INDUSTRIAL PARTS DEPOT (IPD) NEWS

June 15, 2000

31CHNEWS
http://www.ipdparts.com/
IPD NEW PRODUCT ADDITIONS INCLUDE BLOCK REPAIR PARTS, MISC. OTHER 6/15/00
IPD says "Save that old engine". During the last quarter, IPD has added to their product line, block repair parts for
Caterpillar 3200, 3300, 3400, 342, 343, 346, 348, 349, 1693, 353, 379, 398, 399, and 3500 series engines.
They have also added additional offerings of Valve Seats/Guides, Pistons, Cylinder Kits, Gasket Sets, In Frame
Overhaul Kits, and misc. other for Caterpillar applications. (4/00 - IPD, Internet)
PART PRICE ANNOUNCEMENT, 9/12/94 VS. 6/29/98 11/98
Pricing & Market Research calculated the following IPD net and list price changes from their 9/12/94 list price levels
to their 6/29/98 levels on selected parts. Additional detail is available. Direct all questions to Brad L. Sauder.

Major/Minor Class
2A Piston, Rod, Liner & Related Parts
2C Cylinder Head and Valve Parts
2D Cooling System Parts
2E Air Intake and Exhaust System
2G Fuel System Parts
2H Engine Gaskets
2K Turbochargers
2Q Engine Bearings
2R Filters
5H Transmission Gaskets
6S Seals
8B Sleeve Bearings - Except Engine
8H Hardware
8J Gaskets and Shims
Total

Total % Change
Net
List
-15.9%
11.5%
20.2%
8.0%
-3.7%
14.4%
8.2%
10.4%
18.4%
9.4%
1.1%
7.3%
19.6%
22.9%
10.7%

-9.0%
10.1%
15.5%
4.0%
3.1%
14.4%
5.2%
10.8%
15.6%
9.2%
4.3%
7.5%
13.8%
10.3%
8.6%

INDUSTRIAL PARTS DEPOT (IPD)

February 8, 1999
31CH
Also see 31CH-NEWS for additional information
---INTERNET:

http://www.ipdparts.com

COMPETITIVE TYPE:

Manufacturer (GET, Engine)

Distributor

MAJOR PRODUCT CLASSES:

Engine
GET

Drive Train
Hydraulics
Undercarriage

LOCATIONS:
World headquarters/manufacturing -

Torrance, California
23231 S. Normandie Ave.

Leases 130,000 sq. ft. in one-story concrete-block building situated on seven acres of land. There are a total of three
one-story buildings on the property. Industrial section on main street. (6/98 - D&B)
IPD sales or distribution centers are located in the following cities/country: (6/98 - D&B)
-

Phoenix, Arizona
Salt Lake City, Utah
Portland, Oregon
Cleveland, Ohio
Livermore, California (Near San Francisco)
Norcross, Georgia (Near Atlanta)
El Cajon, California (Near San Diego)
Houston, Texas
N. Las Vegas, Nevada (not on 12/94 D&B)
Kolding, Denmark (not on 12/94 D&B) Distribution center for Europe.
New South Whales (Sydney), Australia

EMPLOYMENT:
1974 - 39
1975 - 45
1977 - 75, 45
1978 - 100, 75
1979 - 180, 90

At headquarters
At headquarters
At headquarters

Apr
Jan
May
Sep
May
Mar
Mar
Jun
Dec

1980 - 200
1982 - 225, 90
1983 - 265, 90
1984 - 330, 110
1985 - 330, 110
1986 - 350, 175
1988 - 330, 175
1990 - 350, 175
1991 - 350, 175
1993 - 300, 160
1994 - 260, 150
1995 - 230, 150
1996 - 230, 150
1997 - 300, 225
1998 - 300, 225
1998 - 300, 225

At headquarters (D&B, 4/83)

