Despite a tightening of household budgets, the SEMA Performance Parts and Accessories Demand Index (PADI) for April 2008 revealed that more than 15 million households, or 15% of aftermarket buyers, plan on purchasing industry products within the next three months.

Specialty accessories and appearance products were the most popular aftermarket items consumers were likely to purchase (10% or 10 million households), with wheels, tires and suspension components coming in second (8% or about 8 million households), followed by racing and performance products (7% or 7 million households).

When aftermarket buyers were asked what form their vehicles would take after customization, the most common answer in April was “general personalization” (41%), trailed by “off-road” (15%), “restoration” (13%) and “street performance” (13%).

SEMA began developing the PADI in January 2007. The SEMA PADI is designed to track anticipated demand among Americans for performance parts and accessories and is a weighted composite index set to an initial value of 100 based on demand levels between January 2007 and March 2007. During those months, between 25%–30% of consumers reported plans to purchase performance parts and/or accessories during the next 90 days.  In April 2008, the index improved by 15 points, or 35%, going from 42 in March to 56 the following month.

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

During the first four months of 2008, pickup sales have dropped 17% compared to the same time period last year. The specialty-equipment industry has long revered the pickup segment as opportunities for profits due to its growth in the past, but hikes in gasoline prices have taken a toll on recent sales.

AutoPacific, an automotive industry consulting firm, predicts that small or compact pickups will drop to 503,300 units sold for 2008, a decrease of 8% from 2007. Large-pickup sales will endure an even more drastic decline of 20%, according to forecasts, ending 2008 with about 1,700,300 units sold. Overall, pickup sales will drop 18% in 2008, according to AutoPacific data.

The table below shows the top-20 selling pickups from January–April 2008, in addition to how they sold last year. 

In addition to declining pickup sales, SUV sales have also dropped compared to last year. During the first four months of this year, overall sales have dropped 27%, and total sales are forecasted to decline 25% in 2008 compared to last year.

The table below shows the top-20 selling SUVs from January–April of this year.

Although consumers are buying fewer pickups and SUVs, crossover utility vehicles (CUVs) are becoming a more popular choice. Overall, sales have increased 5% from last year, and the 2008 year-end forecast for this segment is expected to remain at this percent.

The table below shows the top-20 selling CUVs for 2008 through April.

Pickups and SUVs have become a mainstream vehicle choice for consumers not necessarily in need of the towing and hauling capabilities that these trucks provide. However, as the U.S. economy experiences a downturn due, in part, to high gas prices, consumers have shifted their buying preferences. While drivers still seek the family hauling capabilities and utility of pickups and SUVs, they now find similar attributes in CUVs, which also offer improved fuel economy and handling compared to their body-on-frame counterparts.

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

Sales of new vehicles for 2008 are expected to drop below 15 million units. J.D. Power and Associates forecasts sales to reach 14.95 million, and AutoPacific predicts 14.8 million. This represents a 7.5%–8% decline compared to new-vehicle sales for 2007. High gas prices have hit the light-truck segment even harder—overall sales are expected to decrease by about 11.8%, whereas car sales are expected to drop by only 3.4%. Despite these declines, the specialty-equipment industry may not be too severely impacted by declines in new-vehicle sales.

Data from SEMA’s Automotive Lifestyles Study shows that only about one-third of enthusiasts purchased their vehicles new. The majority (67%) of those surveyed indicated that they purchased their vehicles, which they then accessorized, used. Back in 2005, only 46% of enthusiasts surveyed purchased their vehicles used. Even more compelling is the fact that used-vehicle owners spent 14% more on specialty equipment over the last year compared to new-vehicle owners—about $5,000 versus $4,400, respectively.

Performance parts heavily dominated the list of specialty-equipment parts purchased by used-vehicle owners. Performance air filters (45%), exhaust kits (43%), ignition wires (38%), tires (36%) and wheels (35%) were among the top products purchased. In addition to improving performance of their vehicles, used-vehicle owners were also well in tune to maintaining their vehicles. Performance lubricants (39%) and polishes/waxes (38%) also topped the list of specialty equipment purchased.

Automotive enthusiast magazine subscribers were surveyed during September–November of last year, and a total of 3,354 complete responses were collected. The average age and household income of those surveyed was 44 and $96,000, respectively.

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

The surging do-it-yourself trend resulted in a 21% increase in the number of car-cleaning and care products at the 2007 SEMA Show.

Nearly two-thirds (62%) of U.S. consumers are washing their own car to save money—or having someone in their household do it—and 33% are doing the detailing themselves, according to a recent survey commissioned by 3M Car Care.

