiast.

During the webinar, Kawasaki, who became the CEO of Coker Tire after he and a private-equity investor bought the company, walked viewers through the process of a private-equity firm acquiring a company and the ways an employee can ensure long-term job security.

The webinar was hosted by SEMA’s Businesswomen’s Network (SBN) and chair Allison Harding, who introduced the presentation by noting, “The [SBN’s] resource and events committee has been hard at work to provide additional resources for our members to enhance their professional career paths.”

Coker Tire was rebranded as part of Legendary Companies when Kawasaki and the management team purchased the business. Brands under the corporate umbrella include Wheels Vintiques and Paragon Corvette, and the company has a partnership with a German distributor to sell products for vintage cars overseas.

Private Equity 101

During the webinar, Kawasaki explained the process of a private-equity sale. He discussed the types of private-equity companies, those that are most likely to invest in automotive aftermarket, and other topics.

Obviously, the first step is making the decision to sell. “The reasons for selling are many,” said Kawasaki. “It could be a family company that doesn’t have a next generation that wants to run the company and would like to position it so [they] can retire.”

He continued, “It could be a need for capital for growth, we just need more money to do what we need to do.”

From the investor’s standpoint, Kawasaki said, an acquiring company will look at five things: the market, the company’s competitive position, the management team, how the business is valuated and the corporate structure.

“When you’re looking for a business, you need to make sure that they are in a space where you can win,” said Kawasaki. “The automotive aftermarket has always been very resilient.”

SEMA estimates the value of the automotive aftermarket at $52 billion broken into many segments. “Understanding your segment and the potential within that segment is pretty crucial as you present this to private equity,” said Kawasaki.

A key factor for a business is its ability to produce barriers to entry that make the company look more attractive than the competition. For example, Coker Tire has 1,100 molds for vintage and current tires in its warehouse and it licenses the rights to those tires to companies like Firestone, BFGoodrich, Uniroyal and more. “It costs millions of dollars to make those molds,” said Kawasaki. “The more barriers to entry your business has, the higher price you’ll get, and the more important that staff is that created those barriers.”

A potential buyer is also going to want to look at the long-term forecast. An investor may be focused on long-term success, but it might not want to invest long-term.

“Can you continue to have that unique product or service or different company or product, and why can your company win over the long term?” asked Kawasaki.

Smart people refer to other smart people, and Kawasaki brought up a favorite quote from investing guru Warren Buffet: “The key to investing is not assessing how much the industry is going to affect society or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”

A frequent public speaker, former SEMA Chairman of the Board Wade Kawasaki brought personal experience to the “corporate climate change” discussion.

Step by Step

One critical element of the automotive aftermarket segment is something that many investors might overlook. “We don’t sell something people need,” said Kawasaki. “Nobody needs to buy a single thing we sell. We’re driven by passion. All the companies on this [webinar] call are passionate about what they do and create the need for their product.”

He added that a private-equity firm looks closely at the CEO of a company under consideration for purchase. “Besides the CEO, they’re going to be looking at having that A-plus management team with a track record of success, and that they’ve been able to accomplish those things they’ve been asked to accomplish,” said Kawasaki. “They’re looking for those managers who are smarter than them.”

Once a company commits to selling, a couple of things could happen. One of the first items on the list might be retaining an investment banking firm.

“Depending on the size of the company, it may be hiring a banker, it might be hiring a consultant,” said Kawasaki. “There are many consultants in the automotive aftermarket that will help guide you through the sale process.”

The company will also need to come up with a statement describing why it would be attractive to potential buyers. A Confidential Information Memorandum (CIM) provides specifics for the company that’s up for sale.

“The next thing that happens is the investment banker, consultant or your marketing team prepares a pitch deck,” said Kawasaki. “That pitch deck is what you’re going to turn into a CIM that’s going out to private-equity companies for them to decide if this is something that’s going to interest them or not.”

While a private-equity firm is one potential category of investor or owner, there may be situations where a competitor would be interested in buying a company to solidify or enhance its position in the industry.

“Is there a competitor that would be interested, or a supplier, or a customer that would be interested in purchasing the company?” said Kawasaki.

He explained that deciding to sell and coming up with the CIM and potential list of buyers takes about 30 days. Then it’s another month to get the information out to prospective buyers.

“The next step is going to depend on the structure of the deal,” said Kawasaki. “It’s either going to be a management call or management meeting to take a look the CIM and formulating a letter of intent and sending it off to the company.”

Coker Tires recently underwent a corporate structure change.

More Than Money

In the case of the Coker Group, the company fielded many calls with prospective buyers to explain the CIM instead of a more-drawn-out presentation.

“We sent out hundreds of CIMs and got dozens of letters of intent,” said Kawasaki. “All the letters came back to the ownership group. We looked at those and decided who we wanted to come out and make a presentation, looking at not only the things that are covered in the CIM but also [going] into greater detail of our market size and [how] they would get a more confidential look at the company.”

