Big tires, little supply: OTR tire shortage remains severe, despite plants operating full out
By Miles Moore
Rubber & Plastics News Staff
A severe global shortage of large off-the-road tires caused by soaring demand in China, Russia and Indonesia will continue in 2005.
That´s the opinion of tire manufacturers, who are working flat out to meet demand, and dealers who find themselves on allocation. "There´s no less supply--every OTR tire plant in the world is running 24 hours a day," said Manny Cicero, vice president of OTR sales for Bridgestone/Firestone. "It´s all a function of exploding demand."
OTR tire demand increased more than 20 percent in 2004 from 2003, according to Todd Ramsey, director of marketing for Michelin Earthmover at Michelin North America Inc. "This demand is unprecedented in the history of the industry and was unanticipated by the industry," he said.
Goodyear agrees growth in OTR consumption in 2004 prompted the shortage. "From our standpoint, it was a result of increased demand, domestically and overseas," a Goodyear spokesman said.
OTR manufacturers aren´t even taking new orders now, dealers across the U.S. reported.
"We´re on allocation with everybody," said Terry Sparks, president of Sparks Commercial Tire Co. in Findlay, Ohio. "We have people calling us from all over, but unfortunately we can´t help them. We´re OK right now, but in 45 days I don´t know what we´re going to do if we don´t get more tires."
The shortage is starting to hurt mining, construction and other companies right down to the lowest-level employees. "If a mining company has to park a piece of equipment because it can´t find tires for that equipment, that takes the operator off the job right there," said Edward L. Johnson, sales and regional manager for Hudson Co., an OTR tire dealer in Hazard, Ky.
Bull market causes shortages
A tremendous increase in demand for minerals--especially coal, iron ore, copper, nickel and bauxite--with no matching increase in OTR manufacturing capacity is behind the OTR tire shortage, according to Otraco International Pty. Ltd.
"The demand for these commodities has been driven largely by the surge in development in China and, to a lesser extent, Russia and India," Otraco, a provider of OTR tire management services, said in report issued by the Australian firm in 2004.
OTR tire makers and dealers second that assessment.
See more here...
http://www.globaltirenews.com/headlines2.html?id=1109099785
Find OTR Tires Here: http://www.realhomebizgold.com/otr_tire.htm
Rubber & Plastics News Staff
A severe global shortage of large off-the-road tires caused by soaring demand in China, Russia and Indonesia will continue in 2005.
That´s the opinion of tire manufacturers, who are working flat out to meet demand, and dealers who find themselves on allocation. "There´s no less supply--every OTR tire plant in the world is running 24 hours a day," said Manny Cicero, vice president of OTR sales for Bridgestone/Firestone. "It´s all a function of exploding demand."
OTR tire demand increased more than 20 percent in 2004 from 2003, according to Todd Ramsey, director of marketing for Michelin Earthmover at Michelin North America Inc. "This demand is unprecedented in the history of the industry and was unanticipated by the industry," he said.
Goodyear agrees growth in OTR consumption in 2004 prompted the shortage. "From our standpoint, it was a result of increased demand, domestically and overseas," a Goodyear spokesman said.
OTR manufacturers aren´t even taking new orders now, dealers across the U.S. reported.
"We´re on allocation with everybody," said Terry Sparks, president of Sparks Commercial Tire Co. in Findlay, Ohio. "We have people calling us from all over, but unfortunately we can´t help them. We´re OK right now, but in 45 days I don´t know what we´re going to do if we don´t get more tires."
The shortage is starting to hurt mining, construction and other companies right down to the lowest-level employees. "If a mining company has to park a piece of equipment because it can´t find tires for that equipment, that takes the operator off the job right there," said Edward L. Johnson, sales and regional manager for Hudson Co., an OTR tire dealer in Hazard, Ky.
Bull market causes shortages
A tremendous increase in demand for minerals--especially coal, iron ore, copper, nickel and bauxite--with no matching increase in OTR manufacturing capacity is behind the OTR tire shortage, according to Otraco International Pty. Ltd.
"The demand for these commodities has been driven largely by the surge in development in China and, to a lesser extent, Russia and India," Otraco, a provider of OTR tire management services, said in report issued by the Australian firm in 2004.
OTR tire makers and dealers second that assessment.
See more here...
http://www.globaltirenews.com/headlines2.html?id=1109099785
Find OTR Tires Here: http://www.realhomebizgold.com/otr_tire.htm
posted by Arnold Cortez at 5:20 AM
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