Research from SEMA coincides with 3M’s survey findings. There were 21% more new car-cleaning and care products at the 2007 SEMA Show than the year prior, showing that this do-it-yourself trend is growing in popularity. Other findings from 3M’s survey:

• 57% of car owners are tackling other repair jobs that include repairing or replacing windshield wipers or headlights
• 17% using fuel additives to improve fuel efficiency
• 16% using at-home tune-up kits instead of paying for tune-ups
• 11% making repairs to their car's exterior

Commodity price increases are causing lifestyles to change. The price of food was up 6% for the first quarter of 2008. In only three months, food has surpassed the average total increase per year for goods and services. This is causing Americans to feel the strain to perform basic maintenance on their own vehicles.

This “reconnect” that the average consumer is having with their vehicle could be an opportunity to advertise personalization. According to Southern California AAA, Southern Californians drive on average 300 million miles daily. This is a lot of time spent in the car, so it is no wonder why people have a drive to customize their vehicles according to their tastes. This is probably a reason why the market segment for custom accessories and appearance modifications is generally the largest compared with racing/performance or wheels/tires/suspension. SEMA research shows that the custom accessory and appearance market segment is worth $21.4 billion, according to 2006 figures. This accounted for 57.5% of the specialty-equipment retail sales in 2006.

More time spent working on a vehicle can lead to consumers and enthusiasts thinking about how they want their vehicle to feel. Modern amenities attract customers who want to be comfortable in their vehicles. For example, 192% more GPS and 180% more cell phone accessory products were introduced in the New Products Showcase during the 2007 SEMA Show than the year prior. This could indicate that mass consumers are accounting for more specialty-equipment purchases.

Check out the original SEMA research reports and information located at www.sema.org/research.  

Despite higher gas prices, the off-road market for 2007 showed 1.462 billion dollars in retail sales.

Off-roading is an important niche for the specialty-equipment industry. Not only are there specific vehicle parts that are sold, but also supplementary goods. According to a SEMA survey of its members, 61% of the respondents have some portion of their business come from the off-road niche, and 40% of these members predict 2008 sales growth to head in the positive direction. In addition, of the business that Off-Road Business interviewed, 69% of the businesses expect to meet or exceed their 2007 sales goals. SEMA members can take confidence in knowing that the off-road industry can take a stand during economic hardship.

Despite higher gas prices, the off-road market for 2007 showed 1.462 billion dollars in retail sales. This is up 6% from the 2006 retail sales figures. The growth in this niche of specialty equipment could be in danger from fuel prices. The sales for light trucks have declined over the past two quarters, with light-truck sales for last April declining to 14% of the new-vehicle market share. This is down from 16.4% in April one year ago.

Modifications for off-road suspension and tires also affect gas mileage. According to howstuffworks.com, “All-season tires produce less friction and therefore roll more freely to the benefit of fuel economy. They're generally lighter than all-terrain or off-road tires, and less weight means better fuel economy. They also ride more quietly, handle better and wear longer.” Data from SEMA’s Automotive Lifestyles study confirms this: New off-road tires were the top accessorization choice among off-road enthusiasts, followed by air intakes and exhausts.

Jim Spoonhower, SEMA vice president of market research and information, mentions in the 2007 SEMA Market Study: “Many off-road vehicles, and the specialty equipment purchased for them, never venture off paved streets and highways.” Because of this, enthusiast looking for an off-road vehicle look may personalize their vehicle in a way that also helps to make their hobby more economical.

Manufacturers have set their time and effort on a new idea for powertrains that is yet to hit the market with high acceptance. The electric vehicle (EV) market is not a new idea or one that has never been implemented, however, until recently, the technology to make this idea feasible for mass consumers has been absent.

Lithium-ion batteries are making it possible for automotive manufacturers to produce cars that run solely on electricity. This will be a huge advance for technology, vehicle manufacturing and the specialty-equipment industry. The greatest negative consumer sentiment that has been reported by an overwhelming majority of all demographics is the cost of gas prices. According to SEMA’s most recent survey, if gas prices reach $4.94, enthusiasts will begin to curb their specialty-equipment purchases. Furthermore, many consumers are worried about the future of the environment.

