SEMA: Industry Market Trends, Sector by Sector

Posted on by in Industry and tagged .

DIAMOND BAR, CA (12.01.22) – The automotive industry—and consequently the aftermarket—has entered a period of unprecedented change. Emerging technologies, new ways of doing business, and market, social and governmental forces are creating a barrage of opportunities and challenges for our industry. As a trade organization, SEMA is committed to helping members navigate industry trends so they can future-proof their businesses, succeed and prosper.

SEMA councils and networks play a vital role in this mission. They offer members a variety of niche-specific programs and activities designed to provide educational and networking opportunities while promoting their particular market segment. They also serve as “think tanks” to help identify segment needs and priorities.

For this two-part series, SEMA News queried the leaders of each SEMA council and network for a SWOT analysis of their industry segments. What follows are insights into the restoration, restyling, and wheel and tire segments, as well as trends relating to career development and opportunities for women. In our January 2023 issue, we will hear from the other segments served by association councils and networks. The statements below are edited for clarity and conciseness.

Automotive Restoration Market Trends

Reported by Joanna Agosta-Shere, Chair Elect, SEMA Automotive Restoration Market Organization (ARMO):

Continued growth of the restomod market is a positive trend in our industry, as more people want the traditional look of a vehicle with modern conveniences. This isn’t necessarily a new trend but continues to be popular. I think there is a growing interest in ’80s and ’90s Asian vehicles as well. This is what my generation drove in high school, and that nostalgia is driving the trend.

There are, however, two challenges that I see currently facing our industry segment. The main one, supply-chain disruption, is very universal and still impacting all of our businesses. For the most part, as a manufacturer, we’ve been very fortunate to have suppliers that can regularly provide our raw material but with longer lead times and regularly increased prices. Some of the more niche components in those parts have been more challenging to source, however, and those are needed for the final product.

Secondly, I’ve heard over and over from our members that finding people who have the skills to restore vehicles has exceedingly become difficult. There are not enough people who are trained to do transmission or wiring work for classics. As if the current employment market isn’t challenging enough, the lack of available people with these skill sets makes it tougher for restoration shops and customers to find help.

Looking at long-term opportunities, there’s no denying that electric vehicles (EVs) are in our future. As a segment, we have to figure out how we fit in with this emerging technology. The great thing about the restoration market is that because we’re in a segment that deals with vehicles from the past, we have a long-range crystal ball to prepare for the future.

Vehicles with battery-electric motors will still need tires and wheels. They will still need classic-looking instrument panels. And they will still need interiors. In fact, making these vehicles more environmentally friendly or easier to drive and maintain may create a customer base who didn’t grow up in their dad’s garage tooling around but do appreciate having a fun vehicle to drive around.

ARMO is helping to address these issues in a couple of ways. First, we want to be a forum to help your company get their new products in front of buyers’ eyes. ARMO has been hosting the Hot Product Showcase at Spring Carlisle—one of the largest consumer restoration shows—for many years. As an ARMO member, you’re able to submit products for display at the event for free. Contact our council liason Marcy Yanus at marcyy@sema.org to submit your product.

Secondly, ARMO hosts quarterly membership meetings and panel discussions. In those discussions, topics are brought to us by members so that we can address business needs that they are facing. Past topics have included “General Industry Trends,” “How to Utilize the SEMA Washington Office for Legislative Issues,” and “OE Licensing Education.”

ARMO specifically wants to help our member companies succeed in business. We support networking, education and youth engagement. If you have an interest in learning more about ARMO, please join one of our Virtual Quarterly Panel Discussions or contact us at marcyy@sema.org. We also invite those interested to join us for our annual ARMO Receptions at the SEMA Show. We always love extending the opportunity for you to learn more and speak to other member companies about the value of their ARMO membership.

Career and Leadership-Development Trends

Reported by Nick Caloroso, Chair, SEMA Future Leaders Network (FLN):

The rapid landscape shift from internal combustion engines (ICE) to EVs has become a catalyst for new ideas and innovation in the automotive aftermarket industry. New business owners, entrepreneurs, engineers, and EV enthusiasts are joining the industry just as quickly.

As a result, SEMA’s Future Leaders Network (FLN), formerly the Young Executives Network (YEN), has shifted efforts to focus on the creation of new opportunities for professional development and career growth. The Dale Carnegie-backed, Professional Development Program (PDP) is the first program of its kind aimed toward welcoming these new leaders into the industry. Members who attend the program are given an opportunity to network with peers and establish deep connections that create value and support.

SEMA has absorbed a large portion of the cost to make this program accessible to businesses of any size. If you are new to the automotive aftermarket industry and looking for opportunities to learn and grow, visit http://www.sema.org/fln to learn more.

Restyling Industry Trends

Reported by Josh Poulson, Chair, SEMA Professional Restylers Organization (PRO):

Despite some challenges, our restylers and restyling manufacturers remain busy and profitable. Many of the shops around the country have been pivoting to do more retail business instead of the traditional wholesale dealer business. Ideally, most shops we hear from would like to be closer to a 50/50 margin mix of wholesale and retail.

