“This is a crisis that affects everyone,” Kevin Rohwling, senior vice president of education and technical services for the Tire Industry Association, says of the global tire shortage. “Demand far outweighs capacity, and no one has excess supply.”

This phenomenon, which began in 2003, has “shocked the market,” according to Continental General Tire Off-the-Road (OTR) Field Manager Cara Junkins, who predicts the production shortfall to last an additional 18 to 24 months. “It caught everyone off guard,” Gary Nash, director of OTR sales for Yokohama Tires, reflects. “We’re behind in production about 10 months, with heavy back-orders. In 40 years in the tire business, I’ve never seen anything like this.” Prashant Prabhu, president of Michelin Earthmover Worldwide, adds, “This demand is unprecedented in the history of the industry and was unanticipated by the industry.”

Andrea Berryman, Goodyear’s global marketing manager for OTR tires, says her company’s plants are “full-out globally,” with no open capacity. “Every single tire is allocated.” She doesn’t see any relief from this crisis until late 2007, possibly 2008. “There’s simply an unprecedented level of demand, with the mining and construction industries, the military, and OE all cycling high at the same time.” She warns that 2006 will be a tougher year for tires than this year has been, because the reserves that manufacturers relied on to get through 2004 are nearly gone.

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