By Matt Kennedy
It’s no secret that supply-chain disruptions are affecting the automotive sector; new-vehicle production is expected to be 7.7 million units lower in 2021 than 2020, which it tempering the specialty-equipment industry’s optimism regarding its short-term prospects. But on the whole, businesses are maintaining a positive outlook, with more than 80% expecting their sales to be stable or growing over the coming year.
![State of Industry](/sites/default/files/inline-images/21_Market_Research_State_of_the_Industry_Report_Cover_Fall_Edition_v002.png)
The latest edition of SEMA’s ongoing “State of the Industry” report series offers 70 pages of data on the specialty-equipment industry to help companies understand how the market is performing and evolving. Key findings from the report include:
- Delays in shipping and the ongoing microchip shortage have left automakers unable to keep up with consumer demand for new vehicles, pushing dealer inventories to all-time lows and the average price of a new vehicle to an unprecedented $45,000 in September 2021.
- While some businesses struggled during the beginning of the pandemic last year, especially retailers, most were able to adjust. Manufacturers in particular have done well, reporting an average of 19% sales growth over the past 12 months.
- Sales into the pickup, sports car, SUV and classic vehicle segments continue to be strong, with many businesses once again seeing double-digit sales growth this year.
- Supply-chain disruptions are starting to create some uncertainty. In the spring of 2021, 70% of specialty-equipment manufacturers and 75% of distributors expected their sales to grow over the coming year. However, those percentages have fallen to 58% and 52% respectively.
- The temporary shifts toward online sales that were made necessary by the pandemic are continuing to reverse, with the majority of specialty-equipment parts sales once again flowing through in-person retail channels.
- In the longer term, changes in the new vehicle mix—more CUVs, more electrics, etc.—will require the specialty-equipment industry to plan for and adapt to the evolving vehicle population.
For more info on the state of the U.S. specialty-equipment market, download the SEMA State of the Industry Report—Fall 2021 for free today at www.sema.org/research.