Modern Tire Dealer - December 2020

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11/12/20 12:00 PM

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MIDWEST 11/12/20 12:00 PM

New format, different focus SEMA360/Virtual AAPEX coverage What a Biden White House means for tire dealers Best practices for best results Expert tips for a great 2021 TIA president outlines priorities

MAKING

HAY

STEADY DEMAND FLOATS AG TIRE MARKET December 2020 | Vol. 101, No. 12 | $10 | www.moderntiredealer.com

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12/1/20 10:41 AM

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The Industry’s Leading Publication December 2020, Volume 101, Number 12

32 What’s so good about a flat segment of the market? Ag tire manufacturers explain, starting on page 32.

DEPARTMENTS 4 Editorial Good riddance to a lousy year And a fond farewell to MTD’s Lori Mavrigian

F E AT U R E S 20

A new format — and a (slightly) different focus

Management tips shared spotlight with new products during SEMA360 and the Virtual AAPEX Experience

30

New TIA president outlines key issues for 2021 Dan Nothdurft brings a tire dealer’s perspective to role

Commercial Tire Dealer™

6 moderntiredealer.com News and navigation tools for MTD’s website

8 Industry News What a Biden White House means for tire dealers: Six important issues to watch

16 Your Marketplace Demand remains volatile as 2020 ends: Meanwhile, tiremakers manage price versus volume

18 Numbers That Count

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Steady demand floats ag tire segment

In 2020, ‘flat’ is a good thing, say manufacturers

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Pat’s Tire serves a custom niche

Ag tire dealership’s next generation plans for the future

Relevant statistics from an industry in constant motion

50 Focus on Industry Bridgestone embraces ‘turning point’

43

WheelRight gives fleets a ‘third eye’ on tires

Snider Fleet Solutions sees potential in technology

52 DSP Insight Time to work ‘on’ — instead of ‘in’ — your business: Put these action plans in motion for a great 2021

56 Business Insight Discuss — but don’t forget to document: The four elements of an annual review

45

AG Tire Talk — How tire deflection impacts yield Understanding the nuances will lead to optimal performance

58 Creating a Buzz Make your website work for you: First steps to creating a powerful impression

59 Mergers and Acquisitions

49

Commercially Viable

‘If you don’t know where you’re going, any road will take you there’ Use your year-end review to create a successful 2021

60 TPMS Various Volkswagen models, 2012-2019

62 Products 64 Ad index 66 Classified

Modern Tire Dealer is a proud member of:

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Editorial

Good riddance to a lousy year AND A FOND FAREWELL TO MTD’S LORI MAVRIGIAN By

Mike Manges

I

t almost goes without saying that 2020 has been the most unusual year in living memory. You would be hard-pressed to find a person who has not been affected by COVID-19 in some way, shape or form.

Certainly the pandemic knocked everybody in and around our industry for a loop, but none more so than the folks who make all of this a reality: the customer.

From mid-March through the end of June, nearly 50 million new unemployment benefit claims were filed in the United States, according to data from the Commonwealth Fund. (By contrast, during the first 15 weeks of the 2007-2009 recession, 5.2 million new unemployment benefit claims were filed.)

Tiremakers were hit particularly hard by the knock-on effect.

Many were forced to suspend production at their plants when original equipment and replacement demand suddenly dropped.

This generated dramatic shipment revisions that are still ongoing.

You felt the squeeze, too. (But fortunately, many of you have rebounded robustly.)

That’s all old news, though. What I want to talk about is where I think we will land, as an industry, when 2020 soon draws to a close.

If tire manufacturers’ third quarter results are any indication, we will end the year in better shape than anybody could have predicted.

“Markets turned around in the third quarter, with a clear recovery in demand compared with the previous three months,” the Michelin Group recently said.

Demand for OE consumer tires rebounded “to the point where it ended the quarter unchanged from the prior year.” (Michelin said replacement consumer tire demand in North America rebounded by a more modest 2% during 3Q.) “Our third quarter performance reflected a strong rebound for Cooper,” Brad Hughes, Cooper Tire & Rubber Co.’s president and CEO, recently stated. The company’s consumer tire shipments grew by 9% in the U.S. during 3Q. Hankook Tire Co. Ltd. posted a third quarter operating profit gain of more than 220%. A portion of that was driven by replacement tire sales in the U.S. Toyo Tire Corp. officials have reported that their company is seeing an “earlier than expected” recovery. Yokohama Rubber Co. Ltd. has revised its full-year results in anticipation of a “stronger than expected” rebound.

