Machining Operations Looking to Diversify

If there was any central message at the Automotive Engine Rebuilders Associa-tion Expo 2005 event, it was that the need to diversify has never been greater.

There is little doubt that everyone in the aftermarket has noticed that the number of outright engine failures is down significantly, leading to the failure of a number of production engine rebuilders. Thank the improvements in fuel metering and fuel injection, which keep cylinder washing to a fraction of what it was years ago, and tremendous improvements in design and metallurgy that produce engines that simply refuse to yield to the rigours of time and mileage.

Yes, there has been significant growth in the cylinder head business, thanks in no small part to increased use of aluminum and lighter castings, but many machine shops have still found it necessary to look to a diversified portfolio of services they can offer customers.

Keynote speaker and NASCAR veteran Benny Parsons pointed out that the situation is closely paralleled even in the NASCAR community. While previously this had been a market where innovative individuals had been able to make their mark building engines for a team or two–the name Smokey Yunick comes to mind–the rising costs of complying with rules and engineering engines for short tracks and restrictor plate races has forced teams to seek alternatives. Having the “Best Damn Garage In Town” isn’t damn well good enough at the level NASCAR is operating at now.

“Everything today is done on CNC machines and it is so precise,” said Parsons.

It is a far cry from the time in 1975 when Parsons bought some cylinder heads from a company specializing in drag racing, put them on his Waddell Wilson engine and gained 25 horsepower. Then he went on to win the Daytona 500.

In fact, the situation has become so critical these days that even top teams have opted to create alliances with other teams and consolidate engine programs. Hendrick, Yates, and Roush engines alone power a significant proportion of the Nextel Cup field.

This same consolidation has happened in many circle track series, where a spec engine and central engine rebuilding contract have put many local builders out of the running.

“The problem that you as engine builders have, is that you just simply can’t mass-produce those engines like Chevrolet or Ford can. A crate engine that General Motors sells for $3,800 is very difficult for you guys to compete with. I can see more and more racetracks going to crate engines because of the price.”

Accordingly, many engine builders at the show spoke about diversifying into markets unregulated by organizations in this way: street performance, Harley-Davidson rebuilding, marine engines of the large and small type, as well as other non-engine machining work.

Many machine shops are finding that this diversification is causing them to seek information and tools that will facilitate the transition.

Accordingly, several machines in particular attracted the attention of attendees.

The Sunnen SV-10 saw its first showing at the event. The system will handle all blocks from passenger car and high-performance engines to truck and industrial blocks up to 42″, with the range of diameter on the market, from 2″ to 8″. The machine also features a full-bore profile display that projects a real time graphical display of the bore cross section, which minimizes guesswork.

Of course, much of the diversity heads into the heavy diesel market. With this in mind, several visits to the Rottler F80S on exhibit revealed a constant flow of demonstrations.

The performance parameters of the F80S machines make them well-suited to operate in the diesel job machine shop as well as the production environment. For these kinds of applications, you need a wide range of machining capabilities, which those in attendance seemed to be aware this series of machine and those like it offer.

On the smaller scale, Goodson reports solid demand for its Harley kits, showing that the demand for that market continues to grow.

Overall, while the engine rebuilding market is certainly one with its challenges, those with a mind to seek business opportunities where they exist today and tomorrow, continue to prosper.

For more information on training and technical matters that can help you compete in new markets, contact the AERA at 888-326-2372 or visit the web at www.aera.org.