2004 business Year Will Be "No Turkey"

DIAMOND BAR, Calif. The U.S. Department of Commerce third-quarter GDP reports suggest the fastest economic growth in nearly 20 years. According to the Conference Board, consumer confidence is now at its highest level for the year. But, the experts also agree that any sustained economic improvement must also create jobs. According to SEMA President and CEO Christopher J. Kersting, data compiled following the recent SEMA Show 2003 adds to the promising news of a domestic economy on the upswing.

"Our survey of members economic outlook for the fourth quarter, since it also addresses job growth, is worth noting. The survey responses confirm the positive news of an economy on the mend," Kersting said. Officials of SEMA, the Specialty Equipment Market Association, noted the majority of member responses came from small to mid-size companies, members who, as Kersting puts it, "are on the front line of any economic change...which adds to the value of this opinion sample. These are companies very much in tune with human resources and the need to keep or let go workers.

The survey asked several questions general to business and specific to the specialty automotive industry. Of these, three inquiries dealt with the members evaluation of economic strength; business growth optimism / pessimism; and how their outlook might influence employment. SEMAs analysis of the data finds 78.6 percent of responding members believe the U.S. economy will improve in 2004. Of the respondents, 41.37 percent were "very optimistic" about business growth during the coming year; 31.05 percent were optimistic; and 16 percent were somewhat optimistic. The survey also showed that 38 percent of responding members have increased the number of their employees in 2003, with 36 percent indicating no reduction in workforce during the current year. "If we give this information the broadest, non-scientific definition, it might be simply more good news another positive indication that American small and mid-size businesses feel bullish about their prospects and about the automotive aftermarket in particular," Kersting said.

The 37th SEMA Show attracted more than 100,000 visitors from 145 countries around the world. All previous show records were broken in terms of exhibitors and the mix of products shown and introduced. More than 1,000 new automotive category productsfrom a Procter & Gamble home car-wash system; to the world's biggest road wheel, a whopping 28-inch spinner that turned heads and order blanks; to the latest in production automobile specialty models, mobile electronics and car safety equipmentwere introduced. There was even a new heat-resistant welder's helmet shown for the first time, clearly aimed at a less glamorous segment of the automotive industry.

The opinions SEMA gathered from individual managers, privately-held company owners and department heads from mainline consumer brands add to recent GDP and consumer confidence statistics. Our 5,000 member companies are headed into the Thanksgiving break and holiday season with a positive long-range view that's reality-based. They're writing orders and keeping American workers on the job. Most are optimistic that new employees will soon be needed to help meet consumer demands. We're proud of them and the job theyre doing to get America back into the fast-lane of economic recovery, Kersting said.

SEMA represents the $27 billion specialty automotive industry. Founded in 1963, the trade association has 5,222 member companies. It is the authoritative source of research data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, restoration, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA, 91765-3914; call 909/396-0289; or visit www.sema.org or www.enjoythedrive.com.