Basically your entire application (GRE scores, transcript from your BS/MS years, letters of rec, and statement of purpose - am I forgetting anything?) need to show 1) that you're committed to coming back for your PhD and 2) that you're able to follow through on that commitment. You need to address both points in your statement, and you also want your letter writers to back you up in both points. The mechanical guy you worked with, if he can speak to your research ability, commitment level, etc, could definitely be a good reference, and the PhD he has certainly lends some credibility - but do try to get references from faculty as well - they are in general taken more seriously, especially from a well-respected institution such as GaTech.