Racing’s hard times hitting area businesses

The economic downturn is coming to a track near you this year.

With the highest unemployment in years, consumer confidence in the dumps and people hanging on to every dollar they get, the economic downturn is affecting NASCAR and the people whose businesses are related to the racing league, including some in the Richmond area.

"The overall economy doesn't bode well for this season," said Neil Culley, who owns Stock Car Products in Chesterfield County.

Culley said that he's already begun to feel some of the sting.

Stock Car Products supplies racing parts for stock cars.

He said that in previous years, racing teams would call him with orders in October and November.

But with sponsors pulling back, Culley said teams are being more conservative. Demand at Stock Car Products is 25 percent of what it was in previous years.

"We see it more every day. [Teams] aren't buying nearly the quantity they used to," he said.

It is still too early to tell how hard businesses are going to be hit, but early indications are that it's going to be a very tough season.

R. Jon Ackley, an economics professor at Virginia Commonwealth University who teaches and writes about the business of NASCAR, said, "It will be interesting to see in May if all the concessionaires come out" to Richmond International Raceway.

Concessionaires travel from race to race selling T-shirts, hats and other souvenirs. They pay a fee to set up inside tracks.

Even if people muster up the money to go to a race, they are likely to bypass souvenir stands.

Ackley said vendors might be careful about what events they choose to attend this year because of a drop in their sales. Fewer races attended means less merchandise sold.

"The ripple effect of the economy is unbelievable. I think everyone suffers and souvenirs are the last place people are going to go to during a race," Ackley said.

Raul Alvarez doesn't need Ackley to tell him how bad things are.

Alvarez owns Prowear Enterprises Inc. The Ashland company manufactures hats, T-shirts and other souvenirs for corporations, distributors and teams.

"There has been a considerable drop off in product orders," he said. So far, business is down about 40 percent this year.

In the past, he's gotten most orders in October or November to be delivered by February. But he's also done a fair amount of last-minute business in February and March as the season began.

This year, Alvarez is hoping those orders save him.

"What I'm hoping for is last-minute rush orders," he said.

Contact Louis Llovio at (804) 649-6348 or .