Goodyear Tire & Rubber Co. Chairman, CEO and President Rich Kramer said that his company’s 3Q results “reflect increasing momentum as the global tire industry recovered more quickly than we expected during the quarter, led by the Americas.”

Nobody expects 2020 to match 2019. Shipments will be down.

Sales will be down. But things won’t be as bad as originally expected.

And our industry, as a whole, will find itself solidly positioned to tackle 2021. That’s good news.

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While we gladly say “good riddance” to 2020, MTD also bids a fond farwell to Lori Mavrigian, our longtime managing editor.

Lori will be retiring at the end of January after a 41-year career with MTD. I met Lori when I joined this publication in 1997 and knew next to nothing about our great industry. Lori ­— along with the rest of the MTD team — welcomed me with open arms and went out of her way to show me the ropes.

Over the years, I have watched Lori work quietly behind the scenes to keep MTD rolling — proofing stories with an eagle eye, writing articles, working with production teams to ensure the magazine makes it to the printer on time, Lori Mavrigian, our longtime mantaking beautiful photos aging editor, is retiring after 41 and serving as the “bridge” years with MTD. We’ll miss her! between editorial and sales.

And that list of Lori’s contributions only skims the surface.

At the same time, I have watched Lori treat her colleagues and industry contacts with respect, dignity and empathy, as well as her trademark warmth and kindness.

Lori’s next chapter begins soon and she tells me it will include spending time with her husband, Mike, and their many pets; visiting with her extended family, including her beloved nieces; catching up with old friends; lots of gardening, reading and photography; and so much more.

It’s tough to summarize a wonderful, 40-plus-year career in just a few paragraphs. And at this point, it seems futile to try.

Lori, on behalf of MTD; our parent company, 10 Missions Media; and all of your friends throughout our industry, I simply say “so long,” “thank you” and last but not least, “congratulations” and “happy retirement!”

See you around! ■ If you have any questions or comments, please email me at mmanges@10missions.com.

MTD December 2020 12/1/20 10:44 AM

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11/23/2020 11:11:36 AM

ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

MTD website keeps you informed MTD’s website provides you with breaking news, feature articles, links to exclusive MTD research and blogs, new products and much more 24/7. Check it out today!

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eNewsletters Sign up now for Modern Tire Dealer eNewsletters. We’ll send you the latest news and most popular articles.

Go to: www.moderntiredealer.com and scroll down to The Modern Tire Dealer Newsletter is the Definitive Source for Tire Dealer Success.

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Monro Inc. continues to convert stores to its Tire Choice brand and format.

Monro question asked and answered The item that most piqued our website readers’ interest over the past month was one concerning Monro Inc.’s latest acquisition. A Tire Talk with Mike blog entry that offered speculation about Monro’s next possible acquisition was another well-read item. Other hot stories this past month included an article about California resuming its plans to regulate replacement tires, a report about a price increase and a story about tariffs on Chinese-made tires. Here’s the complete Top 10: 1.

2.

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8.

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Monro buys 17 stores in California California resumes plans to regulate replacement tires Anti-dumping tariffs on Chinese tires will remain The ‘best’ and busiest online tire stores Monro’s back on the acquisition trail. Who will it pick up next?

Hankook will hike truck tire prices on Dec. 1 Falken TV brings custom content to dealers Next PLT tariff ruling delayed to end of 2020 Are you in compliance with local scrap tire laws?

Yokohama begins OTR consolidation in the U.S.

HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith, ext. 2212 gsmith@10missions.com EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Lori L. Mavrigian, ext. 2216 lmavrigian@10missions.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com PRODUCTION Art Director: Zach Pate Graphic Designer: Olivia Curti Production Artist: Lauren Coleman Production Manager: Karen Runion, ext. 2210 krunion@10missions.com SALES Publisher: Greg Smith gsmith@10missions.com (330) 899-2200, ext. 2212 Midwest: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 West Coast: Marianne Dyal /The Dyal Company mdyal@10missions.com (706) 344-1388, mobile (619) 990-5536 Automotive Aftermarket: Dan Thornton dthornton@10missions.com (734) 676-9135, mobile (734) 626-4950 Classified Sales: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 Reprint Sales: Karen Runion krunion@10missions.com (330) 899-2200, ext. 2210 CUSTOMER/SUBSCRIPTION SERVICE (800) 260-0562 subscriptions@moderntiredealer.com

