Mark Your Calendar!
All members of PRO are invited to join the PRO Select Committee at the annual open Project Planning Meeting.

When: Thursday and Friday, June 12–13, 2008
Where: Crowne Plaza Hotel, Detroit, Michigan

While an agenda is not yet finalized, the open meeting typically runs from 11:00 a.m.–5 p.m. on Thursday, and from 8 a.m. – 1 p.m. on Friday. Stay tuned to the PRO website at www.sema.org/pro for more details, but mark your calendar now!

PRO Select Committee Nominations
PRO members have the unique opportunity to help shape the future of the restyling industry by choosing appropriate representatives to serve on the PRO Select Committee as their eyes, ears and voice. Select Committee nomination forms have been mailed and are due Friday, March 21. The forms are also available on the PRO website at www.sema.org/pro. If you have any questions regarding the elections, contact Jim Skelly at 909/396-0289, ext. 103, or jimsk@sema.org.

PRO Column in SEMA Member News
Read PRO's column featured in the March/April issue of SEMA Member News by clicking here.

For information about PRO, visit www.sema.org/pro or contact Jim Skelly at jimsk@sema.org.

-------------------------------------------------------------------------------------------------------------------

ARMO Members Invited to Participate in Free New Products Showcase
ARMO-member companies are invited to participate in the 11th annual New Products Showcase being held in conjunction with Spring Carlisle, April 23–27. Be sure to take advantage of this fantastic opportunity to introduce your creative and innovative products to the industry and enthusiasts. 

All ARMO-member companies are eligible to participate for free. There will be two categories for products: Best New Original Restoration Product of the Year and Best Restomod Product of the Year. The winning products and companies will be honored at the ARMO Industry Awards Reception during the 2008 SEMA Show. For an entry form, click here. All entry forms must be received by SEMA no later than Wednesday, April 16, 2008.  

ARMO Column in SEMA Member News
Read ARMO's column featured in the March/April issue of SEMA Member News by clicking here.

For more information about ARMO, visit www.sema.org/armo or contact Jan Desma at jand@sema.org.

-------------------------------------------------------------------------------------------------------------------

HRIA Column in SEMA Member News
Read HRIA's column featured in the March/April issue of SEMA Member News by clicking here.

For more information about HRIA, visit www.sema.org/hria or contact Jan Desma at jand@sema.org.

-------------------------------------------------------------------------------------------------------------------

TORA Column in SEMA Member News

Read TORA's column featured in the March/April issue of SEMA Member News by clicking here.

For information about TORA, visit www.sema.org/TORA or contact Jim Skelly at jimsk@sema.org.

-------------------------------------------------------------------------------------------------------------------

MRC Column in SEMA Member News
Read MRC's column featured in the March/April issue of SEMA Member News by clicking here.

For information about MRC, visit www.sema.org/mrc or contact Jan Desma at jand@sema.org.

-------------------------------------------------------------------------------------------------------------------

2009 Media Trade Conference News
MPMC members are encouraged to look for a “Save the Date” reminder postcard some time in early April. Exhibitor applications for the 2009 MPMC Media Trade Conference are scheduled to be mailed out in mid-June. In the meantime, stay tuned to the MPMC website at www.sema.org/mpmc for the latest updates.

MPMC Column in SEMA Member News
Read MPMC's column featured in the March/April issue of SEMA Member News by clicking here.

For information about MPMC, visit www.sema.org/mpmc contact Jim Skelly at jimsk@sema.org.

-------------------------------------------------------------------------------------------------------------------

SCC Column in SEMA Member News
Read SCC's column featured in the March/April issue of SEMA Member News by clicking here.

For information about SCC, visit www.sema.org/scc or contact Paul Moritz at paulm@sema.org.

-------------------------------------------------------------------------------------------------------------------

WTC Column in SEMA Member News
Read WTC's column featured in the March/April issue of SEMA Member News by clicking here.

For information about WTC, visit www.sema.org/wtc or contact Paul Moritz at paulm@sema.org.

