Strikes by the United Auto Workers (UAW) at three major U.S. manufacturers, Ford, General Motors and Stellantis, have made headlines in the past few weeks.Although economists say “The impact of short-term strikes is small and has limited spillover effects on the overall economy.“A prolonged strike could affect the more than 7,000 small businesses in the specialty aftermarket industry and the millions of jobs and billions of dollars in wages they support.
While many Americans may not be familiar with the industry name represented by the Specialty Equipment Market Association (SEMA), they may have first-hand experience with it. We are an industry that manufactures, distributes and sells vehicle parts that make vehicles taller, lower, faster, better looking, have better than standard sound systems and more. This is all your vehicles – your passenger van, your neighbor’s truck, or that lucky friend who has a 4×4 that you can ride in sometimes.
Sixty percent of those who choose to modify their vehicle after driving it off the lot typically begin doing so within the first six months of ownership. They purchase these parts from our manufacturers and retailers and seek out builders to install them. There will be a ripple effect as factory production slows or stops. The fewer new cars we drive out, the fewer customers we have to buy our products and use our installers.
A prolonged strike would ultimately have a significant impact not only on the three major automakers, but also on the industries that support and rely on them. Production preparations for the new model year begin long before the new car goes on sale. Months or even years of investment are required in product development, testing, and ultimately production and inventory. A prolonged strike would delay the recovery of these initial investments. Prompt resolution of the strike will help ensure our members and their employees continue to work and reduce the threat to our production lines.
a study A report released this month by SEMA found that our industry is a counterweight to claims that American manufacturing is dead. Last year, consumers spent $52 billion on parts. This activity creates more than 1.3 million jobs in U.S. manufacturing, distribution, retail and restoration. In manufacturing alone, the industry provides over 100,000 jobs at a time when other industries are moving out of the country.
The professional aftermarket industry directly employs more than twice as many people as the U.S. aircraft industry and more people than the entire film and video production industry. The professional aftermarket market is worth a total of approximately $337 billion. It accounts for more than $24 billion in federal tax revenue and more than $16 billion in state and local tax revenue.
The specialty automotive aftermarket industry is not just critical to one region of the country. Our industry includes many small and medium-sized enterprises that specialize in niche markets. These companies rely on local manufacturing facilities, workers and suppliers to contribute to regional economic growth and support America’s grassroots manufacturing industry. While the U.S. economy continues to deal with stubborn inflation and other challenges, the specialty parts and accessories industry is an economic engine that continues to provide jobs and revenue across the country. It’s also an industry that develops technical skills and allows individuals to succeed without a four-year degree.
Our industry is proud to be part of an economy that invests in America and its people. Our workers have good-paying jobs, make important contributions to communities across the country, and provide opportunities to millions of motorists every year.
American manufacturing succeeds and grows when a strong ecosystem of partners and small businesses keeps industries like ours vibrant. But first, we need to make sure Americans have cars to buy and vehicles in our stores to repair so we can continue to play this role.
Mike Spagnola is President and CEO of the Specialty Equipment Market Association (SEMA), a network of manufacturers, distributors, retailers, publishing companies, automotive restorers, street rod manufacturers, tuners, car clubs, racing An industry association composed of diverse groups. Team etc.
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