EXECUTIVE OFFICE 10 Missions Media 571 Snelling Ave. N. St. Paul, MN 55104 (651) 224-6207 CORPORATE OFFICERS President: Jay DeWitt Vice President: Chris Messer Vice President, Content & Events: Bryce Evans

Modern Tire Dealer (ISSN: 0026-8496) is published monthly by 10 Missions Media, LLC, 571 Snelling Ave N, St. Paul, MN 55104-1804. Copyright © 2020 by 10 Missions Media, LLC. All rights reserved. Modern Tire Dealer content may not be photocopied, reproduced, or redistributed without the consent of the publisher. Periodicals postage paid at St Paul, MN and additional mailing offices. POSTMASTERS Send address changes to: Modern Tire Dealer, 571 Snelling Ave N, St. Paul, MN 55104.

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MTD December 2020 11/30/20 9:42 AM

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11/23/2020 11:15:17 AM

Industry News

What a Biden White House means for tire dealers SIX IMPORTANT ISSUES TO WATCH

Infrastructure funding: “Both sides campaigned” on this issue, but have taken “very different approaches,” he said.

In February 2018, the Trump administration presented an infrastructure plan that called for $200 billion in federal funding and an additional $1.5 trillion of funding to be provided by the private sector.

Littlefield said the proposal “included roads, bridges and mass transportation — the typical things — but also everything else: airports, ports, electrical grids... it would have been a major, national overhaul of infrastructure.” But the Trump plan “was kind of dead on arrival.”

Only recently did the Senate pass a resolution that included the one-year extension of current surface transportation funding, transferring $10.4 billion to the Highway Trust Fund.

“The Biden transition team has met with members of the Ways and Means Committee and the Senate Finance Committee and they are talking about a five-year, traditional highway funding bill” encompassing a narrower scope — highways, bridges and mass transit — at a much lower cost: $50 billion for the first year and probably less money in subsequent years.

“One thing about Biden that is different than Trump is that Biden is a creature of the Senate,” said Littlefield. “He knows the Senate inside and out. And he’s going to be able to

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reach across party lines, which Obama was not successful at doing and Trump was not very successful at doing.

“As vice president, Biden was the man on Capitol Hill for the Obama administration on the Affordable Care Act and he did get some Republicans to vote for that. A highway bill might be a bill in which they can show bipartisan support. I think this will be one of the (first) efforts of the Biden administration” to work across the aisle.

COVID-19: “I don’t know if (another relief package) will be out before Trump leaves” the White House in January, said Littlefield.

“I don’t know how focused Trump will be on that. But we have to do something about the pandemic, so we can help the economy get back in gear.”

On Nov. 9, Biden announced the formation of a COVID-19 task force, which he said will focus on “managing the surge in reported infections, ensuring vaccines are safe, effective and distributed efficiently, equitably and freely, and protecting at-risk populations.”

More financial relief for small business owners is critical, said Littlefield. “We worked with the Trump administration in making sure our members were classified as essential” during the early days of the pandemic “and in getting loan programs out. I hope that is something we can work together on.”

Tariffs: Littlefield doesn’t expect the Biden administration to roll back tariffs on tire and auto part imports from China.

“You have to remember, it was Obama who put the tariffs in...at the request of the union. Typically, Democrats have supported tariffs and Republicans have opposed them.

Whether or not tariffs have been successful depends a lot on who you talk to. My gut feeling is that Biden is probably going to support tariffs.”

The estate tax: Based on information relayed by Littlefield’s source, it appears the Biden administration wants to lower the

estate tax exemption to $3.5 million, while increasing the taxation rate to 45%.” (The top federal statutory estate tax rate in 2019 was 40%.)

Littlefield said TIA will continue “One thing about to oppose the estate Biden that is tax, which he noted different than Trump is that “is something all Biden is a creature small businesses of the Senate,” feel strongly about. said Littlefield. “He They want to pass knows the Senate inside and out.” their businesses onto their children and families, and a lot of times simply can’t afford to do that because of the estate tax.”

Sales tax: TIA supports all tire retailers, whether online or brick-and-mortar, competing on “a level playing field. Typically, the Democrats have supported the equal distribution of those taxes and the Republicans have opposed it. You would think (brick-and-mortar dealerships) would have a more sympathetic ear in the new administration.”