In addition, the film market (window tint, paint-protection and wrap films) continues to grow at a rapid pace. This growth will continue over the next five years, and many core products will remain popular. These include leather interiors, sunroofs, heated seats and truck accessories. As dealership inventories improve, most shops that have built dealer relationships will get busier. That should provide a needed boost to the industry.

One challenge is that many restylers have relied on business from car dealerships, and that has been hurt by the lack of vehicle production and availability. This will continue to be an issue well into 2023, according to many experts.

A longer-term challenge is how OEMs will sell their vehicles. The dealership model isn’t going away; however, the process for selling new vehicles has been interrupted and will continue to evolve. There probably won’t be as many cars on a dealer’s lot, and the OEMs would love to push the “build to order” model if Americans prove willing to wait for their vehicles. If this happens, the Restyling industry will need to evolve with the trend and make sure our products are still presented to consumers at the time of sale.

Our PRO council continues to host our annual PRO Cup Challenge at the SEMA Show each year. This year, we had seven restyling shops from around the country building realistic packages on everyday vehicles found on the road. PRO manufacturers had the opportunity to see how their products can be packaged together with others to create a distinct package that can be easily replicated in any restyler’s local market. Many restylers were in attendance to take these ideas back to their own markets.

Outside of the Show, we are also scheduling our ongoing regional sales/installer training sessions that allow shops to send their sales and/or technicians for training from manufacturer instructors in multiple categories. We will continue to announce these dates and locations starting early 2023.

On the emerging technology front, we at PRO don’t really fear the growth of EVs. In fact, we embrace them! Whether a customer has an EV or an ICE vehicle, they want it to stand out and look different from others on the road. We restyle many EVs currently, and as more and more products come out for these vehicles, PRO will be at the forefront of working with car dealers to offer these products.

One of the biggest things we at PRO pride ourselves on is the fact that everything we discuss and do is aimed at making money for our members. Most of our engaged members are owners and executives who want to grow business and be more profitable. We welcome new members from throughout the category.

Industry Businesswomen’s Trends

Reported by Cathy Clark, Chair, SEMA Businesswomen’s Network (SBN):

More and more women are joining our industry, and with that comes an increase in women in leadership within the industry. The SEMA Board of Directors, for example, currently has four female members. This increase in women also means there are many opportunities for involvement.

Our All Female Bronco Build has introduced a number of women, both within and outside our industry, to the opportunities that await them. We also plan to have an educational series in 2023 that will help men learn to become allies for industry women. The more we do to make women feel comfortable and welcome in the automotive aftermarket, the more women that will join us. Diversity brings new ideas and change and can only lift our industry to new levels.

The biggest issue that I’ve seen for industry women is that some believe they lack the technical knowledge required to make an impact or answer technical questions accurately. We’ve seen it time and time again at trade events where a man will bypass a woman to address a technical question to another man. In a number of instances, the man answering then directs the person right back to the woman because she is the expert on that subject. If we can help bring more awareness to the industry and its members that women are just as knowledgeable about the automotive aftermarket as men, we can help eliminate instances like this.

I think we see more opportunities than challenges for industry women in the next five to 10 years. With the cost of a college education rising, more and more people are looking to trade schools to get their education for a future career. SEMA needs to be out in the high school championing automotive schools as a viable and profitable option to youth. More women than men are attending traditional universities at this time, and I feel that we should challenge ourselves to make sure that more women than men are enrolling in technical colleges as well.

The biggest way that we are helping women in our industry is by providing them networking, educational, and recognition opportunities. Our All Female Bronco Build has had more than 300 women want to volunteer (and counting) so far. We prioritized women-owned and/or -led manufacturers for the products that we put on the vehicle. We also had our first Women’s Leadership Forum in March of 2022 and will have it again in March of 2023. It’s an opportunity for women to get together to collaborate on issues that they have faced in their careers and learn from each other and professional speakers.

SBN is not exclusively women only. We are open to male members and leadership. We are looking to increase the number of women in our industry and make it the best possible experience for them. My dream would be that the SBN one day becomes unnecessary. That would mean that women are treated and recognized as equals in the industry. We are on our way, but still have a long road ahead of us.

We are here to serve industry women. We want to provide services, activities and opportunities that they feel are needed. We are very approachable and always love hearing new ideas. You can easily volunteer on any of our task forces and committees, and it doesn’t require a ton of commitment (usually just one phone call per month). Get involved. The more you put into it, the more you get out of it.

Wheel and Tire Industry Trends

Reported by Mike Lusso,  Chair-Elect, SEMA Wheel and Tire Council (WTC):

Based on input from WTC members, we see many positive wheel and tire trends going into 2023. In general, supply-chain issues seem to finally be resolving. Losses for 2022 have seemed to stabilize, and our RTO customers are increasing. Also, there has been development in electric vehicle (EV) technology across all major brands, along with the tires and wheels that support those vehicles. The development of non-pneumatic tires continues as well.

Additionally, there is a continued influx of low-cost advertising opportunities within new social channels. With opportunities such as TikTok and a growing app presence in the automotive industry, the decreased performance of Facebook and Google can now be translated to new channels where new consumers exist. A wider network equals more first-time
conversions.