Electric vehicles (EVs) seem to be the future of cars, and it is happening now. Hybrid sales have been on the rise since their introduction, hitting a total of 1 million in sales earlier this month. Hybrids were accepted by the gas-conscious consumers able to afford the hybrid premium, an acceptance that may transfer over to electric vehicles. Electric vehicles should take consumers’ desire for gas-only alternatives even further, especially with the consumers’ want to be “green” and to save money through increased energy efficiency.
This is a non-all-inclusive list of EVs and extended range EVs that are designated to be manufactured:

• Tesla Motors Roadster: A high-performance, all-electric car with an acceleration of 0 to 60 in 3.9 seconds and a 220-mile range.
• Nissan is promising EVs coming off of its production lines as early as 2010.
• The GM Volt is an extended-range, plug-in hybrid that runs for the first 40 miles purely on electric power. It has an extended range to about 600 miles.

As the technology that is being put into these vehicles is, in most cases, past the scope of backyard mechanics, performance shops will most likely produce and install parts to propel these vehicles faster. Custom accessories will see a good-size market from EVs as people customize their vehicle’s look and feel. The wheel and tire industry may have to be aware of the way their products affect EVs. Wheels will have to be lighter, and tires will need to produce less resistance to supplement the EV’s range.

Check out the original SEMA research reports and information located at www.sema.org/research.  

With online voting being offered for the first time, SEMA is making it easier than ever for members to make their voices heard during the upcoming Board of Directors election.

“As owners, we must take the responsibility to participate in helping decide who will represent us in directing how SEMA’s resources are used,” said SEMA Chairman Jim Cozzie.

Historically, voter turnout is 12%–15% of the membership. To increase voter participation, SEMA is offering the option of voting online, in addition to the traditional paper ballot. The online voting process is secure and will be handled by BigPulse, a third-party online voting service.

"We're excited to be able to offer the online voting option for the first time this year," said Linda Czarkowski, SEMA vice president of finance and administration. "We're hoping that by offering this option we are able to increase membership participation. It's really important for the SEMA membership to participate in the election process."

Starting next week, the primary contact for each of the Manufacturers category and Distributor Retailer Services category will receive their ballots and booklets in the mail, as well as a letter from Jim Cozzie that will provide a link to the online voting site.  

Whichever voting method members choose, ballots must be received by June 23, 2008. The ballot count will take place on June 26, 2008 at the SEMA office.

The candidates include:

Manufacturers (four open seats)

• Ron Funfar, President/COO of Hedman Hedders/Trans-Dapt
• BJ Leanse, North America Sales Manager of Big Country Truck Accessories
• Chris Thomson, Incumbent, National Sales Manager of AIRAID Filter Co. 
• Mark Vogt, General Manager of Classic Industries
• Bill Wagner, Incumbent, Vice President Sales and Marketing of Winfield Consumer Products
• Tim Watts, Vice President Sales and Marketing of Superlift Suspension Systems

Distributor Retailer Services (three open seats)

• Ralph Accinno, Incumbent, President of Racers Equipment Warehouse
• Luanne Brown, CEO/President of eTool Developers
• Edward H Orzetti, President/CEO of Keystone Automotive Operations
• Bob Moore, President of Bob Moore & Partners
• Dan Smith, President of Capstone Financial Group

If you have any questions regarding the voting process, contact Christine Papavero at 909/396-0289, ext. 123 or christinep@sema.org.

For all candidates’ statements and bios, click here: www.sema.org/main/semaorghome.aspx?id=59620.

Prepare your SEMA Show strategy by tuning in to our next webinar, “SEMA Show: Money Well-Spent for Your Business!" Presented by Chuck Schwartz (CEM/Chairman, ConvExx Show Management), this insightful webinar scheduled Thursday, June 12, 10:00 a.m. (PST) will provide the tips you need to prepare for the 2008 Show and guarantee your company's return on investment.

Whether your company is large or small, whether you're new to the SEMA Show or an experienced veteran, this session is a must-attend event for you and your Show team. Here are a few strategies you'll take away from the webinar:

• How to create an action plan and timeline.
• How to develop your Show budget.
• How to attract media attention to your booth.
• Ways to generate new business for your company at the Show.

For information on how to attend, click here.

Emcee Dave McClelland hosts proceedings at the 2007 SEMA Installation Banquet & Gala Fundraiser.

The annual SEMA Installation Banquet & Gala Fundraiser on Friday, July 25, serves to not only thank the association's outgoing Board members and welcome those newly elected, but also to announce the newest inductees into the SEMA Hall of Fame. This year's inductees are Raymond Bleiweis, Ben Nighthorse Campbell, Corky Coker and Robert Cook—an elite group of industry innovators and pioneers who have played a key role in the automotive specialty-equipment market.

