Housed in the same building since 1939, Eaton Detroit Spring's longevity is surpassed only by its product knowledge.

One city in particular seems to have become a focal point for the current economic crisis: Detroit. As the car-production capital of the world, Detroit has suffered greatly as a result of the downturn in the economy. Not only has it continued to be the home of domestic automakers, but it, along with the surrounding areas, is also home to many SEMA-member companies.

Recently, while attending the annual SAE World Congress in the Motor City, members of the SEMA market research and information staff had the privilege of visiting three member companies. This week, the visit to the Eaton Detroit Spring facility highlights the heritage and history of SEMA manufacturing members.

Frank and Grace Eaton founded Eaton Detroit Spring in 1937 when they decided to purchase the aftermarket division of Detroit Steel Products for $11,000. Since 1939, Eaton Detroit Spring has run its operations in downtown Detroit, on the corner of Michigan and Trumbull, right across the street from the old Detroit Tigers stadium. Today, the company is run by Michael Eaton, the grandson of Frank and Grace, and Kim (Eaton) Mitchell, Michael’s daughter and the great-granddaughter of Frank and Grace.

Truly a family-run enterprise, Michael Eaton and daughter Kim (Eaton) Mitchell run the business today. The grandson and great-granddaughter team are the third and fourth generation to carry the torch.

The company has claims to more than 24,000 original-equipment spring blueprints for 166,000 stock applications and is the only spring manufacturer to be licensed by both Ford Motor Co. and General Motors. Some of the equipment used to manufacturer the springs is completely original and dates back to the early days of the company. If the equipment breaks down, Eaton employees fix it, and, if the equipment needs a new part, the employees must manufacture it. In fact, one piece of equipment in particular is the last one known to exist in the world.

Even with their archives of designs and product knowledge, many people may not know that Eaton Detroit Spring can manufacture custom springs for any application: stock or custom. Abilities such as these are some of the features many SEMA members hold but others many not appreciate or be aware of.

Each spring that the company manufactures is designed to original specifications, but if customers plan to modify the vehicle to change the ride characteristics—for an engine conversion or to meet race specifications—the folks at Eaton Detroit Spring would know exactly what to do to make the best springs for that particular application.

Craftsmen manufacture the springs on site using techniques learned from nearly seven decades of experience.

The company’s website [www.eatonsprings.com ] hosts a great deal of information for customers looking to replace or upgrade springs for their vehicles. Definitions for mono-leaf and multi-leaf springs can be found, as well as instructions for correctly measuring a leaf spring. And Michael Eaton is just a phone call away and is always happy to help customers find the spring setup they are looking for.

Eaton Detroit Spring is a member of SEMA’s Hot Rod Industry Alliance (HRIA). S. Kellie Colf, the company’s marketing development manger, is a Select Committee member of both the HRIA and the Young Executives Network (YEN), and the company is represented annually at the SEMA Show in Las Vegas. The company also takes advantage of other member benefits, such as the database of information provided by the market research and information department and, in particular, the Hot Rod Industry Report.

The goal of the market research and information staff is to provide useful and timely data to help SEMA-member companies prosper in the ever-changing automotive landscape, and member visits such as this give SEMA staff a chance to visit with members, understand their needs and discover ways to best serve the industry.

— SEMA Research & Information Center

Manufacturers report a 10% increase in direct-to-consumer sales for 2009.

SEMA manufacturing members were recently surveyed about the sales channels they used most. On average, the portion of their products sold directly to consumers has grown compared to last year—from 24% in 2008 to 34% in 2009. SEMA manufacturing members range in size but are, typically, relatively small companies; the average company size of the manufacturers surveyed here was 41 employees.

Knowing where SEMA members are selling their products is just as important as understanding which products are sold. Several distribution channels exist in the specialty-equipment market today, ranging from discount-automotive chains to directly selling to consumers. The table to the right shows a breakdown of where manufacturers allocate their sales. Of the SEMA manufacturing members that employ the option of direct selling to consumers, most do so regularly; they sold an average of 34% of their products via this form of direct distribution.

In an effort to track business-practice trends, SEMA undertook an effort to reach out to members of the industry. A total of 528 responses were gathered in last month’s survey, and 37% said that they were manufacturers. Because product manufacturers have the potential to distribute parts via a multitude of channels, an analysis of what percent of products are sold through each offers a look at how specialty equipment makes its way to the final end users.

Many of the companies surveyed do not use all of the channels. Some manufacturers never sell directly to consumers. Furthermore, those manufacturers whose products go to market through automotive chains report that, on average, 18% of their products are sold through this channel. Obviously, not all manufacturers use automotive chains, so the 18% figure only represents those companies that actually use this distribution channel. In addition, many companies indicated using multiple distribution channels. For this reason, the responses in the table above exceed 100% since multiple distribution channels are often used. The percentages, therefore, represent the percent of industry product, on average, that are sold through each respective distribution channel.

The second largest percentage of SEMA-member products are sold through warehouse distributors—33%, on average, of specialty-equipment parts and accessories, according to survey results.

