Even in bad economic times, industry research shows that hot rod and restoration enthusiasts are a group that bucks the tide, spending $2.5 billion at retail, according to Megan McKernan, Specialty Equipment Market Association (SEMA) market research special projects manager. “Despite the reports of a down economy and economic woes, the hot rod market is alive and well,” she said.
“Enthusiasts are still adding to their collections, working on their project vehicles and purchasing upgrades for their hot rods,” McKernan said. “Just ask the SEMA members who manufacture and install the parts, or who build or restore hot rods, which include anything from hoodless, fenderless ’30s rat rods, to muscle cars, to creations in the six-figure range.”
Whether you are a manufacturer, retailer, or installer, McKernan said the steady and continued growth experienced over the past 10 years is great for anyone involved in the hot rod market. “It doesn’t matter if you grew up with these cars or are just becoming interested in them as a new profit center,” she said.
Each year, SEMA conducts its Automotive Lifestyle Survey (ALS). More than 3,300 automotive enthusiasts completed the survey. Approximately 26 percent of the total respondents were hot-rod enthusiasts. Of this group, 87 percent purchased custom parts and accessories for a vehicle within the past year. Of those, 42 percent purchased custom parts for Chevrolets; 25 percent purchased parts for Fords; 5 percent purchased parts for Dodge cars; and 6 percent purchased parts for Pontiacs.
The report also revealed that the top accessories already purchased by this group include: performance air filter replacements; exhaust kits; exhaust headers; intake manifolds; camshaft/valvetrains; cold air intake conversions; brake kits (performance); transmissions (performance upgrade); braided engine hoses; pistons/connecting rods/rings/crankshafts; and performance plumbing.
“The racing and performance side continues to be a cornerstone of the specialty-equipment market,” McKernan said. “The results of the ALS show that many of the top-selling products purchased by hot-rod enthusiasts are performance-related.”
With the popularity of “retro” style hot rods and muscle cars, many companies are offering old-school parts and accessories. Companies like Coker Tire have made a career of making and selling vintage rod and muscle car tires. “We have just introduced the new Coker 600R16 Excelsior Stahl Sport, the first radial tire for hot rods,” Corky Coker said.
Now Motorspot has brought out retro wheels to match that original rubber by offering American-made classic Tru-Spoke wire wheels. “I think cars of the ’70s are starting to gain traction in the collector car/restoration and hot rod market; ’50s and ’60s cars and muscle cars are still desirable but they are priced beyond the reach of a large number of enthusiasts. The ’70s cars are more obtainable,” said David Adler, Motorspot vice president.
Rick Love, executive vice president of Vintage Air Inc., said that he has seen growth in the hot rod market as well. In particular, he noted the continued interest and development in ’60s muscle cars. “Owners and builders are starting to apply more of the traditional street-rod techniques to muscle cars,” he said.
“In fact, I have seen a trend toward newer engines, such as the Chevrolet LS Series and Ford Modular engines; bigger and improved disc brakes; performance suspension systems; and modern aftermarket air conditioning.” Love also said that the ’69 Chevrolet Camaro “. . .is becoming the ’32 Ford of muscle cars. It seems to be the most sought-after Camaro and one of the most popular of all muscle cars.”
Health of the market
The 2009 Hotrod & Restoration Trade Show (HRTS) in Indianapolis, was a great example of the health of the hot-rod market, show spokesman Travis Weeks said. “This is the only business-to-business show produced exclusively for the hot rod, street rod, muscle car and restoration markets,” he said. “As this market continues to grow and the type of vehicles within this category continues to diversify, this show serves as the focal point for new product introductions, and emerging trends.”
Matt Agosta, president of Steele Rubber Products, said he was very encouraged by the strong turnout of attendees at the HRTS. “With a lot of negative media attention about the national economy, the hot-rod industry appeared to be strong.” John McLeod, owner of Classic Instruments, said of the HRTS, “It was the best show yet, hands down.”
“There were 4,400 total registered attendees for the 2009 HRTS, up 12 percent from 2008,” McKernan said. “One of the noticeable differences at the show was the presence of paint- and-upholstery-business people, both at the attendee and exhibitor levels. Planet Color, for example, was a first-time exhibitor.”
The Restoration Marketplace and Hot Rod Alley sections of the 2009 SEMA Show in Las Vegas, were also strong this year, McKernan said, with more exhibitors displaying exciting new products than ever. “The aisles were crowded with people, and the exhibitors and attendees were in good spirits,” she said.
“For more than 50 years, hot rodding has been an integral part of the specialty-equipment industry,” McKernan said. “With automakers' revival of past styles such as the Dodge Challenger and the Chevrolet Camaro, and growing market sales, it is clear that this hobby has managed to stay current and is far from fading.”
