The specialty equipment industry is a dynamic part of the national economy, accounting for about $336.91 billion in output. It directly and indirectly employs approximately 1,333,658 Americans who earned wages and benefits of about $104.29 billion. Our industry generates nearly $41 billion in federal, state and local taxes, annually. We employ more people than the U.S. aircraft industry and more people than the entire motion picture and video production industry.
To learn more about the economic impact of our industry is in your state, you can use the interactive map below. You can also find out the industry’s economic impact of your congressional district and state house and senate districts – great data for you to share with your local lawmakers and community leaders. We’ve also assembled some tools for you to use when talking about this study:
About the Study
The Specialty Equipment Industry Economic Impact Study estimates the economic contributions made by the specialty equipment industry, which includes manufacturers, distributors and retailers of aftermarket performance and accessory parts that are considered an upgrade in terms of performance or appearance or for restoration purposes (vintage parts and replicas). Performance and accessory parts could be for either passenger cars, trucks, or 4-wheel off-road vehicles (e.g., dune buggies, ATVs, UTVs). Car clubs are also included. Data are for the United States economy in 2023. John Dunham & Associates (JDA) conducted this research, which was funded by the Specialty Equipment Market Association (SEMA). This work used standard econometric models first developed by the U.S. Forest Service, and now maintained by IMPLAN Inc. Data came from the SEMA, Data Axle, and other government sources.
The study measures the number of jobs in the specialty equipment industry, the wages paid to employees, and total output. In addition, it measures the economic impact of the suppliers that support the specialty equipment industry, as well as those industries supported by the induced spending of direct and supplier employees.
Industries are linked to each other when one industry buys from another to produce its own product or service. Each industry in turn makes purchases from a different mix of other industries, and so on. Employees in all industries extend the economic impact when they spend their earnings. Thus, economic activity started by the specialty equipment industry generates output (and jobs) in hundreds of other industries, often in areas far removed from the original economic activity. The impact of supplier firms, and the "induced impact" of the re-spending by employees of industry and supplier firms, is calculated using an input/output model of United States economy. The study calculates the impact at the national, state, Congressional and state legislative districts levels.
The study also estimates taxes paid by the specialty equipment industry and its employees. Federal, state, and local tax systems vary widely. State business taxes may include state and local sales taxes, license fees, and applicable gross receipt taxes as well as real estate and personal property taxes, business income taxes, and other business levies that vary in each municipality. Since there are tens of thousands of taxing districts in the country it is not possible to calculate the sales taxes generated by consumer purchases of these products.
If you'd like more information about this study or have any questions, please contact Karen Bailey-Chapman, SVP of Public and Government Affairs: karenbc@sema.org.