-------------------------------------------------------------------------------------------------------------------

Speed Networking Breakfast Powered by SBN
Check out this video of SBN members in action during the valuable Speed Networking Breakfast—Powered by SBN held annually at the SEMA Show. Check out the video by clicking here.  

SBN Column in SEMA Member News
Read SBN's column featured in the March/April issue of SEMA Member News by clicking here.

For information about SBN, visit www.sema.org/sbn or contact Paul Moritz at paulm@sema.org.

-------------------------------------------------------------------------------------------------------------------

Join YEN
Did you know that the SEMA Young Executives Network has over 500 members networking in the industry and is the largest SEMA committee? If you are employed by a SEMA-member company and are under the age of 39, then you can join the SEMA Young Executives Network for FREE. If you are interested in becoming part of the team, please visit our website at www.sema.org/yen.

YEN Member of the Month Spotlight
Did you know that YEN has a Member of the Month Spotlight on the SEMA website and that anyone can be nominated? To view previous selections or to make a nomination, visit www.sema.org/yen. 

YEN Column in SEMA Member News
Read YEN's column featured in the March/April issue of SEMA Member News by clicking here.

For information about YEN, visit www.sema.org/yen or contact Paul Moritz at paulm@sema.org.

Filler for eNews

Dates and locations for several upcoming SEMA-sponsored shows and activities have been announced. Details are:

Data from SEMA’s Automotive Lifestyles survey continues to show that even if gas prices surpass the $4 mark, hard-core automotive enthusiasts—the driving force of our industry—still plan to spend money on their vehicles. A survey of automotive magazine subscribers and website visitors during the first week of March (when the national average for a regular gallon jumped to $3.16) showed that nearly one in four would wait until prices rose $1 before spending less on specialty equipment.

Fifteen percent of the enthusiasts surveyed would wait until an additional $2 were tacked on to the current price, while an astounding 9% said that prices would have to surpass $4 more per gallon before cutting their specialty-equipment spending. Although gas prices have been increasing, enthusiasts say that the average price of gas across the nation would have to rise to $4.63 for them to curb their specialty-equipment spending.

Despite the current spike in prices eroding the disposable income earned by automotive enthusiasts, they seem loyal to their passion for personalizing their vehicles. To test this, these consumers were asked to rate how they would allocate their extra spending cash as gas prices increase.

According to the September-November Automotive Lifestyles survey, other non-necessity “luxury” items tend to compete with automotive specialty equipment. A little more than one in three of survey respondents, however, said that they'd first spend their money on custom automotive parts and accessories before going on vacations or buying music and portable electronics. Consumers will cut spending on other non-essential items, such as music and video games, before spending less on their rides.

Reports of consumers changing their driving habits and spending less due to rising gas prices have been circulating for some time now. Consumers may alter their driving habits during days of high gas prices, but it seems that once consumers become automotive enthusiasts, their desire to customize their cars or trucks takes precedence over other spending. The Automotive Aftermarket Industry Association (AAIA) recently reported that 91% of consumers they surveyed said they are driving less.

Meanwhile, a "Kelley Blue Book" study reported that 50% of consumers reported less shopping of non-essential retail items compared to 44% who claim they will eat out less often, 40% who plan to purchase fewer media entertainment items, and 9% of new-car shoppers who intend to delay the purchase of a new home due to the rise in gas prices.

Automotive enthusiasts that make vehicle personalization part of their lifestyle, however, are less sensitive to gas price hikes. So far, they seem ready to continue fueling their need to customize.

For more from the SEMA Research & Informaiton Center, visit www.sema.org/research.  

Source: SEMA Research & Information Center

In February, 22% of consumers indicated that they plan to purchase specialty equipment over the next three months, down from 26% that said so in February 2007. Looking closer at who will buy what on the other hand shows that some product categories have actually gained momentum compared to last year.

For example, more women said that they plan to purchase Accessory and Appearance and Racing and Performance products this year. The same is true for the 18- to 24-year-olds, who also told SEMA that they plan to buy these products. Each month SEMA surveys mainstream consumers regarding their intent to purchase specialty equipment.

