Portland-Industry analysts continue to tout the viability of performance products as a boost to the general parts and accessories business, and in the case of one Northwest product distributor, those sales are a mainstay. "Thank goodness for performance products," said Doug Burtwell, general manager of Allied Exhaust Systems, who oversees Oregon branches for the multistate parts distributor.
Burtwell, who has an extensive background in the parts business as both a factory and manufacturer rep, said he joined Allied in 2000 and first served as the company's director of sales and marketing. Today, he manages operations that cover a large area southwestern Washington, parts of eastern Washington, and most regions of Oregon.
"As regular parts began to slow, performance parts accelerated," Burtwell said. "It's an ever-changing market, but we do well with performance products and keep up with the market changes and demands." He said Allied stocks a wide variety of exhaust, filter, power upgrades, equipment, accessories, and other products for cars and trucks.
While traditional mufflers, tubes, catalytic converters, and other exhaust and filter products are the mainstay of Allied's business, Burtwell said that more than 25 percent of its business relates to the performance market. "It's a bigger ticket and it's a fun segment of the market. There is always something new that enhances the performance and longevity of vehicles," he said.
Burtwell said the performance lines are exciting because they offer not only an appearance advantage but generally provide longer life and in many cases better fuel economy and performance.
"We have lots of innovative lines. For example, Hushpower, a division of Flowmaster located in Idaho, has created a new muffler with a radical design that is very popular," he said, adding that the Hushpower product line has systems for everything from street rods to diesel applications, off-road vehicles to motorhomes.
"Lines like Magnaflow and others that we stock also offer exceptional performance exhaust systems," Burtwell said. "There is a diverse market, from restoration to just pure performance enthusiasts, that desires these product lines, as well as filtration systems and downloaders."
Flo-Pro Performance Mufflers is another line that Burtwell said is doing well because it offers products covering kits, mufflers, pipes. "They offer great diesel kits, and that market is growing for us," he said.
As fuel prices have risen, Burtwell said the demand for all types of products that enhance filtration, exhaust, and engine performance have increased. "This market continues to be strong," he said. "At first, the market wanted more power and torque; now it's becoming more oriented to fuel economy."
In the filter market, Burtwell said products such as K&N Performance Filters are becoming even more popular for those who want added performance that equates to potentially better fuel economies.
"Cold-air intake is an important system, and it also is a growing market," he said. "People are concerned not only about the performance issues but fuel cost, so filtration systems are an important issue. Products like K&N, Airaid, and aFe all offer superb products that really do enhance vehicle performance and operation."
Power upgrades and performance headers are also important elements of vehicle performance, Burtwell said, adding that Allied offers several brands, including Bully Dog, Edge, Hypertech, Superchips, Doug's Headers, and others. "It's another area where people can improve systems, and programmers and modules help do that. Oxygen sensors are also big sellers for us."
Burtwell predicted that exhaust systems are not going away, but can only be improved and provide more appeal to both enthusiasts and the motoring public.
"The performance side of things will also continue to grow," he said. "There are a lot of side benefits to the performance products, and items like stainless tips will grow because there is a lot of variety and colors available." He said products for diesel engines will also create additional sales in the next few years.
One issue of concern regarding exhaust systems, Burtwell said, is the cost of steel, which has risen dramatically in recent months. "Cold rolled steel has increased 62 percent over a year ago and hot rolled even higher on the global market. It's certainly something we need to be concerned about."
