Parts companies remain strong

With much uncertainty surrounding today's economy -- talk of recession, small businesses cutting costs and payroll, and unemployment on the rise -- the consumer market has been dramatically affected.

People are just not spending money on all the things they want -- even if they have the money. Instead they are are counting every dollar and are afraid to invest or spend lavishly until signs of improving economy begin to show.

Retail companies are hypersensitive to these changes. We have noticed dramatic downsizing, drop of sales and a need for highly controversial government funding to keep Chrysler and General Motors from completely imploding. And, I have personally been privy to changes within the automotive aftermarket world. Many companies with whom I have relationships have pulled back on their advertising and marketing budgets.

On the consumer side, those who might have been putting money into building and restoring project cars are being more conservative and saving until the economic uncertainty subsides. In spite of this, to my pleasant surprise, I recently learned that the profit and sales of some companies is actually holding quite strong, at least if the recent Matco Tools Expo is any indication.

The first thing I noticed when arriving at Caesars Palace, which was the venue for the expo, was that the energy and mood was just as vibrant as in years past and the camaraderie among the distributors and colleagues was still flying high. The excitement and passion I had felt in the past had remained, and I was particularly sensitive to it this year.

There has always been a healthy competition among the almost 2,000 distributors, but there is also a great sense of respect, and you could really feel that the distributors believe in the products and enjoy their work. I got my first taste of this electric energy when I attended the 2007 expo in Hawaii. And this year I actually came to Vegas a day earlier than I needed to be there, largely because I so much enjoy meeting up with friends in this industry. I must admit I anticipated it being a different vibe this year and I was concerned, yet I didn't have to be. People were reflecting on a successful 2008 and exuded an optimistic outlook about 2009.

During the banquet that kicked off the convention, a couple of executives gave optimistic speeches. One of the speakers commented that despite the economy, his tool company, Matco, suffered no losses in 2008. The numbers remained relatively steady and parallel with those of the previous years. He attributed this to the fact that in this economy people are not purchasing as many new vehicles, but rather are saving money by repairing their older cars. This means that demand for mechanics and body shops has remained strong, which means tool demand with reputable companies has not diminished either. Since tools are subjected to harsh use on the job, reliability means a lot and good products stay popular.

Tool companies stay competitive by constantly improving quality and design while keeping the price appealing. It amazes me that every year tools are just a little better, lighter, more compact, stronger, equipped with longer-lasting batteries, and are more efficient than the previous year's models. To this end, of course, wise tool companies have an open line of communication with customers and learn and grow from the feedback.

Efficiency was certainly the theme of the expo. It was all about the cordless, comfortable and durable tools with better batteries, tools that have all the essentials to increase productivity. All this innovation shows us how important it is for companies to have the best product possible with a highly motivated team behind it. Of course, shouldn't this be the cornerstone of any solid business? If it isn't, it will be. One positive aspect of living in this tough economy is that it is forcing all companies to focus their efforts and become sharper by building the strongest and highest-quality products they can.

Maybe it's time to relax and little, not worry so much and enjoy life. In fact, I'm about to order a few new tools that I saw at the expo, in particular a torque grip beverage opener to help crack open a cold one.

Among her numerous accomplishments, Courtney Hansen is the author of "Garage Girl's Guide," the host of Spike TV's "PowerBlock," the former host of TLC's "Overhaulin'" and a writer with Wheelbase Communications. You can e-mail her by logging on to www.wheelbase.ws/mailbag.html.