2023 HOT-ROD MARKET TRENDS

"That's what started hot rodding," observed Classic Instruments COO John McLeod. "If you remember, it was, 'I can't afford anything, so I went to the junkyard and there were a lot of '32 Fords. Let's drag one home.'"

"They also made a lot more trucks than musclecars," Perkins adds. "The smog-era trucks still had V8s, whereas most of the cars went to V6s and four-cylinders. They're all rear-wheel drive, and they made each body style for years or even decades without real big changes."

"They're like Tri-Five Chevys in that sense," McLeod opined. "The funny thing is, when we were asking what's next, nobody saw trucks."

"We've seen a lot of growth in the '89–'98 old-body-style trucks as well," Grantmeyer said. I think it's kind of driven by what platform is affordable for people to start modifying. So, people are going where they can and a lot of that's—and I can't believe it—the OBS trucks. We started shipping after [the SEMA Show] and things have taken right off on us."

"You know, we're working on a kit for the OBS truck now," said Vintage Air President Rick Love. "That's going to be our next new bolt-in SureFit system."

The Bad

The consensus isn't quite as solid regarding the obstacles, a good thing since the supply chain was the unifying cry this time last year. "On our end, the supply chain stuff's starting to heal up," Love said. "Our lead times for systems are going down."

"Our biggest problem right now is getting small parts to finish harnesses," Overholser added, explaining the abundance of square-body part numbers languishing in barrels due to a shortage of ignition-switch plugs. "So now we're looking at having molds made at like $60,000, $65,000 a shot."

Ford's more recent discontinuation of a connector, and Delphi's decision to discontinue connectors that GM used in everything from 1955–1979, inspired Painless to explore other options, among them 3-D printing. "We had another company draw it and we bought a 3-D printer so we can make 'em ourselves." Make no mistake: vendors will eventually fill that market gap, but by then Painless will have found other problems to solve with its printing program.

The next pressing issue? "Labor,"
Grantmeyer lamented. "Getting people to understand that it's a 40-hour work week and that work is more than just showing up is a problem," he said.

"Well, we've got plenty of people in the plant as far as assembly workers, [but] it's hard to find someone who really wants to get into engineering," Overholser said. "We've got people in the tech department, but getting them there every day is a
challenge."

"I hate to say it because I like to dabble with youth engagement," said Amy Fitzgerald, HRIA select committee member and co-owner of Cool Hand Customs in Middleton, Wisconsin. "We have a high school and an alternative school across the street from us, and they just built a $12 million addition. It's like a small college campus. But there is not even one room for automotive. They don't even have a basic welding class. So, it makes it very difficult to get any of these kids involved."

"We're running multiple ads, word of mouth, and the usual," Sandoval said. "But it's…it's just frustrating. I don't know what else we can do."

But hot rodders are nothing if not creative. "In the sales staff, I've had great success getting enthusiasts out of the auto-parts industry," Grantmeyer said. "They got all the patience in the world: They can sit there face-to-face with somebody screaming at them about their broken car on a Sunday. They also have a good foothold in automotive knowledge."

On labor's heels is inflation. "With inflation, nobody's gonna take less on the bottom line," Grantmeyer said. "Everything's going up everywhere, and we're trying to manufacture a quality product for a fair price."

The frequency of those increases doesn't help, either. "Some of our suppliers have forgotten to let us know that there were multiple increases in like a six-month period," Fitzgerald said. "So, we find out we're undercharging for materials. Well, you can't just go back and fix that."

Overholser called price increases inevitable. "We're looking at doing something because of copper prices and so forth." But he refuses to go without a fight. "We're trying our best to keep the prices low and volume high." His rationale? "We can turn that volume into labor: the more the volume, the less overhead per part."

"And it is cool," he enthused. "Most people might not be ready for it right now, but they will be soon. There's that acceptance gap, but I think that gap is getting shorter with social media."

"I've noticed that as well because I wouldn't have been caught dead in something like a four-door sedan years ago," Love said. "But you look at the musclecars of today, Chargers, BMWs, Porsches, Audis and stuff like that. It doesn't matter to people that they have four doors."

"The '55 Chevys and stuff, I think that's kind of run its course for now," said Steve Szymanski, principal at Industrial Chassis and shop manager at Phoenix Hotrod Company. "The stuff we thought was cool in the '80s is coming back." Case in point: A Mustang II competed for the Don Ridler Memorial Award at the Detroit Autorama. "It's kind of a neat car. You know something like a Nissan Hardbody is going for the Ridler one day. And I'm serious."

Sandoval recognized it in broader cultural terms. "Hey, that Maui and Sons ['80s surf lifestyle brand] style is coming back too. I was shopping with my wife, and I'm like back in the '80s and early '90s with these clothes! Now's the time for that style to come back."

"I think you know [that] part of the allure of this whole hot-rod thing is nostalgia," Love said. "What was cool when you were younger still is cool when you're older, you know? My daily driver's an '87 Monte Carlo Aero Coupe. I guarantee you I get more reactions from people in that Monte Carlo than I ever got in my '39."

"That group that graduated between 1980–1990, that's the sweet spot right now," McLeod concluded. "Now that they have a little extra money, they build the cars that they liked as kids—it's the same thing we did with Tri-Fives and first-gen Camaros."

Summary

"You know, everyone's so worried about the industry declining and I just don't see any signs of that," Fitzgerald said. "Is this going to stay, or is this a fluke?" Grantmeyer asked. "That's a conversation we constantly have. Every economic indicator out there says that business should absolutely suck right now. And it doesn't."

"You hear that layoffs are happening or we're heading into a recession, or we are in a recession, or whatever," Mohr said. "Well, we're not seeing that."

But Love had something to ponder. "We all compete for discretionary income," he said. "You know, during COVID, people weren't going out to eat. They weren't going to concerts. They weren't going to football or baseball games. But, you know, car stuff was still there. And I think part of the boost we're enjoying is due to that. There was less competition for that discretionary income.

"And now all that stuff's back in place, now we've got to go back to competing for that limited discretionary income," he said. "And I think that's the biggest challenge yet."