Specialty-equipment companies often diversify in terms of the market niches they serve, while others specialize in making or selling products for one specific niche. The averages in the table represent the industry as a whole, on average, but companies that sell primarily to one market niche will obviously direct a higher percentage of their sales efforts to their respective market. For example, the percentage of products sold directly to consumers varied significantly, depending on market niche served: compact performance, 66%; light truck, 56%; off-road, 44%; racing, 58%; restoration, 61%; restyling, 38%; street performance, 45%; and street rod and custom, 60%.

— SEMA Research & Information Center

Manufacturers report a 10% increase in direct-to-consumer sales for 2009.

SEMA manufacturing members were recently surveyed about the sales channels they used most. On average, the portion of their products sold directly to consumers has grown compared to last year—from 24% in 2008 to 34% in 2009. SEMA manufacturing members range in size but are, typically, relatively small companies; the average company size of the manufacturers surveyed here was 41 employees.

Knowing where SEMA members are selling their products is just as important as understanding which products are sold. Several distribution channels exist in the specialty-equipment market today, ranging from discount-automotive chains to directly selling to consumers. The table to the right shows a breakdown of where manufacturers allocate their sales. Of the SEMA manufacturing members that employ the option of direct selling to consumers, most do so regularly; they sold an average of 34% of their products via this form of direct distribution.

In an effort to track business-practice trends, SEMA undertook an effort to reach out to members of the industry. A total of 528 responses were gathered in last month’s survey, and 37% said that they were manufacturers. Because product manufacturers have the potential to distribute parts via a multitude of channels, an analysis of what percent of products are sold through each offers a look at how specialty equipment makes its way to the final end users.

Many of the companies surveyed do not use all of the channels. Some manufacturers never sell directly to consumers. Furthermore, those manufacturers whose products go to market through automotive chains report that, on average, 18% of their products are sold through this channel. Obviously, not all manufacturers use automotive chains, so the 18% figure only represents those companies that actually use this distribution channel. In addition, many companies indicated using multiple distribution channels. For this reason, the responses in the table above exceed 100% since multiple distribution channels are often used. The percentages, therefore, represent the percent of industry product, on average, that are sold through each respective distribution channel.

The second largest percentage of SEMA-member products are sold through warehouse distributors—33%, on average, of specialty-equipment parts and accessories, according to survey results.

Specialty-equipment companies often diversify in terms of the market niches they serve, while others specialize in making or selling products for one specific niche. The averages in the table represent the industry as a whole, on average, but companies that sell primarily to one market niche will obviously direct a higher percentage of their sales efforts to their respective market. For example, the percentage of products sold directly to consumers varied significantly, depending on market niche served: compact performance, 66%; light truck, 56%; off-road, 44%; racing, 58%; restoration, 61%; restyling, 38%; street performance, 45%; and street rod and custom, 60%.

— SEMA Research & Information Center

Uncertainty in the economy has carried over into vehicle choices. Consumers are unsure what steps to take next, but they want something different.

Most enthusiasts are usually hard-set on the vehicles they want to own. Some believe strongly in brand loyalty, while others simply want the loudest and most powerful vehicle fresh off the speed shop floor. Some succumb to nostalgia and seek the cars they drove as teenagers; some buy what their friends have or follow trends; and others narrow the choices based on utility. Unfortunately, the general uncertainty from the economy has carried over into the buying habits of the specialty-equipment industry.

Consumers who expressed interest in purchasing another vehicle within the next six months are much less confident in their convictions than in the past. In other words, they know they want or need a new vehicle soon, but they do not have a strong feeling about what that new purchase will be.

The uncertainty can be tagged to any number of economic conditions, let alone to general economic welfare leaving consumers without available credit. Fuel prices and, more specifically, their volatility during last year’s $4-per-gallon spike forced consumers to shift their attention toward alternatives in both size and fuel type. But, other forces are also changing the landscape of the vehicles that consumers are able to purchase and want to purchase. Challenging emissions standards for diesel engines, OEM bankruptcies and insolvencies, dealership closures, seemingly unprecedented financing and incentives packages and a whole crop of new vehicles in the pipeline that are radically different than what the buying public has been used to are leaving consumers with no direction.

When looking at the table of responses from the recent survey, consumers are indicating that they are ready for change; however, they do not indicate what that change will be. Both pickup and SUV/CUV choices look as if they are dwindling. However, the other segments have not changed significantly enough to assume that consumers have a concrete objective. Owners of sports cars, compacts, midsize and large-size vehicles appear to be unwavering, but utility owners are unsure. They have not moved entirely into new categories, but have become uncertain about their next purchase.

The same feelings appear when asked if the next vehicle will be new or used; nearly half (46%) do not know what type of vehicle they will purchase next.

The opportunities exist in taking the uncertainty and replacing it with desire; this has always been the best tool in the shed for specialty-equipment manufacturers and can help drive business. From high-performance parts to custom designs and entertainment, consumers want options for their hobby and need to know what products and services are available to them. This can be achieved by being active in the industry, getting their attention by displaying products and feeding them information.