Despite the Wheel, Tire and Suspension segment taking a bit of a hit, according to these consumers’ intentions to buy, more of the 25- to 44-year-old age group indicated purchase plans than those surveyed this same period last year.

For more from the Research & Information Center visit, www.sema.org/research.  

Source: SEMA Research & Information Center

Although automotive enthusiasts consistently tell us that they are buying their vehicles used and accessorizing them, there is still a steady percent that are buying new vehicles. Over the past three years, on average about 61% of enthusiasts surveyed indicated that the vehicle for which they spend money customizing was purchased used.

Dubbed the Automotive Lifestyles survey, each year SEMA asks subscribers of automotive enthusiast magazines about their vehicle accessorizing habits. These consumers are generally referred to as “enthusiasts,” a subset of mainstream consumers. With about two out of every five automotive enthusiasts purchasing their vehicles new, predicting what vehicles these consumers will purchase in the coming months gives specialty-equipment companies a tool for planning their own market strategy.

Recent WardsAuto vehicle production data shows that for the next quarter of this year, automakers plan to build 4,015,900 new vehicles in North America, a drop of 3% from the 4,141,600 manufactured during the same period last year. This breaks down to 1.7 million cars, a 2.2% gain, and nearly 2.3 million light trucks, a 6.6% drop from last year.

Looking further down the road, total 2008 light-vehicle sales are expected to drop compared to last year. AutoPacific predicts that close to 7.7 million cars will be sold in the United States this year, a 1% drop from 2007. On the light-truck side, they forecast about 8.1 million will be sold this year, 3% less than last year. The new-vehicle market seems to be shifting more toward small cars (3% growth, 2.7 million forecasted to sell in 2008) and crossover utility vehicles (CUV) (11% growth, 3.1 million forecasted to sell in 2008). AutoPacific says both segments are poised for growth.

Currently, small-car owners who took the Automotive Lifestyles Survey are geared toward enhancing performance. The top specialty-equipment parts purchased were performance tires, air intakes, exhausts, polish, and performance fluids. For CUV owners, performance add-ons took a backseat to polish, floor mats, alarm systems, license plate frames, performance tires and window tint—the top modifications performed by this group. Because these two vehicle segments are expected to grow through 2008, their likelihood to impact the specialty-equipment industry also grows.

For more from the Research & Information Center visit, www.sema.org/research.  

Source: SEMA Research & Information Center

The mobile electronics segment of the specialty-equipment industry continues to maintain its upward trajectory, both in the number of new products it introduces each year and the total market share it consumes.

Over the last three years for example, the number of mobile electronic products entered into the “Best New Mobile Electronics Product” category of the SEMA Show New Products Showcase grew, on average, 35% per year.

In 2005, there were only 46 entries, compared to 69 the following year and 83 in 2007. Product categories experiencing the highest growth from 2006 to 2007 included multimedia receivers w/ GPS navigation (250%), stereo speakers (133%), GPS navigation (83%), backup camera/parking assistance and hands-free cellphone (50% each).

This surge in product entries has given rise to the growth of the overall mobile electronic market within the specialty-equipment industry. In 2005, total mobile electronics sales reached $5.5 billion—15% of the market—and jumped 11% to $6.1 billion in 2006, or 16.5% of the market at the retail level.

For more from the Research & Information Center visit, www.sema.org/research.  

Click here to read the latest Mobile Electronics Trend article in the March issue of SEMA News.

Source: SEMA Research & Information Center

We recently highlighted new-vehicle releases and model updates that will become available to consumers within the next few months. The emphasis was on changes within the compact-performance segment. These are models that specialty-equipment manufacturers should become familiar with. While their potential to change trends is unknown, their influence is not entirely unpredictable. Basic design principles and iconic recognition remain the same. Affordable economy cars, sports cars and bang-for-the-buck offerings keep the formula strikingly intact. This article aims to outline the current marketplace of vehicles that are available now with a focus on specific engines.

