Specialty Equipment Sector Experiencing Strong Growth
According to the Specialty Equipment Market Association (SEMA), the specialty-equipment industry continues to experience strong growth and demand as the U.S. puts COVID-19 in the rearview mirror. Their spring report states that 75% of manufacturers, 68% of distributors, and 53% of retailers/installers are reporting sales that are currently above where they were prior to the pandemic, and consumer demand continues to remain robust for most companies.
However, despite strong industry growth, concerns remain due to ongoing supply chain issues, inflation, economic uncertainty, and the war in Ukraine.
Additional key findings from the report include:
1. More than half of companies expect sales to continue to grow in the coming year.
2. Supply chain issues remain a challenge for over 90% of the industry, and most don’t see things returning to normal until at least 2023.
3. The current inflation rate of 8.5% is the highest it has been in 40 years, yet consumers continue to spend.
4. Despite gas prices being up over 40% on average from where they were last year, 80% of Americans still plan to take a road trip this summer.
5. Amid record consumer demand, 70% of manufacturers, 56% of distributors, and 45% of retail installers have had difficulty filling open positions due to a shortage of qualified applicants to hire.
Comments