Tariffs, Turbochargers, and Testing Criteria
A discussion about tariffs, turbochargers, and testing criteria with Dan McClave from Switchblade Turbochargers.
Episode 351: In this episode of The Heavy Duty Parts Report, Jamie Irvine welcomes back Dan McClave, President of Switchblade Turbochargers. Dan is a returning guest on the show, if you want to learn all about the origin story of Switchblade Turbochargers and how they create fuel savings for commercial trucks listen to episode 286 and episode 336. Links are in the show notes.
The conversation dives into:
Switchblade Turbochargers Overview
- A patented 2-in-1 turbocharger design that eliminates turbo lag and improves fuel efficiency.
- Built from 45+ years of industry experience, focusing on simplicity and reliability.
Fleet Testing Results
- A 3-month test with Flint Creek Transport (35 trucks) showed a 12% improvement in fuel economy.
- Same truck, same driver, same routes—only the turbo was changed.
- Positive driver feedback and potential for significant annual savings across the fleet.
Impact of Tariffs
- Recent tariffs have boosted Switchblade’s U.S.-based remanufacturing business.
- Customers are returning to domestic suppliers due to rising overseas costs and supply chain risks.
- Dan emphasizes the value of local sourcing and the strategic advantage of U.S. manufacturing.
Three Pillars of Success
- People – Empowering long-term employees and valuing shop-floor ideas.
- Process – Streamlining operations, improving repeatability, and shifting from build-to-order to build-to-inventory.
- Product – Delivering quality and efficiency, enabling same-day shipping and scaling production.
Business Evolution
- Transitioning from B2C to serving larger fleets and distribution partners.
- Investing in inventory and process improvements to meet growing demand.
Final Thoughts
- Switchblade Turbochargers offers financing options to ease upfront investment.
- The ROI on fuel savings makes the product a smart choice for fleets.
- Visit SwitchbladeTurbo.com for more info and check the show notes for links to Justin’s YouTube review.
Links
Sponsors of this Episode
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Disclaimer: This content and description may contain affiliate links, which means that if you click on one of the product links, The Heavy Duty Parts Report may receive a commission.
Transcript of Episode
Jamie Irvine
Welcome to The Heavy Duty Parts Report. I’m your host, Jamie Irvine. In this episode, we’re going to talk about tariffs, turbochargers and testing criteria. And I’m really looking forward to having a returning guest. My guest today is Dan McClave, President at Switchblade Turbochargers. Now Dan as I mentioned, is a returning guest to The Heavy Duty Parts Report.
Jamie Irvine
If you want to learn more about the origin story of Switchblade Turbochargers and really how they help with fuel savings, you can go back and check out the two episodes that Dan was on previously. So, episode 286 and episode 336 links are in the show. Notes. Dan, you’re a three time guest on The Heavy Duty Parts Report. Welcome back.
Dan McClave
Hey, I think the prize is being on the show and getting to share your message with this amazing industry that we’re a part of. How about that?
Jamie Irvine
All right. And maybe we’ll be able to send you something a little later. There we go. There we go. So, Dan, just for those that maybe haven’t had time to go back and watch those original episodes where they can learn more about Switchblade Turbochargers, can you give us a quick overview? First, let’s just talk about the problem that Switchblade Turbochargers kind of tackled.
Jamie Irvine
And then we’ll talk about your solution.
Dan McClave
Yeah, absolutely. So the problem that we’re partnering with, owner operators, fleet managers, anybody in the heavy duty industry is to help them lower their cost. And with many of these fleets and trucking companies and, construction companies, their number one cost most likely is going to be fuel.
Dan McClave
Yeah.
Dan McClave
directly attacking and helping with that cost by improving fuel economy for them.
Dan McClave
Okay. And so like how does Switchblade Turbochargers accomplish that.
Dan McClave
our turbocharger is, a patented design. It was birthed out of 45 plus years in the industry of seeing different failure modes with turbochargers and how we could kind of build a better mousetrap, so to speak. So the way it works, it basically is, patented. Like I said, patented design, 2 in 1 turbocharger that provides quick spool up, from start.
