New SEMA Research Shows $31 Billion In Automotive Parts, Accessories Sales

Sales of automotive specialty equipment products continue to climb, with sales in 2012 reaching $31 billion, according to the 2013 SEMA Annual Market Report. This figure represents a 4 percent increase over the previous year, and marks the third consecutive year of growth, according to the association.

“The report’s findings are consistent with what we are seeing and hearing in the industry,” said Chris Kersting, SEMA president and CEO. “Having experienced significant economic challenges over the past several years, the specialty parts and accessories market is ready and eager to do business. Companies have a more positive outlook about the future and are finding ways to grow the market.”

The automotive specialty equipment market began to see an upswing in 2010, when sales totaled to $28.6 billion, a 2 percent increase over the previous year. Sales reached $29.99 billion the following year, representing growth of 5 percent over 2010.

SEMA says the growth in 2012 is largely attributed to a growth in the street performance niche. Accounting for $7.47 million in sales, the street performance niche represents the largest niche in the industry. Also noteworthy in the study is the light-truck market. While the segment had been declining in recent years, the niche saw a slight increase and is expected to rebound as leading automakers prepare to release major redesigns for popular truck models in the coming years.

“The SEMA Annual Market Report is consistent with the trends we see,” said Kersting. “The number of exhibitors and buyer attendees at the SEMA Show has consistently increased over the last couple of years and we are on track to see an even stronger Show in 2013. We’re seeing strong participation in nearly every area of the Show.”

The SEMA Annual Market Report is conducted yearly to help SEMA member companies understand the industry and make informed business decisions. SEMA research reports are available to SEMA members at no cost, and to non-members at a nominal fee. SEMA research reports are listed and can be accessed at www.SEMA.org/research.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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