Over half of automotive aftermarket manufacturers are expecting growth in the next year, according to a news release.
The data comes from the “SEMA State of the Industry-Fall 2023 Report,” which is the latest study in the “SEMA State of the Industry” biannual series.
Despite factors such as inflation and a rocky economic climate, 55% of automotive aftermarket manufacturers have reported expected growth for the next year. This is a leap from last fall, which saw only 44% of manufacturers expecting growth.
The report details that one-third of manufacturers experienced double-digit growth in the past year. More than half of manufacturers increased their prices in the past year. 90% of those surveyed said this was mainly due to increased supplier costs.
Additionally, new vehicle sales are expected to rise, with over 16 million predicted for 2024. The continuation of the United Auto Workers strike could affect this, however.
The most valuable market in the industry remains the truck segment. Most manufacturers and retailers are recognizing the off-road segment as being particularly profitable.
SEMA Business Members may download the report for free here. The report will also be presented at the upcoming SEMA Show in Las Vegas, Nevada, at an education seminar titled “State of the Specialty-Equipment Industry: Trends and Directions” on November 1, led by SEMA Market Research Director Gavin Knapp.
“While there has been softening sales for some firms, two-thirds of industry companies are reporting stable or growing sales over the last year,” stated Knapp on the report’s findings.
