By Ashley Reyes
The automotive specialty-equipment industry’s record-high sales growth over the past two years is beginning to level off or subside, according to the newest SEMA market research report. Despite ongoing economic uncertainty, supply-chain issues and rising costs, companies continue to be optimistic as sales remain solid and above pre-pandemic levels.
The “SEMA State of the Industry – Fall 2022” report is the latest study to explore how businesses are doing post-pandemic.
Filled with 60 pages of data, the “SEMA State of the Industry – Fall 2022” report is the latest study to explore how businesses are doing post-pandemic. Members can use the report to gain valuable insight into key industry trends and metrics, challenges and opportunities, and an outlook for 2023 and beyond.
By downloading the report, members will gain access SEMA’s research designed to help them plan and succeed in the year ahead.
Key findings include:
- 47% of manufacturers, 48% of distributors and 44% of retailers expect sales to increase in the coming year.
- Supply-chain issues continue to be disruptive for the industry. More than 90% of companies say that they are having a moderate or significant impact on operations.
- Inflation and the supply-chain issues are resulting in higher costs for businesses. More than 90% of companies reported an increase in supplier or production costs; most (around 80%) are compensating for the high costs by increasing their prices. Despite this, consumer demand and revenue remain strong.
- Ongoing supply-chain issues and high prices are slowing new vehicle sales. Sales are not expected to return to pre-pandemic levels until 2024 or 2025. Sales for 2022 are expected to fall about a million vehicles short of 2021, at 13.9 million total units. The average price of a new vehicle reached $48,301 in August 2022, a record high. The average price of an electric is even higher, at over $66,000.