Sway-A-Way’s SEMA Show display

Slightly more than 300 enthusiasts (25%) surveyed last month said that they purchased shocks over the last year, compared to 11% for lowering kits, 18% for coil springs, 9% for leaf springs and 7% for lift kits. In the survey, SEMA also asked where enthusiasts purchased particular products. For example, 32% of enthusiasts that purchased shocks last year did so via an Internet retail store website, whereas 19% turned to custom shop installers.

In late February, SEMA interviewed enthusiasts about products they purchased during the past year and their spending for the month of January. The focus was not simply on the products they purchased, but also on the venue where they made the transaction. Their responses could help shape the way items are viewed for the individual retailer and how to more effectively stock related products.

For January, enthusiasts offered a somber yet hopeful look at the market. Many (roughly 40%) did not make a purchase during the first month of the year. Historically, January has been a slow month for upgrades. Purchases begin to pick up as spring and summer approach.

However, of those enthusiasts who did make purchases, the average amounts are high from a monthly perspective. For example, if this level of spending remains consistent throughout the year, $300 per month equates to $3,600 a year. This falls almost $1,000 higher than the traditional amount enthusiasts have reported in the past.

Spending is typically slow in colder months but kicks up as the spring and summer approach.

Many enthusiasts withheld spending in January, but those that did spent sizable amounts for a single month.

As to where the purchases were made, the most common venues were Internet retailers. The table below illustrates where consumers claimed to purchase products during January. Of the total group surveyed—roughly 1,000—the column on the right lists the number of respondents that claimed to purchase the item.

For example, 429 enthusiasts out of 1,041 purchased brake calipers or rotors. The most common locations for this particular product were Internet retailers (22%) and vehicle dealerships (7%). Of those who made a purchase, the distribution of the venues is listed below with the leading venue highlighted; top venue for the product (blue), top product for the venue (gray) or where there is overlap (orange). — SEMA Research & Information Center

Internet retail sites and custom shop installers were the two most common responses enthusiasts gave when asked where they purchased their shocks.

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

As the light-truck market grew beyond the scope of dedicated enthusiasts and proliferated into the mainstream, a number of SEMA member companies became more and more dependent on these sales to buffer their business. As the U.S. economic situation grew more difficult, these additional consumers stopped shopping for automotive performance parts and accessories. Their commitment to the lifestyle is more capricious than the hardcore hobbyist.

The fact that many of these same industry companies also concentrate on modifications for vehicles produced by Detroit compounds the effects, especially when you consider what is happening to the automakers today. 

“In 2008, sales for U.S. vehicles hit a low not seen since the early '80s," said Rob Tregenza, vice president consumer strategist, Iconoculture. "Now the emphasis is on how automakers will have to redefine themselves to survive a hyper-volatile year. The year 2009 is about understanding a new auto era, marked by permanent behavioral change. From micro cars and alternative fuel options to conservation and a flexible family fleet, mainstream consumers are making smarter, longer-term decisions about mobility."

Tregenza added, "Preservation is the savvy driver’s best defense. It’s a pattern that doesn't bode well for new-vehicle sales, but it does open opportunities to forge new connections with consumers who are going to be buying fewer cars in the future. High-ticket items, such as automobiles, are still emotional decisions. The consumer love affair with the car isn’t over yet; it’s just becoming high-maintenance.” 

In 2007, SEMA launched an industry index program in which consumers were polled each month to find out what they were planning in the way of automotive modifications. The program involves mostly mainstream consumers and issues a forecast for near-future spending habits.

In February, the SEMA Performance Product and Accessory Demand Index (PADI) improved 7 points, increasing from 36 in January to 43, and marking the second month that the index has risen. Not quite strong enough to say the downward trend is over, but definitely encouraging.

This month, 11% of adult American drivers (more than 12 million households) indicated that they had plans to purchase performance products and accessories sometime within the next three months, and 17% of those modifications are planned for pickups. While this is a decline from the 19% who planned to modify a pickup during the same period of time last year, overall new pickup sales have dropped 38% in January compared to the same month last year, showing that despite sales declines, pickup accessorization demand is relatively steady.

