Enthusiasts are Keeping the Aftermarket Alive
In a testament to their passion, car people are still turning to the aftermarket for parts and upgrades through a pandemic.
A weekly newsletter by Ryan K. ZumMallen | @zoomy575m
Happy Race Day, especially to all the amazing moms out there! It was super cool seeing car folks post about their badass mothers all weekend. Hope you all had a great day!
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Here’s this week’s top article.
Aftermarket Looks to Rebuild
The $40 billion industry is vulnerable. Enthusiast demand and the return of its largest showcase in Las Vegas could pull it through.
Every upgrade on a car, from a vented hood to a titanium exhaust, comes from an aftermarket company.
That means giants like Eibach suspension and Magnuson Superchargers. It also means small, high-end shops we’ve profiled before like E-Motion Engineering and SSR Performance.
Like all companies, aftermarket businesses are being hit hard by the coronavirus outbreak. But it’s also showing signs of resilience, thanks mostly to insatiable demand from car enthusiasts.
Where SEMA Comes In
I spoke with Tom Gattuso, vice president of events at SEMA, the Specialty Equipment Manufacturers Association, or SEMA.
SEMA is known for its massive annual convention in Las Vegas that showcases the wildest, brightest, often most outlandish auto accessories around. But it also conducts detailed market research.
About 70 percent of aftermarket companies are experiencing short-term shortfalls, according to a study of partner businesses SEMA conducted in April. Another 13 percent are experiencing severe impacts and will have a long road back to recovery. SEMA launched a resource page to help its partners apply for loans, federal aid and other assistance.
But the fact that business is continuing at all is a sign of the strength of enthusiasts’ passion for improving and working on their cars, Gattuso said. In a separate survey, SEMA found that since lockdown about 60 percent of consumers are driving every day, 32 percent have shopped for parts and 22 percent have fixed, upgraded or modified their car.
“That type of stuff lets us know the passion still lives,” Gattuso told me.
The Rebuilding Process
Companies will have to find new ways to reach customers, he said. We may see an increase in mail orders rather than in-person purchases, for instance. The SEMA show is still scheduled in November in order to bring industry leaders together and build a new way forward.
The survival of the aftermarket is critical not only because it delivers performance parts and upgrades that enthusiasts want, but it also employs hundreds of thousands of people, hosts car culture showcases and sponsors motorsport series from the grassroots to primetime.
The aftermarket helps attract new people to the world of cars, and builds career opportunities for many to find jobs for skills they developed as budding enthusiasts. Many have gone on to start successful companies once they progress out of home builds or age out of racing.
“Our industry is going to be okay,” Gattuso said, “because it’s made up of these resilient people who have gone through adversity before.”
The aftermarket had grown into a $40 billion industry after several years of 4-5 percent annual growth. SEMA doesn’t yet have an adjusted projection for 2020, and Gattuso said they are expecting an economic downturn and slow climb into 2021 and 2022.
But the fact that enthusiasts will be there to provide demand is inspiring companies to deliver, Gattuso said to me.
“Once you get the car bug it never really goes away.”
Book Club
What an incredible finale to our month-long reading of ‘Faster,’ the nonfiction thriller following the glory days of racing icons René Dreyfus and Delahaye in their battles against Bugatti, Alfa Romeo and the Silver Arrows of Mercedes and Hitler himself.
To top it off, over the weekend we welcomed Neal Bascomb, the author of ‘Faster’ himself, to a live discussion with readers. Some of the main topics we covered:
How he first learned of the story and what inspired him to write the book
The legacy of Lucy Schell, the only woman to launch and run a Grand Prix team
Whether automakers and race teams have a responsibility for the governments and regimes they partner with
And a lot more. You can read it all right here!
Slow Car Fast
Huge thanks to this customer who enjoyed Slow Car Fast and posted about it on Instagram! He recommended the book and called it an “Easy, informative read that was very enjoyable and relatable!” and immediately convinved two friends to buy their own. Social media is a beautiful thing.
We only have TWO copies left in stock! But you can purchase one right here. Once they’re gone I’ll wait a while before printing more. It’s a great time to buy and I hope everyone is enjoying their copy.
Also, before the pandemic I had the chance to appear on the “Cars That Matter” podcast with Robert Ross. We really had a wonderful conversation about my book, the “slow car fast” ethos, and the maturation of Millennial car culture that is leading the mainstream now. You can listen on Apple here or on Spotify here.
Culture
Car people are using TikTok to start flame wars, like this one between BMW and Mercedes, and I’m so here for it.
Is a Volkswagen Bug the perfect off-road vehicle? With some sand tires and a little belief in yourself, sure!
I don’t really understand what’s happening in this photo but it rules either way:
Hot Wheels has stepped up during the outbreak. Its new program called Hack The Track teaches students Grade 3 and up to learn code. They practice programming their car through a virtual track — great way to keep them engaged at home!
Elana Scherr knows what she’s talking about. Here’s her advice on working on your car without garage space.
Incredible toy car photography continues at a feverish pace:
Race Results
IndyCar teams are back in the garage to prepare for a June return to racing.
Meanwhile several U.S.-based series are laying off people left and right.
The all-women’s W Series is launching its own sim racing league for drivers to compete until the second season can launch. No dates yet.
Sim prize money is getting serious. BMW Motorsport offered $2,400 for the winner of its most recent race.
Ask A Millennial! Soren Swift, 11
Yes, we’re stretching the definition of Millennial here. Either way, it’s always cool to see younger people getting into cars. One way it happens frequently is through photography, especially here in SoCal. I was thrilled to learn about Soren and am so excited to have him here. Check out his Instagram!
I take a lot of rolling shots. It's really hard because I am shooting with a slow shutter and it’s hard to keep the camera still. So I have to take a lot of photos and hope one will turn out. When I get back to the computer and I find a good one I am really happy and I think the car owner will like it too.
My biggest influences are, first, my dad (@HunterSwift) because he has taught me a lot about cars and photography. I also have learned a lot about cars from Top Gear, Jay Leno, and Donut Media.
I like social media, YouTube, video games because I get to see all kinds of cars I can't see in person. But there is nothing like seeing a cool car in person.
I get really excited when I get to see a car I have never seen before but I get even more excited if I get a cool photo of it. I can't wait to get older when I can start driving some of these cool cars.
And Finally…
Enjoy this incredible drone video through the Mercedes-Benz museum.
Drive hard and be safe.
Want your event included? Shoot me a note with subject line “Race Day” at ryan@carrarabooks.com.
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