Healthcare costs: Tire dealers routinely identify the high cost of health care as their top concern. Trump wanted “to blow up Obamacare and start over, but we don’t know what his proposal is. Biden wants to keep (the Affordable Care Act) and expand it. Legislation will be composed to create a public option in the marketplace that relies on Medicare with no co-payments. The option will be made available to individuals, instead of to employee-provided plans,” and also to individuals who fall below the poverty line.

“A lot will be determined” by the Senate run-off election in Georgia in early January, according to Littlefield.

GAGE SKIDMORE

W

hat impact will a Joe Biden White House have on concerns that are vital to independent tire dealers? Roy Littlefield, CEO of the Tire Industry Association (TIA), identified infrastructure funding and more COVID-19 relief as two of the first issues Biden will most likely tackle.

Littlefield, who has been in contact with an individual working directly with the Biden transition team, discussed possible scenarios and provided some historical context for the following six issues:

MTD December 2020 11/30/20 9:43 AM

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11/24/2020 10:23:39 AM

Industry News

SimpleTire invests in new site, operations

Bites Voters want repair data Voters in Massachusetts voted to preserve consumer and independent tire dealership access to telematically transmitted vehicle diagnostic and repair data. The measure ensures car owners can control the data that is transmitted by their vehicles.

Prices are going up Hankook Tire America Corp. has raised prices up to 5% for its commercial tires sold in the U.S. Yokohama Tire Corp., which earlier raised consumer tire prices, also has increased truck and bus tire prices by up to 6%.

Yokohama merges OTR Four years following the acquisition of Alliance Tire Group, Yokohama Rubber Co. Ltd. is consolidating its off-highway businesses into a single entity: Yokohama Off-Highway Tires.

The U.S. operation, Yokohama Off-Highway Tires America Inc., will be housed in Wakefield, Mass., and is led by Dhaval Nanavati.

First tires delivered Southern Tire Mart LLC, the country’s largest independent commercial tire dealership, recently received the first shipment of truck tires from Continental Tire the Americas LLC’s plant in Clinton, Miss.

Leeds West expands again Leeds West Groups has acquired its sixth Midas store in Oklahoma, giving the company 81 Midas locations around the country.

The company took ownership of the store and real estate on Nov. 6.

VIP opens two stores In a two-day span, VIP Inc. celebrated the openings of two VIP Tires & Service locations — a new store in Vermont and a larger space in Windham, Maine.

Plaza Tire expands Plaza Tire Service Inc. has opened a new, eight-bay store in Kirkwood, Mo., its 15th location serving the greater St. Louis metro area.

Zurcher adds Continentall Zurcher Tire Inc. will distribute agricultural tires made by Continental Tire the Americas LLC via its 10 distribution centers throughout the Midwest. Zurcher Tire was founded by Paul Zurcher in 1948.

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nline tire seller SimpleTire LLC is making major investments in its operation — starting with a revamped website, says SimpleTire CEO Andy Chalofsky.

The redesigned site is focused on “making the journey for the customer easier and making it so that buying tires — for the everyday person, not just the experts — is not only achievable, but also a simple, easy experience.

“We’ve created a tool which allows customers to search any way they find comfortable. Think of it as a Google search engine on our site.

“Another area is personalization,” he says. “We know that customers value a total assortment” of tires and brands “and also flexibility. We want to make sure customers know we have everything, but they can also get the tire they want. Things like ‘top picks’ and ‘OE on vehicles’ and ‘popular in your area’ are some of the beginning elements of the personalization we’ve done to the site.”

SimpleTire also now gives tire buyers the ability to pre-pay for installation. The company collects buyers’ money online “and then we remit it directly to the installer,” says Chalofsky.

“It creates a smoother transaction for both parties. I would say that the installers who have gone through the process have come back and said it did yield a better customer experience and that customers were happier.”

The company also is making investments in its personnel, with the intention to grow. “We’ve hired supply chain, marketing, finance, analytics and programming people. There isn’t an area of our business we haven’t made an investment in.

“The other big thing for us is that we are continuing to work with a lot of small businesses, particularly independent tire dealerships,” and enrolling them as installers.

Chalofsky says COVID-19 has accelerated customer acceptance — and use — of e-commerce platforms across all industries.

“And that has been no different in the tire and auto service categories. Independent dealers are seeing this as an opportunity to

“We look at our site and the customer experience as a living, breathing thing,” SimpleTire CEO Andy Chalofsky told MTD. “It’s ever-evolving.”

drive customers in the door, rather than something that is there to disrupt their business. Unless you think that online is going away — which I think we can agree that it’s not — this is an opportunity. We are seeing more businesses come around to that mindset.”

