Business Spotlight: Specialty Vehicle Manufacturing

Most people think of horse trailers as the small, two-horse unit pulled behind a pickup. One trip to Specialty Vehicle Manufacturing Inc. changes that image.

Ken Walker, owner of SVM, does custom conversions of high-end horse trailers for dealers and individuals. Walker takes trailers costing from $25,000 to $50,000 and puts in conversions that cost from $25,000 to $200,000.

There are all kinds of (conversion) trailers built. I can only do so many, so the ones that I like to do are expensive ones. Thats what Ive tried to make my mark in the world with, Walker said.

Beginning with the metal shell of a trailer, SVMs employees create distinctive living space. Insulation, framing, wiring, plumbing (including full-size showers), air conditioning, cabinetry and hands-on customizing transform bare space to comfortable living quarters.

We specialize in the rustic wood look, with the knots. Cowboys like that real well, Walker said.

Walker started SVM about six years ago.

After (my wife Linda and I) got Transport Graphics up and running, I wouldnt say I was bored, but it was clear that my wife and son could run Transport Graphics ... and this allowed me to start something else that would take our financial eggs and put them in more than one basket, Walker said.

SVM does 12 to 15 conversions per month. In his first year, he did about 50 conversions and had a gross income of $1.2 million, Walker said. This year Walker expects to do $4 million worth of business, up 20 percent from last year.

Im booked out anywhere from four to six months, and the only reason Im not booked out a year is because I just dont open my slots out that far, Walker said.

We try to make sure what they want is a good fit with what we do, if not we try to recommend another converter that they might go to.

Walker hasnt experienced any slowdown. Rather, its been a case of barely controlled growth ever since he has been in the business, he said.

Still, the conversion industry is very competitive, Walker said. He estimates he has about six competitors within a 75-mile radius of Springfield.

Anybody thats a carpenter thinks they can do these, but thats not the case, Walker said. Typically what they succeed in doing is making (a conversion) cheaper than it can be done, which depresses the market. That causes a lot of shoddy quality which is bad for the industry.

Walker also warned of the dangers of trailers incorrectly converted to sleeping quarters.

Every year people die in their sleep in these (shoddy) trailers because theyre not properly vented, because they dont have the proper safety features. Or someone gets electrocuted, Walker said.

Typical customers for SVM conversions are horse enthusiasts. Walker describes that segment as the companys biggest and most lucrative market.

Theres something about a horse person in that they will spend more probably because besides being their hobby, that horse is also their pet, Walker said.

Of the trailers on Walkers lot awaiting conversion, six are slated for the National Finals Rodeo and two for the World Cutting Horse Futurity Championships.

They are show trailers for dealers who have ordered them. Typically the dealer will order a cool trailer in a specific price range to knock everybodys socks off at the show, Walker said.

Walker said several owners of SVM conversion trailers are championship winners and horse-world celebrities, including Speed Williams, seven-time world champion team roper, Steve Purcella, three-time world champion team roper, Britt Bockius, 12-time National Finals Rodeo qualifier, and Blair Burk, world champion calf roper.

Other personalizing touches can include horseshoe toilet paper holders and cabinet pulls, and lampshades with ropers on them.

We continue to set the standards for new innovations in the horse trailer conversion industry, Walker said. Some of the innovations SVM has brought to the industry include: computer controlled lighting, 100 percent electric trailers, remote control air conditioning, roll screen doors, roof-mounted diesel generators and solid-wood framing.

SVM has its own cabinetry shop. Our stuff is very, very custom, where its hard to put a large run through a bunch of machinery. So we tend to spend our investment on the people, getting the people trained, trying to hire good quality people, Walker said.

Walker is proud of his companys growth and proud of his 45 employees. Workers include cabinetmakers, rough framers, electrical wirers, cabinet setters, a mechanical team and finish carpenters. Teamwork is stressed.

As part of Walkers management style, he has adopted an open management policy. My people have a bonus available to them. The bonus depends on how many dollars worth of product they get out the door every month. So when the paperwork comes out here (to the trailer being converted) we have the price that it sells to the dealer for on there, so they know to add that to their monthly total, Walker said.

Walkers conversions also work for motorcycle and motor sports enthusiasts. One under conversion is for Harley Davidson owners, complete with distinctive Harley decor.

Owning Transport Graphics is helpful. That works real well when were making trailers of distinction for the shows, Walker said, pointing out one decorated on the outside in yellow with a spider and spider web, and another one with an American flag theme.

Walker is optimistic about growing his company.

Its a relatively new business and one in a very tough and fast changing environment. As with any new business its full of challenges, personnel challenges and marketing challenges. Every month I get a little better handle on that, Walker said.