"Compact" may not be the first thing you think of when you think of a diesel engine, but today more and more products are being powered by these types of engines. For most people when they hear the word "diesel" they think "big rig" or something that weighs as much as a small building.

Though this is true to a degree, so too is the fact that small water-cooled diesel engines now power everything from generators and small construction equipment to golf course and landscape equipment. New applications for the compact diesel are an increasing trend, which is why this market deserves a closer look.

These engines, dubbed compact diesels, have the potential to make good profits for engine builders. This market is particularly suited for traditional automotive rebuilders because you won