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Small-car sales will slowly increase to 2,424,500 units by the end of the year, 2,487,300 units in 2009, according to data from AutoPacifc. Overall annual growth is expected to average 2.3% through 2009, helped by new subcompacts entering the market next year.

Ford will unveil its 2010 Ford Fiesta next year, while Chrysler will begin selling its 2011 Dodge Hornet the following year. Rising gas prices and a depressed economy have pushed consumers into smaller vehicles. Sales increased 11.4% during the first six months of 2008 compared to previous-year sales, as shown in the table below.

Popular in the sport-compact segment, the Honda Civic has been a canvas for personalization for the last two decades. Although the look of the car has changed dramatically over the years, consumers’ desire to buy and customize this car continues, revealing that the Civic is a staple to the specialty-equipment industry. Nearly one in 10 (9%) enthusiasts that responded to SEMA's Automotive Lifestyles Survey said that they drove a small car. The table below outlines the top 20 specialty-equipment purchases made by this group.

Performance tires, air intakes, exhausts and suspension components—modifications that help boost performance, fuel economy and handling—are popular among small-car owners. Nearly nine in 10 (88%) small-car owners surveyed noted that the primary reason they personalize their cars is to increase performance, spending about $3,000 last year to do so. The most popular small cars owned by the enthusiasts surveyed were the Honda Civic, Acura Integra, Subaru Impreza, Nissan 240SX and Volkswagen GTI.

For more specialty-market research and insight, visit www.sema.org/research.

Knowing where SEMA members are selling their products is just as important as understanding what products are sold. Several distribution channels exist in the specialty-equipment market today, ranging from discount automotive chains to direct sales. The table below shows that in 2008, SEMA members said that they are selling an average of 33% of their products directly to consumers.

The second largest percentage of SEMA-member products are sold through warehouse distributors, 22% on average of specialty-equipment parts and accessories, according to survey results. Nearly half (47%) of SEMA members surveyed classified themselves as “manufacturers” of specialty equipment, so warehouse distributors are likely to play a big part in the distribution of specialty aftermarket parts and accessories.

SEMA administered a survey to its members at the beginning of this year in order to measure industry market trends and provide a benchmark for others in the specialty-equipment industry to follow. A total of 415 complete responses were gathered from a variety of company types. 

Additional SEMA-member trends survey data can be found in the all-new 2008 Trends and Forecasts Report Quarterly Update–Q2. The latest SEMA report uncovers the latest consumer buying trends and enthusiast specialty-equipment product purchases.

To download your copy of this report, as well as other original SEMA market research, visit www.sema.org/research.

As unemployment increases, the stock market stumbles and the American economy faces difficult times, SEMA members have the opportunity to appreciate the relatively stable specialty–equipment market. According to SEMA market research from the past 20 years, despite recessions in the economy, the industry has reported consistent positive growth with the only exception being 1991.

To demonstrate this stability, we can take a look at the last two recessions that occurred. From July 1990 to March 1991, the United States GDP decreased by a harsh 3.0%. During the same time, the specialty-equipment market grew by nearly 10% in 1990. Ironically, as the U.S. economy recovered from the recession, fueled by spending from the Gulf War, the war itself caused the specialty-equipment market to fall by 4.2%, as the industry’s customers were serving in the military.

The second recent recession occurred from November 2001 to November 2002. During the time that U.S. GDP declined, the specialty-equipment market was growing. In 2001, the industry experienced growth of 4.2%, and in 2002, that of 3.7%. 

Explanations of this stability could include the social and demographic makeup of specialty-equipment consumers. Enthusiasts, as many consumers are often called, generally have higher disposable incomes. SEMA reports the average enthusiast household income being at around $96,000 compared to the U.S. average reported by government census in 2006 of $46,352. In addition, specialty equipment can be seen as a luxury good, of which demand increases proportionally to income.

Despite warnings that the economy is falling into a recession, specialty-equipment manufacturers can remain calm knowing that market growth has been just as strong as ever.

For more specialty-market research and insight, visit www.sema.org/research.

All SEMA Show exhibitors and member companies are invited to be included in the 2008–2009 SEMA International Buyers Guide (IBG), an exclusive and comprehensive directory of companies involved in overseas sales.

The IBG is annually distributed worldwide to every international buyer that attends the SEMA Show, and also throughout the year at international trade shows and to more than 50 U.S. embassies throughout the world, including those in Germany, United Kingdom, Mexico, Japan, Australia, Italy, Brazil and South Africa.

To sign up, visit www.semashow.com/ibg.

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Wheels, suspension and exhaust systems are among the top specialty-equipment products sold in Argentina, according to a brief report recently issued by the U.S. Embassy in Argentina.

The report notes that some U.S. products are well known in this market of 4.5 million vehicles, such as MSD, Auto Meter, Eibach, GReddy among others. The report also reveals that while U.S. products are “widely recognized” because of their advertising in specialty magazines and TV shows such as "Overhaulin’," U.S. companies have made relatively small inroads in the market due to the high tariffs, limited number of U.S. vehicles sold in the market and the competition from low-cost products from Brazil and Asia.

A copy of the report is available at www.sema.org/international. 

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Review strategic ways to make more money on your inventory, increase the turn rate for selling your merchandise and determine your yearly inventory needs and how much cash to keep on-hand to purchase new inventory. Increase your bottom line by attending the eye-opening session, "Inventory Management: Mark It Down, Move It Out & Make More Money," presented by Tom Shay of Profits+Plus at 10:00 a.m. (PDT), August 14, 2008.