Dan McClave
So you’re, you’re basically eliminating turbo lag. You’re getting fuel to the engine quicker or faster at a higher rate, of of air pressure. And then at the high end, you get great power. At the top end of the RPM range.
Dan McClave
Okay okay. Yeah. And you know as we talked about in previous episodes, this is a simple solution. It’s not a very complex when trucks are getting so much more complex. And I like that. I think it’s, if you can create simplicity in, in your vehicle in any way, shape or form, it’s a good thing. So, you just completed a three month test with a fleet in New York.
Dan McClave
Who are they? How much equipment do they have? Kind of just lay the. Give us the lay of the land.
Dan McClave
Perfect. So we literally just completed. We’re waiting on the final results. I have preliminary, which I can share. But the company is called, Flint Creek Transport and, Geneva, New York. Justin Senseonics is the owner. Him and I talked and met at the, Mid-America truck Show in Louisville this past year.
Dan McClave
He’s a fairly big operation. 35 trucks. Heavy haul, a lot of driving. And as you can imagine, with 35 trucks. Cost of fuel is is a significant number for
Dan McClave
Yeah. He spends more on fuel than most of us spend on anything else in our lives.
Dan McClave
Right, right. Okay, so, you you wanted to set up a test? What kind of a test criteria did you set up?
Dan McClave
Well, he set it up. Him and Trevor has his, his fleet manager, and I was just sort of along for the ride, but I wanted to make sure. Look, the only thing that we’re going to change on your truck is the turbocharger. We didn’t add a tune. There was nothing done to the engine. We swapped his original turbo out on a caterpillar two engine and put the switchblade on
Dan McClave
So what they wanted to look at was, the previous three months that they just ran the truck and the average
Dan McClave
fuel efficiency for that period of time, and then they wanted to look 12 months back for our test period and take those three months. So it was basically six previous months of data.
Dan McClave
And as everybody listening to your podcast and, and knows you understands, fuel efficiency is very dependent on so many different factors
Dan McClave
Yeah.
Dan McClave
how much you haul.
Dan McClave
What are you driving through elevations? Are you mostly on flats? So when I talk about this, people say, well, there’s a lot of factors in fuel efficiency, which is why we only wanted to change the turbocharger. Same truck, same driver. Everything. And then they tested our turbo this past May, June and July.
Jamie Irvine
Okay. Okay. So yeah I mean it is a multi factor analysis for sure. So if you can eliminate any variables at all. I like the fact that it was the same driver. We all know how heavy on on the pedal you are will have an impact on fuel. But also if you have a consistent route or the same kind of vocation that they’re doing, then that does create as close to a level playing field as possible where you can actually do the analysis.
Jamie Irvine
So you completed the three month test. You set the test criteria. You did the test. What were the results?
Dan McClave
Well, at first, I didn’t want to wait for the three months. I wanted kind of immediate feedback. Just from the driver and the comment from Justin. The owner was, I’m not getting that turbocharger off of him. Off of the driver. He loved it that much. So, again, that a lot of that is feel. How does it drive?
Dan McClave
How does it feel? Then the rubber met the road, and the preliminary test showed that his previous fuel efficiency was about five miles a gallon, just
Dan McClave
Okay. Right.
Dan McClave
Okay. So, you know, 12% some people think, well, you know, that’s that’s not nothing, but it’s not a lot. But you had to think about it. 12% of, better fuel economy
Dan McClave
over an entire 12 month period multiplied by 35 trucks. Now you’re talking a significant savings for this customer. Not to mention, the drivers also seem to like it better because of not having turbo lag.
Dan McClave
So that that’s a win win. If you can keep your drivers happy and reduce fuel consumption, I think you’ve won.
Dan McClave
that’s the thing with our turbo. A lot of customers call and ask if it’s. They’re going to gain power with it, meaning horsepower. And that’s not really kind of what it does. It works best at the lower RPM range, which if you think about it, that’s where you’re losing fuel, starting stopping in traffic, hitting a steep grade.
