DIAMOND BAR, CA (04.21.23) – The vehicular market segment that industry-watchers refer to as the “powersports” market is, in a way, easier to label than it is to define. What, after all, is the connective tissue that joins such disparate market segments as ATVs and side-by-sides, motorcycles and dirt bikes, snowmobiles and personal watercraft–especially considering that very few of these vehicles are ever used in a “sporting,” i.e., competitive venue?

Whatever it is, one thing is certain: the powersports market is growing. The U.S. market experienced an unprecedented surge in demand in the first year of the COVID-19 pandemic, and combined with low levels of inventory, the market enjoyed record profitability at the dealership level. Likewise, the global powersports market grew by a record-setting 10% in global unit sales in the year 2020, according to a 2022 study from Stratview Research. And while sales have cooled gradually since then, more growth is the outlook going forward.

How much? The global powersports market, currently valued at $37 billion, is forecast to reach a valuation of $69 billion by 2032, with a 6% compound annual growth rate (CAGR) during the period, according to a 2023 survey published by Allied Global Insights. This expected surge is ascribed to several factors, including the increased popularity of larger side-by-side UTVs in the North American market; the lingering impacts of COVID-19 and its stimulative effect on backcountry travel; increased allocations from government entities for military use; increased consumer demand in South America and the Middle East; and increased demand for electrification, particularly in the European market.

In any event, the powersports market presents considerable growth opportunities for companies that currently serve this sector, as well as for others that can innovate new technological advancements for these vehicles and bring them successfully to market.

For this article. we consulted several industry experts for their assessments of the powersports market. What follows has been edited for clarity and length. This article was written by Douglas McColloch for sema.org

Click here to continue reading

DIAMOND BAR, CA (04.17.23) – The automotive aftermarket continues to be impacted by shifts in the industry and overall economy. To stay competitive, businesses need to know where the market is headed.

The new “SEMA Future Trends – January 2023” report, available now atwww.sema.org/research, provides a detailed analysis of the industry’s most important issues and trends in 2023 and beyond. Designed to help aftermarket companies make informed business decisions, the report includes four main parts:

Specialty-Equipment Industry Outlook

• Sales for specialty-equipment parts are projected to have slowed in 2022, growing only 2% to $51.75 billion. Barring any significant economic disruption, industry sales growth should normalize in 2023 and return to the 3-4% growth seen during typical years.

Vehicle Trends Outlook

• New-vehicle sales finished at 13.7 million units in 2022, roughly 1.2 million units below 2021 levels. Due to supply shortages, high prices and rising interest rates, it will likely take until 2025 before things return to pre-pandemic levels.
• The prices of new vehicles are exceptionally high, hitting a record $49,507 in December 2022. Prices should soften over the next year, as supply-chain issues ease and sales soften.

U.S. Economic Outlook

• Inflation hit record levels in 2022 but has peaked and is starting to lower. SEMA estimates that inflation will continue to go down in 2023. By the end of 2023, it should normalize back to around 2% per year. Similarly, costs for producers are expected to go down in 2023.
• Unemployment in Q4 2022 hit 3.6% — its lowest level since the late 1960s. As the economy slows down in 2023, there will likely be an uptick in unemployment. It should improve again in 2024.

Supply-Chain Disruption

• Ninety percent of industry companies say they were moderately or severely impacted by supply-chain issues over the last year.
• The chip shortage is ongoing, but lead times are improving. As of October 2022, the lead delivery time for a chip was 25.5 weeks—down from its peak. However, supplies of chips for automobiles remain tight and constrained.

The complete “SEMA Future Trends – January 2023” report is available to download for free at www.sema.org/research.

The report is also the subject of the webinar “SEMA Future Trends: Outlook for 2023 and Beyond”, taking place on February 2 at 11:00 a.m. PST. Register for the webinar here.

DIAMOND BAR, CA (04.14.23) – SEMA Launch Pad–the automotive industry’s ultimate product-pitching competition that has propelled inventors and entrepreneurs to successful, thriving businesses since 2013–will be featured on a nationwide television special premiering April 15 on the History Channel.

Viewers will watch as the five finalists make their way to Las Vegas, where they pitch their products and ideas in front of a live crowd at the SEMA Show to a panel of judges featuring industry experts and icons. They included Chip Foose (Foose Design), Jared Hare (Addictive Desert Designs), Myles Kovacs (DUB) and Alex Parker (Redline Detection). With a grand prize valued at $92,000 including $75,000 in cash, the competitors give it their all and hold nothing back.

