The transmission market has been showing steady growth for many years, Bawel said, and in 2006 passed engines in volume for the first time, with Jasper now remanufacturing more than 70,000 annually.  "Engines are in decline and transmissions are continuing to grow," he said, adding that he believes that one day, the ratio could be four transmissions being remanufactured for every engine.

The reasons for the increased demand for production remanufactured transmissions include increased complexity, a difficulty in finding trained technicians, and increased warranty risks, Bawel said.  "It's an almost identical pattern to what we saw in engines," he said, noting that 15 years ago, the majority of remanufactured engines came from independent machine shops.  "Gradually the complexity and variety of engines, the quality of the finishes required, and the cost of experienced employees moved the business towards production rebuilders."

Today, Bawel said, 80 to 85 percent of transmissions are rebuilt by independent transmission shops, but the percentage is dropping steadily.  "Everybody is struggling to get good technicians," he said, "and you need much more equipment to build a variety of transmissions -- there are over 500 different variations in the market today."

In the past, Bawel said, the risks associated with rebuilding a transmission were relatively minor.  "Fifteen years ago it cost about $100 in soft parts and an hour or two remove it and reinstall it," he said.  "Today, it may take five, six, even seven hours to remove it and reinstall it, and we are seeing some transmissions with $800 to $1,200 in parts to remanufacture.  Also, if you do make a mistake, it is much more likely to cause a catastrophic failure." The increased availability of production remanufactured transmissions has allowed many repair shops and dealerships to include transmission replacements in their menu of services, eliminating the need to refer the customer to a specialty shop, Bawel said.  A lot more transmission rebuilders are also recognizing the value of using some production remanufactured units to supplement their own rebuilding, he said.

"If you look at the profit per hour of installing a remanufactured product, it makes a lot of sense," Bawel said.  "Ten years ago, maybe 1 percent of transmission shops were doing business with us; now it's maybe 20 percent.

 "They need to evaluate their own situation," he said.  "Do they have enough builders to handle the capacity?  There are peaks and valleys in business, and if you staff for the minimums and then use remanufactured units when you have increased business, that's when you will be the most profitable."

Bawel said that shops should also recognize which units offer the highest liability if something goes wrong and choose production-remanufactured units to decrease the shop's warranty liability while still keeping the job profitable.

In addition to stock remanufactured engines and transmissions, Jasper also allows repair facilities the opportunity to expand their offerings to include performance motors and remanufactured engines for restorations in which customers want their own unit remanufactured , Advertising Manager Mike Pfau said.

The company offers two levels of performance engines as well as a line of performance transmissions for customers who are looking to get an improved level of performance for their vehicles, Pfau said.  "We cover a number of different build-ups rather than chasing down parts and specifications all over the board," he said, adding that by offering a specific variety of options, Jasper is able to do the work profitably and produce a performance engine with the right combination of specs and components that will perform and last.

At the end of 2006, Jasper launched its Custom Authentic Drivetrains for customers who are looking for a stock remanufacture of their engine and transmission but want units original to their vehicle.  "With the resurgence of the muscle-car market and the desire to keep the cars original, we were noticing a lot more demand for this service," Pfau said.  "It's something that we have always done, but this formalized the process and separated it from our production work."

The program also allows owners the option of having the process fully documented with notes and pictures and have the motor dyno-tested once it is completed, Pfau said.

Marine offerings, including stern drives, outboard lower units, and  outboard power heads, are also part of the mix at Jasper, Pfau said.  "It's a nice natural extension for us and one that I think has been ignored by a lot of manufacturers.  Just like the performance and custom markets, it's been a great niche for us.

"It's just another way to diversify," he said.  "We have the skills, the tools, and the equipment to remanufacture gas engines, so taking the next step to offer blueprinting and some different parts--as with performance engines--is just a natural extension of what we are already doing."

Pfau said the company is always open to finding new ways to use its skills and equipment to serve new markets, such as the addition several years ago of alternative fuel units to the company's offerings or servicing more one-of-a-kind units.  "There is a theme park nearby, and we had one of their trams that they use for transporting customers from the parking lot in our service bay," he said.  "We have to be alert to other ways to sell our products."

With competition in the repair shop market getting more intense, Pfau said Jasper's variety of offerings allows repair shops to differentiate themselves from the competition and offer a wider range of services using the tools and technicians they already have.  "Just as we're getting into these niche markets because we have the tools and the skills, so can the installer," he said.

Another major change for the company is the recent expansion of its gas engine warranty to three years/100,000 miles, Pfau said.  "Our customers were asking for a longer warranty, and we listened," he said.  "It helps the installer sell the product and justify the investment their customer is making."

In addition to its products, Jasper also offers its installer customers, which make up the vast majority of its business, training that will help with the technical side of the engine and transmission business as well as with the sales efforts, Bawel said.

"We have installation classes for gas and diesel engines and transmissions," he said.  "It's about a five-hour class to take the person who is familiar with installations and teach them some of the different diagnostic techniques and how to be more efficient.

"You need a technician who can accurately determine the cause of the failures or you may just ruin the new engine or transmission that you put in," Bawel said.  "The majority don't just wear out, something causes them to fail."

The Jasper sales training class helps owners and service writers better understand how to handle all types of large-ticket sales and how to handle phone inquiries, Bawel said.  "Many shops have not learned how to do a good enough job of selling themselves, their services, and their facility," he said.  "They need to spend as much time selling themselves and their business as they do the product that they are installing."

Bawel said he believes that one of Jasper's greatest advantages is the approximately 150 sales representatives that work out of its 40 distribution facilities around the country.  He said the reps make in-person sales calls to between 9,000 and 10,000 customers a week.  "We have a tremendous communication link that doesn't get filtered through as many people as it does with an OE," he said.  "We are hearing from our customers every day how we can improve, and we can make changes very quickly if we have a product issue or a cataloging problem."