Registration and lodging reservations are now open for SEMA Spring Expo and SEMA OFFROAD, scheduled for February 8–9 in Indianapolis. Sponsored by the Light-Truck Accessory Alliance (TORA) and Professional Restylers Organization (PRO), the trade-only SEMA Spring Expo and SEMA OFFROAD events feature a special emphasis on trucks and SUVs. Exhibitors will display a variety of products and services covering accessories, restyling, wheels and tires, and mobile electronics.

To register, navigate to www.semaspringexpo.com or www.semaoffroad.com and click on the "Register Now" button in the right-hand sidebar. To make your lodging reservations, roll over to the left-hand sidebar, select "Trade Buyer" or "Exhibitor" from the menu, and click on "Hotel Info" to find a hotel.

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

SEMA-member companies have posted several new listings for job opportunities at www.sema.org/classifieds. Working for a SEMA-member company has many advantages. In addition to working for a company that supports and contributes to the success of the overall industry, being employed by a SEMA-member company enable the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:

In October, the SEMA Performance Parts and Accessories Demand Index (PADI) lost three points, or 4.6%, going from 94 in August to 72—after dropping to 75 in September—showing that the number of consumers who plan to make specialty-equipment purchases has declined from the previous month. Overall however, the SEMA PADI showed strong increases from April to August.
 

SEMA began developing the PADI in January 2007 for the purpose of tracking America's anticipated demand for performance parts and accessories, such as specialty appearance, racing, performance and suspension products, as well as wheels and tires.

We have all heard reference to economic indexes, such as CPI, PPI and GDP. Each is a quick measure of some aspect of the United States economy. The Consumer Price Index (CPI), for example, is a measure of the average change in the prices paid by urban U.S. consumers for a selected group of goods and services. Although similar to economic indices, the PADI isn’t designed to report past activity, but rather consumer expectations of future purchases from the specialty-equipment industry.

The SEMA PADI 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. The Index and three sub-indices (for each product segment) are based on responses to the following questions:

1: How likely are you to purchase specialty accessories and appearance products, such as interior trim, restyling products, graphics, a sunroof, etc., for your vehicle in the next three months? Would you say very likely; somewhat likely; not very likely; or not at all likely?

2: How likely are you to purchase racing and performance products such as internal engine parts, drivetrain, exhaust system, fuel system and ignition components designed to improve performance through increased durability, capability or dependability, for your vehicle in the next three months?

3: How likely are you to purchase wheels, tires and suspension components, such as specialty shocks, struts, lowering packages, lift kits, custom wheels, performance tires or performance brakes (not including regular brake changes for your vehicle), in the next three months?

The indices track consumer plans to purchase performance parts and/or accessories within the next three months after each respective survey. The October index, for example, forecasts consumer purchase intentions for November through January 2008. The indices and their movements reflect the national market for automotive specialty products, which consists of more than 114 million U.S. households.

The index is based on a monthly Random Digit Dial (RDD) telephone survey to collect the data, typically gathered from about 1,000 nationwide interviews with adult American drivers. The margin of error is +/- 3.3%.

Although the PADI is not a precise measure of absolute future purchasing activity, it is a tool for understanding and predicting industry sales. There are two ways of interpreting the PADI: direction (whether the index is rising or falling) and values (which provide a guide as to the degree of change in consumer expectations for purchasing industry products).

SEMA will provide monthly reports on PADI results. This month, 19% of adult American drivers (or approximately 19 million households) indicated that they had plans to purchase aftermarket products sometime within the next three months. Over the last three months, on average, midsize cars (21%) and trucks (19%) were the most common target vehicles for personalization, followed by compact cars and fullsize cars (both at 15%).

When consumers were asked what form their vehicle would take after customization, the most common response was that it would be restyling (general personalization) at 43%, followed by street performance with 13%. Wheels, tires and suspension components were the most popular aftermarket products consumers were likely to purchase (12%, or approximately 12 million households), followed by racing and performance products (9%) and specialty accessories/appearance products (8%).

SEMA has contracted with TechnoMetrica to gather the data used in building and maintaining the SEMA Performance Parts and Accessories Demand Index. Each month TechnoMetrica uses a Random Digit Dial (RDD) telephone survey to collect the data, and responses typically number between 850–1,000.