In terms of other vehicle types owned by consumers planning to purchase accessories, 28.6% plan to enhance a midsize car, 12.4% a compact car, 12.1% a small SUV, 9.9% a subcompact car, 8.9% a fullsize car, 5.4% a minivan, 3.4% a large SUV and 2.3% either refused to answer the question or were unsure.

Only time will tell for sure, but if the trend continues in March, we could see some light in the 2009 market for light-truck performance parts and accessories. — SEMA Research & Information Center

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

Our industry is facing an evolution that will have a profound impact on every company at every level of the specialty-equipment market. Car and truck sales are down; OEMs are closing North American plants; and the specialty-equipment market is feeling its share of the impact. On the other hand, alternate fuels, the era of personalization, green technologies and other changes offer new opportunities for those willing to pursue them. It’s not business as usual. SEMA-member companies have serious decisions to make.

Recently, SEMA commissioned a groundbreaking series of forecasting reports to assist members as we look to the future. These reports, being undertaken by the acclaimed Center for Automotive Research (CAR), will give business owners and executives forward-looking information on critical topics, such as vehicle technology; the strategies and directions the OEMs will take; government regulatory trends; and consumer trends. The reports are forecasting tools that look at what is on the drawing board today and will likely have an impact on our industry three, five or even seven years from now.

The first report, titled “The Specialty-Equipment Automotive Company of the Future: Guideposts for Strategic Planning,” looks at a number of trends regarding both the automakers and the specialty-equipment industry. For instance, some auto manufacturers anticipate using aftermarket companies as sources for consumer electronics only, while others are considering far more broad-based applications, including chassis and appearance products. In those cases, both the OEs and the aftermarket would have to target specific car and truck categories.

The first report also examines the automakers’ willingness and desire to promote their in-house performance brands, leverage specialty-equipment brands or utilize some mix of in-house and partner-branded performance components. The report indicates that SEMA programs, such as Measuring Sessions and Technology Transfer, might be expanded to facilitate collaboration between automakers and specialty-equipment suppliers earlier in the design and development of new-vehicle offerings.

The CAR report identifies car dealerships as prime territory for specialty-equipment companies and the opportunity to expand our markets. Dealerships may increasingly serve as direct specialty-equipment outlets for consumers, utilizing a combination of in-house and independent installation to serve customer needs.

In mid-January, SEMA hosted a webinar based on the first CAR report. It was presented by the co-authors of the document, Brett Smith, CAR assistant director of the manufacturing, engineering and technology group, and Richard Wallace, CAR senior project manager. Smith and Wallace discussed the findings in the report, including the potential for OEM-aftermarket collaboration and new customization opportunities that will arise as more models are produced from fewer platforms. As with other SEMA webinars, the CAR discussion is now archived on the SEMA website (visit www.sema.org/webinar) and is available to employees of member companies who wish to gain additional insights from the report and its authors.

This is a critical time for the businesses that comprise our industry, and I believe that the type of information found in the CAR report can make a difference as we move forward. There is no doubt that the industry is changing. Our task is to ensure that we adapt and thrive as the changes occur.

Our industry is facing an evolution that will have a profound impact on every company at every level of the specialty-equipment market. Car and truck sales are down; OEMs are closing North American plants; and the specialty-equipment market is feeling its share of the impact. On the other hand, alternate fuels, the era of personalization, green technologies and other changes offer new opportunities for those willing to pursue them. It’s not business as usual. SEMA-member companies have serious decisions to make.

Recently, SEMA commissioned a groundbreaking series of forecasting reports to assist members as we look to the future. These reports, being undertaken by the acclaimed Center for Automotive Research (CAR), will give business owners and executives forward-looking information on critical topics, such as vehicle technology; the strategies and directions the OEMs will take; government regulatory trends; and consumer trends. The reports are forecasting tools that look at what is on the drawing board today and will likely have an impact on our industry three, five or even seven years from now.