The management team then decides if it wants to be exclusive with one of those companies to move forward. For the Coker Group, it was about more than money. The company narrowed the field down to three investment bankers before management decided it found the right fit.

“The bid didn’t just include the dollars,” said Kawasaki. “The bid included what they planned to do with the company, how they planned to involve the management team, so there were many other discussions that came up before we made a decision.”

He continued, “We didn’t choose the highest bid, we chose the one that had the best overall package that made the best sense for the go-forward company.”

Inevitable Questions

During the webinar, questions were raised that focused on quelling the concerns that employees at the company being purchased are likely to feel. “It’s very important that the entire team understands what’s going on,” said Kawasaki. “The team doesn’t need to know you’ve hired an investment banker, but once the CIM goes out and the process continues, that’s when we had a townhall meeting with the entire staff.”

Kawasaki held a meeting with all of the company’s employees and tried to be as transparent as possible to make people more comfortable. “That’s how they understand the full process,” said Kawasaki. “The same process I outlined today, I outlined in our townhall meeting. The more you can share, and the earlier you can share, the better off you’ll be.”

It’s also critical to have good team leaders in place. “The more important questions got asked after the meeting, so it’s those team leaders who can get the information from the ownership team going forward,” said Kawasaki.

He added that it’s rare that a private-equity firm will insert a person into a company that it’s purchasing. In the case of Coker Tires, the COVID-19 pandemic presented unique challenges from the supply-chain perspective. The investing company had a supply-chain specialist who helped Coker find creative ways to deal with slowdowns.

Finally, a webinar attendee asked how an employee can participate in the ownership of the company being purchased. “The more you participate in the return on investment, the more that possibility exists,” answered Kawasaki.

SEMA Pickup Accessorization Report Offers Comprehensive View of Truck Landscape

Thu, 12/01/2022 - 09:59

By Mike Imlay

Americans (and indeed car buyers throughout the world) love pickup trucks. What’s more, they love accessorizing them—so much so that 49% of all late-model pickups are modified with specialty-equipment parts.

That’s just one of the key findings of the new “2022 SEMA Pickup Accessorization Report.” Compiled by SEMA Market Research, the report offers a comprehensive look at the evolving pickup landscape along with sales forecasts and other data relating to the parts that accessorizers buy and how they buy them. Packed with plenty of useful statistics and analysis, the 158-page report is available to download for free at www.sema.org/research.

The new “2022 SEMA Pickup Accessorization Report” provides a comprehensive review of the evolving pickup landscape and the key aftermarket business opportunities to be found in the segment.

“The pickup truck market is the largest segment of the specialty-automotive aftermarket and a key opportunity for businesses,” said SEMA Director of Market Research Gavin Knapp. “This report helps SEMA members understand where the opportunities are and how to best connect with pickup accessorizers.”

According to Knapp, the report focuses specifically on late-model and newer mid-size and fullsize pickups found on the road today. It takes a deep dive into the consumer market (as opposed to fleets) in which pickups are personally owned, but also frequently used for work purposes. Its key findings include the following interesting facts:

Pickup owners spent $16 billion on specialty parts in 2021.
There are more than 29 million late-model (’10 and newer) pickups on the road, and about half of them are modified.
62% of late-model pickup accessorizers buy off-road-focused parts for their trucks.
84% of late-model accessorizers plan to make additional modifications in the near future.
45% of specialty-equipment businesses view battery-electric pickups as an opportunity.

By far, pickups comprise the largest single specialty-equipment segment in terms of sales. Consumers spent $16 billion on aftermarket parts for pickups in 2021, representing 31% of the industry’s sales.

The Pickup Landscape

“There are more than 280 million passenger vehicles on U.S. roads today, and the majority of those are considered light trucks,” observed Knapp. “There’s often some confusion, though, because people use the terms ‘pickup’ and ‘truck’ interchangeably. Keep in mind that the light truck category includes pickups, sport utility vehicles [SUVs], crossover utility vehicles [CUVs] and vans. This report centers on pickups. While light trucks outsell cars three to one, pickups represent about every fifth vehicle on the road right now.”

Still, he noted, pickups have outperformed many other vehicle types in terms of new sales over the past several years, despite the recent economic hardships, chip shortages and supply-chain issues. “Pickup demand has remained strong, and they’re pretty high-value vehicles for OEMs, which makes them a potential priority in their production cases,” he said.

The majority of pickup owners use their trucks for daily tasks, short road trips, light utility and outdoor recreation. But because pickups fulfill a wide range of roles, they often require specialized accessories or modifications.

In fact, while OEMs are now shifting away from traditional passenger vehicles in favor of CUVs, the pickup category is remaining stable, and will likely stay that way for the foreseeable future.

