Lyon, owner of Auto Parts & Equipment, a CARQUEST jobber store, said machine shop services are one way he can meet the unusual needs of that customer base.

Lyon, chairman of the Automotive Engine Rebuilders Association (AERA) and second-generation owner of the jobber store his father, M.G. "Smokey" Lyon, founded in 1959, said although machine shop services aren't the most profitable, they're still a viable part of his business.

"We've found that it's fairly important to have machine shop services," he said.  "Not necessarily from a competitive standpoint, but it's what's important to our customers."  It fits well with traditional parts sales, he added.

Although his machine shop doesn't reassemble engines, Allen said it does plenty of piece machine work, the including cylinder-head work, block machining, align boring, crankshaft grinding, rod resizing, and resurfacing fly wheels.

By offering broad machine services, Lyon said the shop can avoid the limitations that often accompany those that do complete rebuilds.  "It's much easier to offer the general services than a niche offering."  With a staff of 14 people, which includes Lyon, the store is able to meet its customers' broad needs.

A piece of equipment that Jeff Gurney, the shop's machinist, relies on is the shop's new Sunnen valve seat machine, one the shop purchased directly from the manufacturer, Lyon said.  He added that it was the best fit for his shop because of its capability.

Gurney does machine work with specifications from AERA's Professional Specification Information Software (PRO-SIS) database, Lyon said, a major benefit for AERA members.  "Prosis has been developed over the years to help disseminate information on engine specs and TSBs. The prime mission of AERA is to be the information source for the industry," he said. 

 
Even though traditional machine shops are facing stiff competition from production remanufacturers and automakers selling crate engines, Lyon said, there is still growth for machine shops that serve a performance niche.  Although, he added, those Performance Racing Industry (PRI) shops don't necessarily want to share information on how they tweak heads or cranks.

Locally, OE replacement machine piece work and parts sales go hand in hand, Lyon said, adding that serves customers within a 35-mile radius of the store.

"There are major companies in the area that specialize in gas exploration and production," he said, adding that two major coal-fire power plants in the area supply electricity to the western power grid.

Even though serving those customers sometimes requires unusual SKUs, CARQUEST programmed distribution offers jobbers several advantages, Lyon said, citing the consistency of parts ordering, pricing, and delivery as the main advantages.  His store's inventory is replenished via overnight delivery from CARQUEST's Albuquerque distribution center.

Ordering is made easy through the Activant system he uses for inventory control and accounts payable and receivable, he said.  "Minimum and maximum order points are set, and orders are automatically generated," he said, adding that inventory turns an average of seven times annually.

Filters and ignition parts are big sellers to his customers, Lyon said, in part because of the gas-powered compressors used in stripper wells to extract natural gas from the ground.  "We also sell parts to the vendors servicing those engines that power them."

The nature of gas exploration is inherently hard on pickup trucks, he said.  "U joints, clutches, and ball joints get torn up when the trucks go off road to find these wells," he said.

During the winter months, Lyon said he and his crew sell a large amount of flex exhaust tubing, pointing out that they are wrapped around the well heads and hooked up to the exhaust of a truck to thaw them out, a much safer method than starting fires.  The shop also sells a lot of hand tools, which include Lisle, KD, and CARQUEST brands, Lyon said.  "You have to have them to do the job in the field."

Fewer new wells are being drilled because the U.S. Bureau of Land Management (BLM) has begun charging $4,000 to process each application for an oil and gas drilling permit, Lyon said.

 
The Associated Press reported that the bureau says the money will reimburse the U.S. Treasury for the estimated cost of processing applications to drill on BLM land.  The fee is required under an appropriations bill approved by Congress and signed into law by President Bush on Dec. 26.  New Mexico is one of 12 Western states affected by the fee.

"A lot of those companies have scaled back work because of that," Lyon said.

Asked about the future of the industry, Lyon said, "We'll either have to sink or swim."  The transportation industry will continue to evolve, he said, pointing out that there was once viability in rebuilding wagon wheels.

"The ones that adapt will continue to move forward," he said.  "You don't have a choice but to adapt to the changes.  We have to figure out what will be profitable for each individual business."

The prevalence of biodiesel engines and future of hydrogen-powered vehicles will force the industry to adapt and forge ahead, Lyon added.