WHY VEHICLE AGING COULD SPELL OPPORTUNITY

SEMA market data shows that the average car owned by enthusiasts, based on those who responded to SEMA's Automotive Lifestyles survey, was just over 20 years old. Although the highest percentage of enthusiasts surveyed are modifying vehicles made between 2000–2005, many of these same enthusiasts also own much older cars, creating an opportunity for specialty-equipment companies.

As enthusiasts and consumers keep their vehicles longer, they need more parts to keep them running. Keeping the body panels free of defects and repainting a fading and failing factory paint job has always been a good way to make an older car look good.

PPG, one of the largest companies in the automotive paint industry, is reporting record sales of $3.7 billion for the first quarter of 2008. Genuine Parts Company meanwhile is reporting a 3% increase in sales over last year's first quarter.

From seeing these companies picking up on sales, speculation shows that people are becoming more inclined to repair their vehicles over buying new ones. This could be a huge opportunity for the specialty-equipment industry. Marketing parts as longer-lasting, increasing fuel economy, improving performance or any of the other myriad of wants that mass consumers desire for their vehicles could help the specialty-equipment industry dive into a niche of "performance replacement" parts that outperform stock replacement.

This could steal market share from another industry and be really beneficial to ours.

For more industry insight, visit the SEMA Research and Information Center online at www.sema.org/research.