Internal Engine Parts knows its business, part by part

MERIDIAN - It's the kind of story that could only happen in today's computerized world. Internal Engine Parts Group Inc. is in a type of business that dates back 100 years to the first repairs on an auto engine. But the company keeps up to date by using high-tech methodology for its continued success.

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examples are that the president and sales manager, John Gartrell, operates out of his house in Guntersville, Ala., while his brother, the secretary-treasurer and administrative manager, Alan Gartrell, is based in a well hidden and handsome new office building just off I-20/59 in Meridian. And neither Meridian nor Guntersville has one of the company's nine sales warehouses.

Those warehouses are scattered throughout the Southeast. Jackson was the first in 1975, then came Mobile and Birmingham and today, there's one in Memphis, Nashville, Baton Rouge, Atlanta, Tampa and Jacksonville. Further evidence of the company's high-tech capabilities is that the parts list is computerized and oneday service is provided to any of their 8,000 customers from any of those branches,

It's all about engine kits

And then there's their 97-page engine kit catalog, both a printed and electronic version. "We sell any internal engine part that runs on gas or diesel," Alan said. "And that includes marine and agricultural engines."

The catalog has 15,000 items listed, yet, "It's so simple a fifth-grader can order from it just by giving us the number," Alan points out. There's every type of engine kit imaginable and it's republished in-house every two years.

"The engine kit program started in the mid-80s and it drives our business," Alan said.

"With one number, you can literally order a kit to completely rebuild an engine. They have become a way of life and that makes it much easier for us and our customers."

Unusual customers and the pricey stuff

Gartrell said their typical customer is an auto parts Store that has an engine repair shop, but other accounts include garages, fleets, used car lots and even some municipalities.

Then there's one of their most unusual customers, an industrial engine company in Mobile. The company orders the same machine shop supply item - sometimes two or three times - every month. "They've been doing that for years," Alan said. Another unusual customer is a Birmingham firm that orders parts for a carmuseum restoration shop.

The fastest growing segment of the business is high-performance parts. "That's pricey stuff and we're one of the few suppliers in Mississippi," Gartrell said. "Of course the NASCAR circuit is the biggest spectator sport in the country and some of those fans want to build the biggest and fastest engine they can."

How it started

There's a company total of 76 employees and 21 of them are Internal Engine stockholders. Eleven of those employees are in the Meridian office that provides all of the corporate support for the other farflung warehouses. This means that Meridian handles all sales revenue, corporate activity and human resources. "We do everything in the company but sell and handle inventory." Alan said.

Gartrell sure ought to know the engine parts business. After receiving his business degree from Mississippi State in 1968, he learned how to rebuild engines for his father's business, Automotive Engine & Crankshaft Co. Brother John had graduated from Southern Miss in 1965 with a marketing degree and was the company salesman.

John, Alan and their father, George, along with two other individuals founded Internal Engines (originally Engine Parts Warehouse Jackson Inc.) in 1975 and their experience and talents blended into a winning combination. Their father retired in the late 1970s.

Slowed down, but picking up

Conventional wisdom says that the auto parts business is recession proof because in a slow economy, people tend to repair their cars rather than buy new ones, but Alan can pinpoint when the national economic slowdown hit them. It started last July 4 and went through Dec. 31," he said.

He attributes their slowdown to the general economy and the major auto manufacturers pushing their new car sales with zero percent financing and other inducements. "They're stealing from their future sales," Alan said. "With all of the leased cars hitting the market now, those used car lots look like new car dealers.

However, we are encouraged that the first few days of January have been real strong. Thanks to our computers, we can punch a button and find out in five seconds how every location's doing at that very moment."

According to Gartrell, like most other industries, there's been a major shrinkage in the number of supplier choices, particularly in engine parts. "Recent mergers and acquisitions have been very destructive to the automotive after care market," he observed. "Today, there are only three major piston suppliers, two major gasket suppliers, two major bearing suppliers and three major ring suppliers. And at least two of those are operating under bankruptcy."

Pistons under the Christmas tree?

Internal Engines gets along with their competition. Gartrell calls a competitor in Birmingham "a good friend," and cites others in different cities. "They are good competition - we have good relations and share ideas and help each other."

The busy season for Internal Engines is from January through August, then it slows down. "You don't find pistons under the Christmas tree," Alan said with a smile.

As for expansion plans, Gartrell said, "We're looking at more locations and possibly doing some different things, but related to our business. This office building can be doubled in size - we built it that way on purpose. Right now, we're waiting to see what the economy is going to do."

He points out that the company is constantly updating their facilities and equipment. Example: Meridian's Mitchell Sign Company will erect new signs at all of their locations in the coming months.

Like old wine in new bottles

He attributes their relationship with Trustmark National Bank as one of the major reasons for their success. "They have been a real good partner with us over the years," Alan said. "They understand business and have given us everything we need to be successful."

With their ol' timey business using those new fangled ideas, Internal Engines demonstrates again how fine old wine can be put into new bottles with great results.