“Traditionally, pickups have been a small, contained collection of models, allowing something like the Ford F-150 to become the top-selling vehicle in the United States. And if we think about the hottest pickups for our industry, the big, fullsize models are at the top, plus the Toyota Tacoma,” continued Knapp. “But one difference we are seeing now is a reemergence of some midsize and smaller pickup brands and models as people look for cheaper options and better gas mileage.”

Regardless of their size, accessorizing pickups of all types remains a lucrative area of opportunity for the aftermarket. According to SEMA Market Research, specialty equipment sales for passenger vehicles topped $50 billion last year, and the largest individual slice of those sales—$16 billion worth—were in the pickup category.

“Pickups really are a booming market for our industry,” said Knapp. “Looking at our manufacturers and retailers, many companies are selling into the pickup market and have been doing really well. They’ve continued to see increased sales largely over the last 12 months.”

Super-duty pickups are more likely to be modified for specialized purposes, but all makes and models receive a good share of aftermarket upgrades.

Profiling the Pickup Owner

Of course, to truly leverage this $16 billion market, industry businesses must understand pickups owners, how they use their trucks, and ultimately their motivations for vehicle modifications. In that regard, the report arms manufacturers and retailers alike with a wealth of data.

“Nearly all trucks are used as daily drivers, and most people consider their pickup a utility vehicle,” said Knapp. “But a large percentage also utilize their pickups for travel, which can mean pulling a trailer, adding a camper, or equipping it with gear to get off road. It’s when we get into some of those specifics that we really see the opportunities for our industry. If you look at the people who think of their truck as an outdoor recreation vehicle, as a work vehicle, or as an off-road vehicle, their specialized needs become the driving forces for all of their accessory and modification decisions.”

The report finds that more than 90% of late-model pickup owners use their vehicles for travel or road trips, whether they be to access recreation areas, multi-day drives into the wilderness for camping, an overland trip, or an off-roading excursion. In addition, a good portion of their trips include sleeping in the truck, a bed-mounted camper or a trailer towed behind. “For many, the pickup is like their home away from home, and modifications for pulling a trailer or hauling gear is one of their more common needs,” said Knapp.

Most commonly, owners modify their pickups for improved utility and looks, but performance enhancements also enter the mix. Modifications are typically made soon after vehicle purchase, although some owners continue modifying as long-term projects or as new needs arise.

But if anything defines a pickup, it’s versatility—for work as well as play. In fact, SEMA Market Research also finds that about 28% of pickup owners see their trucks as true work vehicles and modify them accordingly.

“There are so many general-utility uses that encompass the entire pickup market, and a lot of overlap between work around the house and work at a job site,” explained Knapp. “However, when it comes to a true work truck, there tends to be more interest in the comfort aspects of riding to and from a job, the ability to tow and haul work gear, and having the necessary storage for it. We see a lot of specialization, especially when it comes to things like a toolbox in the vehicle.”

Still, not every pickup owner feels compelled to modify a truck. The market is actually split between those who keep their trucks stock (51%) and those who accessorize (49%). Among those who do accessorize, the report finds that “non-enthusiast” consumers comprise 57% of the market. True “enthusiast” consumers—those primarily motivated by the enjoyment of working on a vehicle, maximizing performance and handling, or making their vehicle stand out—represent 43% of the marketplace.

Overall, pickup owners tend toward practical modifications for trailering and hauling (38%), easier entry and exit (27%), added storage (24%), or light off-road use (23%). In addition, owners of heavy-duty pickups are especially likely to enhance their vehicles for towing and hauling (47%). Meanwhile, a healthy percentage of pickup owners of all types opt to improve their vehicle’s appearance (35%).

Top specialty-equipment product categories for 2021 reflect all these goals. Popular purchases include off-road and oversize tires; suspension products; bedliners and accessories; transmission products; bed covers; fender, hood and body upgrades; brake products; trailer and towing products; and performance or special-purpose tires.

Off-Roading and Adventuring

Not surprisingly, equipping trucks for off-roading and overlanding pursuits continue to offer prime opportunities for the aftermarket as well. “More than half of people who own pickups—regardless of whether they lightly modify their vehicle or have a purpose-built off-road truck—get onto dirt roads or gravel paths a few times a year, if not on a regular basis,” said Knapp. “In terms of really hitting the trails, going mudding and dealing with steep inclines, we also see a good share of the overall pickup market doing those things as well as other hardcore activities like bouldering and rock crawling.”

Helping these owners achieve their goals (or simply look the part) will go a long way toward gaining loyal customers. This is an audience known for return business—the vast majority of pickup accessorizers who have already done work on their trucks say they plan to do more.