Dan McClave
So that fluctuation of that vein inside of our turbo makes it feel going from a small turbo to a bigger turbo is what the where the fuel savings come. And there’s other improvements and other benefits. It reduces a lot of the black smoke out of the stack, which is just unburnt fuel. So you’re getting better oil life. You’re lowering your EGT with our turbo a lot of different things.
Dan McClave
So as I said, Justin, his comment to me at the, Matt’s show was, look, if you get me a half mile a gallon, changing over the whole fleet. So, he did. He’s a big YouTube guy. He published a video when they first put our turbo on, and he’s again finalizing these numbers and is going to publish another one very shortly.
Dan McClave
Yeah. So if you want to watch that YouTube video and hear it directly from Justin, head over to our show notes of this episode. I’ve included a link to that so that you can just do one click and get right there. And then make sure you subscribe and follow our friend over at Justin’s, channel. So. Okay, so Dan, let’s talk a little bit about kind of what’s going on in the industry, because it’s one thing, to be someone who is bringing a solution to the industry.
Dan McClave
It’s another thing to navigate the dynamic business environment we have had to endure now for what feels like our entire career. But really, it’s been the last five years. What’s going on in the industry that’s impacting your business?
Dan McClave
Well, I think the topic that most everyone is talking about is, is a recent topic, but it’s the tariffs.
Dan McClave
They’re impacting everybody. They’re impacting us in good and bad ways. We do some sourcing from
Dan McClave
from overseas suppliers, but it’s mostly benefiting us. Jamie, to be honest. For 45 plus years we have remanufactured and repaired turbos in the United States, and we continue to do that.
Dan McClave
A lot of that work, it was easier to purchase from overseas ten, 15 years ago than to get a turbo repaired or a shaft repaired or something like that.
Dan McClave
Literally the week these tariffs were announced, our business picked up. We heard from customers that we hadn’t heard from in quite some time. So, you know, I when I look at the cost of a part, that is what to me, one element of your total costs, you’ve got lead time, you’ve got how much inventory you need to carry.
Dan McClave
You have, shipping costs. You have a vendor that you don’t even know where they are in the world sometimes, I just believe buying locally and buying in the US and working with U.S. manufacturers,
Dan McClave
is is a benefit. It benefits, obviously, our economy. But specifically, to answer your question, the tariffs have started to really improve our business because we are still rebuilding turbos and repairing turbos and manufacturing the switchblade.
Dan McClave
And Baxter Springs, Kansas, United States.
Jamie Irvine
Yeah. So I think the downside to tariffs is if there isn’t a alternative locally and you know you used to be able to get this part and through globalization you could get it at a really cost effective price point. And it was working for you. And then a tariff comes in and you can no longer get that part at a cost effective, price.
Jamie Irvine
But there’s also no alternative locally. So that’s where it just becomes a tax on, on everyday citizens. But in your case, this is actually what I like about it is this is actually the exact designed, you know, or this is the exact reason the tariffs are put in. The design of them was to, to give companies like yours the ability to offer your really advanced solution at a price that is, very fair and that the person who buys it can still make money lowering their total cost of operation, while eliminating a, let’s say an overseas supplier from the, from the picture.
Jamie Irvine
So to me that that’s where tariffs is a win win win. Now as a Canadian our Canadian economy and it’s not all the tariffs fault. But the tariffs have had a big impact on us in a negative way. That being said even in our country we’ve pulled together as a country and are starting to, you know, do a lot more inter-provincial trade.
Jamie Irvine
This is good for our countries. And I also ultimately think that Canada and the U.S. are going to, through the, I think it’s the USMCA, if I remember, that’s the acronym. I might be wrong on that, but you get what I’m talking about. I think if we can get that agreement to be strengthened and we can get our North American based, economy really roaring, I think everybody’s going to benefit from that.
Jamie Irvine
So for me, I have I think it’s short term pain right now for us in Canada. But I see the benefits for U.S. companies. I’ve even seen some benefits for Canadian companies.
Jamie Irvine
This is a good thing for our local economy. And the men and women who like like the founder of your company, who kind of put it all on the line for four and a half decades.
Jamie Irvine
I mean, you get rewarded now. It’s probably pretty good feeling for him.
