As engine technology has improved over the years, the engine rebuilding industry has suffered, however opportunities still exist, according to the data collected in the 2009 Engine Builder (EB) Machine Shop Market Profile. According to EB Editor Doug Kaufman there are three reasons for optimism.
“People need their vehicles to run properly, there is currently no viable alternative to the internal combustion engine and the competitive fire still burns inside many people, meaning being bigger, faster and louder than the next guy still matters,” Kaufman writes in this year’s Profile. Kaufman adds that there is reason to believe that the changes in the economy are now already starting to have a positive impact.
In fact, based on the open-ended question “In operating and/or promoting your machine shop, what is the biggest problem you currently face?”, the most common complaint among shop owners or managers was reported to be “Finding qualified workers.”
Overall, the industry’s numbers may be down and there are definitely fewer shops than ever before. However, though this is a significant problem to be sure, it indicates that the work continues to be there and the number of technically proficient shops need help handling it all.
According to EB’s research, the average machine shop produced about 13 gas and diesel engines monthly last year, down from 15 per month in 2007. In 2008, only 9.6 percent of respondents reported an increase in engine production.
Below is a look at the rates of engine production from 2005 through 2008.
The data generated for this year’s Machine Shop Market Profile was collected through survey questionnaires sent to the machine shop/custom engine rebuilding membership of the Automotive Engine Rebuilding Association. Analysis of the data was completed by Babcox Research.
These and other statistics can be found in the 2009 Engine Builder Machine Shop Market Profile, as originally published in the June 2009 issue of Engine Builder magazine. For more information about Babcox Research, go to: http://www.babcox.com/marketing_research.html.
