Making A Good Profit Margin In The Engine Building Business - Engine Builder Magazine

Making A Good Profit Margin In The Engine Building Business

As results from our recent Machine Shop Market Profile show (see page 21), making a good profit margin in the engine building business demands that you not only have your parts and labor pricing in order, but also your operating expenses fully under control.

However, there are also several proposed bills working their way through Congress that could significantly help improve profit margins for engine builders. One of these, H.R. 1304, is a Remanufacturing Tax Credit Bill which is currently before the House Ways and Means Committee. This bill, if enacted, could provide a 20% tax credit on the purchase of any equipment used for rebuilding.

The bill currently has the support of 22 in the U.S. House of Representatives, and the Automotive Parts Rebuilders Assoc-iation (APRA) continues to be persistent in its lobbying efforts to gain support for this legislation.

You can help make this happen as well by visiting the Remanufacturing Tax Credit Center on the Web by going to www.reman.org/tax_credit_center.htm. This Web site offers details about the specific content of the bill and its supporters.

Just as important, it provides you with a letter that can be customized to your business that you can send to your representative in support of H.R. 1304. You can write the letter online and then paste it into an e-mail to your congressional representative which is provided on the Web site.

Take the time to write your representative in support of the bill. You stand a lot to gain by doing so!


Dave Wooldridge is the Associate Publisher and Editor of Engine Builder magazine. He has reported on business in the engine aftermarket for the past 16 years. You may e-mail Dave at [email protected]

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