At headquarters (D&B, 8/84)
At headquarters (D&B, 9/85)
At headquarters (D&B, 10/86)
At headquarters (D&B, 7/87)
At headquarters (D&B, 6/89)
At headquarters (D&B, 4/90)
At headquarters (D&B, 6/91)
At headquarters (D&B, 11/93)
At headquarters (D&B, 12/94)
At headquarters (D&B, 8/95)
At headquarters (D&B, 11/96)
At headquarters (6/98 - D&B)
At headquarters (6/98 - D&B)
At headquarters (2/99 - D&B)

SALES:
Fiscal year ends September 30.
---- $ 4,000,000 (D&B)
- $ 7,000,000 (D&B)
- $15,000,000 (D&B)
- $19,500,000 (D&B)
- $25,000,000 (D&B)
- $32,000,000 (D&B, 2/82)
- $30,000,000 (D&B Financial Profile, 12/83)
- $28,000,000 (D&B, 8/84)
- $39,045,000 (D&B, 9/85)
- $39,000,000 (D&B, 9/86)
- $39,000,000 projected (D&B, 10/86)
- $43,000,000 projected (D&B, 7/87)
- $46,304,000 - Nov. 1, 1987 through Oct. 30, 1988
15,304,000 - Gross profit
1,350,000 - Net Income (D&B, 4/90)
1989 - $42,051,924 - Oct. l, 1988 through Sept. 30, 1989
13,808,326 - Gross profit
1,089,306 - Net Income (D&B, 4/90)
Revenues decreased due to the sale of the IPD location in Cincinnati, OH.
1974
1975
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988

1990
1991
1992
1993

- $43,000,000 projected (D&B, 4/90)

- $39,000,000 (D&B , 11/93)
- $38,000,000 (D&B , 11/93)
- $39,500,000 Profits = $500,000 - (D&B, 12/94)

1994 - $39,500,000 projected 5/3/94 (D&B, 12/94)

- 20% of total 1994 sales are derived from export. Over the last 3 years, international sales have been
up. (D&B, 12/94)
- $39,928,261 Profits=$1,855,397 (D&B, 8/95)
1995 - $41,000,000 projected 5/3/95 (D&B, 8/95)
- No 1995 sales information on 11/96 D&B, but worth has increased $4,157,000 in last two years, to
Sept. '95 level of $14,904,344.
1996
- $43,101,000 (6/98 - D&B)
1997
- $48,906,840 (2/99 - D&B)
---20% of total sales are derived from export. (2/99 - D&B)
HISTORY:
1955
1957

1979

1980

1981

1989

1992
1996

1997

Industrial Parts Depot, Inc. (IPD) was incorporated in Torrance, California by Robert Rasmussen.
Pacific Tractor & Equipment was formed as a leasing company. Leased tractors are used to test IPD's
parts products. 1976 - IPD purchased Renker Tool and Gauge in Thousand Oaks, California.
IPD purchased Paramount Supply, an independent wholesale and retail parts dealer in Cleveland, Ohio,
with branches in Columbus and Cincinnati. This was the first significant expansion into the
Northeastern U.S. The Ohio based operations were renamed on Jan. 1, 1982, Industrial Parts Depot,
Inc., Paramount Division and have equipped the Cincinnati branch with dozer and scraper edge
manufacturing and heat treating equipment. Cincinnati branch sold January 1989, now known as
Industrial Parts of Cincinnati (IPC).
70% of sales are from the manufacture of cutting edges.
IPD purchased Jahn's Quality Pistons, a former supplier of pistons and castings. Jahn's was sold in 1985
and IPD installed their own foundry for making pistons and castings.
Industrial Parts Depot International Inc., chartered to market IPD products throughout the free world. This
subsidiary has since been dissolved. (D&B, 4/90)
Purchased equipment from Earle M. Jorgensen Co. (Steel Processor) to apply tungsten-carbide material
onto wear parts; i.e., cutting edges.
Closed Commerce City, CO (near Denver) facility.
Expands warehouse in Torrance, CA. According to IPD's Internet site, last updated 6/15/96, their main
warehouse in Torrance, California, had just expanded into another 33,000 sq. ft. building. Reportedly, IPD
badly needed the room to continue increasing product coverage and market growth. (11/96 - Internet)
Opens new branch in Sydney, Australia. IPD recently opened their Distribution Center for Australia and
New Zealand. IPD Australia Pty. Ltd. is located at 14 Prince William Drive, Seven Hills N.S.W. 2147,
Sydney, Australia. (2/97 - IPD Internet)