Meanwhile, as EVs continue to be adopted by both enthusiasts and standard users, the mentality of modification is finding its way to a wider range of enthusiasts. I typically categorize Tesla enthusiasts as “tech enthusiasts,” not “car enthusiasts.” However, it doesn’t matter what label they carry, as they are both modifying their vehicles the way they feel best.

In the area of business challenges, EV and advanced driver-assistance systems (ADAS) technologies are driven by market consumption, and shop owners need education to support the vehicles they see in the shop. Wheels and tires are the first things to hit the road, so we need good education around the effects they bring to the vehicle. There will also be new challenges in wheel and tire manufacturing, pricing, training and staffing. In fact, training and retention of front-line personnel is still a major opportunity.

There may also be hesitation to embrace and spend on emerging technologies due to cost. But those who do so now will be ahead of the curve when the economics rebound. They will be stronger for it. The more companies hold back, the more it hurts other companies. We need to push forward.

With supply-chain issues somewhat easing, we are also seeing overseas brands that had issues fulfilling demand during the pandemic starting to flood the market. However, for industry businesses, challenges remain. For instance, parts for testing machinery are up to 200 days out in some cases, and materials testing delays can be up to five months.

Plus, with inflation consumers are starting to stretch their dollars. We are seeing an “emptying out” of demand in the Tier-2 space with more consumers seeking Tier-3 supply. As always, the rich remain rich, and Tier-1 brands seem to be holding their own fairly well in comparison to other tiers. However, for truck buyers, being an enthusiast is going from “really expensive” to “too expensive.” The results are individuals leaving the segment for a more affordable “non-lifted” segment.

Some other developments to watch relate to lighter wheels, higher-torque vehicles, newer EV winter tires, rolling resistances and regulation. The latter includes California’s explorations of rolling-resistance and wet-grip minimum mandates, which may disproportionately impact the specialty tire market. Federal agencies tend to adopt such policies nationwide.

Our biggest need is industry education and advocacy on emerging technologies and the market. Many don’t understand the issues—or are clouded by personal opinions about EVs, grid infrastructure, economics and the effects of inflation. We have used our connections with larger organizations to advise government about their impacts using data and insights provided by SEMA. We are lobbying for exemptions that will benefit the entire wheel and tire aftermarket.

Additionally, we have several education initiatives for 2023 that will educate SEMA members on changes to vehicles and how they affect wheels and tires. Our programs will include topics like rolling resistance, tread wear and traction, and how EVs are affected. The WTC Education Committee goes to great lengths to inform are members and to keep businesses on top of these and other topics. We invite businesses in our segment to contribute their feedback and keep us informed of their needs.

SEMA Editor’s Note: The viewpoints expressed in this article are those of our council and network sources and do not necessarily reflect the official positions of SEMA or its Board of Directors.

This article was written by Mike Imlay for sema.org

SiriusXM Commissions Maxar to Build Two New Satellites, SXM-11 and SXM-12

Posted on by in Industry and tagged .

NEW YORK, NY & WESTMINSTER, CO (12.01.22) – Maxar Technologies and SiriusXM announced a new agreement commissioning Maxar to build and deliver two new geostationary communications satellites for SiriusXM.

The SXM-11 and -12 satellite orders increase the total number of spacecraft in development for SiriusXM by Maxar to four, following the 2021 agreement for the construction of SXM-9 and -10.

SiriusXM CEO Jennifer Witz and Maxar CEO Dan Jablonsky at SiriusXM’s headquarters in New York City on November 29, 2022. Credit: Maro Hagopian for SiriusXM

“This investment reaffirms our commitment to satellite content delivery systems and cutting-edge technology,” said Bridget Neville, SiriusXM’s Senior Vice President of Satellite and Terrestrial Engineering and Operations. “SXM-11 and -12, along with SXM-9 and -10, will allow us to innovate and improve our service offerings for subscribers and will extend the continuous and reliable delivery of our audio entertainment content.”

“This agreement, in combination with SXM-9 and -10 ordered last year, shows one of Maxar’s greatest strengths—the advantage of performance at scale,” said Chris Johnson, Maxar’s Senior Vice President of Space. “These satellites will provide more capability to SiriusXM’s fleet, including an expanded service area and higher service quality. We continue to push for new ways to expand capability for commercial geostationary customers, keeping our leadership in this market secure and growing.”

The Maxar-built SXM-11 and SXM-12 satellites for SiriusXM as shown in an artist rendering. Credit: Maxar.

There are more than 150 million SiriusXM-equipped vehicles on the road today that rely on SiriusXM’s proprietary satellite network, which is also a key delivery mechanism for the company’s 360L platform. SiriusXM with 360L combines satellite and streaming to ensure the best possible coverage across the US and Canada and the best customer experience. SiriusXM also offers a suite of satellite-delivered Marine and Aviation services that provide pilots and boaters important weather data and information directly to their cockpits.