We have compiled data outlining the production and availability of engines that will be offered on popular compact performance models. These typically include four- and six-cylinder types rated under 3.0L. Some exceptions exist, but these represent the most common engines on the market for this segment. Along with basic specs, the table below includes volumes produced in 2006 and 2007 to help SEMA members gauge the size of the market. We have also listed related vehicles that share similar versions of the base unit.
 


When determining the potential market for engine parts, keep in mind that unit volume can be misleading. High-volume models do not necessarily indicate demand for performance products. Conversely, limited-production models (including “halo” vehicles) should not discourage development as they tend to have higher demand per unit due to their performance.

The late-model Subaru Legacy, for example, was a considerable presence at the 2008 Tokyo Auto Salon with tuning companies displaying new products on this “fresh canvas” (previously rare for modifying). The Legacy, Forrester and popular Impreza share engine components and can be modified in similar forms. Research and development costs could be minimal if identical products can be used across multiple vehicles or on global platforms.

Likewise, high-volume engines, such as the Honda K24A (I4), BMW N52 (I6) and General Motors LE5 (I4) are being produced in large quantities. Some cars might not possess the desirability of a Toyota Supra or Nissan Skyline GT-R, but they do have market potential solely based on their availability.

From the same manufacturers, the Toyota Camry and Nissan Maxima are more common and customized in greater amounts. The ratio of stock versus modified Camrys and Maximas is lower than their desirable counterparts, but they are more frequent. Additionally, the parts bins used in these types of cars are regularly sourced for multiple models, and specialty-equipment manufacturers can benefit from OEM economies of scale.

For more from the Research & Information Center visit, www.sema.org/research.  

Source: SEMA Research & Information Center

A decade ago, the typical auto loan extended 48 months. Now according to J.D. Power and Associates Power Information Network division, the most popular car loans extend six years or more, between 72 and 80 months.

The Detroit News reports that dealers and auto executives attribute the shift to longer loans to increased reliability of modern cars, and people expecting them to last longer, as well as consumers needing to stretch their dollars in a tightening economy. As owners take longer to pay off their cars, not only do they remain out of the new-car buying pool, but their disposable income is also funneled into a car payment that often runs several hundred dollars. The potential impact to the specialty-equipment industry is not insignificant.

A recent survey conducted by the SEMA Research & Information Center found that 23% of respondents are still paying off their car loan, with an average of 31 months left until maturity. With an average payment of $428 a month, 49% of those surveyed said that their car payment has caused them to delay specialty-equipment purchases.

But even if they’re delaying purchase, they haven’t stopped buying altogether. The group still paying off their cars spent an average of $2,400 on specialty equipment last year and plan to spend $2,100 this year. Of the 77% who’ve paid off their loans, 25% did so five or more years ago, 15% within the last two years. These owners, not surprisingly, spend more than those indebted—$3,400 on specialty equipment last year.

For the specialty-equipment manufacturer, retailer or installer, longer vehicle loans represent both challenge and opportunity. The challenge is selling to consumers who want to personalize their ride, but are saddled with a $400 car payment. Opportunity, on the other hand, lies in a lower (if longer) payment, allowing enthusiasts to allocate at least some of their money to specialty-equipment spending.

SEMA’s survey found that cash was the most popular method of payment, 68% having purchased some or all of their parts with cash. Personal credit cards ranked second, 49% having used plastic for their purchases.

Ironically, the most creative place to get financing for parts and accessories these days is at the dealership. SEMA research shows that auto dealers capture about $3.8 billion of industry sales annually, roughly 10% of the market. Dealer sales typically involve restyling and appearance products and truck accessories, categories that as a whole accounted for a 58% share of the specialty-equipment market, or $21 billion at retail.

This figure does not include wheel sales, which account for around 26% of specialty-equipment sales at the dealership level.

Only 2% of SEMA survey respondents, however, noted that they’d financed parts and accessories this way.

For more from the Research & Information Center visit, www.sema.org/research.  

Source: "Buyers Stretch Car Loans," Christine Tierney, The Detroit News, 2/23/08

Filler for eNews