“The first year the SEMA Launch Pad was introduced to a nationwide television audience was in 2022, and the response was fantastic,” said RJ de Vera, SEMA vice president of marketing. “We are excited to once again have the potential life-changing competition showcased on the History Channel. Viewers will be amazed and inspired with each contestants’ innovation and perseverance. It’s the American dream unfolding right in front of your eyes.”

Over the past 10 years, hundreds of entrepreneurs have pitched their products, services and business ideas to industry professionals live on stage and been offered tips for success. The TV special airs on the History Channel, April 15, at 6:00 a.m. (PDT)/9:00 a.m. (EDT).

To learn more about the SEMA Launch Pad, visit www.sema.org/launchpad.

More than 200 top university students met and connected with industry professionals at the recent SEMA Emerging Trends & Technology Network (ETTN)/Society of Automotive Engineers (SAE) Career Fair, held at the SEMA Garage in Diamond Bar, California.

The students, who are members of formula and Baja SAE competition teams, are among top prospects who have been challenged to design, fabricate and compete with Formula-style race cars. They had an opportunity to network, get a close-up look at resources available through the SEMA Garage and meet with established companies to discuss potential career opportunities. Students also gained feedback from industry professionals on their engineering and business presentations in advance of the forthcoming SAE competitions.

SEMA-member companies in attendance included Acceler8, Antigravity Batteries, Automotive Testing and Development Services, Battle Motors, California Air Resources Board, Closed Loop Engineering, Denso, Hellwig Products, High Expectations, Moog Aircraft, Motivo, Performance Machine, Rail Propulsion Systems, Redline Detection, Scorpion EV, Steamericas, Toyota and 4 Wheel Parts.

Participating schools included Cal Baptist, Cal State Los Angeles, Cal State Fullerton, Cal Poly Pomona, Cal State University Northridge, Long Beach State, USC, University of San Diego, UC Santa Barbara, UC Irvine, UC Riverside, UC Merced, Chico State, Loyola Marymount University, Caltech and five high schools.

ETTN and SAE will host a second event on April 29 at the SEMA Garage in Detroit. SEMA-member manufacturers in the area are invited to sign up their companies to participate in the career fair, where they will help students explore career opportunities and inspire them in their career paths.

Click here to sign up your company.

TORONTO, CANADA (04.06.23) – From Friday, March 24th, through Sunday, March 26th, over 300 mobile enhancement experts from retailers across Canada assembled in Toronto to attend the first-ever CMA Expo dealer training and networking event. The CMA EXPO was a collaborative effort to connect retailers, distributors and leading top Industry trainers. The team at CMA Networks executed the event which showcased booths and training seminars from the leading Canadian 12v distributors which featured over 80 brands, making it a unique offering in the Mobile Electronics Industry.

What made the event unique was the ability for dealers to work with their sales representatives to place booking orders and kick off the 2023 season with some serious momentum and knowledge. The success of the CMA EXPO can be attributed to the unwavering support of Canadian retailers, the tireless efforts of the industry leading trainers, the incredible participation of the exhibiting distributors and their partnering brands. In addition, each company had access to classroom-style training rooms to provide in-person education sessions on product features and applications.

Frank Spezzano, the President and Executive Producer of CMA Networks, noted, “being able to provide retailers across Canada with an event that was custom-tailored to our country’s unique business model worked perfectly to launch the 2023 season. The support from all the companies and retailers involved was remarkable.. We are honoured to have been chosen to facilitate this distinguished gathering of professionals.

” Ben Woo, Content Director and Webcast Host for CMA Networks added, “I think the appetite for the Canadian 12V industry to get back to the in-person experience that only a live event can deliver was definitely long overdue. There’s still a buzz about the ‘Delivering the Best Car Audio Systems’ and ‘The A to Z of Car Audio Retailer Marketing’ presentations from Friday and Saturday evening.”

Hot on the heels of this event’s success, planning is underway for next years CMA EXPO. Information will be available at www.cmaexpo.ca.

CMA Networks would like to send a special thank you to all our exhibiting partners for making the inaugural CMA EXPO a huge success.