SXM-11 and -12 will be twin high-powered digital audio radio satellites, built on Maxar’s proven 1300-class platform at the company’s manufacturing facilities in Palo Alto and San Jose, California. Maxar has been building satellites for SiriusXM for more than two decades, including the first-generation Sirius satellites launched in 2000, the second-generation Sirius satellites launched in 2009 and 2013, and the company’s current third-generation satellites, the first one of which started service in 2021. The delivery of SXM-11 and -12 will bring the number of Maxar-built spacecraft for SiriusXM to 13.

Visit www.siriusxm.com and www.maxar.com for more.

Mobile Solutions Wraps Successful Advanced Door Panel Class    

Posted on by in Featured and tagged .

TEMPE, AZ (11.30.22) – November 17-20, 2022 marked the final Mobile Solutions in-house training session of the year; the Advanced Door Panel Fabrication class. Over four action-packed days, nearly 30 attendees were led by a team of 5 instructors in the disciplines of metal fabrication, 3D router work, plastics, lighting, upholstery, audio system tuning and more. “We presented so many new and cutting-edge techniques in this class that even the seasoned veteran fabricators were challenged” commented Mobile Solutions founder and CEO, Bryan Schmitt. He added that within days of announcing the class it sold out, underscoring the popularity of training at in-person events.

Bryan Schmitt (R) and Tom Miller, from Musicar NW, addressing attendees as the 4-Day event began on Thursday November 17th.

The Advanced Door Panel Fabrication class featured a student-built project with many customizable elements that allowed each attendee to create their own one-off panel finishes, colors and style.  One of the groundbreaking techniques shown was the implementation of a linear illuminated French seam in a panel insert. This technique combined the look of a French seam stitching, Using this technique, the possibilities to achieve the same lighting integration on even the most high-end luxury vehicles is possible with custom fabricated projects” said Schmitt.

Levi Green from HammerFab, a guest instructor, pictured during his metal fabrication segment. Green is based in Austin, TX.

In addition to lead instructor Bryan Schmitt, guest presenters included Tom Miller of MusciarNW, Anthony Medina of Medina’s Interior Design, Terry Soohoo of Paradyme Car Audio, Kyle Miller of MusicarNW and Levi Green of Hammerfab. Doug Dobson of HKI/Tury was also on hand helping throughout the event. Each of these industry professionals shared insight into their specialties so that attendees had a full 360 degree view of creating a custom interior panel from concept and design through fabricating elements from raw materials and adding custom touches that elevate the finished work to the highest levels. “This group of guest instructors had an excellent diversity of skills, but equally important is they are relatable and easy-to-understand in what they teach because they are truly experts at their craft” added Schmitt.

Chris Rawlings, who owns and runs VIP Auto Interiors in Tempe, pictured with his door panel project.
Gino James proudly shows his door panel project that he will be taking back to his Visions Upholstery shop in Fort Pierce, FL.

The November 2022 Advanced Door Panel Fabrication class topics included:

  • Concept and design of interior panels
  • Introduction to Fusion 360 CAD Design Software
  • The sewing machine process – A to Z
  • Advanced metal fabrication techniques and skills
  • Fabricating and implementing other unique trim and interior elements
  • Interior panel and trim finishing techniques
 This image shows a group of projects that attendees will be taking to their shops from the Mobile Solutions 4-Day Advanced Door Panel training class.

Schmitt says what’s different about their in-person training compared to anything else out there is the diversity of ever-evolving content, the breadth of knowledge and skillsets from the guest presenters and that each attendee does hands-on work with their own take home class projects. “We know that seeing the techniques is one thing, but practicing them hands-on while training ratchets up the intensity and retention” adds Schmitt.

As the Mobile Solutions 4-Day Advanced Door Panel training wrapped attendees gathered for a class image with their projects.

Watch Mobile Solutions’ Facebook, Instagram and website for more information when the next Advanced Door Panel class and other in-person workshops are announced, as well as MasterTechExpo.com for the 2023 MasterTech Expo education program details slated for March 5-8, 2023 at Mesa Convention Center in Mesa, Arizona.

Visit www.mobilesolutions-usa.com for more.

Alpine Resumes Experience Events

Posted on by in Industry and tagged .

AUBURN HILLS, MI (11.30.22) – Alps Alpine North America, Inc. (“Alpine”) resumes Alpine Experience Events, partnering with Alpine Authorized Dealers nationwide to provide a one-of-a-kind Alpine brand experience.

Audio Made Personal
Initially launched in 2019 as pop-up-style events hosted at Alpine Authorized Dealer stores across the country, Alpine Experience Events were created to provide a personalized Alpine product and brand experience for the customer, while at the same time, increasing exposure and business of the hosting store.

At this one-of-a-kind event, customers could receive a free, one-on-one product demonstration in a dedicated Alpine demo vehicle from a knowledgeable Alpine staff member as well as benefit from free giveaways and special event promotions offered by the hosting store.

After a hiatus due to the limited in-person opportunities during the pandemic, Alpine is excited to resume Experience Events this fall at participating Alpine Authorized Dealers with bolstered marketing support.

