Performance Hot Rod Market

• The hot rod market benefits from continued improvements in technology, but an in-depth and ongoing education is crucial for speed shops in order to keep up with this ever-changing industry.

• Owners want a vehicle that satisfies their individual needs.

• Market Strengths

• Hot rod owners are dedicated and enthusiastic.

• Hot rod gatherings nationwide reported strong attendance in 2009 and 2010.

• Hot rod enthusiasts have a passion for driving and showing off their cars.

• Opportunities for speed shops are linked to discretionary consumer spending on hobbies like hot rodding.

• Individuals continue to hot-rod within the constraints of their budgets.

• Price-conscious people are looking for the best value for the money.

• The performance hot rod industry has become more mainstream.

• The hot rod market has diversified into areas previously not considered to be part of the industry.

• Electronics and mainstream application of turbos and blowers impacts the hot rod industry.

• Emerging trends in the hot rod market:

• There has been a contraction of sales from those with less discretionary funds, but enthusiasm is strong.

• There is increased demand for long-block and complete engine sales.

• Hot rodders are looking for tried-and-true engines; higher-quality parts at lower costs.

• There is increased demand for crate engines.

• Hot rodders look for the convenience of ”one-stop shopping”.

• More do-it-yourself customers expect more variety and personalization.

• Future hot rod market will include more retrofitted engines.

• Controllable performance is in demand.

• Horsepower levels and reliability of late-model engines eclipse that of their early counterparts.

• Tips for speed shops to gain market share:

• Provide a high-quality product, offer premium parts; reliable power at a fair price.

• Develop; repair relationships with customers.

• Become more involved at the track.

• Advertise the shop’s expertise and professionalism.

• Learn more about the newest engines; latest products; latest improvements and applications

• In-depth, ongoing education is crucial to keeping up with improvements in technology.

• The hot rod market will always have enthusiasts who are ready to purchase.

• Business is heading in the right direction.

• Education is strong.

• Focus efforts on price, advertising and value.

• The hot rod market is full of people who want something different.