PRODUCTS:
The following comes from IPD's Internet site (11/96):
"IPD differs from traditional aftermarket companies by not simply imitating Original Equipment Manufacturers
(OEMs), but by offering products that have been developed with the input of our customers. IPD innovations offer
options to an engine rebuilder that will improve the performance and extend the service life of diesel engines. IPD
innovations in ground engaging tool manufacturing include being first to develop hot formed end-bits, first to

provide shaped and differentially heat-treated grouser bars, and pioneering the use of Boron steel alloys to improve
tool life and reduce breakage. IPD--Innovation, not imitation!"
Engine Parts - IPD's heavy duty engine products for most applications will include many of the following items:
-

New Cylinder Head Castings

Valves and Valve Train Components
Engine Bearings
New Water and Oil Pumps, and Repair Parts
New and Remanufactured Fuel Injection Pumps and Components
Valve Lifters, Including Roller Types for 3200, 3400 & 3500 Engines
New Camshafts and Crankshafts
Crankshaft Vibration Dampeners
Flywheel Ring Gears
New and Remanufactured Turbochargers and Parts
Special Service Tools for the Diesel Engine Repair Market

IPD's Caterpillar engine series coverage includes: 311, 315, 318, 336, 330, 333, 336, 339, 342, 343, 346, 348, 349,
353, 379, 397, 398, 399, 1100, 1600, 3100, 3200, 3300, 3400 and 3500. IPD also carries parts for natural gas
applications.
Ground Engaging Tools - IPD's ground engaging tools are available for a wide range of equipment. In addition,
IPD will custom manufacture many items to customer specifications. Field specialists are available to help
evaluate and design tools for particular applications at no charge.
-

Cutting Edges for Dozers, Scrapers & Loaders (custom blades and tungsten carbide available.
Bucket & Ripper Teeth
Grader Blades
Tamper Caps
Corner & End Bits
Shanks & Shank Protectors
Grouser Bars
Bogie Guides
Saddle Repair Blocks
Plow Bolts, Nuts, Pins, Locks & Accessories

Elevating Scraper Parts:

- Asphalt, Paver, Pick-up, Scraper & Undercarriage Chain
- Sprockets
- Flight & Sprocket Bolt Kits
- Idler & Roller Assemblies
- Guides, Brackets & Inserts
- Router Bits & Blades
(11/96 - IPD, Internet)
----

There is nothing currently on IPD's Internet site about Drive Train or Hydraulic product offering. (11/96)
---Agrees to mark rebuilt fuel nozzles with "REMFG-IPD". At the request of Caterpillar, through our Patent
Department, IPD has agreed to comply with Federal Trade Commission (FTC) rules by identifying fuel nozzles
they rebuild with a "REMFG-IPD" stamped in the housing in a permanent manner. (5/97)
IPD has since provided Caterpillar with an acceptably identified IPD rebuilt nozzle. (5/13/97 - E.C. Goodale, Patent
Dept.)
---Expands Remanufactured Engine Components Product Line. NACD, L.A. District, obtained an Industrial Parts Depot
(IPD) remanufactured products price list, effected date August 1, 1995. Over the years, we have occasionally heard
that IPD was offering some Reman product, including cylinder heads and 3208 Engines, but this is the first time we
have actually received a complete price list of the products they are currently offering. It appears they have at least
increased their coverage of reman product. We are unsure how much if any of the remanufacturing IPD is actually
doing themselves. If not done by IPD, we do not know where they are sourcing the reman components. According to
the price list, IPD is now offering the following remanufactured product for Caterpillar engines:
-