Dedicated Event Support
Alpine Experience Events operate on a perfect partnership between Alpine and the participating dealer. By partnering with Alpine to host an Experience Event, the hosting store would receive dedicated marketing and advertising, powerful event materials, including an Alpine demo vehicle, and on-site guidance and support from Alpine staff. In return, the dealer would commit to meeting pre-established requirements and qualifications as well as coordinate with Alpine to promote and conduct the event.

The convenience of these events being hosted on-site at a car audio store allows the customer the opportunity to both experience and purchase Alpine products during the event. This also allows the hosting store to capture new car audio customers and ultimately place their stores at the forefront of the purchase decision. This grassroots approach proved to be successful during its launch in 2019, with most dealers reporting an increase in sales as a result of the event.

Alpine aims to kick off the 2023 Experience Event program in the fall of 2022 in the California, Texas, and Florida regions with a goal of a nationwide rollout by Spring 2023. All Authorized Alpine Dealers interested in hosting an Alpine Experience Event are encouraged to contact their Alpine Representative directly for more information.

Visit alpine-usa.com for more.

Team GoFast Welcomes Ian Worrall

Posted on by in Industry and tagged .

MIDDLETOWN, CT (11.30.22) – GoFast Solutions is pleased to announce that Ian Worrall has joined the GoFast Team. Ian comes to GoFast with over 20 years of experience in the 12V industry, including 10 years of experience in the 12V distribution business with a premium distributor.

“Quality talent with industry experience is a rare find. I’ve worked with Ian in the past while he was working for another high-profile 12V distributor. I’ve always known Ian as a knowledgeable and well-prepared senior-level category manager. When we discovered that Ian was available, we realized that his experience and specialized industry knowledge are a perfect fit for our team and align with our long-term goals.” stated Bob Hernandez, Director of Sales at GoFast Solutions.

Ian Worrall, future GoFast Director of Merchandising commented, “This all happened so quickly, but as I did my due diligence and took a deep dive into all the opportunities available to me. The clear choice was GoFast Solutions. I am excited to join the GoFast Solutions family and look forward to working with their partners in 2023.”

GoFast Solutions, a proud member of the EDA (Elite Distributor Alliance), is strategically located in the heart of New England with a 32,000-square-foot warehouse and corporate offices in Middletown, Connecticut as well as a satellite warehouse in Hicksville, NY. GoFast Solutions has established itself as the Premier 12V distributor in New York & New England, featuring premium brands like Firstech, Fortin, Sony, Kenwood, Metra, VOXX, Alpine, JVC, and many more.

Contact GoFast Solutions at Main Number (203) 641-0272, or email at info@gofst.com

SEMA: Versatility Boosts Current Popularity of Adventure Vans

Posted on by in Featured.

It’s no secret that overlanding has been one of the fastest-growing segments in the automotive aftermarket, and as it has gained popularity over time, the market has diversified. This can be seen in the types of vehicles employed as build platforms. Once dominated by midsize Toyotas, the overlanding segment has grown to include Jeeps and, increasingly, fullsize HD pickups with their superior load-carrying capability.

Now, yet another vehicle type has entered the sector, and it has ushered a new generation of backcountry enthusiasts into the pastime of overlanding. Known alternatively as adventure vans, camper vans or, occasionally, “glamper” vans, these vehicles represent a fast-growing segment of the overlanding market and offer a potential new revenue stream for aftermarket outfitters looking to partner with existing van builders, for established coach builders looking to diversify their product lineups, or for startups looking to capitalize on new opportunities in a fresh market.

A new player in the overlanding segment, adventure vans can be built for any use, whether it’s easy pavement travel or more strenuous off-road activity. Photo credit: Shutterstock.com

For the purposes of this article, vehicles referred to as “adventure vans” generally fall into the category of Class B motorhomes. They are smaller in size—typically 17–23 ft. in length—and generally less luxuriously apportioned than the more expansive Class A and C motorhomes manufactured by companies such as Winnebago and Thor Motor Coach. Also, unlike their larger counterparts, they utilize existing OE light-truck chassis and bodywork, making them a more attractive alternative for consumers on a budget. They’re also more economical to own, thanks to better fuel economy, and their smaller size makes them easier to maneuver and park.

In the North American market, the preferred platforms for these vehicles are typically 1-ton Ford Transit, RAM Pro Master or, most commonly, Mercedes Sprinter chassis, all offering all-wheel drive as the standard drive configuration, and base prices for these vehicles in stock (unmodified) trim start in the $45,000 range. Fully equipped, an outback-ready unit can list for six figures, so this segment represents a potentially lucrative source of income for businesses in the specialty-equipment market.

The State of The Market

Whatever their classification, RV sales are at an all-time high. According to a 2021 manufacturer survey conducted by the RV Industry Association, an industry record 600,240 wholesale shipments were recorded in 2021, an increase of nearly 20% since 2017. At present, the adventure van segment alone represents a $16.8 billion global market, a figure that is forecast to reach $24.8 billion by 2027, according to a 2022 survey from Marketwatch.

“The adventure van market continues to grow rapidly,” said Scott Brady, publisher of Overland Journal, “but the primary markers of success are differentiating features, unique manufacturing processes, or improvements to backcountry performance. Van builders that are creating a unique offering or a performance advantage are continuing to garner long lead-times and full production schedules.”