Dan McClave
Yeah. No, it is. And you’re referring to to Jim. Jim Blaylock. He’s still at work every single day. Just turned 78 years old, and, calls me every day and we chat all the time, and I’m out in the shop, you know, at least once a month. But he has. I’m telling you, Jim, he has inventory of rare turbos that you can’t get any more.
Dan McClave
He’s repairing stuff. And again, you look at the supply chain. We have inventory. We can repair a turbo in a couple of days. Right.Or if we have inventory, it ships out same day. So buying overseas is one thing. And again we do it. I’m I’m trying to get away from it.
Dan McClave
But we have the worst off three months out sometimes and keep a lot of inventory for that long supply chain. So there is a cost to that that isn’t really defined and and not really looked at when you just look at, you know, a peace price.
Jamie Irvine
Yeah. Absolutely. And you know with that geopolitical stuff too, there’s so much uncertainty now. And the supply chain in my opinion is still so very weak globally. Like it really has been weakened. And I just saw like we’re recording this on September 4th. We just saw this morning China, Russia, North Korea kind of flexing their muscles with a big, politically based, or a military, military based parade kind of flexing their muscles, showing their what they have for their military kind of signaling to the West that they’re not afraid and all of this kind of stuff.
Jamie Irvine
And it’s like, man, if you’re buying something that comes from, like Asia, one day it could be fine. The next day there could be a blockade between China and the Philippines, and nothing’s getting through, and you don’t get your part. So I think the more near-shore and local that we can be, the better it is. And, you know, not obviously not wanting to flame the fires of geopolitical conflict, but it would probably be in our best interest if we keep going down this road and we can take care of ourselves.
Jamie Irvine
I think that’s an important part of our long term success as an industry. So. Okay, well, before we, make, the whole, internet go crazy with comments on all this political stuff, we’ve got to get off that subject. Let’s talk about, something that we actually have a lot of control over, which is how we operate our companies.
Dan McClave
You know, I’ve known you now for a few years, and, it’s actually been a real privilege to get to know you. Dan, I see the impact you’ve had on this business as you came in and and helped Jim.
Jamie Irvine
You’ve had a lot of success. Let’s kind of break it down into what you kind of look at as kind of three pillars of success. So first let’s talk about how you approach people. What are you doing with your people that is making your company so successful?
Dan McClave
I appreciate those kind of words. And it’s been, you know, wonderful being on your podcast many times and getting to know you and what you do for the industry. So, to answer your question, I learned early in my career in operations and manufacturing that if we get it right on the four walls that we can control inside our own building, the outside will take care of itself, sales, customers, etc..
Dan McClave
So, our focus has been on three things. Number one, that you mentioned was our people. We feel we have the best people in the industry. Many of them have been with us for 25, 30 plus years, and they’re fantastic at what they do. So we wanted to really focus on them and their ideas because all the ideas, the best ones, there are a lot of ideas and a manufacturing company, but the best ones are from the shop floor.
Dan McClave
They’re from the people handling the product every single day. So our first main focus that we wanted to really stress in this past year was on our people, their ideas, empowering them, you know, making it okay to speak up and offer suggestions even if they’re not always taken. But at least they felt okay. I’m a part of the team here and I can do this.
Jamie Irvine
Okay. So I’ve been involved in a lot of change management in the consulting work I do at the Heavy Duty Consulting Corporation. And one of the things that I have noticed is in companies with a lot of legacy employees, they’ve been there two, three, four decades. Well, they know the business inside and out. Sometimes they can be really resistant to the change you’re trying to bring to the business.
Jamie Irvine
How have you navigated that?
Dan McClave
Well, that has also been something to address. You know, me kind of coming in recently with fresh ideas to a business that’s been there for decades. But you know it. I have an expression. It’s it’s corny, but to make an omelet, you gotta crack a few eggs.
Dan McClave
And the funny thing was, Jim and I were aligned on where the company needed we have to do that to get there. And it’s like, well, yeah, we do. So he is brilliant in, the tactical space. The idea space. My background is really on process improvement and taking, you know, maybe antiquated processes and making them easier and more repeatable.
Dan McClave
So that’s really what we tried to do.