Camshafts and Kits

Connecting Rods
Crankshafts
Cylinder Heads
Cylinder Packs

Fuel Injection Nozzles

Long Blocks
Short Blocks
Water Pumps

Although the provided list does not display the IPD name or logo, like all other literature we have seen, we have been
assured by a customer that IPD is offering the above product and that they have used the cylinder packs. Model and
part number detail is available in P&MR's Competitive Information Library, AH9410. If anyone has additional detail,
please share it with us. (8/1/95 - IPD Price List and RBRodgers, P&MR)
---From June 12, 1995, to September 26, 1996, IPD imported seven shipments via water, totaling 108,202 lbs. cargo
weight. Below is a summary by exporter.
Exporter
========

City/Country
============

Arrived
=======

Cargo Lbs.
==========

Description
===========

Metisa

?, Brazil

09/26/96

45,437

Metalurgica
Mogi Guacu

Mogi Guacu,
Brazil

07/12/96
03/13/96

24,398
31,351
Total: 55,749

Colmeia

?, Brazil

07/21/95

1,732

Auto Parts

Sudo Gasket

Tokyo, Japan

09/10/96

2,103

A F Gaskets

Vishal
Mallcables

Gujarat,
India

01/02/96

1,940

Piston Sets

Grouser Bars
Piston Parts
Piston Parts

National
Engineering

?, Kuwait

06/12/95

1,241

Spare Parts

(11/20/96 - PIERS Report)

---Manufactures and distributes replacement parts for diesel engines and heavy equipment (100%). (2/99 - D&B)
---Eight percent of total purchases are imports. Major countries of import are Brazil and Japan. (2/99, 6/98, 11/96 and
8/95 D&Bs) On 12/94 D&B, Italy was included in this 8%.
---IPD does do some manufacturing, but does not manufacture all the parts they sell. Engine parts sales are considered to
be larger than 30%. (8/92 - JMCoker, Eng. Div., Cust. Services)
---IPD manufactures their own line of GET cutting edges and end bits, including motor grader edges. (GRKlett, 5/90)
---Engine parts manufactured by IPD include pistons, liners, and fuel nozzles.
(1990)
---IPD also acts as a distributor for many other parts manufacturers. Most of the following partial list of manufacturers
was obtained from Construction Equipment Magazine's 1990 Buyer's Guide:
Supplier
========
ESCO
H&L Tooth Co.
Hensley, G.H.
Berkley Forge
Pengo
Corona Clipper & Forge Co.
Miba Sintermetall AG
Phillips Gasket
California Gasket & Rubber Corp. (CGR)
Italtractor
Berco
Clevite Heavy Duty Engine Parts
Federal-Mogul Corp.
Ghinassi
Dipaco Inc.
Pyramid Parts, Div. of American Alloy Corp.
Baldwin Filters
McCaffrey, M.P., Inc.
Roto-Master (Merged into Garrett 3/88)
Stanadyne Diesel Systems
Trek, Div. of Letts Industries
CEI (Italy)

Product (Source of Info.)

==========================
GET
Tips/Adapters (CPRs)
Tips/Adapters (CPRs)
Tips/Adapters
Tips/Adapters (H190, 9/89)
Bucket & Trencher Tips (H190, 9/89)
-Gaskets
(Dan Donaldson, Reman, 11/95)
U/C
U/C (CPRs)
Engine parts
Engine bearings
Cylinder Heads (H190, 9/89)
Fuel systems
-Filters
Buckets
Turbochargers
Fuel Systems
-DT Gears

Other manufacturers that have been reported as suppliers to IPD.

