A new report by SEMA (Specialty Equipment Market Association) said the worst of the supply chain disruptions are over and “things should be in a better place by the end of 2022.”
SEMA research also found that sales will return to pre-pandemic levels next year.
BOSS Audio’s Doug Kern, responded, “It’s getting a little better but we’re still seeing long delays and we’re planning six to eight months in advance.”
Another leading industry member said that availability has improved with each month for the past four months.
Still another said it’s still difficult to predict full availability, “but we are optimistic the situation will begin to take a positive turn in the second half of the year.”
SEMA added, “In the short term, over the next few months, most companies within the industry don’t anticipate the supply chain disruption to get worse. Most think it will stay the same or get better. All signs suggest that the worst of the
supply chain disruption has already passed, and things should be in a better place by the end of 2022.”
Higher prices, however, are expected to linger into 2023, said the “SEMA Future Trends–January 2022” report.
Growth for the specialty equipment industry (which includes car audio) is expected to continue this year, but at a slower pace than 2021, and then fade back to 2019 levels next year. This follows record sales for some suppliers last year.
Even though stimulus payments have ended, consumers still have extra cash saved up from those payments. The monthly savings rate was about 34 percent in April 2020. It dropped to 7 percent in November 2021. Credit card borrowing has remained weak, which is a good sign for discretionary purchasing.
“This savings won’t last forever, but it does suggest purchasing and demand will continue into 2022,” SEMA forecast.
Here’s some data on the general economy from the report:
Inflation continues with the biggest price swing in energy. Gas prices are up 58 percent. Food prices are up 6 percent. Used vehicle prices are up over 31 percent and new car prices are up 11 percent.
Also, a record 39 percent of business owners had said they plan to raise compensation for employees in June 2021. A record 28 percent plan to increase hiring.
