Faced with the uncertain U.S. recovery and a relatively soft market, many companies are looking to international markets to grow their businesses. This is particularly true in the automotive industry, as emerging global economies create new middle classes of consumers eager to purchase and modify cars, trucks and SUVs. Automotive specialty-equipment companies stand to benefit from entering these global markets—if they can successfully navigate the often-complex regulations and procedures involved in exporting goods overseas.
The collaboration between the automotive specialty-equipment industry and the collision repair segment continues to increase, a fact that is reflected in the growing footprint of the newly branded Collision Repair & Refinish section of the 2011 SEMA Show. The new section—an expansion of the previously established Paint, Body & Equipment area—is one of 12 sections that will house exhibitors during the event at the Las Vegas Convention Center over November 1–4, 2011. The name change more accurately reflects the growing presence of the collision repair market, and more companies had already committed to exhibiting in the new section at press time for this issue than were present in the Paint, Body & Equipment section in 2010.
The 2011 SEMA Market Report is now available on the association’s website here. This annual report—free to SEMA members and $149.95 to non-members—provides an overview of the specialty-equipment industry through the end of 2010. It also includes five years’ worth of historical information that allows year-over-year comparisons of where the various segments and niches stood as the industry entered 2011.
How effective are your advertising and media campaigns? More important, how are you measuring your return on investment (ROI)? When marketing pros speak of “tracking media,” they’re really referring to tracking promotion, which—along with product, price and place—is one of the four P’s of marketing.
To paraphrase a well-worn Oldsmobile ad, today’s vehicles are not your father’s paint and trim. If you think modern consumers are left scratching their heads over how to maintain the appearance of their vehicles, imagine what the companies that formulate car care products go through.
Editor’s Note: Most of the specialty-equipment companies contacted in a recent SEMA survey said that they planned to hire new employees in 2011. Salespeople were at the top of the list. To learn more about the traits and skills of successful salespeople—and how to hire them—we contacted freelance writer, author and webinar speaker Troy Harrison. In the story that follows, he discusses the qualities of top salespeople, how to test for and uncover those traits, and how to interview and hire the right people.
The restyling market experienced a steady decline in sales at the retail level from 2007 through 2009, according to SEMA research, going from $4.23 billion in 2007 to $3.79 billion in 2009. The main factor contributing to the fall in the market was the recession, which led to a major decline in vehicle sales. With available vehicle inventory on the downturn, a factor that may not adversely affect the more traditional specialty automotive markets, the decline changed the landscape of the restyling market. For OEMs, assembly lines were streamlined, factories were closed, trim levels were reduced or reconfigured, and the once lengthy list of available accessory options was scaled back.
Adapting to a need to deploy troops anywhere in the world, U.S. military forces find themselves requiring trucks and transportation equipment more than ever before. This trend has created a steady opportunity for businesses in the automotive aftermarket to expand their customer base, while helping to supply the military with quality specialty-equipment products. High-performance brakes and engine equipment, blast-attenuating seats and specialized equipment for vehicles operating at high altitudes and in challenging terrain are among the parts in demand.
The bedrock of the automotive specialty-equipment industry is the parts that are used to build, restore and modify vehicles of all types. Every segment of the industry counts on parts that are properly designed, engineered and manufactured to operate as promised. Within the restoration segment, however, those standards are complicated by the fact that the vehicles involved are anywhere from two decades to nearly a century old.
The U.S. light-truck market is incredibly broad. Used for general transportation, commercial applications and recreation, light trucks comprise the single largest category for businesses in the automotive specialty-equipment industry. Indeed, trucks and the accessories built for them are so popular that they have laid claim to their own exhibit hall at the annual SEMA Show in Las Vegas. While the light-truck market encompasses vans, crossovers, SUVs and some specially constructed vehicles, pickups make up the lion’s share of the market for SEMA members. The nation’s first and second top-selling vehicles are—and have been for years—the Ford F-Series and Chevrolet Silverado pickup lines.