Supplier

Products

Mayo
Ohio Crankshaft Div. of Park-Ohio Industries
Ajax
Schwitzer
SIRT
Aeroquip

Radiators Cores 1/80

Crankshafts 10/87
Hardware
Turbochargers
Engine & Drive Train
Hose & Fittings

PRODUCT FEATURES:
IPD claims the following features:
-

IPD offers the innovative 3-ring piston for the 3200 series which has been proven to reduce blow-by and
increase power and engine life. This design is so effective, the OEM uses it now too!
For special mining and extreme cold climate operation, IPD developed and now offers special highcompression pistons for the 3300 series.
IPD modified the skirt design of the 3400 series piston to improve strength and oil retention.
Certain applications of the 3400 series engines experience oil cavitation problems leading to damaged
crankshaft bearings. IPD offers an optional bearing set having a pressure relief groove that helps control
cavitation and promotes optimum service life.
All IPD Cat liners are manufactured using premium alloys and induction-hardening to assure liner flange
strength and improved wear resistance. (11/96 - IPD, Internet)

QUALITY:
"Providing a high-quality, reasonably-priced alternative to original equipment replacement parts is a main objective of
IPD. To assure our capability to deliver the best overall value to our customers, IPD has committed itself to adapting
its quality system to one based on the ISO 9000 standard. It will be a lengthy process." (11/96 - IPD, Internet)
---Specific information on products manufactured +/or distributed by IPD can be obtained from the CTRS and PCBS
portion of the MIS text retrieval system "FIND." (11/96)
---RECEIVES "QUALITY VENDOR" STATUS FROM U.S. GOVERNMENT - IPD reports they have been awarded
"Quality Vendor" status by the U.S. government for three consecutive years. IPD says rebuilders rely on it for the
highest quality, technical support, and availability. They also claim that parts are made in the U.S. and only IPD parts
go in IPD boxes. In addition, IPD states consistency is an IPD hallmark. (2/95 - Truck Parts & Service Magazine)
DISTRIBUTION & GEOGRAPHIC AREAS SERVED:
IPD claims to have a nationwide network of distribution depots and over 400 worldwide dealers. (11/96 - IPD,
Internet)
----

Percent of sales by customer type and region:

Customer Type
=============
Dealers
Retailers
======= =========
Jul 1987
--Feb 1989
--Apr 1990
--Jan 1991
--May 1993
--Sep 1994
65%
35%
May 1995
70%
30%
Mar 1996
70%
30%
Mar 1997
--Jun 1998
--Dec 1998
--(Various D&B reports)

Region
======
U.S.
International
====
=============
85%
15%
88%
12%
88%
12%
88%
12%
80%
20%
80%
20%
80%
20%
80%
20%
80%
20%
80%
20%
80%
20%
----

Major countries of export:

Sep 1994
May 1995
Mar 1996
Mar 1997
Jun 1998
Dec 1998

Mexico, Canada, Australia, Middle Eastern Countries

Mexico, Canada, Australia, South America, Latin America and Middle Eastern Countries (20%).
Same as May 1995.
Same as May 1995.
Same as May 1995.
Same as May 1995.
(Various D&B reports)
---From April 26, 1995, to September 7, 1996, IPD made 19 export shipments via water, totaling 85,051 lbs. cargo
weight. Below is a summary by destination port.
Destination Port
================

Ship Date
=========

Cargo Lbs.
==========

Description
===========

From IPD's Torrance, CA Headquarters:

Calcutta, India

08/13/96

1,863

Spares for Fishing Vessel

Bombay, India

04/26/95

8,158

Spares for Cat 578

Callao, Peru

07/16/96
04/08/96

1,905
1,883
Total: 3,788

Maracaibo,

07/02/96

2,610

Tractor Parts
Tractor Parts

Diesel Engine Parts

Venezuela

07/02/96
06/12/96
05/11/95

1,766
14,458
10,726
Total: 29,560

Diesel Engine Parts

Diesel Engine Parts
Diesel Engine Parts

Jeddah,
Saudi Arabia

10/28/95
09/25/95

6,063
7,770
Total: 13,833

Diesel Engine Parts

Spares for Cat Machines

Cairo, Egypt

09/13/95

2,383

Diesel Engine Parts

Auckland,
New Zealand

06/09/95

1,214

Diesel Engine Parts

St. Thomas,
Virgin Islands

09/07/96

410

Roatan, Honduras

07/19/96

45

06/06/96
03/06/96
09/08/95

3,201
3,999
4,101
Total: 11,301

From IPD's Norcross, GA branch:

Engine Parts

Gasket, Bearing, Valve, Etc.