“The market has seen rapid growth over the recent five years, with new builders coming online almost every month,” said Eric Miller, co-funder of TouRig, a Colorado-based van conversion company. “We’re seeing new accessory companies introducing new product innovations that are directly catered towards the Adventure Van consumer. We are also seeing very nice cross-pollination with the outdoor industry, something that for years was somewhat a controversial subject.”

“It’s my understanding that Class Bs are the fastest-growing segment of the RV market,” said Neil Morse, owner/promoter of the nationwide Adventure Van Expo series. “We still have tons of new people coming to our shows that have never seen them.”

“It’s a market that’s really been growing the last few years here,” said Oliver Bahr, president for the Americas with Dometic, a manufacturer of products for the adventure-lifestyle market. “The van market has really been growing well for us.”

How well? “When we entered the market in 2014, there were somewhere around 10 to 12 real players in the space, excluding the behemoth RV brands,” Miller recalled. “Today, there could be as many as 150-plus builders contributing to the adventure van space.”

Besides having the capability to transport their owners to remote areas, adventure vans can also offer all the comforts of home—it all depends on what buyers want, and the size of their budget. Photo courtesy: Tourig

Who They Are

According to our experts, adventure van owners tend to differ from conventional RV owners by their desire to travel further afield than what’s allowed by a bigger, bulkier Class A motorhome. “All-wheel-drive vans allow access to more remote campsites, hiking trails and similar points of interest,” said Brady. “Adventure vans tend to correlate with hikers, mountain bikers and outdoor photographers.”

“It’s usually an active couple or family,” Morse said, with varied outdoor interests: “Biking, skiing, paddle boarding, surfing and the like.” Miller concurred: “Our biggest demographic is the outdoor enthusiast with a strong passion for outdoor recreation such as fishing, hunting, biking, skiing, etc.”

Despite a sometimes-steep price of entry, the segment exerts a strong appeal on younger consumers. “We get customers in their 20s, but more frequently they’re people in their 30s who’ve been working an office job for 10 years, and now they just want to travel,” said Duran Morley, founder and CEO of The Van Mart, a California-based van conversion company.

As a rule, though, the typical adventure van consumer base skews somewhat older. “We generally see a middle-aged consumer with an adventurous spirit looking to enhance their journey through travel,” said Miller. “This new category has made the journey as much fun as the destination.”

What They Buy

Overlanders have higher-than-average levels of disposable income (see “Backcountry Business Tips,” SEMA News October 2022), and players in the adventure van segment can benefit from an enthusiast customer base that’s willing to spend plenty of money to customize their vehicles to their exact liking.

“The segment’s growth is focused around accessories that improve the capability and appearance of the vans,” said Brady. “Lift kits, bumpers, racks and even snorkels abound.” Miller agreed, mentioning upgraded suspension packages, larger wheel/tire combinations, rear tire carriers, rear storage boxes, roof racks and ladders as popular items.

Morse similarly pointed to tires and wheels along with “anything battery-powered” such as cellphone boosters, and Bahr mentioned products that offer “modularity—being able to take that freezer, refrigerator or a cooktop from the inside to the outside of the van.”

Most of our experts agreed that price is secondary in importance to quality for most adventure van owners, so manufacturers of higher-end componentry can find opportunities for growth. “People are willing to pay for the quality, and they want to make sure that they have the right product for when they’re off grid,” Bahr noted. “They don’t want to be in a difficult position out in the wild.”

A multi-event series that takes place at various locations throughout the United States, Adventure Van Expo attracts hundreds of enthusiasts as well as vendors and manufacturers of outdoor lifestyle products. Photo courtesy: Adventure Van Expo

COVID and Campervans

All of our sources agreed that the outbreak of COVID-19 in 2020 turbocharged growth in the market as locked-down consumers with extra time on their hands looked for recreational opportunities away from crowded spaces. The pandemic “sent [business] through the roof!,” Morse exclaimed.

This surge in popularity has shown no signs of slowing down. Attendance at Adventure Van Expo was “double in 2021 over the previous year, and another 25% higher in 2022,” Morse said.

While COVID played a part, Brady also noted that growth “began with the availability of the AWD Mercedes Sprinter,” while adding a caveat. “As return to work has increased and financing has become more expensive, we have seen some reduction in growth. In particular, the standard van builders are seeing a reduction in order rates. However, the vans with more bespoke interiors or improved capability are still performing well.”

Social Distancing and Social Media

Adventure travelers often utilize social media to share their travel experiences with others, and our panel of experts recommended maintaining a robust social presence to optimize consumer outreach.

“People enjoy a sense of community, and they like to share within that community,” Bahr said. “We have a distinct set of users in this side of the business, where they like to share their ideas, they like to share their experiences, they like to show what they’ve done, what they’ve built and what they’re using. So engaging with that community is a really critical aspect for a brand like us.”

Future Challenges and Opportunities

While our experts were optimistic for the near-term future, some expressed concerns about a slowing economy. Morse had an eye out for the consequences of the Federal Reserve’s recent inflation-fighting measures given their affect on financing costs. “A rise in interest rates may take some players out of the van market,” he said.