Dan McClave
We asked our people to focus on the process, of how we do what we do. And again, yeah, there was some resistance to that. Well, I’ve done it like this for this many years. Well, okay. That’s great. It’s gotten us to here, but we’re trying to get there. So how are we going to do that together? And that’s kind of has been what we’ve been focused on.
Jamie Irvine
Yeah. And I think, what I’ve observed also is that you start from that position of respect. Right. You respect the years of service, the, the tribal knowledge, if you will, that they’ve developed over all that time.
Jamie Irvine
And when you introduce the new idea, I always tell people that are working or reporting directly to me, don’t make me look at you like, like if something’s not working it, it should be that we’re all looking at the system or the process, right?
Jamie Irvine
So if you’re following the system in the process and we’re not getting the result we want, we’re going to look at the system in the process and make adjustments there. So don’t go outside of that because then you have you forced me to look at you as an individual. I don’t want to have to do that.
Jamie Irvine
I just want to come to work and say, hey, you did the best you could. You followed the process. It didn’t work out. Let’s make this change right. And I think that incremental change is also that continuous improvement mindset is really part of that. And it’s kind of weaving those two things together. But let’s talk about process for a moment.
Jamie Irvine
Give me an example of how you’ve approached process differently to get the company to the next level.
Dan McClave
Well we’re changing our business and we’ll talk about, I think, a little bit later in the podcast of our distribution,
Dan McClave
situation, we’ve always been kind of a B2C type business selling direct to the consumer.
Dan McClave
Right.
Dan McClave
Jim and I got together, we said, well, we want to we want to sell bigger fleets. We want to sell, you know, Justin out in New York with 35 trucks.
Dan McClave
How can we do that? We have to carry inventory. We have to really streamline our process. We have to be able to lower cost, that on to the customer. So that’s kind of been what we did. So we looked at every facet of it. What what’s our cost of raw materials. You know, is this the best supplier that we can get.
Dan McClave
Should we farm this out to other people? Could you get comfortable? Well, what was the last time we got a price break? You know, right. So we want to be loyal and have been loyal to a lot of our suppliers. But at the same time, we’ve had to bring in new ideas and and that also came with, well, is there a different way we can produce the part that makes it more repeatable, more effective?
Dan McClave
Again, so we can lower cost, improve quality and serve our customers better and, and real quick back to the people side and empowering the people. Like you mentioned mentioning the Mid-America Truck Show, we brought two of our employees out to work the booths at the Mid-America Truck Show, which like right from the shop floor, and they they went out there and we just unleashed on with customers and potential customers and said, look, you guys are handling the product every single day.
Dan McClave
It’s an eye opener, because sometimes you buy a product, you have no idea who’s on the other end of it, who produced it.
Dan McClave
I mean, these guys are making sales on the floor. It was it was awesome. So, you know, having them out there and, you know, my sales guy and and we just sat back most of the time and kind of unleashed, Mike and Mickey to, to the Mid-America Truck Show.
Dan McClave
And they did great. So and they appreciated that, you know, get them out of the four walls for a few days and, and be the face to the customer. So, so that was really cool.
Jamie Irvine
As you were talking about looking at processes, I kind of brought to mind, you must have done some value stream mapping. You must have mapped out like step by step by step, how things go through the company from one end to the other. Right.
Jamie Irvine
And, as you did that, you might not have called it that, but as you went through that process yourself, like, did you find something surprising that that you weren’t expecting when you first joined the company?
Dan McClave
Well, I’ve known Jim for 15 years. I’ve known about switchblade and turbos for that long from a previous company. Yeah, that I was with. So this operation 15, 18 years ago and we reengaged. I went back out to the shop floor, and I kind of saw the same process of you know, so I said, if we’re going to do this and we’re going to sell more product to bigger customers, we’ve got to streamline things.
Dan McClave
We got to break steps down to where is maybe, you know, one of the guys might have been doing a tremendous job, but maybe too detailed, maybe taking too long. Can we you know, these guys are surgeons. Why are they doing our prep?
Dan McClave
Right. Get them the best equipment. Let’s get them, you know, really artistically and manufacturing wise, what they can do the best. And a lot of that was working with suppliers to get that a little bit differently or designed differently because they did a lot of work. Kind of from scratch that we could put on our suppliers now.
