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Engine/Transmission (1994 - 1998) Recomendations for Engine builder

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I recently purchased a 97 12valve as a project truck for towing. I had the engine evaluated by a Cummins shop and found severe blow by and a long block or short block was recommended. I would prefer to have this engine rebuilt with modest HP improvements. I have pulled the engine and transmission and am talking to various shops about the work. Any recommendations for reputable engine builders in Michigan or Northern Indiana?
 
The engine builder I plan to use is in south TX, which I know is no help to you. I'm wondering how many miles on the engine and do you know how it was used?
 
The truck has 220,000 miles and was used to haul a gooseneck trailer. The culprit appears to be just plain poor maintenance. I was searching for a 12 valve 5 speed and bought the truck right but as I have looked at the details, the truck was very poorly maintained. There was an old K&N air filter in the air box that was out of position and so caked with dirt you couldn't tell what it was. How do you like the 3. 54 gears, I am also considering switching from the 410's that are in this truck. I am looking to retire my 99 24valve automatic from towing and switch to the 12 valve.
 
The only complaint about the 3. 54s is that I am limited to the stock 215/85 tire size for towing. Running empty they are great for mileage. I have thought about 19 inch Ricksons and 4. 10s when the gears wear out, but that would be a huge expense now that I have so many miles behind me.

I have more questions. Is the tappet cover gasket leaking and do you know how the Cummins mech determined you have excessive blow-by?
 
If yuo are will to travel to northern IL (near Aurora IL) I know of one. Send me a PM and I will provide the name and phone number the engine rebuilder.
 
I am going to move my 19. 5 Ricksons off of my 99. They are great but that expense was huge. Yes there are huge leaks on the tappet cover and everywhere else. The Cummins specification is a pressure diffential test using a manometer. There is no compression test for a Cummins. Mine was off the scale meaning the rings are gone.
 
I recommend going with a very well established shop that has a great reputation like Scheid Diesel, Piers Diesel Research, Industrial Injection, Dynomite Diesel Performance, Dr. Performance, etc. If you go to a smaller shop and anything goes wrong, you could have to start over again and lose lots of money. Speaking from experience.
 
I recommend Cummins, Inc. A factory rebuild from Cummins, the good folks who built the engine, would be my choice. A proven track record and a warranty make it a no-brainer choice for me if I ever need one.
 
A compression test will give you a general idea of the condition of the motor. But a "leak down" test will tell you the condition of all of the components ie: rings, valves, head gasket.
 
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