The story could appear in almost any newspaper in Canada – from the largest daily to the smallest weekly.
An engine rebuilder is closing his doors because the industry has changed and revitalizing aging engines isn’t feasible as a business model any more.
Most recently, that story was told in Ontario’s Hamilton Spectator. Matt Bauer of Auto Service & Supply is shutting his Vine Street machine shop after nearly 70 years of rebuilding engines there.
You can read the whole story HERE, but in a nutshell, Bauer used to have as many as 30 employees. Now he’s down to three… and there’s barely enough work to keep them busy.
The company has been purchased by Head & Block, a machine shop in nearby Stoney Creek, Ont. Head & Block is now the Hamilton area’s only remaining business of its kind.
For decades Auto Service & Supply specialized in custom engine repairs for local dealers, restoration work for vintage cars, and performance modifications. They’ve even expanded out of automotive into marine, recreation vehicle, and agriculture work.
The decline in work is a byproduct of engine evolution – particularly the end of carburetion – and the move to replaceable electronic parts, rather than fixable mechanical components.
And, of course, they last longer. Breakdown repairs are pretty much a thing of the past.
Rebuilding an engine is labour intensive. It’s hard for consumers and dealers to justify the cost.
Bauer says his business has been “beat up.”
It’s a phenomenon that worries some in the automotive repair and service industry.
Roger Sampson, owner of Sampson Transmission in Hamilton, Ont., and a member of the Canadian Technician Advisory Panel, says the development saddens him… and makes him wonder about the future of his own niche in the market.
“To me, this is a sign of things to come,” he says. “We rebuild transmissions. Are we next in line?”
It’s a thought that’s worthy of a conversation or two. It is widely believed that demand for automotive service (if not repair) will continue well into the future. Any machine that relies on the transfer of heat into forward motion, with its attendant friction and wear, is going to require maintenance – especially if it is operated by people in the harsh extremes of climatic elements and varying terrains.
But what about the rebuilding of engines, transmissions, and system components? Is that a doomed profession?
Give us your thoughts on the future of the industry.
Think of your own business model. Will it still be viable in 50 years? 25? 10?
Tell us about the changes you’ve seen and how you’ve adapted to them.
We'll put them in the magazine and start a discussion!
Have something to say about this article? Say it here!
Edited comments may appear in Canadian Technician magazine.
February 03, 2013 - Anonymous says: “ i've witnessed the same thing working as a mechanic in a new car dealership. maintenance intervals have been increased and many maintenance items such as timing belts have been replaced by chains. it's better for the consumer, but will cause unemployment in the auto repair industry. i'm planning on retiring in 5 or so years so i'm not that worried for myself, but i have sympathy for the younger guys, it's hard to make a living changing oil and rotating tires. ”
December 28, 2012 - Anonymous says: “ Wow is that all you got! After almost 20 years in the industry I left the service industry and entered the resource industry and mainly because of the money. In the service industry it's all about money. Faster, quicker and cheaper while the engines, drive trains and electronic controls got more complicated. The average motorized public are not willing to pay the true actual cost of the repairs and all the training that goes into the repair. It is only natural that the engine overhauled and the transmission overhaul companies morf into component replacers. I do not have the numbers but I would guess more transmissions are replaced and not overhauled. As well the quality of the parts have dropped off to a single use not to be repaired items. Just leads to the next step of component change only, no overhaul. The one that will get the money is the one that can fix the 10% of the problems nobody else can because they KNOW how things work not just change parts and hope for the best. Right now we are seeing the same movements in the resource industry but the resistive factor is the cost of the parent part but it will work its way toward the goal of part replacer with 20% of the repairs undertaken by the guy who knows how it works. Also a movement has started to sway towards making it last longer rather than reacting to downtime. Anyway that's my two bits. ”
May 07, 2012 - Don says: “ AN OPPORTUNITY KNOCKS:
Anyone in or outside the Brantford/Hamilton, Ontario area interested in establishing an engine building business or expanding their existing business?
The owner of RPMS ENGINEShop in Brantford (like Auto Service, also established in 1948) is retiring. Major pieces of equipment for sale are listed at www.rpms.info. Much tooling as well as engine and external parts, finished heads & blocks plus cores are also available.
Key niche markets include Continental, Kohler and Wisconsin Engines.
Contact Don Fedak at engineshop@rpms.info or 519-756-1010.
