Monday 29 June 2015

Leather car seat upholstery maker rides auto sales wave

MONTEBELLO, Calif. -- A factory here bustles with activity, whether it is workers scrutinizing dyed steer hides for imperfections or sewing together leather strips, thanks to the sizzling market for new cars.

Katzkin Automotive Leather is one of hundreds of companies that cater to customers who want to customize or otherwise dress up their new cars or trucks. Though the leather upholstery maker has been in business since 1983, these are particularly good times for Katzkin. It's riding the wave thanks to the strongest new-vehicle sales so far this year in a decade. Lately, it has been seeking to cash in on huge demand the pickup trucks.

"People who buy pick-up trucks tend to accessorize them," David Giddings, the company's marketing vice president, says. "They are a natural target for us. It was tailor-made for accessories."

Katzkin executives think it's a case of right place, right time. Auto sales are up 4.5% this year through May, compared to the same five months last year, Autodata reports. The growth has been driven entirely by pickups and SUVs, which are up 10% while cars are down 1.3% over the same period.

Once behind the wheel, many new-vehicle buyers can't wait to pimp their rides. They're adding on everything from custom chrome wheels to upscale audio systems -- and yes, leather interiors. Aftermarket purveyors raked in $33 billion in 2013, a figure that likely will have risen 10% last year once the figures are in. Peter MacGillivray, vice president of the aftermarket trade group, the Specialty Equipment Market Association or SEMA, says 2015 looks like another boom year as well.


Buyers are "taking perfectly fine automobiles and making them even better," he says. "It's making these cars fit the owner like a glove."

Katzkin aims to make its leather car coverings fit like a glove. The company seeks to lure owners by being a cheaper alternative for leather seat coverings. Instead of buying having to take the leather option when they buy the car, which may include a lot of other accessories that the buyer doesn't want, it can pay about $1,500 for the leather interior alone.

The company not only provides the leather needed to reupholster the seats, but also adds leather to the side panels of the doors and on the center console.
"It really makes a huge impact," he adds. "It's like putting paint in a home when you buy a new home, it makes it feel new and it makes it feel like it's yours."

Nowadays, however, seats have become as complicated as just about everything else on a car. Some have as many as 250 pieces that have to be sewn together. It requires high-tech cutting machines working in tandem with traditional hand sewing.

"Seats are much more structural (now)," Chief Designer Dave O'Connell adds. "We've had to raise our game of craftsmanship."

The aftermarket option is mainly offered through car dealers. The toughest part is getting the word out so customers know they have it as an option.

"I like to think of us as one of the best kept secrets around, but provide a really cool option for everybody out there who has a vehicle that does not have leather," adds CEO Tim Clyde.

Source: USAToday

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