Top Trends in Diesel Engine Repair – An HDAW Live Interview
Learn about the current trends when it comes to diesel engine repair in 2022.
Episode 154: We are at HDAW, and there is a lot of discussion at the show about the future of the trucking industry. As an industry, what trends in diesel engine repair are we seeing?
In this episode, we dive into that question and get some insights from Bill Mirth, the Director of Business Development at IPD about where we see these trends going, and the effect they’ll have on the industry.
Bill is a returning guest, he was featured on episode 10, episode 74, and episode 101.
Guest Website: IPDParts.com
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Transcript of Episode:
Jamie Irvine:
You are listening to The Heavy-Duty Parts Report. I’m your host, Jamie Irvine. And this is the show where you get expert advice about heavy-duty parts that keeps trucks and trailers on the road longer while lowering cost-per-mile.
Tyler Robertson:
We are at the Heavy-Duty Aftermarket Week here in Grapevine, Texas. We are at the Gaylord, just a big, huge hotel convention center. Absolutely fabulous atmosphere here. It’s great to be back at live events. Your normal host Jamie Irvine is not able to attend this show. We’re doing it live here. And unfortunately with Canada restrictions, COVID, all that fun stuff, he’s unable to attend. So I’m your guest host. I’m Tyler Robertson. I am the CEO and founder of Diesel Laptops. I’ve also been on the show. So I said, Jamie, no problem, man. I’ll take over and do some guest episodes for you, which is great because our guest today is actually a company Diesel Laptops works with as well. So I wanna introduce you to Bill Mirth the Director of Business Development at IPD. Bill is actually returning guest. He’s given me a hard time, what do we do, what do we talk about? Like Bill, you’ve been in Episode 10, Episode 74, Episode 101, like I think you’ve done this more than I’ve done this.
Bill Mirth:
It’s not getting any easier.
Tyler Robertson:
Well Bill, welcome to the show. Welcome to Grapevine, Texas. How’s everything been going for you guys so far here?
Bill Mirth:
Thank you, Tyler. And sorry to miss you Jamie. It’s like having Ed McMann step in on the show, it’s a little strange, but it’s great to be here.
Tyler Robertson:
Yeah. So I think traffic’s a little light here and everything. Obviously we lost some people and people are still a little nervous, but you know, it’s been busy. People are walking, people are networking. There’s things going on. Is this your first event or have you guys started to do ’em again? Where’s things at?
Bill Mirth:
We had some events that were really early on just to kind of put our foot forward, but the HDAW event has always been a fantastic event and it is so good to be back. Yeah. It’s not quite as busy, the crowds in the aisles as normal, but it’s been a very, very productive show and we’re very, very excited. And just to see these faces, the industry is made up of phenomenal people. It’s what makes this industry great. And to get back after two years and see everybody has been a phenomenal experience.
Tyler Robertson:
So I’ve been talking to Vince Barbarie. I’ve been dealing with your company for two years on zoom sessions. It felt weird doing a face to face.
Bill Mirth:
Yes, and you know, you, he’s only 4′ 5′ it’s a little shocking but yes.
Tyler Robertson:
Well, let’s just say this we’re here at HDAW. There’s a lot of discussions at this show about the future of trucking, right? There’s all kinds of things going on. I mean, there’s futuristic robots, driving trucks, there’s electrification, but there’s new technology, new things happening. What are any trends you’re starting to see kind of unfold here when we talk about like just diesel engine repair ?
Bill Mirth:
From diesel engine repair, you know, the engines have been getting more sophisticated over the last 10 years and so forth with emissions and so forth. And some of the technology on the pistons has become so sophisticated, but what’s phenomenal about that is that the aftermarket is able to keep up. I remember I’ve been in the engine parts business for a few decades now. And there’s always this talk back in the nineties or late nineties and early two thousands that the aftermarket may not be able to survive because the engines are becoming more and more sophisticated and not just anybody can produce a part anymore and so forth, but we could not have been any further from the truth. At that point the aftermarket on engine is thriving and it’s that entrepreneurial spirit. It’s the ingenuity, it’s the imagination that gets this done. And the aftermarket is alive and well in 2022 and will continue to do so.