Also reflecting the diverse nature of the pickup lifestyle, aftermarket businesses will find many avenues for engaging truck owners. “It’s not just online, just on social media, or even just in-store,” said Knapp. “With pickup owners we see a lot of word of mouth, YouTube and social-media engagement. Instagram is important too, but you don’t want to neglect building up your own website and training your own staff. Especially with people seeking complicated modifications, if you can guide them through the process, you’ll see a lot of success.”

In short, pickup owners are willing to invest in quality parts that get the job done. As a whole, they’re also brand-loyal, with reliability being front of mind.

“They spend a good amount of money on their vehicles, upgrading and accessorizing them,” observed Knapp. “Trucks are supposed to be tough, and they’ll prioritize tough parts and accessories over the lowest price.”

Domestic fullsize units dominate the pickup landscape in terms of vehicle and aftermarket parts sales, and thus top the SEMA list of hot pickups for accessorization. Still, there are a range of platforms offering opportunities for the industry.

As for the foreseeable future, the pickup market offers a sense of continuity in a changing automotive landscape. The SEMA Market Research report sees growing opportunity in the midsize market, and although smaller pickups currently lag in accessorization, that’s likely due to their market absence of late. As consumers embrace the emerging “compact” models, modifications are bound to follow. Likewise the new rugged models like the Jeep Gladiator, which is also predicted to be a strong platform for the aftermarket.

“The great thing about the pickup market is there aren’t any of them that can’t be modified and accessorized,” Knapp reiterated. “Going forward, we also looked at the electric-vehicle [EV] market. It’s everywhere right now, and our expectation is we’ll see more and more EV pickups hitting the road, along with some increases in hybrid models. But gasoline power will remain the standard for quite some time.”

If anything, the new EV platforms are introducing novelty to the market—along with a new demographic of customers who would not normally consider themselves “truck people.”

“They are early adopter types,” explained Knapp. “But as time goes on and more EV pickups are sold and EVs become more mainstream, so will these consumers.”

Not surprisingly, while accessorizers buy parts for both simple and complex jobs through a variety of channels, particularly difficult or costly mods are more likely to be bought in-store.

After all, added Knapp, “It’s a truck. It’s got four wheels. It’s got suspension. It’s got exterior body panels. It’s got a truck bed. All of those things can be modified and accessorized in the same way that a traditional pickup can.”

In other words, the American love affair with pickups will remain undiminished for a long time to come. And that is bound to spark continued innovation and growth for the specialty-equipment industry too.

Get All the Details

To learn more about the pickup market, pickup owners and the parts they love and buy, download the “2022 SEMA Pickup Accessorization Report” today at www.sema.org/research.

The report is also the subject of a SEMA on-demand webinar video titled “Understanding the Pickup Accessorization Market,” which is now available through SEMA Education at https://learning.sema.org/on-demand-video.

This story was originally published on December 1, 2022. For more industry news, visit SEMANews.com and subscribe to SEMA News at the bottom of the webpage to get the latest updates straight to your inbox, twice a week.

The "2022 SEMA Pickup Accessorization Report"

Thu, 12/01/2022 - 09:56

SEMA News—December 2022

RESEARCH

The “2022 SEMA Pickup Accessorization Report”

Solid Facts and Data Shed Light on a Ruggedly Dependable Market

By Mike Imlay

The new “2022 SEMA Pickup Accessorization Report” provides a comprehensive review of the evolving pickup landscape and the key aftermarket business opportunities to be found in the segment.

Americans (and indeed car buyers throughout the world) love pickup trucks. What’s more, they love accessorizing them—so much so that 49% of all late-model pickups are modified with specialty-equipment parts.

That’s just one of the key findings of the new “2022 SEMA Pickup Accessorization Report.” Compiled by SEMA Market Research, the report offers a comprehensive look at the evolving pickup landscape along with sales forecasts and other data relating to the parts that accessorizers buy and how they buy them. Packed with plenty of useful statistics and analysis, the 158-page report is available to download for free at www.sema.org/research.

“The pickup truck market is the largest segment of the specialty-automotive aftermarket and a key opportunity for businesses,” said SEMA Director of Market Research Gavin Knapp. “This report helps SEMA members understand where the opportunities are and how to best connect with pickup accessorizers.”

According to Knapp, the report focuses specifically on late-model and newer mid-size and fullsize pickups found on the road today. It takes a deep dive into the consumer market (as opposed to fleets) in which pickups are personally owned, but also frequently used for work purposes. Its key findings include the following interesting facts:

Pickup owners spent $16 billion on specialty parts in 2021.
There are more than 29 million late-model (’10 and newer) pickups on the road, and about half of them are modified.
62% of late-model pickup accessorizers buy off-road-focused parts for their trucks.
84% of late-model accessorizers plan to make additional modifications in the near future.
45% of specialty-equipment businesses view battery-electric pickups as an opportunity.