Best wishes to my friend Matt in your future endeavors! ”
May 03, 2012 - Matt Bauer says: “ Meredith MacLeod's article in the Hamilton Spec was a very nostalgic view of my business, and I was flattered the local paper took an interest in the sale of my business. However, I successfully sold a good business to someone who realized the value the company had when it came onto the market. All of us in the automotive aftermarket should want to create strong business's. Our business's are not our hobbies. I did not close the doors on Auto Service & Supply because of a lack of business, or because we were a staff of three. I sold the business because it was successful, and that's a good story, not a doom-and-gloom story. ”
May 02, 2012 - geomechs says: “ Unfortunately it's the sign of the times. Up to 20 years ago we rebuilt nearly every component we pulled off a vehicle. Starters, generators, alternators, transmissions, and engines. Now we find ourselves dealing with the wreckers and the mass rebuilders. Our shop has evolved greatly and now specializes in diesel fuel systems and light/medium diesel vehicle service. The back shop is largely R&R while the fuel pump department still rebuilds pumps and injectors. But the latter is fading away to both the newer common rail systems and the off-shore rebuilders.
The rebuilders can sell a rebuilt injection pump for less than it costs us to install a gasket set. The only sales pitch I can give them is: "I can't compete with their price but I can sure as hell compete with their quality."
That really sucks! Our technicians have to upgrade and be current with the systems we service while a bunch of cocoa leaf chewers with 3rd grade educations take all the gravy at no cost to them.
But overall, the trend is for disposable vehicles. Sell a new one cheap, put a monstrous warranty on it and kick the customer out the door. Make it cost effective to sell the customer a new one when the old one gives up the ghost.
And make sure that you can't get parts for the old one.
I'm probably going to say good-bye to the service business at the end of next year. I'll be 60 and 42 years in the industry is enough for anyone. I'll still keep plenty busy with my vintage cars, pickups and tractor. At least I can get parts for them and they're easy to work on. ”
May 02, 2012 - Anonymous says: “ I have been in the transmission business for 35 years and I have seen a lot of change. but not all bad. Today's transmission are very complex devices tied directly to on board management systems that require great diagnostic skills. as Canada's leader in transmission repair we see a bright future for those that remain true specialists and we have built a good better best model to satisfy a demanding market with financial concerns and that's what our customers want.
Randy Moore
President &CeO
Mister Transmission ”
May 02, 2012 - hubertcormier says: “ HI Guys,well i been shop owner for 28 years. I had up to 8 employees , now i am 1 1/2 ,irun a radiator,gas tank,heater,a/c repair shop,now we cant not keep up with equipment,parts model and tools.Back 28 years ago the town here had 8 difrent garage whit 6-8 mecanic, now wee have 3 left with 1 guy each,Isaid befoe, as long the goverment keeps giving the right o way to dealers,wee are going down.After the goverment startet paying big $$$$ for older cars that will bee the end of us chop owners.GM,FORD,CRYSLER,ECT all manufacture desided to have all the market,and the goverment help them up wit tax payers money,simple as that.so now shop owner, cant keep up whit equipment changing every years,thanks hubert ”
May 02, 2012 - Anonymous says: “ I feel that we need to adapt to any changes, education and training is a must,be it for owner,tech,or manager. ”
May 01, 2012 - Relic says: “ I closed my Alignment, Suspenion and frame repair shop in the mid 90's
There was not much demand, vehicles changed, body repair shops had there own frame machines and most shops purchased their own alignment equipment. My employee's found other employment but it did leave 10 less work opportunities. I started a small two bay shop and worked on my own usually doing problem handling repairs, soon doing few repairs in the shop instead was doing contract work for shops. Soon realized that most of the problems were caused by poor training or equipment failure. Fortunately after having done an average of 10 alignments daily for a many years I could visually site wheels and see the problem. I had kept my old toe in bar, tracking bar and bubble gauge with these I could solve the equipment problem. Unbelieviable that the basics were not taught eg: tire pressure, tire condition and height seldom checked, tire gauge and tape measure were standard equipment but difficult to find in most shops. Times have changed, should be better but not likely. ”
May 01, 2012 - clenny says: “ I have a medium duty truck repair shop, I have seen components that we used to rebuild being made out of plastic and other materials that are ment to be thrown away not repaired. This is the sign of parts changers not mechanics. You don't have to be a mechanic to fix most trucks now you only need to know how to read a computer or scanner and replace parts till you find the right one to fix the problem! ”
“ i've witnessed the same thing working as a mechanic in a new car dealership. maintenance intervals have been increased and many maintenance items such as timing belts have been replaced by chains. it's better for the consumer, but will cause unemployment in the auto repair industry. i'm planning on retiring in 5 or so years so i'm not that worried for myself, but i have sympathy for the younger guys, it's hard to make a living changing oil and rotating tires. ”