— SEMA Research & Information Center

Uncertainty in the economy has carried over into vehicle choices. Consumers are unsure what steps to take next, but they want something different.

Most enthusiasts are usually hard-set on the vehicles they want to own. Some believe strongly in brand loyalty, while others simply want the loudest and most powerful vehicle fresh off the speed shop floor. Some succumb to nostalgia and seek the cars they drove as teenagers; some buy what their friends have or follow trends; and others narrow the choices based on utility. Unfortunately, the general uncertainty from the economy has carried over into the buying habits of the specialty-equipment industry.

Consumers who expressed interest in purchasing another vehicle within the next six months are much less confident in their convictions than in the past. In other words, they know they want or need a new vehicle soon, but they do not have a strong feeling about what that new purchase will be.

The uncertainty can be tagged to any number of economic conditions, let alone to general economic welfare leaving consumers without available credit. Fuel prices and, more specifically, their volatility during last year’s $4-per-gallon spike forced consumers to shift their attention toward alternatives in both size and fuel type. But, other forces are also changing the landscape of the vehicles that consumers are able to purchase and want to purchase. Challenging emissions standards for diesel engines, OEM bankruptcies and insolvencies, dealership closures, seemingly unprecedented financing and incentives packages and a whole crop of new vehicles in the pipeline that are radically different than what the buying public has been used to are leaving consumers with no direction.

When looking at the table of responses from the recent survey, consumers are indicating that they are ready for change; however, they do not indicate what that change will be. Both pickup and SUV/CUV choices look as if they are dwindling. However, the other segments have not changed significantly enough to assume that consumers have a concrete objective. Owners of sports cars, compacts, midsize and large-size vehicles appear to be unwavering, but utility owners are unsure. They have not moved entirely into new categories, but have become uncertain about their next purchase.

The same feelings appear when asked if the next vehicle will be new or used; nearly half (46%) do not know what type of vehicle they will purchase next.

The opportunities exist in taking the uncertainty and replacing it with desire; this has always been the best tool in the shed for specialty-equipment manufacturers and can help drive business. From high-performance parts to custom designs and entertainment, consumers want options for their hobby and need to know what products and services are available to them. This can be achieved by being active in the industry, getting their attention by displaying products and feeding them information.

— SEMA Research & Information Center

Why are eastern lawmakers so concerned about closing 19 million acres in the Rocky Mountains to motorized recreation? SEMA and many enthusiasts in the off-highway vehicle (OHV) community want to know the answer.

At issue is legislation introduced in the House by Rep. Carolyn Maloney (D-NY) which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, wilderness areas generally prohibit roads and the use of motorized vehicles. The issue is consequential to SEMA members as off-roaders would have less riding areas in the region and potentially less demand for OHV equipment.

A House subcommittee held a hearing during which Congressional members from areas threatened with the wilderness designation voiced strong criticism to the legislation. Most of the bill’s 75 cosponsors represent areas east of the Mississippi River or are from California. In addition to staunch opposition from local lawmakers, concerns were also raised by U.S. Forest Service officials who stated that the bill conflicts with ongoing efforts to develop land-management regulations in the affected areas. A representative from the Bureau of Land Management also cautioned that the bill “may present serious conflicts with uses that may be of importance to the public.”

SEMA submitted comments in opposition to the bill and will continue to urge members of Congress to adopt land-use policies that have the support and participation of local communities and government authorities in the decision-making process. For more details, contact Brian Duggan at briand@sema.org.

Why are eastern lawmakers so concerned about closing 19 million acres in the Rocky Mountains to motorized recreation? SEMA and many enthusiasts in the off-highway vehicle (OHV) community want to know the answer.

At issue is legislation introduced in the House by Rep. Carolyn Maloney (D-NY) which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, wilderness areas generally prohibit roads and the use of motorized vehicles. The issue is consequential to SEMA members as off-roaders would have less riding areas in the region and potentially less demand for OHV equipment.

A House subcommittee held a hearing during which Congressional members from areas threatened with the wilderness designation voiced strong criticism to the legislation. Most of the bill’s 75 cosponsors represent areas east of the Mississippi River or are from California. In addition to staunch opposition from local lawmakers, concerns were also raised by U.S. Forest Service officials who stated that the bill conflicts with ongoing efforts to develop land-management regulations in the affected areas. A representative from the Bureau of Land Management also cautioned that the bill “may present serious conflicts with uses that may be of importance to the public.”

SEMA submitted comments in opposition to the bill and will continue to urge members of Congress to adopt land-use policies that have the support and participation of local communities and government authorities in the decision-making process. For more details, contact Brian Duggan at briand@sema.org.

One of the top-circulation truck magazines is putting together an article about diesel performance products. If your company has a product that will improve the horsepower, torque, fuel economy or durability of a late-model diesel pickup or SUV, please e-mail a description of the product and a high-resolution image (300 dpi, at least four or five inches wide, in TIFF, JPEG or EPS format) to sue@easierwaymedia.com. The deadline is Tuesday, May 19.