DIAMOND BAR, CA (03.31.23) – The road to the 2023 SEMA Show begins with the annual Priority Selection Process—where companies choose a Show floor location based on exhibitor seniority. The process literally builds the SEMA Show section by section, booth by booth.

“It is like the order of a pro sports draft; we rank each exhibitor by seniority, determined by how many SEMA Shows an exhibitor has participated in and by Show section,” said Andy Tompkins, SEMA’s trade show director. “To do this, we call every single exhibitor; we speak to brands that are just starting out, all the way to established companies that have been part of the Show for years.”

Every approved exhibitor that submits their Exhibit Space Rental Application (ESRA) and deposit prior to the April 3 deadline has the opportunity to select their booth space. During the exhibitor’s time to pick, a SEMA Show account representative will call the primary SEMA Show contact and help locate and assign the exhibit space that best suits the company’s needs.

“This is a fair and equitable way for companies to select their best possible location—part of our commitment to providing the best exhibit experience possible,” Tompkins said. “We even have tie-breakers built into the system in case companies have the same seniority. The process is never the same, which is one of the ways we keep the SEMA Show so cool, exciting and new each year.”

One of the most important aspects for having a successful Show is pre-Show marketing and promotion. The Priority Selection Process allows exhibitors to understand their Show floor location and how large their exhibit is going to be so they can begin to envision their display design, product presentation, staffing and promote their presence at the Show.

“This process creates the Show floorplan that we publish each year, which buyers, media and other Show attendees preview, helping to promote participating brands to a world of buying power and getting thousands of people ready to attend and work the Show like a pro,” Tompkins said.

To date, nearly 1,500 companies have committed to exhibiting at the 2023 SEMA Show. Organizers expect the number to increase to more than 2,000 by Show time. See who is exhibiting.

There is still time to get involved in this process; submit your ESRA application by April 3! Don’t miss this opportunity to connect with the world’s most iconic buying organizations, media, manufacturers and influencers.

The 2023 SEMA Show will  be held October 31–November 3 in Las Vegas. For more information about exhibiting, visit www.SEMAShow.com/exhibitor or check out the exhibitor brochure.

WASHINGTON, DC (03.24.23) – The bipartisan America’s Outdoor Recreation Act of 2023 (AORA), S. 873, was reintroduced in the 118th Congress by Senators Joe Manchin (D-WV) and John Barrasso (R-WY). This SEMA-supported public lands and recreation legislation is the first comprehensive recreation package since 1963 that will improve and expand America’s outdoor recreation economy while delivering sustainable economic boosts to rural communities.

The bill requires federal land management agencies to increase opportunities for motorized and non-motorized access to public lands, and it includes provisions to streamline the process and expenses associated with obtaining special recreation permits. The bill also directs the U.S. Bureau of Land Management and the U.S. Forest Service to make maps available to the public depicting where vehicles are allowed and where they are prohibited, as well as to update them periodically to ensure that the maps do not become outdated.

SEMA, along with our partners that comprise the Outdoor Recreation Roundtable, urge swift approval of AORA so that many more Americans can enjoy outdoor spaces and their associated benefits to health and wellness. Studies have shown that enjoying time outside helps benefit a person’s mental and physical health. Additionally, outdoor recreation is a key driver of the U.S. economy with an $862 billion annual economic impact. It is also a major employer throughout the country providing 4.5 million American jobs.

For more information on the American Outdoor Recreation Act, please contact Eric Snyder at erics@sema.org.

Visit sema.org for more.

DIAMOND BAR, CA (03.17.23) – The SEMA Hall of Fame is an honor bestowed upon individuals who have improved the automotive specialty-equipment industry. These individuals have gone above and beyond the normal course of business to enhance the stature of the industry and/or the association’s growth.

While many well-known names are often nominated for the program, it’s important that SEMA doesn’t overlook leaders and innovators who may not be as well known. There are many unsung heroes who contribute to and impact the industry greatly—and the association needs input from members to make sure they get the recognition they deserve.

Nominate an industry trailblazer who deserves the prestigious honor before March 17 at sema.org/hof

To qualify, the candidate must have been involved in the specialty-equipment automotive industry and/or SEMA for a minimum of 10 years, be at least 50 years of age prior to the 2023 SEMA Show and their contributions must have extended throughout the national or international level.

Candidates who are deceased qualify for nomination at any age, as long as the nomination is presented at least one year posthumous.

Visit sema.org for more.