Tyler Robertson:
So I’ve been around this industry a little bit on the repair side for, you know, two decades now, man feels weird to say, I’m getting old, but, you know, I remember like, take transmissions and drive axles. I remember our shops actually rebuilt those things. They’d only make it half a million miles if they need to rebuild. And then all of a sudden machining got better and they got more precise and better lubricants. And all of a sudden transmissions have million mile warranties and we’re not rebuilding them. We’re just swapping ’em out. Cause it’s quicker and easier. I can only imagine as new engines have developed with each iteration, the emission cycles and these things, the same things happen, they’ve just gotten the machining better, the tighter tolerances. That’s gotta put pressure on an aftermarket provider, such as yourself, to constantly deal with the changes and, and those things that are happening.
Bill Mirth:
Yes. And really the neat part about being with IPD is the innovation. We have a long history of innovation and we tend to look at an engine in its process of being rebuilt. So it’s not a brand new engine off the showroom floor. This is an engine that has been rebuilt once, twice, three times, maximizing the life of that engine. And actually the resources. It’s actually a green process to rebuild, and rebuild instead of just throw away. And our innovations of looking at engines as they’re being rebuilt and finding problems that occur throughout that process, that maybe was not ever thought of when they were designing that original engine. And so we come out parts to solve problems, you know, our steel liner for ISX, to prevent a block being ventilated due to a failure or treated head bolts, or, you know, special grooves in liners and so forth to give a better fit in an older block, all of this sort of stuff is what we do to make that engine last and continue to be able to be rebuilt over a long period of time.
Tyler Robertson:
So, you know, at our company at Diesel Laptops, we’re trying to build these parts platforms, right. And figure out ways to let people do real e-commerce on websites digitally. And a lot of the places we talk to that are like, yeah, I wanna sell parts. And we start having conversations with them and eventually like, well, show us your line card, show us who you’re stocking. I’m actually shocked how few of them carry engine parts. Like why aren’t they and why should they be?
Bill Mirth:
My role here as I walk around HDAW is I call myself an engine parts evangelist and my message to the independent parts distributor is, my goodness, don’t send your customer down the street to get engine parts. That entity also has all the brands that you have on the independent side. So if they need an engine part, why do you step over? Why do you walk away from it, embrace it. And at IPD our message is we can make engines easy. I actually carry around little cards with our 800 information that says how to become an engine expert, just call our team of highly trained engine experts. And we will be that extra guy behind the counter that knows engines and so we’ll make it easy for you. We’ll give you the information you need, we’ll back it up with a good warranty and so forth. And you go out and sell this and open up new revenue channels, new margin opportunities, and we’ll make it easy for you.
Tyler Robertson:
Yeah. And I know you guys have been expanding too. I heard there’s a deal recently with Redline Emission Products to stock some other accessories. And you guys are doing other things besides just overhaul kits to help the problem.
Bill Mirth:
We think outside the box all the time. In fact, with our IPD Extra brand, which aligns with good quality companies that focus on areas that we don’t focus on, Redline on the emissions and Maxiforce on the smaller caterpillar coverage, has been very successful. And that makes it really a lot of fun, just trying to find ways to make it easier for the customer to gain access and information, place the orders and so forth.
Tyler Robertson:
Well, we’re gonna take a quick break. You’ve been listening to The Heavy-Duty Parts Report. So we’re gonna take a break here for our sponsor.
Jamie Irvine:
Having issues with your commercial equipment? You need ATA’s Technology and Maintenance Council also known as TMC. TMC develops recommended practices, addressing the most pressing technology and maintenance issues affecting commercial vehicle fleets. You can join TMC for just pennies a day. And when you do, you’ll get us to thousands of pages of technical information, and you can attend events like the upcoming 2022 annual meeting and exhibition March 7th through 10th in Orlando, Florida. For more information, check out TMCtrucking.org. Don’t have a heavy-duty part number and need to look up a part? Go to parts.diesellaptops.com or download the app on Apple or Android to create your free account. Looking for high-quality fuel injection for heavy-duty applications? Having one supplier for fuel injection allows you to better serve customers by providing them with a complete line, which increases your sales and profitability. Learn more at ambacinternational.com/aftermarket.