Title: Inventory Management: Mark It Down, Move It Out & Make More Money
When: Thursday, August 14, 2008, 10:00 a.m.–11:00 a.m. (PDT)
Presenter: Tom Shay, Profits+Plus
 
And don't forget to mark your calendar for our August 28 webinar, "25 Common Mistakes Made by SEMA Show Exhibitors," presented by Chuck Schwartz, ConvExx CEM and Chairman. Avoid the pitfalls that minimize success at the Show and learn how to effectively market your SEMA Show exhibiting product. Schwartz will help you determine your SEMA Show marketing budget, how to properly brand your exhibiting product and control your exhibiting costs. Save yourself time, money and extra steps by attending this webinar.

SEMA's Webinar Program
The SEMA webinar program brings the world-class business seminars featured during the SEMA Show Education Week right to your desktop. Different business-building sessions are constantly added to the program, offering members the latest insight and practices from today’s leading speakers.

All SEMA webinars are conducted live and are open to all employees of SEMA-member companies free of charge. To participate, all you need is a computer with Internet access and a telephone. All previous SEMA webinars are available for download by clicking here. To view upcoming presentations that you can attend via telephone and Internet, click here.

The checkered flag for SEMA's inaugural Pinewood Drag Race Sponsored by Fellers and DUB Publishing drops in one week, and if you've been wanting to join the fun but find yourself short on time, consider sponsoring a team.

STOCK
Matt Agosta, Steele Rubber Products
Jim Barber, C.A.R.S
Tom Brooks, Truckin' Thunder
Ronald DiVincenzo, Cap World
Donnie Eatherly, P&E Distributors
Cameron Evans, Red Line Synthetic Oil
Dennis Gage, "My Classic Car"
Eric Hoffend, Freeman
Bob Johnston, Auto Etc. Neon
Kevin Kelley, DuPont Coating Solutions
Kelly Kneifl, TruXedo/Extang
Peter MacGillivray, SEMA
Sam Mandlin, Egge Machine Co. Inc.
Alise Miner, SEMA Business Technology Committee
Alise Miner, SEMA, Alise and the Postettes
Dennis Overholser, HRIA/Las Vegas Rod & Custom
Dennis Overholser, HRIA/Vintage Air
David Stutts, Hot Rod Air
Tony Thacker, Wally Parks NHRA Motorsports Museum
Andy Wadhera, Cal Trend Automotive Products

MODIFIED
Joel Ayres, Truck Accessories Group
Brian Breslin, Bowdoin Marketing
Russ Deane, Trainum, Snowden & Deane
Franco Ganino, Alliant Insurance Services
Joey Granatelli, Granatelli Motor Sports
Chris Kersting, SEMA
John McLeod, Classic Instruments
Dan Peterson, Gotta Show Products
Bob Price, Prairie Wolf Partners
Adan Reinosa, Pareto Point Industries
Robert Rice, Cotton Fever
David Stutts, Hot Rod Air
Alex Tainsh, TrimParts
David Toyota, New Zealand Australian Companies
Dave Williams, Rampage Products
Trish Yunick, Carbon Press

UNLIMITED
Jim Cozzie, Zoom Performance Products
Eric Hoffend, Freeman
Steve Kelley, Extang
Jerry McNair, CMTC
Scott O'Toole, Motor State Distributing
Jeff Pressman, ConvExx
Margaret Restuccia, Daddy's Girlz
Jim Spoonhower, SEMA
David Stutts, Hot Rod Air
Bob West, Westin Automotive
Mitch Williams, Pilot Automotive
Mike Spagnola, Street Scene Equipment

TEAM OWNERS
Joe Britt, Gotcha Racing
Luanne Brown, eTool Developers
Martin Brown, GAHH
Jason Cenora, 281 Motorsports
Irv Cohen, MRC Select Committee
Robert Colvin, Experient
Laurel Dasher, MSD Performance
Rich Dwyer, K&N Engineering
Carlos Estevez, Pervo Paint Company
Chris Fairless, R&R Marketing
Michael Fiore, Fellers
Ron Funfar, Hedman Hedders
Ira Gabriel, Motor Trend
Mark Gibbs, Mother Truckers
John Iannotte, MRC Select Committee Council
Wade Kawasaki, Avanche Corp.
Steve Keyes, Volkswagen of America
Myles Kovacs, DUB Publishing
Brad Kurtz, Transportation Management Services
Jonathan Lamas, About.com Mustangs
Thomas Malloy
Jim Marino, Wes-Coast Marketing
Pat McFarland, Hypertech
Ron McMillan, Catering Solutions
Casey Meints, Campways Truck Accessory World
Bill Miller, SEMA
Ralph Miser, All American Canopies
Tony Napoli, American Speed Center
Bill Perry, Bill Perry & Associates
Rick Rollins, Rollins Performance Marketing/Consulting
Hartmut Schroeder, Snugtop
Harry Schwartz, Schwartz Event Group
Rich Sherman, Automotive Enterprises
Mark Toebben, DCi
Greg Underkoffler, Phase One/Ad One
Van Woodell, Weathers Auto Supply
Todd Yeoman, American Technology Components
Kim Ziebell, Bushwacker

RACE SPONSORS
Debbie Fragola, Fragola Performance Systems
Brad Kurtz, Transportation Management Services
Jennifer Lyons, Mechanix Wear
Harry Schwartz, Schwartz Event Group

DONORS
Kevin Kojian, CMTC
Colby Martin, SEMA
Sarah Rodriguez, Childhelp
Meredith Shrimanker-West, Victory Junction Gang Camp

For further information about the race and its rules, click here or contact Race Director Mike Spagnola at mike@streetsceneeq.com for details.