This year's event is further underscored by a program of charitable fundraising activities that includes a golf tournament, the Pinewood Drag Race and a silent auction.

Proceeds from all fundraising benefits SEMA's two chosen charities, Childhelp and Victory Junction Gang Camp. Childhelp aids victims of child abuse and originally began receiving support from wheel manufacturers in 1994 and now garners significant contributions from a wide range of industry businesses.

Victory Junction Gang Camp, founded in 2004 by Kyle and Pattie Petty in honor of their son Adam, has received support from the Light-Truck Accessory Alliance and others in the industry. Victory Junction uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

Golf Tournament
The golf tournament begins at 7:00 a.m. on Friday, July 25, at the Strawberry Farms Golf Club in Irvine, California. SEMA council members are among those refining their game to challenge for the Council Cup Perpetual Trophy, a friendly competition among councils to prove who has the better hackers.

A special "Council Package" price of $2,000 (a $300 discount) is available for Council Cup competitors. The package includes four rounds of golf at the tournament and dinner for four at the annual gala banquet and charity auction, to be held that evening at the Irvine Hyatt Hotel. At least one active council member must participate in the golf tournament foursome to be eligible for this special pricing offer.

Any foursome consisting of two or more active council members will automatically be entered in the Council Cup Challenge representing their council (be sure to indicate on your registration form which council you are representing).

To register for the golf tournament, click here for the registration form.

Pinewood Drag Race
The Installation Banquet & Gala Fundraiser will also feature the inaugural SEMA Pinewood Drag Race Sponsored by Fellers and DUB Publishing. The checkered flag will drop prior to the SEMA Hall of Fame recognition and fundraising activities. According to Race Director Mike Spagnola, the inaugural event will feature three race classes: Stock, Modified and Unlimited.

Those interested in building a Pinewood Drag Race car with the children from Childhelp can join SEMA for a special trip to The Village of Childhelp West in Beaumont, California, where participants can help the kids sand, paint and assemble cars that will run in the Pinewood Drag Race. Contact Mike Spagnola at mike@streetsceneeq.com for details.

For further information about the race and its rules, click here.

Tickets
Tickets and details for the SEMA Installation Banquet & Gala Fundraiser, including schedule of activities, golf tournament entries and auction donation forms, are available at www.sema.org/gala or by contacting Lisa Moreno at lisam@sema.org or 909/396-0289, ext. 105.

Charity Auction
Finally, SEMA will host a live and silent auction prior to the Banquet, with auction items ranging from sports memorabilia to a 2006 Victory motorcycle owned and donated by Kyle Petty. To donate an item, contact Tricia Ward at triciaw@sema.org. Some of the items include:


Kyle Petty's 2006 Victory Jackpot motorcycle. Donated by Kyle Petty Charity Ride.


Brett Favre-autographed Wilson football. Donated by Rick Rollins.


Gift certificate for a set (four) of Mickey Thompson truck tires up to 35 inches tall. Donated by Mickey Thompson Performance Tire.

Greer Black Dragster replica, 1:6 scale and over 28 inches long. Donated by GMP Die Cast.

Planet Hollywood, Las Vegas—3-day/2-night package. Donated by Planet Hollywood.

2x8 advertising space for one year on the guardwall of Virginia Motorsports Park's dragstrip, home of the Torco Racing Fuels NHRA Nationals. Donated by Virginia Motorsports Park.

Other items include:

• (4) Saturday Top Eliminator Club tickets (TEC) and (1) TEC parking pass for either the 2008 Automobile Club of Southern California NHRA Finals or the 2009 Carquest Auto Parts NHRA Winternationals, VIP tour and a ride in the Full Throttle Express. Donated by NHRA. 

Do you have a question for SEMA? Want to know more about the association’s strategic direction, or the status on health insurance for trade associations? Maybe you have a question for one of SEMA’s departments, such as the Research and Information Center or OEM Relations. Perhaps you have a more specific question for a SEMA executive.

If so, we want to hear from you. And we’ve made it pretty straightforward: Send your question to eNews@sema.org and we’ll do the rest. We'll get your question to the appropriate department or individual, and run both the question and answer in an upcoming issue of eNews. Questions and feedback will also run in SEMA News magazine.

Responses will appear in the order in which questions are received. We can't guarantee that all questions will run, but we’ll do our best. Editors reserve the right to edit for clarity and brevity.  

So if you have a question related to SEMA’s direction, operations, trade events or a more specific query, e-mail your name, company name and the question to eNews@sema.org. Be sure to include “Ask SEMA” in the subject line.