Tyler Robertson:
All right, so we’re back from our break. And again, thank you to our sponsors. And we were talking here with Bill Mirth, the Director of Business Development at IPD. And we’re just talking about engine parts and selling engine parts and these things that have to happen. And I think part of the conversation, what I’m hearing from you is sometimes people, it sounds like they know they can sell engine parts, they’re just kind of a little scared. It’s not brakes. It’s not fifth wheels. It’s not suspension. It’s man, that’s an expensive engine that if we sell something or do something wrong, that’s a $30,000 fix, not a $500 boo boo. So, you know, the stakes are high. So how do you guys help them kind of overcome that? Is it really, are the stakes really that high or is it just more of a fear and they just don’t understand?
Bill Mirth:
It’s more of a fear. You also have to know. I mean, somewhere along the line, there’s a trained mechanic that’s gonna be putting those parts on too. That’s gonna say, well, this piston doesn’t fit in this hole, you know, there’s lines of defense along the way to make sure that the parts are going in. We can start with good information, no matter who you call, when it comes to engine parts to go and wanna know the engines, the numbers off of the engine. And once we have that, we can go in and tell you what you need. At IPD we use very current part numbers so there’s no ambiguity as to is this the right number to use. And then, you know, you just build the engine knowing that the last line of defense is having a trained mechanic. You know, so if they’re reselling the parts, chances are they’re reselling it to a business that builds engines.
Tyler Robertson:
Well, what I’m hearing, it’s not just, Hey, sign up to be a distributor, buy my stuff, and you’re on your own. You guys are there to help them through that process and become comfortable. I think at least anything new, once you learn a little bit, all of a sudden, you’re like, oh, now I make more money. I got another product line, another revenue chance. And I know that my company, I know, like I need to sell the $10 cable and the $10,000 tool because if I point them in a direction for one thing, I’m not sure they’re coming back to me for the other thing that I do sell. And that’s a thing I think a lot of people miss out on. Exactly. Yeah. So let’s talk about the other side of it. Let’s say I own a truck, right. And I need an overhaul. Right. You know, and I think a lot of people are like, oh, I gotta have OEM. OEMs, oh, that’s what came on, it’s better. But a lot of times, what I heard from you earlier is you guys actually make their stuff better because you get to see failure rates.
Bill Mirth:
In many cases. Yes. Because we deal with the rebuilding of engines, not a new engine. And it gives us an interesting perspective. It gives us an interesting history and data to look at, to help us to figure out what parts to design and how to make changes to it. And I would say, you know, if you’re an end user, there are really very few throughout history, you know, in the early days, you know, the aftermarket on engine parts was kind of will fit, might fit. You know, that’s that ship has sailed a long time ago. It is, there is a certain amount of liability if you blow up an engine. More so if you have a brake failure, and so, you know, for the most part manufacturers watch this and nobody’s really coming out with just something to throw in a box. It’s a very technical business. The quality in the aftermarket is very good overall.
Tyler Robertson:
I mean, and let’s face it, this isn’t your guys’ first year building these things. Truck engines are kind of the small engines that you guys do. So this is well within your wheelhouse.
Bill Mirth:
Yes.
Tyler Robertson:
So, you know, let’s talk a little bit about technology, right? HDAW, new things coming in, all that stuff, you guys just launched a new division in your company. Can you talk a little bit about that?
Bill Mirth:
Actually, it’s a whole new company called IDS and it’s Industrial Digital Solutions, and we are taking our first step forward in actually a partnership with Diesel Laptops to provide more of an engine focus to the telematics or a look inside of the engine electronically. Our first iteration is plugin in a J1939 port. And it is really geared towards an owner operator or small fleet. It’ll talk to your mobile device, your phone, and give you a glimpse inside that engine for a preventative maintenance, code reading. It might tell you what’s brewing inside that engine to say, you might wanna get this looked at because in about a month or so you could have a problem. And it really opens up the engine and gives you an opportunity to look into it, giving that owner operator more visibility, more control.
Tyler Robertson:
So was it a big, big thing inside your company to say, Hey, we’ve been making overhaul kits and engine parts for 65 years, let’s go create a technology company. Like that’s in one regard a far leap, but in another it makes a lot of sense because yes, that’s where we’re all going.
Bill Mirth:
And we love to innovate. We love to think outside the box and we love to find ways to satisfy our customers, give them a way to solve a problem with the end user. It’s really about the guy that throws away the bots or the guy that owns the equipment, you know, and giving them tools to make their lives easier and more productive and profitable in the end.
