Diversity, Able Employees Spell Success for Texas Rebuilder By Traci Matt ASSOCIATE EDITOR Tom Talley is not someone who misses opportunities. When the local auto repair store he was managing closed in 1976, he bought some of their equipment, tools and parts and began rebuilding. When it became clear that national chains were putting the squeeze on the automotive busi- ness, he shifted his emphasis to heavy- duty and industrial applications. When he saw a need for expanded services, he began offering them. This strategy seems to be working. Talley, owner of Talley Auto Electric, Inc. located in the Dallas/Forth Worth area, said they had a record-breaking $100,000 month in August, and project their 2006 sales to be more than $900,000. “The biggest change I have seen in the electrical rebuilding business, espe- cially the automotive and light truck units, is the staggering number of units that must be stocked or we must have access to in order to keep missed sales at a minimum,” said Talley. “Retail and/or commercial customers will not always wait for their units to be rebuilt. Iso TRICAL RVICE ~ Owner Tom Talley handles fleet and commercial accounts. Consequently, a good percentage of our unit sales is now new units. Because of that and the other services we offer, our business is growing.” There have been a few bumps along the way, including the rebuilder who took off without notice to open a com- peting shop nearby. Then there was the big box store invasion. “In the late 80s and early 90s it became obvious that the independent auto parts stores in our area were being crowded out by the large national chains and our customer base began to shrink,” Talley said. “We tried to compensate and for a brief time supplied units to some Wal-Mart stores which at that time carried a short line of auto parts. That was a lesson learned the hard way. We then tried supplying some small WDs. Another lesson learned the hard way.” It was at that point that their rebuild- ing focus shifted from automotive to the heavy-duty and industrial market. “Tt took a few years to make the tran- sition but now our customer base is mostly truck and equipment shops, school bus shops, airport ground equip- ment maintenance shops, postal vehicle maintenance shops, marine dealers and other industrial equipment customers,” he said. The shifting didn’t stop there. After they began looking at customers’ equip- ment maintenance needs, they expanded to include DC motor repair, including high voltage traction and pump motors, Terry Harris, radiator shop manager at Talley Auto Electric, rebuilds and repairs radiators and coolers of all sizes with the help of the men in his department. which now represents at “significant percentage” of their sales volume. Then, after recognizing another need in the equipment maintenance market, they began repairing and selling radia- tors, charge air coolers, heater cores and fuel tanks. “Again, same customers plus some new ones, but more volume from the old ones. Although housed in the same building and sharing customer areas, vehicle service bays, parking and offices, the radiator shop work area is otherwise separated from the electrical building areas. Again, same customers, more products,” he said. This “one stop shopping,’ as one customer has deemed it, has been instrumental in retaining business and fighting off competition. It was the deciding factor of one large customer to renew even though they had been offered lower pricing for alternator and starter rebuilding by a competitor. Today Talley Auto Electric also services the retail market and offers limited auto electric and A/C services in the shop. In addition to adapting to market needs, the business has changed names and locations a number of times. They are now home in a 10,000 square-foot facility—one-fifth of which is counter and customer service area, rebuilder’s work benches, small parts, complete units and offices. The remainder is used for core handling and tear down, clean- ing, unit testing, vehicle service and the radiator shop. For several years Talley has “been blessed with great employees” who free him up to spend most of his time calling on commercial customers. He employs three electrical rebuilders and three radi- ator rebuilders, in addition to the Talley family office staff. “What has sustained and grown our business is service, expert quality rebuilding, and availability of the right part when the customer needs it. To all of this I give credit to our employees who go above and beyond to provide those three things,” he said. “My biggest challenge as a rebuilder is staying out of my employees’ way.” He said good employees will be the key to his future success as well.