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First Issue Of Engine Builder

Welcome to the first issue of Engine Builder magazine. We hope you enjoy the new look as well as our emphasis on providing a closer view of all things engine related. In this issue we cover everything from emerging technology in valvetrain designs to the impact of the transformation of salvage yards on engine builders.

Also, on page 48 you’ll find a market overview of business trends and engine output of machine shops and custom engine rebuilders (CERs) for production year 2000. Although the average number of engines produced by our survey respondents rose slightly, there is no debating that the number of machine shops in this country continues to consolidate.

Much as we’d like to report otherwise, based on interviews with engine rebuilder association representatives, parts and equipment suppliers, and resources providing listings for automotive machine shops, we estimate about a 25 percent reduction in full service automotive shops has occurred over the past five to 10 years.

In a nutshell, competition from production engine rebuilders, wholesalers and retailers, combined with the fact that engines since the early ’90s simply are lasting longer, have forced many traditional CERs and machine shops to close their doors.

But, as our survey reveals, as the weaker sisters are weeded out, many remaining engine builders are picking up market share or replacing the loss or decline in their traditional automotive and light truck business as they reach into other engine machining and repair markets.

One automotive machine shop owner I spoke with recently put it succinctly. He said he now spends at least one day each week making outside sales calls on companies he has never done business with to see what shop services he may be able to provide. It has paid dividends!

Reinforcing that message, our survey results show the percentage of business in traditional automotive gas engine rebuilding has declined while jobs performed in medium and heavy duty, industrial, marine, performance, small displacement and "other" engine categories have all increased.

In a separate "Economic Climate" survey we undertook of 450 machine shops, shop owners were comparatively upbeat about business for the second quarter of this year. Fifty-five percent said they expected business would improve, while nearly 50 percent reported that they expected to make a capital improvement expenditure of $10,000 or more within the next 12 months. That’s very positive news from a group of business owners noted for their candor!