Tyler Robertson:
So the other kind of trend I see that I feel we need to talk about, because like everybody talks about it, there’s talks going on, speaking engagements. It’s supply chain. Yes. Right. It’s is there product available? Is there not product available? When’s it gonna get better? You guys obviously manufacture parts. You’re a global company. You’re shipping things literally on almost every continent. Give us just a little overview. How are things, are they getting better? When’s this gonna get better?
Bill Mirth:
There’s an old Depeche Mode song. I don’t want to spread any rumors, but I think that the aftermarket gods have got a poor sense of humor and they’ve ramped up demand and they’ve taken away supply. So it’s like what? And it’s been okay. We we’ve been getting through it. At, IPD we like to ship the same day at at least a 98% fill rate. Those days are temporarily out the window, but we’re doing a good job. We’ve been actually having record sales. And, you know, in the end we look back and say, wow, we’ve shipped more than we ever did. Even though we think we can’t get product, but we’re getting a lot of product. I think the worst of the backlog or the slowness of getting product is behind us. It doesn’t mean it’s going to fix itself anytime soon. But we think the worst is over. We’re able to adjust now. And I think I see better days ahead, but we’ve weathered the storm rather well.
Tyler Robertson:
So as a company is this now like, Hey, we need to start thinking about if this ever happens again and have contingency plans. Does that start coming to the conversation then at a strategic level?
Bill Mirth:
I think everybody’s looking at it and saying, how can I retire before it happens again?
Tyler Robertson:
I’m thinking the same thing, literally. I mean, you know, we’re seven year old company, right. But we’re growing fast doing these things. I literally, and this is a big deal to us. We literally have a seven figure purchase order that we can’t fill and we’re on like day 90 or whatever it is now. And it’s just so frustrating. It’s a tough thing.
Bill Mirth:
It’s frustrating. And as I hear people talk about their own businesses at the distributor level, it’s like, we’re gonna have a great year if we can get parts. So it’s really being experienced by everybody. We think we’re faring better than others and you know, and that could take air freight, it could take expedited shipments. I mean, we’re spending a fortune to get product in, but in the end we gotta keep engines moving. The engine parts business, much like the trucking business, it keeps our economy going. I always challenge young people when they talking about what to do and what industries to go in, I’ll say no matter where you’re standing, look around and know that a truck built that. Your house, that TV, yup. The apple sitting on your counter, it’s all trucks. And we’ve got to keep that going. And then behind that for IPD on the industrial side is the oil and gas and the construction and the industrial. So these are critical markets and we will go above and beyond to keep those parts in stock to keep those engines being built, to keep us all moving forward.
Tyler Robertson:
Well, I’ll tell you the person I feel bad for, or the persons in a company, is these people in the back office of procurement and purchasing, no one’s ever cared, right? Because things are just flowed and all of a sudden they must be getting hit from like the CEO down to the counter guy. Like where’s my stuff?
Bill Mirth:
I worked with a person for 32 years. I never knew his name. And now I’m like, Hey, Bob, I need you come here.
Tyler Robertson:
You’re my new best friend. Like, where’s my stuff?
Bill Mirth:
I’m joking, but it is. And they deserve a lot of credit, even though they often reach the frustration end of things. But at IPD I can tell you that our team is phenomenal. And you know, it’s funny, people either are buying too much or you’re not buying enough. And it’s always too much from the finance people and not enough from the sales people. So they drink a lot, but, you know.
Tyler Robertson:
Hey I’m a CEO, I thought that was my job to drink a lot. But apparently I got some company.
Bill Mirth:
Everybody’s drinking now.
Tyler Robertson:
Buy stock in alcoholic companies. That’s right, that’s what it means to learn about this. So, well, hey, with all that said, I wanna say to everyone here, you’ve been listening to The Heavy-Duty Parts Report. I’m your guest host Tyler Robertson. We’ve been speaking with Bill Mirth, the Director of Business Development at IPD a veteran on The Heavy-Duty Parts Report. I’m sure we’ll get him back on here again. To learn more about IPD, visit IPDparts.com. I also know they have the other website as well, they’ve launched to do with the technology side of things. I think it’s IPSrx.com. So Bill, thank you for being on The Heavy-Duty Parts Report and for joining us at HDAW.
Bill Mirth:
Thank you for having me. And if this is like Saturday Night Live, after five visits don’t I get a big party or something after five visits.
Tyler Robertson:
Wait, I thought you were buying though, as long as you use your credit card, bar’s open.