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

Specialty/performance tires often follow the custom wheel market, for when a consumer decides to upgrade the wheels on his or her vehicle, they typically opt to upgrade tires simultaneously. Specialty/performance tires generated an impressive $4.4 billion—12% of the specialty-equipment market's total retail sales—in 2006, according to SEMA research (performance tires are defined as S-rated or higher, 70-series or lower, bad weather-related, etc).

In the last decade, sales of specialty/performance tires nearly doubled, climbing from $2.36 billion in 1996.

For more on the custom wheel and specialty/performance tire market, check out the November 2007 issue of SEMA News, available online here.

A recent survey of automotive enthusiasts indicated that nearly three out of four (74%) recent vehicle buyers purchased specialty equipment for their rides, according to SEMA research. The online survey, administered in mid-February, garnered 1,078 responses from subscribers to 21 mainstream automotive magazines. Forty percent said they'd purchased a new vehicle in the past year.

Of these new vehicle buyers, one in three (32.9%) purchased engine performance upgrades, ranging from air filter upgrades to more high-end modifications, such as turbos, superchargers and engine swaps; audio upgrades (32.2%) and performance tires (30.8%) followed. Additionally, these enthusiasts spent an average $1,493 on their specialty-equipment purchases, a notable sum when you consider that the sample represents only a fraction of total magazine readership and the enthusiast pool.

For further insight into the specialty-equipment market, read the member-exclusive 2007 Trends and Forecasts Quarterly Updates-Q1 and Q2, produced by the SEMA Research & Information Center, available at www.sema.org/research.

Hybrids, E85, diesel and fuel-cell vehicles took the spotlight during the press days of the 2007 Los Angeles Auto Show. Automakers stressed fuel-economy and alternative fuels during their press conferences, showing the public that “green vehicles” are more abundant and available than in years past. For example:

• Honda revealed its all-new FCX Clarity fuel-cell vehicle, which it plans to lease to qualified consumers in limited numbers next summer. Honda's new hydrogen-powered fuel-cell sedan is powered by the V Flow fuel stack, which is 65% smaller than its previous-generation fuel stack while producing 50% more power. 

• General Motors plans to release 16 new Chevrolet hybrids over the next four years, starting with the 2008 Chevrolet Tahoe, Malibu and 2009 Silverado that were unveiled during its press conference. The automaker also stressed the importance of having a number of alternative fuel choices for different types of consumers, including seven E85 Flex-Fuel vehicles and the electric Volt concept.
  

• Toyota revealed its achievement in its ongoing hydrogen-hybrid fuel-cell development program, highlighting a recent 2,300-mile trek in a Toyota Highlander Fuel Cell Hybrid Vehicle (FCHV) from Fairbanks, Alaska, to Vancouver, British Columbia, along the Alaska-Canadian (ALCAN) highway. Officials said the road test confirmed substantial progress in reliability and durability, cold-weather operation and extended range capability of the hybrid fuel-cell system.

• Chrysler drove its 2009 Dodge Durango and Chrysler Aspen Hybrids into the press-con pulling a boat and horse trailer, demonstrating hybrid towing capabilities. The automaker claims its fullsize SUVs can pull 6,000 lbs., deliver 385 hp and boast nearly 40% fuel-economy improvement in the city.
  

The specialty-equipment industry has already taken part in creating innovative products to boost fuel-economy and performance. Ford's F-450 Superduty Powerstroke diesel display vehicle was retrofitted with hydrogen tanks to enable it to run on a combination of pure biodiesel and hydrogen gas. This pickup, which was displayed at the 2007 SEMA Show, was also fitted with specialty-equipment parts, including a custom exhaust, lights, a lift kit and a tow winch, sending a message to the public that it is possible to combine the need for fuel economy and “greenness” with the desire for customization, function and utility. With all of the new hybrids being rolled into dealerships in the coming months, opportunities lie ahead for the specialty-equipment industry to develop custom parts that fit these vehicles, as well.

For more on OEM and specialty-equipment market integration, please visit www.sema.org/oem.

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SEMA Show exhibitors looking to reach out to the thousands of international buyers that attended the Show are encouraged to download the free online International Buyer Locator Program database at www.semashow.com/tradeleads. This is a great opportunity to make contact with buyers that may have access to huge markets for your products.

For more information, contact Linda Spencer at lindas@sema.org. For more information about other international programs available to SEMA members, visit www.sema.org/international.

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