When discussing whether or not COVID-19 has impacted SimpleTire’s sales mix, Chalofsky says that although he “can’t paint it with a broad brush, certainly right after COVID-19 (hit), we did see customers being a lot more conservative with their dollars. People were unsure of what the future was going to look like.

“As we’ve normalized a little bit — and certainly with our new site — we’re still seeing that customers are finding a lot of value in tier one and tier two. But I wouldn’t say that there’s been one shift and that was the end of it.

“I think this is a really unique time,” says Chalofksy. “And I think the thing you’ll see the most out of us is an increased focus on relationships with our partners,” including tire dealers and other installers.

“We’ve had a lot of great partners and businesses reach out and I would expect more of that in 2021.”

MTD December 2020 11/30/20 9:43 AM

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11/18/20 2:59 PM

Industry News

Bites Tariffs due for Vietnam The Department of Commerce says it has found evidence that tiremakers and tire exporters in Vietnam have benefited from government subsidies in 2019. As a result, consumer tires imported into the U.S. from Vietnam should be assessed countervailing duties ranging from 6.23% to 10.08%.

Kumho hits 60 Kumho Tire Co. Inc. is celebrating 60 years in business, but also looking to the future, promising an expanding portfolio of products and services with a focus on “innovation, safety and quality manufacturing.”

Big O dealer expands Tim and Terri Hollander have opened their fourth Big O Tires store in New Mexico. The new store in Carlsbad joins other Big O locations that the Hollanders own in Roswell, Alamagordo and Ruidoso Downs, N.M.

GB acquires in Texas GB Auto Service Inc. has bought Reliable Automotive,based in Hays County, Texas.

Founded in 2012, the company operates stores in San Marcos, Buda and Kyle, Texas.

VSG renovates facility Vehicle Service Group is spending $7 million to expand and renovate its Madison, Ind., facility, which will allow it to greatly expand its manufacturing capacity.

Consumers to travel more Hankook Tire America Corp.’s latest survey of American drivers shows that most (74%) still plan to travel for the holidays, and most of those travelers (78%) plan to drive in light of anxiety about COVID-19.

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umitomo Rubber North America (SRNA) is helping Falken dealers maximize the impact of one of the most common and underutilized showroom assets: the flat screen TV. The company’s Falken Digital TV platform provides dealers and consumers with custom-made, streaming content through a device that plugs into screens Information can vary from a 30-second commercial spot to a 15-minute-long training session about a particular Falken product, according to Nick Fousekis, director, advertising and promotions, SRNA. “The content on Falken Digital TV is constantly changing,” notes Fousekis, who plays a key role in conceptualizing and developing material for the platform, which was introduced in 2018. “Viewers could watch our service for over 20 days straight and not see a replay.”

Popular content includes vignettes in which SRNA executives discuss industry trends, market developments and news, plus content created for Falken’s popular Dealer Resource Forum series, which SRNA implemented immediately after COVID-19 hit.

“Some content is fully created in-house by our creative team, while other projects are outsourced.”

Care is taken to maintain a con- Falken TV often features training sessions.

Bakari Howard, product training sistent level of useful information, Here, supervisor, discusses the features and adds Fousekis. And not all of it is benefits of some Falken products. solely focused on products. Falken Digital TV “isn’t a Falken infomercial from 7 a.m. to 6 p.m., seven days a week. That’s the beauty of it.”

Feedback from dealers has been “very positive,” he says.

“On more than a few occasions, dealers have reached out to us, sharing their experiences on how the information shown on Falken Digital TV helped them sell Falken.

“We will continue with programming that dealers have grown to love,” and will integrate even more content in the coming year.

“But the overall feel of Falken Digital TV will stay true to the original concept of it being automotive-minded. And we’ll mix in some outdoor adventure content, which I’m sure will be welcomed” by both dealers and customers “after a year of being cooped-up at home” due to the pandemic.

Tyrata finds investors Tyrata Inc., a tire sensor and data management company whose investors include Dealer Tire LLC, raised $2.9 million in financing to continue and speed up its production of IntelliTread, a drive-over tread wear monitoring system.

Platform gets upgrade Zhongce Rubber Group Co. Ltd. (ZC Rubber) has created a global customer service platform online for tire dealers that will serve as a one-stop solution for tire information, marketing support and after-sales service.

