Ka Wai Ola - Office of Hawaiian Affairs, Volume 12, Number 11, 1 November 1995 — Loan fund recipient dyno-charges transmission business [ARTICLE+ILLUSTRATION]

Loan fund recipient dyno-charges transmission business

by Patrick Johnston In the transmission repair business there are two ways to bring in customers: provide mediocre service and hope the customer comes back to you when their system breaks down, or do a superior joB and have that customer spread the word about your business. Nathan Reyes. president of Man's Transmission, has chosen the latter, more noble approach and it's starting to pay off. Matt's Transmission, whieh received a loan from OHA's Native Hawaiian Revolving Loan Fund last year, overhauls, sells parts, and provides exchange units for Allison transmissions. Allison is a GM subsidiary that

makes automatic transmissions for trucks and buses. Although most of his focus is on Allison equipment, he also services and provides exchange units for Jasper engines and transmissions. Reyes began Matt's Transmission in 1991, after several years working as a meehanie for a number of different transmission companies. With plenty of experience under his belt - including a position as lead meehanie at his most recent job - he felt confident enough to go into business for himself. '"I was trying to better myself," he says. And better himself he did. Beginning out of a van outside his mother's garage he now rents an old O'ahu Sugar warehouse in

'Ewa Beach, has a staff of three fulltime and one parttime employees, and hires his sister as an independent contractor. Using a tried and true eombination of hard work and quality service he has built up an impressive list of clients including the City and County of Honolulu and all of the major tour bus companies in the state. His reach extends out to the neighbor islands and even to Guam where he has a

number of clients. Recently Allison gave Reyes the authority to purchase directly and not through Allison's O'ahu distributor, a move that saves him both time and money. The authorization to buy directly was highly unusual and stemmed from the speedy and high quality work Reyes was providing Allison users. "I was the only guy doing oneday turnaround," Reyes points out, adding that bypassing the distributor makes his business more efficient. The loan Reyes received from OHA went largely towards the purchase of a dyno test maehine, a unit that simulates the engine of a truck or bus and allows Reyes to test his client's trans-

missions after he has repaired them. The equipment, while expensive, has already saved him money because it has meant he does not need to ship the transmission to another company to do the repair test. Reyes says that the money he saved doing the work in-house paid off the cost of the dyno tester in a matter of months. Since buying the dyno tester Reyes says he has had no returns due to faulty repair work and that since receiving the OHA loan - a part of whieh went towards other equipment - he has doubled his business. The loan, along with advice from OHA loan officers and instruction from Alu Like, also helped Reyes develop a stronger

business sense. "They really teach you how to do a business. We're a lot more careful of how we spend our money now," he says adding "it is one of our goals to pay off the (OHA) loan before the five years" stipulated in the contract. Reyes says that the loan fund rules and regulations may turn off a lot of Hawaiians looking for business financing but, if you stick with it, the payoff is positive. "You've got to hang in there. The end result is good." Matt's Transmission ean be reached in 'Ewa Beach at 6813399 and 1-800-500-0693. For more information about OHA's Native Hawaiian Revolving Loan Fund eall 594-1888.

Nathan Reyes inside his transmission workshop in Ewa Beach.

The dyno tester: OHA's loan has allowed Reyes to test transmissions inside his shop. Photos by Patrick Johnston