Jamie Irvine
Okay. That makes a lot of sense. So let’s talk about how all of that translated into the product itself. And your focus on that. Like what what happened there and how did you focus there and how did that contribute to the overall success of the company?
Dan McClave
Well, I think by, by focusing first on the people and in the process, the end result of the product was going to take care of itself.
Dan McClave
You know, we built in quality, we built in efficiency. And now, you know, we’ve been able to acquire some bigger customers and partner with some bigger distribution partners and ship them same day out of our inventory.
Dan McClave
Whereas previously it might have taken a week, to get them a, you know, a handful of parts or whatever the cases. So it was an investment. We have, you know, product on the shelf and and producing it every single day. So we’re more of a build to, inventory now than build to order, which is kind of how Jim was doing it, before.
Dan McClave
So that is really just been the result. The product works as proven by, you know, Justin and Flint free transport and many of our other customers that are seeing the fuel efficiency improvements.
Jamie Irvine
It must be awesome for Jim to come in and see his Switchblade Turbochargers on the shelf in, in volume. Right.
Jamie Irvine
Like that was just be amazing. Like this idea he had in his head. He made it a reality. And now you’ve helped him scale it. Which is just like, I’m sure Jim’s just beaming every day when he walks by. That pallet rack with all that inventory.
Dan McClave
Yeah. And look, he’s embraced it. The guys have embraced it. Were there days where we didn’t see eye to eye? You know, of course. So I’ve had to also not come in and say, hey, I know everything about this business. Sure. Passenger car and light truck.
Dan McClave
This is the heavy duty market, which I love. It’s it’s relationship based. It’s, you know, it’s a product that if you’re truck is down and or you want to save, you know, 5 to 10% in fuel efficiency, those are massive savings. And that’s the other thing that we tell customers to Jamie is, look, this investment in those turbo is going to pay for itself in a few months.
Dan McClave
Okay. Then after that you’re just reaping the savings.
Dan McClave
Yeah. We do offer financing. We can, you know, offer terms if if it’s kind of a big spend for somebody out of the gate. But, you know, it’s kind of fun that to get the phone calls and, and have people say, you know, I didn’t you said it, but I didn’t expect it.
Dan McClave
But it’s really happening. So it’s, it’s cool.
Jamie Irvine
That’s awesome. Yeah. Yeah. And I think that, when you are retrofitting a fleet at any time that, that cost investment. Right. Sometimes what happens is, is that people don’t have the stomach for the time period between the investment and the full reward of the return on investment. Right. And so that gap in between that delta can be really challenging, both financially.
Jamie Irvine
But also people forget, right when these these businesses are privately owned. So that’s that that can be a lot of stress. And I’ve seen that with some of my clients. Right. Stress between husband and wife or business partners, you know, two brothers or or a dad and a son. Right. And it’s like, yeah, it’s it’s that that year between well, we spent all the money and we still haven’t gotten our money back can be really tough, especially in kind of a dynamic economy like we’re in now.
Jamie Irvine
And let’s face it, things are not really roaring right now. Things are down the freight recession continues to, grip the industry in the US. In Canada, our natural resource based economy is is basically hobbled right now by by bad policy. So there’s a lot of, things going on, that are working against us. And yet there’s still ways to find these opportunities to improve your company.
Jamie Irvine
So if you want to do that, reach out to Switchblade Turbochargers. What’s the best way of getting a hold of of you and looking at your product?
Dan McClave
You can just call the plant. Call Switchblade.
Jamie Irvine
And you’re talking to someone from the United States of America, not overseas. So you’re going to be able to have a conversation with them.
Jamie Irvine
You’ve been listening to The Heavy Duty Parts Report. I’m your host, Jamie Irvine. We’ve been speaking with Dan McClave, President at Switchblade Turbochargers. To learn more about Switchblade Turbochargers, visit SwitchbladeTurbo.com. Links are in the show notes.
Jamie Irvine
Dan, thank you for being a three time guest on The Heavy Duty Parts Report. I know you’ll be back.
