SEMA eNews Vol. 12, No. 52, December 31, 2009

SEMA Report: Manufacturers Optimistic, Retailers Cautious Headed Into 2010

The SEMA Financial Benchmarking Report is a new program that allows your company to benchmark key sales performance indicators against industry averages. Three reports are available, one each for manufacturers, WDs and retailers.

The October 2009 reports are the most recent where you’ll find data on sales projections, quick ratio, inventory turns, sales per employee, research and development, factory overhead, selling and administrative expense and more. Here is a small sample of all the information that is available to program participants:

  SEMA Financial Benchmarking
  Although most manufacturers predicted flat sales for the first winter months, almost as many (37.3%) were optimistic for growth.

Manufacturer Report Sales Outlook

In the October 2009 Manufacturer SEMA Financial Benchmarking Survey, manufacturers were asked for their sales outlook for December 2009, January 2010 and February 2010 compared to one year ago.

Forty-one percent forecasted sales to be flat with one year ago, 37.3% forecasted sales to be up, and 21.7% forecasted sales to be down.

Of the manufacturers that forecasted sales to be up, the average increase was 13.9%. Of the manufacturers that forecasted sales to be down, the average decrease was 18.7%.

Responses are a three-month rolling average, based on 437 manufacturers.

Manufacturers Sourcing Products Outside United States:
Q: How many products are manufactured outside the United States?
A: 43.6% of sales for August, September and October were from products manufactured outside the United States. That is the highest percentage reported since the SEMA Financial Benchmarking survey started in January 2009.


Manufacturer Spending on Advertising and Marketing:

Q: How much was spent on advertising and marketing, excluding salaries?
A: An average of 8.9% of gross sales on advertising and marketing in August, September and October.

SEMA Financial Benchmarking-Distributor  
An equal amount of distributors forecasted sales both up and down, while 40% see things staying flat.  

Distributor Report Sales Outlook

In the October 2009 Distributor SEMA Financial Benchmarking Survey, distributors were asked for their sales outlook for December 2009, January 2010 and February 2010 versus one year ago.

40.6% forecasted sales to be flat with one year ago, 29.7% forecasted sales to be up, and 29.7% forecasted sales to be down. Of the distributors that forecasted sales to be up, the average increase was 15.6%.

Of the distributors that forecasted sales to be down, the average decrease was 21.4%. (Responses are a three-month rolling average, based on 359 participating distributors.)


 

Distributor Sales, Top Three Business Types:
Q: What business types were on the sales lists?
A: The top three businesses in August, September and October were:

Installers: 14.8%
Retailer (Jobber): 13.8%
Repair Services: 12.5%


Distributor Inventory Turns:

Q: How many times was inventory turned in the past 12 months?
A: 4.7 times. (Rolling average of the August, September and October responses.)

  SEMA Financial Benchmarking-Retailer
  Almost a third of retailers surveyed see things headed up compared to last year.

Retailer Report Sales Outlook

In the October 2009 Retailer SEMA Financial Benchmarking Survey, retailers were asked for their sales outlook for December 2009, January 2010 and February 2010 versus one year ago.

44.2% forecasted sales to be flat with one year ago, 26.1% forecasted sales to be up, and 29.7% forecasted sales to be down.

Of the retailers that forecasted sales to be up, the average increase was 14.7%. Of the retailers that forecasted sales to be down, the average decrease was 24.2%.

 

 

Retail Sales by Market Segment:
Q: What percentage of sales come from the various market segments?
A: Distribution of retail sales by market segment, October 2009:

Truck, SUV 54.2%  
Exterior Accessories 42.7%  
General Automotive Repair 38.5%  
Wheels & Tires 38.5%  
Interior Accessories 37.5%  
Restoration 33.3%  
Street High Performance 28.1%  
Restyling 21.9%  
Mobile Electronics 19.8%  
Racing/Engine Parts 19.8%  
Off-Road 18.8%  
Auto Dealership 16.7%  
Car Care Products 15.6%  
Collision Repair 13.5%  
Tools and Equipment 13.5%  
Motorcycle 8.3%  
Other 12.5%  
*Equals more than 100% because multiple responses possible.    

 

 

 

 

Retailer Inventory Turns:
Q: How many times was inventory turned in the past 12 months?
A: 5.3 times. (Rolling average of the August, September and October responses.)

Want to get the entire report for your business category (manufacturer, WD or retailer)? Simply sign up for the FREE and COMPLETELY CONFIDENTIAL SEMA Financial Benchmarking program, administered by Hedges & Company, by clicking on the appropriate report link below:

Manufacturers
Distributors
Retailers

Participants automatically get their category report by e-mail as soon as it's released. Non-participating SEMA members can download any one of the three reports from www.sema.org after they're released for $49.99/report. Non-participating, non-SEMA members can download any one of the three reports from www.sema.org after they're released for $99.99/report.

For all your market research needs, visit www.sema.org/research.

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