Proud to say that my shop is reporting higher sales this year as well- steady growth in each of the past 5 years. Despite the rough waters out there, the phone keeps ringing & people keep spending. This industry is a little different than many other markets out there. As car fiends, we are often more emotional than we are practical when it comes to purchases.
I've seen a number of local shops fall out recently, so obviously not everyone is doing well. IMO it comes down to quality of product & builds, combined with customer service. Sometimes recessionary times act as a sort of business Darwinism- survival of the fittest, if you will. He who has the ability to prosper during tough times often inherits the largest market share.
Currently, we're in the middle of 6 MAJOR pro-touring builds, and our shop is full of cars & work. I've got a great group of guys and we're enjoying what we do. Nonetheless, we're seeking out ways for internal improvement & expanding our retail product lines. Who knows how long this economy will falter??
Those of you that run resto/performance shops know how difficult this business can be. If it was as easy as it looks, everyone would do it! For those of you having a tough time, stick with it if it's something you love. As long as you can keep your head above water you can enjoy: the cars are awesome, the customers are the coolest in any market that I've seen, and there's nothing like making/building something that you can be proud of!