Happy New Year! Here at NHADA, as we finish our current membership cycle, I would like to thank all members for their contributions, both large and small. Whether it be supporting our workforce through buying a ticket to the NHADA Foundation’s Annual Big Raffle for Automotive Education, supporting our Political Action Committee (PAC), or simply paying your membership dues — your support is what keeps us running.
I would also like to thank all of our NHADA Partners that have returned for another year. Our partners are another vital line of support for us. If your businesses face a challenge, I encourage you to turn to one of our partners first at
www.nhada.com/partnership-program/partners.
One of our association’s greatest strengths is the diversity of businesses within our membership. We are comprised of several sectors of New Hampshire’s motor vehicle sales and service industries. As it stands, we currently have the most members in the association’s 100-plus-year history with over 500 members!
One of the many ways we support our members is through governmental advocacy. This past year, through our Motor Vehicle Political Action Committee (MVPAC), we were able to raise $90,000! These funds support candidates that will have the most positive impact on our industry. In this past 2022 midterm election cycle, our giving strategy was highly successful with over a 90% success rate of giving to winning candidates. The policies of our elected officials are pivotal to the success of our businesses. We have a strong presence in the statehouse as we continue to build relationships with our local representatives.
The automotive industry has numerous challenges it faces every day. Here are a few that we believe will help shape what 2023 looks like:
Inventory
U.S. vehicle inventory has continued to recover from historic lows, rising another 150,000 vehicles to 1.61 million, according to data from Cox Automotive and the Automotive News Research & Data Center. While progress is slow, we remain optimistic that we will continue to see dealer lots beginning to fill and supply chain bottlenecks loosen.
Interest Rates
Regarding interest rates or inflation, the biggest question is: what does the future look like? A hike in interest rates was introduced to lower inflation, directly impacting the motor vehicle industry. Market pricing, now combined with higher interest rates, has negatively affected consumers’ buying confidence. The Fed has announced that future rate increases will be moderate but have no plans to stop anytime soon. We as dealers need to be proactive and collaborate with our captive financial institutions and indirect lending providers to better understand how our customers can best navigate higher interest rates.
Electric Vehicle Service
Servicing EVs poses a new set of challenges and safety concerns for those who will be repairing these vehicles. These issues will impact our workforce from technicians to tow truck operators. Their safety, as well as our consumers, is paramount. The NHADA Loss Prevention Team is working diligently to address this topic, particularly for independent businesses that don’t have guidance from a manufacturer. Developing a playbook of best practices in how to safely handle these electric batteries will be necessary for ensuring a safe workplace.
All things considered, the future of the automotive sector is bright, the dealer body has never been stronger, and we are supported by one of the premier associations in the country!
Sincerely,
John Sawyer, Jr.