The first report, titled “The Specialty-Equipment Automotive Company of the Future: Guideposts for Strategic Planning,” looks at a number of trends regarding both the automakers and the specialty-equipment industry. For instance, some auto manufacturers anticipate using aftermarket companies as sources for consumer electronics only, while others are considering far more broad-based applications, including chassis and appearance products. In those cases, both the OEs and the aftermarket would have to target specific car and truck categories.

The first report also examines the automakers’ willingness and desire to promote their in-house performance brands, leverage specialty-equipment brands or utilize some mix of in-house and partner-branded performance components. The report indicates that SEMA programs, such as Measuring Sessions and Technology Transfer, might be expanded to facilitate collaboration between automakers and specialty-equipment suppliers earlier in the design and development of new-vehicle offerings.

The CAR report identifies car dealerships as prime territory for specialty-equipment companies and the opportunity to expand our markets. Dealerships may increasingly serve as direct specialty-equipment outlets for consumers, utilizing a combination of in-house and independent installation to serve customer needs.

In mid-January, SEMA hosted a webinar based on the first CAR report. It was presented by the co-authors of the document, Brett Smith, CAR assistant director of the manufacturing, engineering and technology group, and Richard Wallace, CAR senior project manager. Smith and Wallace discussed the findings in the report, including the potential for OEM-aftermarket collaboration and new customization opportunities that will arise as more models are produced from fewer platforms. As with other SEMA webinars, the CAR discussion is now archived on the SEMA website (visit www.sema.org/webinar) and is available to employees of member companies who wish to gain additional insights from the report and its authors.

This is a critical time for the businesses that comprise our industry, and I believe that the type of information found in the CAR report can make a difference as we move forward. There is no doubt that the industry is changing. Our task is to ensure that we adapt and thrive as the changes occur.

Our industry is facing an evolution that will have a profound impact on every company at every level of the specialty-equipment market. Car and truck sales are down; OEMs are closing North American plants; and the specialty-equipment market is feeling its share of the impact. On the other hand, alternate fuels, the era of personalization, green technologies and other changes offer new opportunities for those willing to pursue them. It’s not business as usual. SEMA-member companies have serious decisions to make.

Recently, SEMA commissioned a groundbreaking series of forecasting reports to assist members as we look to the future. These reports, being undertaken by the acclaimed Center for Automotive Research (CAR), will give business owners and executives forward-looking information on critical topics, such as vehicle technology; the strategies and directions the OEMs will take; government regulatory trends; and consumer trends. The reports are forecasting tools that look at what is on the drawing board today and will likely have an impact on our industry three, five or even seven years from now.

The first report, titled “The Specialty-Equipment Automotive Company of the Future: Guideposts for Strategic Planning,” looks at a number of trends regarding both the automakers and the specialty-equipment industry. For instance, some auto manufacturers anticipate using aftermarket companies as sources for consumer electronics only, while others are considering far more broad-based applications, including chassis and appearance products. In those cases, both the OEs and the aftermarket would have to target specific car and truck categories.

The first report also examines the automakers’ willingness and desire to promote their in-house performance brands, leverage specialty-equipment brands or utilize some mix of in-house and partner-branded performance components. The report indicates that SEMA programs, such as Measuring Sessions and Technology Transfer, might be expanded to facilitate collaboration between automakers and specialty-equipment suppliers earlier in the design and development of new-vehicle offerings.

The CAR report identifies car dealerships as prime territory for specialty-equipment companies and the opportunity to expand our markets. Dealerships may increasingly serve as direct specialty-equipment outlets for consumers, utilizing a combination of in-house and independent installation to serve customer needs.

In mid-January, SEMA hosted a webinar based on the first CAR report. It was presented by the co-authors of the document, Brett Smith, CAR assistant director of the manufacturing, engineering and technology group, and Richard Wallace, CAR senior project manager. Smith and Wallace discussed the findings in the report, including the potential for OEM-aftermarket collaboration and new customization opportunities that will arise as more models are produced from fewer platforms. As with other SEMA webinars, the CAR discussion is now archived on the SEMA website (visit www.sema.org/webinar) and is available to employees of member companies who wish to gain additional insights from the report and its authors.