Still, most of our experts agreed that the smaller Class-B platform would prove resilient in the face of competition from the bigger vehicle classes. “It’s still headed favorably in our direction,” Morse said. “We have a very economical and maneuverable platform with the diesel Sprinter. For couples, you can’t beat it. You can get into 19-ft. spaces and still have a bed, bath and shower.”

“The majority of the growth will come from the brand name offerings as they have access to the dealer networks and financing required for volume sales,” Brady said. “The most pressing challenge is chassis availability, with demand for Mercedes AWD Sprinters exceeding allocations. We need more AWD van options from companies like Nissan and RAM.”

As bigger players such as Airstream and Thor bring their own Class-B vans to market, our experts agreed that adventure vans’ public profile only figures to increase in the near term.

“The bigger players are definitely going to make an impact and actually make the industry stronger by having more visibility, driving more traffic and attention to the van market,” Bahr said, adding that “they’ll typically create a standard footprint with maybe two or three floor plans, and try to drive mass volume with that.”

“With the big RV brands starting to market vehicles into this segment, it certainly shows that stockholders are taking note,” Miller added. “As this market segment continues to grow and evolve, we will likely see interesting innovations in space management, lighter material introductions and technology improvements leading to a better consumer experience.

“The pressing challenges are in better regulation and accountability. All the rapid growth the market has seen comes with a more is better mentality which can lead to a lack in quality control. An increase in education creates an elevated experience for the end consumer.”

For the future, Morse pointed to electrification as the next big potential growth driver. “I think we need to work on E-vans sooner than later. If we get them into the 400-mi. range (fully loaded), we will see an explosion in the market.”

Bahr also noted the future movement “towards self-sustaining power, which has been massive, using solar energy to power the battery packs to then power up refrigerators, cooktops and whatever else may be within the van.

“We’re facing some economic headwinds right now, so things are kind of stabilizing a bit temporarily, but we still see a lot of growth potential in this area.”

“I also think we’ll see some of the same supply problems, be they vehicles or materials, that the industry is facing now,” Morse added. “Larger players will take bigger allocations, and the secondary market should see a bump in inventory.”

“There is already a leveling of demand and the beginning of consolidation within the segment,” Brady concluded. “This is typical, and we are watching the players closely. The economy will dictate the next shift.”

The New RetroSound Speaker Mounts Take the Hassle Out of Classic Car SpeakerReplacement

Posted on by in Industry News.

Retro Manufacturing has released a new set of Speaker Mounts for select classic vehicles to make replacing factory Dash Speakers hassle-free. They are constructed of a thick metal alloy and are installed from underneath the dash for a factory-like fit. There are four new Speaker Mounts available, each for different applications. The RS-SB01 is specifically for the 1968 Chevy II Nova, 1968-1969 El Camino, or the 1969 Chevelle and mounts a RetroSound® 4″ x 10″ Dash Speaker. The RS-SB02 is for classic GM, Chevrolet, and Pontiac vehicles from the ’60s and ’70s, also designed for mounting a RetroSound 4″ x 10″ Dash Speaker.

The RS-SB03, like the RS-SB01 and RS-SB02, mounts an 4″ x 10″ Dash Speaker but is not vehicle specific, fitting a wider variety of classics. The RS-SB04 is for classic cars and trucks with a 5″ x 7″ Dash Speaker. The RS-SB03 Speaker Mount will be on display this year as a featured product in the New Product Showcase at the SEMA 2022 show.

These new Speaker Mounts are available now at www.retromanufacturing.com.

Thanksgiving, Black Friday, Small Business Saturday and Cyber Monday

Posted on by in Uncategorized.

12VOLT CENTRAL STUDIOS (11.28.22) The Thanksgiving Holiday, Black Friday, Small Business Saturday and Cyber Monday were four days, virtually back-to-back, closing out the month of November 2022. Many companies across the 12volt industry made social media posts to put their messages, names and brands in front of consumers and followers to compete with all the online activity driven by Amazon and big box retailers.

Early reports are Black Friday online sales in 2022 reached $9.2 which showed a 2.3% increase over 2021. An interesting statistic revealed orders placed via smartphone were 48% of the total….an increase of 4% over 2021.

Slanginsound is known in Mesa AZ for the great deals and block-long lines in front of their store. During Black Friday they made this post to encourage consumers to come on in to grab a great deal. Super to see their jam packed showroom.

Below are a number of Thanksgiving, Black Friday, Small Business Saturday and Cyber Monday social media posts made by members of the 12volt industry community.

Hertz utilized an upbeat graphic and Pioneer a more traditional image to wish all a Happy Thanksgiving.
Ace Truong and the Extreme Car Audio team got a week-early jump with the company’s Pre-Black Friday event on Friday, November 19th. Key vendors Alpine, Rockford Fosgate, Sony, AAMP and Morel were set up under tents in the company’s Marrero LA parking lot. Area reps
Jimmy Chauffe, Shawn Simpson, Richard Wong, Chris Brinkley and David Toliver were behind the controls of their respective demo vehicles.
Installations Unlimited in North Syracuse NY and Audio Outlet in San Marcus TX attracted eyes with attractive graphics.
Car Toys Tulsa posted this graphic with a very sincere message to their followers from Charles Stewart.
JS Alternators, Greer SC, got a jump on Cyber Monday with this post over the weekend.

