Diesel repair specialist downsizes, blames unstable market
ANCHORAGE - After 27 years in business, the diesel specialty shop Alaska Diesel Rebuilders is making some changes in an effort to offset its diminishing client base.
Sound off on the important issues at
"We are cutting down the size of our shop because we don't have the work like we used to. Alaska has become a very unstable place to do my kind of business," said owner and mechanic Steve Schoenberg.
To meet the economics of the times, Schoenberg is consolidating his two-bay tear-down and rebuild areas into one.
In business since 1980, Schoenberg's reputation is known statewide.
"Oh boy, Steve is the Real McCoy of diesel mechanics," said Lloyd Hood. Hood teaches diesel mechanics for the 302 Alaska Operating Engineers Employment and Training Trust Center in Palmer.
Hood worked with Schoenberg on the North Slope and in Valdez for Alyeska Pipeline Service Co.
"Known for his expertise with Detroit Diesel engines, Steve is one hell of two-cycle diesel mechanic," Hood said. "This man will bend over backwards to get you not just the parts you need for the weirdest diesel engines, he'll even help tell you how to put it together."
In its best years, Alaska Diesel Rebuilders grossed $1 million a year, had seven employees and operated 24/7 to get jobs out the door. Now Schoenberg, 64, has one employee, 21-year-old Ryan Odomin, an Alaska Vocational and Technical Center graduate.
The business has amassed $300,000 in parts inventory, which Schoenberg is considering liquidating.
"The plan is to pare everything down, consolidate it and cut down on overhead," he said.
The business started a downward trend when Detroit Diesel engines failed EPA air quality testing. The business of rebuilding in Alaska was good because Schoenberg was funneled warranty business.
Now that has dried up.
Companies up on the North Slope have switched to Caterpillar equipment that use a newer four-cycle diesel engine and different parts, and mining has virtually come to standstill, Schoenberg said.
"It's all politics, and there's no stability," Schoenberg said.
Specializing in complete rebuilds, the shop also has machining equipment to make parts and grind valves.
"I am known for guaranteeing my work, and getting a rebuild done when I say. If I say 100 hours, you'll get it in 100 hours," Schoenberg said.
Not relying on outsourced work, or buying new parts made in foreign countries, has helped his reputation. Schoenberg doesn't believe in relying on other people.
"They'll let you down, and that jeopardizes my relationship with the customers," he said. "I do send cylinder heads and certain items to shops here locally, but no outsourcing of other work. Too risky."
Will the seasoned diesel mechanic hang up his wrenches and sell the business to join his wife, who has her own business in Baltimore?
"Well if the price is right, there's everything here to make someone a good living," he said.