According to the latest report from the Specialty Equipment Market Association (SEMA), more than 80% of industry companies reported having severe or moderate impacts in 2021 because of supply-chain disruptions, including production delays, shipping issues and higher prices.
According to the “SEMA Future Trends” report, which deals with the U.S. specialty, performance and accessories market, by the end of 2022, SEMA Market Research projects that the most pressing issues with the global supply chain should improve in the second half of 2022.
However, prices may remain elevated for longer and likely into 2023, says the report.
Among the factors in play, the report outlines some “Momentum” issues:
- Consumer demand in 2021 was extremely high. Many companies reported record sales, and auto parts production today is higher than at any point in U.S. history. This demand will likely continue into 2022, but consumers will continue to have more options outside of this industry to spend money.
- Industry optimism is extremely high. Nearly three quarters (74%) of industry companies expect sales growth in 2022.
It also included “Challenges”:
- Supply chain disruption remains a pressing issue, driving up costs and leading to product and production shortages.
- Higher costs (both production inputs and transportation) have already started to pass to consumers and will likely continue to.
- Vehicle sales (both new and used) remain below pre pandemic levels. Has not affected industry sales yet but does reduce the number of new vehicles for accessorization.
The report includes:
- INDUSTRY FORECAST
- SUPPLY CHAIN OUTLOOK
- CHANGING CONSUMER DEMOGRAPHICS
Download this report at www.sema.org/research.