This is a critical time for the businesses that comprise our industry, and I believe that the type of information found in the CAR report can make a difference as we move forward. There is no doubt that the industry is changing. Our task is to ensure that we adapt and thrive as the changes occur.

New Online Format Makes Downloads Available to Members

In the specialty-equipment industry, certification often represents a laborious but required undertaking for the selling of aftermarket parts. To ease the process for members, SEMA created and recently revised the Black Book—a guide to achieving emissions compliance status with the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency (EPA).

The Black Book provides information on current federal and state emissions guidelines and was recently revised into an online format, so its contents are now available for download to SEMA members.

“In many cases, there has been confusion about the process by which requirements can be met and Executive Orders (EOs) from CARB issued for applicable parts and systems,” said SEMA Vice President of Government Affairs Steve McDonald. “For years, SEMA has provided information and outlined compliance steps. However, what the revised material has done is further simplify the process.”

The Black Book offers website links to firsthand information from various compliance-related sources, including the CARB website. The handbook also includes simple steps to obtaining a CARB EO, application forms, helpful hints, compliance criteria checklists, retail restrictions information and a list of independent laboratories equipped to perform required emissions-testing protocols.

“Experience has shown that obtainment of a CARB EO typically allows the sale of applicable emissions-related parts and systems outside the state of California,” McDonald stated. “The Black Book also contains information to assist members in understanding and complying with the EPA’s tampering enforcement policy.”

Under the EPA policy, manufacturers must have a “reasonable basis” for concluding that their products do not adversely affect vehicle emissions. McDonald noted that the EPA currently recognizes a CARB EO as meeting the required reasonable basis.

“This collection of valuable information is designed to expedite the certification process for members and to help them identify ways to minimize both cost and time in reaching compliance status,” McDonald said.

For assistance or for help addressing specific concerns, SEMA members are directed to contact SEMA Technical Consultant Jim McFarland at jmcfar1@aol.com.

New Online Format Makes Downloads Available to Members

In the specialty-equipment industry, certification often represents a laborious but required undertaking for the selling of aftermarket parts. To ease the process for members, SEMA created and recently revised the Black Book—a guide to achieving emissions compliance status with the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency (EPA).

The Black Book provides information on current federal and state emissions guidelines and was recently revised into an online format, so its contents are now available for download to SEMA members.

“In many cases, there has been confusion about the process by which requirements can be met and Executive Orders (EOs) from CARB issued for applicable parts and systems,” said SEMA Vice President of Government Affairs Steve McDonald. “For years, SEMA has provided information and outlined compliance steps. However, what the revised material has done is further simplify the process.”

The Black Book offers website links to firsthand information from various compliance-related sources, including the CARB website. The handbook also includes simple steps to obtaining a CARB EO, application forms, helpful hints, compliance criteria checklists, retail restrictions information and a list of independent laboratories equipped to perform required emissions-testing protocols.

“Experience has shown that obtainment of a CARB EO typically allows the sale of applicable emissions-related parts and systems outside the state of California,” McDonald stated. “The Black Book also contains information to assist members in understanding and complying with the EPA’s tampering enforcement policy.”

Under the EPA policy, manufacturers must have a “reasonable basis” for concluding that their products do not adversely affect vehicle emissions. McDonald noted that the EPA currently recognizes a CARB EO as meeting the required reasonable basis.

“This collection of valuable information is designed to expedite the certification process for members and to help them identify ways to minimize both cost and time in reaching compliance status,” McDonald said.

For assistance or for help addressing specific concerns, SEMA members are directed to contact SEMA Technical Consultant Jim McFarland at jmcfar1@aol.com.

New Online Format Makes Downloads Available to Members

In the specialty-equipment industry, certification often represents a laborious but required undertaking for the selling of aftermarket parts. To ease the process for members, SEMA created and recently revised the Black Book—a guide to achieving emissions compliance status with the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency (EPA).

