Finding Your Break Even Point
Why should you care what your business’ break-even point is? What purpose does it serve to know what it is? More specifically, how do you determine which of your business costs are fixed and which are variable? What costs affect your break-even point the most? How often should this information be calculated? How do you
On Market Issues: Staying In Touch With The Forces Driving Today’s Market.
The Automotive Parts Rebuilders Association(APRA) incoming chairman, Steve Fallen, knows the importance ofstaying in touch with the forces driving today’s market.What are those market forces? Fallen, 49, who is also presidentof Ennis Automotive, Inc., Ennis, TX, a supplier of rewound stators,rotors and armatures to electrical rebuilders, feels that demandfor rebuilt product is expanding. However, due
Jobber Rebuilt Small Parts Report
Most rebuilders will tell you that the markethas never been more competitive than it is today. Many will alsotell you that the past 12-18 months have been difficult in termsof maintaining their sales levels of rebuilt units. However, although total units sold may be downindustry wide, according to a recent survey of 1,000 jobbers acrossthe
Engine Installation Opportunities
Much has been reported recently regarding theneed to grow the engine rebuilding and remanufacturing markets.We’re all aware of the Automotive Repower Council (ARP) whichwas recently formed to increase customer awareness on the alternativesto buying or leasing a new vehicle. And Automotive Rebuildermagazine has provided a number of features and columns dedicatedto ways to expand the
In Pursuit of Quality: Tom Vecchi, Engine Supply, Inc. incoming PERA president
Tom Vecchi, president of Engine Supply, Inc.,Phoenix, AZ, and incoming president of the Production Engine RemanufacturersAssociation (PERA) hasn’t spent his entire business life in theengine rebuilding market. However, since acquiring Engine Supplyin 1988 with his brother-in-law, Len Joy, who is chairman of theboard, he’s learned enough to know that rebuilding engines isnot an easy way
Washington Way: The Activities Of ACC
Americans have a love/hate relationship withtheir motor vehicles. We love the freedom and mobility the automobilegives us. We love the feel of a good car on the open highway andhow it handles on a challenging stretch of road. And we love thestatement that a car makes about who we are and what we want. On
1998 Market Update – Electrical
The information provided in this article is excerpted from a presentationmade by Doug Barron, Manager of Freedom Battery Design & Application,Delphi Energy & Engine Management Systems. The presentationwas made at last year’s Independent Battery Manufacturers Association(IBMA) Convention in Chicago, IL. Barron’s comments pertain to the future requirements of automotivebatteries. However, they also address the increasing
1998 Market Update – Brakes: The Application Specific Bandwagon…The Buzzword Of The Aftermarket Brake Friction World Today
Many in the brake rebuilding market are getting on the ApplicationSpecific Bandwagon. It’s the buzzword of the aftermarket brakefriction world today. "We’re going to have to be application specific because ofperformance requirements coming out of testing procedures thatthe Brake Manufacturers Council is working on," observesGil Laycock of the Friction Materials Standard Institute (FMSI).As one who
1998 Market Update – CV Shafts
One of the biggest issues still facing rebuilders is the controversyover the pros and cons of grinding CV joints. Though many CV unitrebuilders will tell you it’s getting harder to remain competitiveunless you grind, nobody grinds unnecessarily in this tight marketbecause of the costs of machine work and labor. Craig Russell of Drive Plus, Inc.,
1998 Market Update – Cores: The Consolidation Of The Automotive Aftermarket
Core suppliers are watching the consolidation of the automotiveaftermarket with much interest. After all, many businesses intransition are their customers. But while some core suppliersare not as busy as they’d like to be, most don’t blame the consolidationsof large retailers like Auto Zone and Chief for their troubles.Likewise, many don’t believe that the rebuilder mergers
Machine Shop Market Profile Part II
In Part I of our annual review of the machine shop market, which appeared in our July 1998 issue, we provided average production numbers in 1997 for cylinder heads, engine blocks and crankshafts reported by machine shops. According to our survey respondents, custom engine rebuilders/machine shops averaged 18.29 gas and diesel engines rebuilt monthly during
Machine Shop Market Profile
Interviews conducted with parts and equipmentsuppliers, as well as machine shop owners and custom engine rebuilders,generally point to market demand which has remained flat whenengine production numbers are compared to year earlier figures.Recent survey results of machine shops concerning production year1997 confirm these assumptions. Automotive Rebuilder magazine conducted a surveyof the machine shop membership of
Ideal Supply – “Farming” For Opportunities
As the winner of our fifth annual "MachineShop of the Year" award contest, Ideal Supply Co., Listowel,Ontario, can claim a number of "firsts." It is the firstCanadian recipient of our award and, to our knowledge, it is alsothe first machine shop which has obtained ISO (International StandardsOrganization) 9002 certification. About two hours due east of
“Heading” In The Right Direction: Heads Are A Hot Commodity These Days
Heads are a hot commodity these days, but itdepends on the application. Some heads like those for Chevy 350and Chrysler 2.2L/2.5L engines are always in demand, but pricesare low because of the glut of cores that are available for theseengines. Even so, anybody who’s selling heads these days has tohave them. The hot heads are
Low Cost Quality Honing For The Small Shop
My son and I run a small automotive machineshop doing engine rebuilding and custom machine work in ruralMissouri. We try to do the very best work possible all the time.Whether we are rebuilding a Ford 8N or a 427 Corvette engine,we use the same amount of care doing the job. When our customerspick up their
Management Efficiency Through Your Computer
Nothing is enhancing the efficiency of businessestoday more than the fast-paced technology present in workplaceseverywhere. Your challenge as a modern leader is to creativelyuse this technology to guide, coordinate, inspire, coach and monitorthe work of your employees. Depending on the size of your company and thenumber and responsibilities of your employees, you may be ableto
Labor and the Law
Grit, grime and grease are just a few of theworkplace unpleasantness with which you contend. Employees areexposed daily to hazardous materials such as solvents, paints,cleaning and restoration products, as well as welding fumes. Protecting your employees’ health and safetyis not only the right thing to do, the law requires it. Your failureto be familiar with
Steering A Course Through The Rack Wars: Today’s Market For Remanufactured Rack-And-Pinion
Is today’s market for remanufactured rack-and-pinionsteering units meandering through the doldrums of a mature aftermarket,or is it heading in a new direction that may soon create new opportunitiesfor rebuilders? Some say the worst is behind them. They sayrack prices have bottomed out, competition has leveled off, anda growing number of retailers have come to realize
Cost Accounting In The Shop
Do you feel that your shop has the type ofcontrol over costs, expenses and productivity that it needs tosurvive in today’s market? Do you understand how to calculatethe actual cost of each job that you do and the efficiency thateach of your employees achieves on a daily, monthly or annualbasis? Unfortunately, most shop owners do
Cleaning With Jet Spray Washers: Replacing Solvent Cleaning Processes With Aqueous Cleaning.
As more environmental regulations phase outmany chlorinated solvents and ozone depleting chemicals, manyautomotive machine shops and engine rebuilding operations arereplacing their solvent cleaning processes with aqueous cleaning.Some argue that while replacement chemicals have been found, theirtotal safety and part cleaning applicability has not been researchedenough. According to many rebuilders and equipment makers, developmentsin aqueous cleaning