Now the 12volt industry we will soon be off to December. We wish all across the 12volt industry strong December sales, and a Happy Holiday season, as we all work to finish 2022 on a high note.

2023 Top 50 Retailer Rewards Themselves with DSP Training

Posted on by in Industry News.

MESA, AZ, November 28, 2022 — MSC America, distributor of high end car audio brands Brax, Helix, Match and BLAM announced today that Vernon’s Signature Audio from Lubbock, Tx attended a special training designed to increase their knowledge of the company’s DSP based products and how to use their proprietary tools.

Utilizing innovative training tools such as a Personal Tuning Station, consisting of a Helix DSP Mini connected to a pair of headphones, allowed each attendee to make adjustments via a laptop computer and hear the effect in real time. In comparison to simply being told about the effect of time alignment or reading about which crossover type to use, this method allows the attendee to actually hear the audible difference that each tuning decision makes, such as adjusting EQ bars up and down to hear how it changes the sound of an instrument.

After having a much clearer understanding of the function of the DSP tools, each attendee was able to put that knowledge to use in a real world situation, by tuning an actual vehicle, which technician Lazaro Cantu said was his favorite part of the training. Taking turns, each attendee walked through the step by step “Tuning for Profit” process developed by MSC to produce the best possible results, reliably and efficiently until they each felt comfortable enough to reproduce those same results in their customers’ cars.

Members of the Vernon’s Signature Audio crew from Lubbock TX are flanked by MSC team members in the Mesa AZ US headquarters.

“The goal of providing this level of personalized training,” said MSC Vice President Jason Digos “is to equip the dealers with not only the knowledge, but also the experience they need to start implementing the process as soon as they get home. Without hands-on experience, attendees often forget what they’ve learned before they get a chance to use it!”

After having spent years utilizing only some of the features available in Audiotec Fischer Digital Signal Processors, the team at Vernon’s Signature Audio said that on a scale of 1-10, their confidence in their tuning ability went from a 1 to an 8 because of the 1.5 days spent with MSC.

“I didn’t want to damage anything” Mike Martinez, a senior technician said of the reason why they would use only the basic features of the DSP before, “but now that I know we can simply undo any changes we make using the Time Machine tool, I am much more willing to experiment with all of the features of the DSP!”

When asked what was the first thing they were going to do with their newly acquired knowledge when they got back to work, their answers ranged from tuning their personal vehicle to taking on more responsibility in their installs and calling in previous customers for a fresh tune. But one thing that Co-owner Leon Winchester and the team from Vernon’s Signature Audio agreed on, was that this was the best training they’d ever been to, pointing them in the direction in which “the industry is heading.”

If you would like to visit the MSC America office for training, please call Jason or Matt at 480.372.2929 or email sales@msc-america.com.

BestCarAudio.com and Sony Car Audio To Give Away Over $12,500 in Sony Mobile ES Products

Posted on by in Industry News.

November 28, 2022, Lehighton, PA – 1sixty8 media, the publisher of BestCarAudio.com, is pleased to announce the launch of the 12 Days of Christmas Giveaway. In conjunction with Sony Car Audio, BestCarAudio.com will be giving away over $12,500 in Sony Mobile ES equipment in the days leading up to Christmas.

“Our generous sponsors have been donating products for our giveaways on BestCarAudio.com for some time, but the 12 Days of Christmas promotion will be something really special,” said Mitch Schaffer, founder of 1sixty8 media. “Sony’s forward-thinking approach to business and their generosity are a breath of fresh air. We are excited to be part of this promotion and to be a small part of building brand awareness for the exciting new Sony Mobile ES line.”

This is not the first time Sony has sponsored a promotional giveaway with BestCarAudio.com. “This summer, we gave away an XAV-9500ES and had over 10,000 entries,” Schaffer said. “We expect this promotion to blow the lid off of that one!”

Anthony Tozzi, Distribution Account Manager for Sony Car Audio in North America, said, “We have been sponsoring BestCarAudio.com for several years and find it a great place to put our brand in front of interested consumers. As we add more products to our Sony Mobile ES line, we wanted an opportunity to make a big splash. I reached out to Mitch and we created the 12 Days of Christmas giveaway.”

Consumers may enter the contest at https://www.BestCarAudio.com/12-days-of-christmas from November 14 through December 23rd, 2022. Starting December 12, 2022, a winner will be chosen every day for 12 days. The value of each prize will increase during the 12 days, culminating with a full Sony Mobile ES system, including professional installation. The top prize is valued at over $6,000, and the total value of all prizes exceeds $12,500. A complete list of prizes can be found at https://www.BestCarAudio.com/bestcaraudio-and-sony-car-audio-launch-12-days-of-christmas-giveaway.

For more information contact Mitch Schaffer at 570-656-6900 or mitch@1sixty8.com.