The Black Book provides information on current federal and state emissions guidelines and was recently revised into an online format, so its contents are now available for download to SEMA members.

“In many cases, there has been confusion about the process by which requirements can be met and Executive Orders (EOs) from CARB issued for applicable parts and systems,” said SEMA Vice President of Government Affairs Steve McDonald. “For years, SEMA has provided information and outlined compliance steps. However, what the revised material has done is further simplify the process.”

The Black Book offers website links to firsthand information from various compliance-related sources, including the CARB website. The handbook also includes simple steps to obtaining a CARB EO, application forms, helpful hints, compliance criteria checklists, retail restrictions information and a list of independent laboratories equipped to perform required emissions-testing protocols.

“Experience has shown that obtainment of a CARB EO typically allows the sale of applicable emissions-related parts and systems outside the state of California,” McDonald stated. “The Black Book also contains information to assist members in understanding and complying with the EPA’s tampering enforcement policy.”

Under the EPA policy, manufacturers must have a “reasonable basis” for concluding that their products do not adversely affect vehicle emissions. McDonald noted that the EPA currently recognizes a CARB EO as meeting the required reasonable basis.

“This collection of valuable information is designed to expedite the certification process for members and to help them identify ways to minimize both cost and time in reaching compliance status,” McDonald said.

For assistance or for help addressing specific concerns, SEMA members are directed to contact SEMA Technical Consultant Jim McFarland at jmcfar1@aol.com.

New Online Format Makes Downloads Available to Members

In the specialty-equipment industry, certification often represents a laborious but required undertaking for the selling of aftermarket parts. To ease the process for members, SEMA created and recently revised the Black Book—a guide to achieving emissions compliance status with the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency (EPA).

The Black Book provides information on current federal and state emissions guidelines and was recently revised into an online format, so its contents are now available for download to SEMA members.

“In many cases, there has been confusion about the process by which requirements can be met and Executive Orders (EOs) from CARB issued for applicable parts and systems,” said SEMA Vice President of Government Affairs Steve McDonald. “For years, SEMA has provided information and outlined compliance steps. However, what the revised material has done is further simplify the process.”

The Black Book offers website links to firsthand information from various compliance-related sources, including the CARB website. The handbook also includes simple steps to obtaining a CARB EO, application forms, helpful hints, compliance criteria checklists, retail restrictions information and a list of independent laboratories equipped to perform required emissions-testing protocols.

“Experience has shown that obtainment of a CARB EO typically allows the sale of applicable emissions-related parts and systems outside the state of California,” McDonald stated. “The Black Book also contains information to assist members in understanding and complying with the EPA’s tampering enforcement policy.”

Under the EPA policy, manufacturers must have a “reasonable basis” for concluding that their products do not adversely affect vehicle emissions. McDonald noted that the EPA currently recognizes a CARB EO as meeting the required reasonable basis.

“This collection of valuable information is designed to expedite the certification process for members and to help them identify ways to minimize both cost and time in reaching compliance status,” McDonald said.

For assistance or for help addressing specific concerns, SEMA members are directed to contact SEMA Technical Consultant Jim McFarland at jmcfar1@aol.com.

Effective and efficient marketing has become more important than ever, and with exclusive access to purchase SEMA’s mailing labels and reports, members are able to benefit from a valuable, time-saving resource.

The mailing labels include the names and addresses of SEMA’s more than 7,000 member companies. Members can choose from 26 different categories, including car dealer, importer, installer/restyler, jobber, manufacturer, manufacturers' representative, retailer and warehouse/multiline distributor. Members can select one or all categories for a flat fee.

Members may also request a printed report along with their mailing labels. The report will reflect the same contact information provided by the mailing labels.

“Direct mail is still a very viable marketing channel," said Dan Hobgood, SEMA senior director of marketing. "Having access to key member companies is extremely valuable and should not be overlooked."

For more information on ordering mailing lists and labels, contact the SEMA Membership Department at member@sema.org or call 909/396-0289.

To learn more about the many SEMA-member benefits, visit http://www.sema.org/sema-membership-benefits.