From IPD's Cleveland, OH branch:

Isafjordhur, Iceland

Diesel Engine Parts

Spare Parts
Engine Parts

(11/20/96 - PIERS Report)

---Activity in Kuwait - COSA has reported that IPD has become active in Kuwait, promoting their product by
distributing customer testimonial letters. (7/1/93 - MRStevens, COSA, Geneva)
PRICING:
List price information is available in Pricing's CIS system, the most current effective Aug. 1, 1995. (6/98)
MARKETING:
PRODUCT SUPPORT:
WARRANTY:
Warranty of IPD is perceived as superior. (3/95 - DHarmon, NC Machinery)
---GET
IPD warrants free of charge against breakage all cutting edges, end bits, and router bits sold by IPD if
the following provisions are met:
o properly installed and used in normal manner

o were defective by virtue of having been broken in use

Warranty excludes labor, hardware, downtime, or other cost or loss associated with product failure.
(Brochure, Oregon Logging Conference, 2/89)
Engine

For engine parts manufactured or distributed by IPD or its affiliated companies and distributors and
marketed for use in the U.S. and Canada. Warranted to be free from defects in workmanship and
material under normal use for 180 days or 50,000 miles or 1,800 hours of operation, whichever occurs
first from date of installation. Engine parts for on-highway truck applications are warranted for 12
months or 100,000 miles, whichever occurs first from date of installation. IPD's responsibility is limited
to repairing or replacing parts they agree have been defective. IPD will reimburse for all parts and
labor, including any progressive damage. IPD will pay for maintenance items such as oil, antifreeze,
filters, and hoses that are not reusable due to failure. More detailed information on warranties is
available in Market Services Competitive Information Library. (11/89)

GENERAL:
Ranked as an 'A' Engine (Cyl. Kit) Competitor, 'A' GET (Edge) Competitor and a 'D' (major distributor) Full-Line
Competitor. (3/00)
---IPD is a privately held company, 50% owned by IPD Trust and 50% by Western Brass Works Inc. (6/98 - D&B)
---Cummins Announces Settlement of Patent Infringement Law Suit - Cummins Engine Co., Inc., announced settlement
of a patent infringement lawsuit filed in mid-September 1991, against Industrial Parts Depot (IPD) of Torrance, CA.
The complaint involved the unauthorized manufacture and sale by IPD of the patented cylinder liner for the Cummins
L10 engine. The settlement provides for a permanent injunction against IPD, prohibiting IPD from making, using, or
selling replacement cylinder liners for the Cummins L10 engine. (1/23/92 - Business Wire)
APPARENT MARKETING STRATEGY:
According to IPD, they provide a reasonably priced alternative with OEM integrity, a comprehensive product line, and
superior customer service. (11/96 - IPD, Internet)
---In the past two years, it is believed that more emphasis has been put on engine parts than undercarriage. (8/92 JMCoker, Cust. Services, Eng. Div.)
---Recent advertising promotes "IPD Quality Parts" and improvements on OEM designs (extra piston rings compared to
Cat, Navistar, etc.) (8/92 - JMCoker, Cust. Services, Eng. Div.)
ASSESSMENT OF STRENGTHS:
ASSESSMENT OF WEAKNESSES:
Lack of complete line.
Limited engineering capability.
Dependent on supplier quality.
Changing customer make-up -- more small customers - increased corporate buying. (BSC, 1983)

FUTURE OUTLOOK:
Financial condition good. (2/99 - D&B)
LAST D&B:
February 8, 1999
DUNS 02-870-1092
Standard Industrial Code (SIC)/Description
35190200 - Manufactures replacement parts
5084 - Wholesale trade, industrial machinery and equipment
LAST PROFILE REVIEW/UPDATE: February 8, 1999