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Falken TV offers custom content

F

Tariffs on Chinese PLT tires will remain

ive years after tariffs were imposed on passenger and light truck tires imported from China, the Department of Commerce (DOC) has determined that removing those tariffs would likely result in tires being dumped in the U.S. market — subsidized by the Chinese government — once again.

The DOC has said it believes if the tariffs were removed, the U.S. tire market would return to pre-2015 conditions.

In 2014, the U.S. imported 60.5 million passenger and light truck tires from China.

Since the tariffs were imposed, those imports have dropped dramatically — by 94% — to 3.4 million tires in 2019, according to MTD research.

Anti-dumping tariffs of up to 87.99% and countervailing duties that range from 20.73% to 116.73% are leveraged against those products when they arrive at U.S. ports.

MTD December 2020 11/30/20 9:44 AM

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11/18/20 2:58 PM

Industry News

Bites Camso buys dealer Michelin-owned Camso North America has acquired two material handling tire businesses from Metro Industrial Tires, which has locations in the Chicago suburbs of Lombard and Alsip, Ill. Each Metro Industrial Tire location operates a fleet of press trucks.

Giti is certified Giti Tire Manufacturing (USA) Ltd. has received two certifications — ISO 9001 and IATF 16949-2016 — for its tire manufacturing plant in Richburg, S.C.

Dealers cancel meeting The California Tire Dealers Association (CTDA) has canceled its annual CTDA/1800EveryRim New Year luncheon due to the COVID-19 pandemic.

Recycling stalls A report from the U.S. Tire Manufacturers Association says nearly 76% of scrap tires were recycled into products like rubbermodified asphalt and landscaping mulch in 2019, down from 96% just six years prior.

California resumes plans to regulate replacement tires

I

n 2021, the California Energy Commission (CEC) plans to implement a replacement tire efficiency program. Its goal is to ensure that replacement tires sold in the state are just as energy efficient as the tires installed as original equipment on vehicles.

The rule, which has been in the works since 2003, will apply to replacement tires for passenger cars and light-duty trucks.

Patty Monahan, one of the five commissioners from the state’s energy department, will oversee the proceedings.The commission has the full authority to hold hearings, conduct investigations and collect information as part of its work.

In anticipation of making rules in the spring of 2021 “or thereabouts”, the CEC says it plans to collect data and comments from specific and interested stakeholders.

Those parties would include — but will not be limited to — tire manufacturers, retail tire businesses, tire testing labs, consumer information groups, environmental interest groups, electric utilities and government agencies.

The CEC will collect data from several angles, including tire sales, recycling, efficiency technologies and more.

California intended for its program to develop alongside federal rulemaking. In December 2015, Congress passed the Fixing America’s Surface Transportation Act (FAST Act), which set minimum performance standards for passenger car tires.

The National Highway Transportation Safety Administration initiated rulemaking on the issue, but that work was halted in 2017. Because of that, the federal program has been halted “indefinitely.” California is picking up the pieces of its own program to set standards for tires sold in the state.

Toyo CEO Roy Bromfield to retire

TBC adds office TBC Corp. has built a new office building in Palm Beach Gardens, Fla. The fourstory, 61,000-square-foot structure is known as TBC South and will move all of the firm’s Florida corporate associates to a single campus.

Dealer goes digital Fountain Tire Ltd. has introduced digital vehicle inspections and reports at all 160 of its locations across Canada. Customers receive photos and detailed descriptions from the inspection process.

Love’s nears 400 Love’s Travel Stops is getting close to opening its 400th Truck Care location. The company recently added locations in Oak Grove, Ky.; Ellabell, Ga.; Holladay, Tenn.; New Florence, Mo.; and Wadsworth, Ill.

No more late fees Katapult Holding Inc., which offers leasepurchase options to consumers, says it will no longer charge consumers late fees on late lease payments.

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T

oyo Tire U.S.A. Corp.’s CEO and President Roy Bromfield will retire in 2021 upon selection of, and successful transition to, a successor.

Bromfield was named Toyo’s first American CEO and president in October 2017 and has been credited with “building a strong culture, developing the company’s channel and customer strategies, revamping Toyo Tires’ product offerings, enabling the thrill of the Toyo Tires brand and leading significant market growth and profitability,” according to the company.

Prior to his appointment as president and CEO, Bromfield held other positions at Toyo, as well as executive-level positions at Michelin North America Roy Bromfield plans Inc. and Q Tires. He joined the tire industry in 1984. to retire from Toyo in 2021. A search for his “The tire industry has provided me with a rewarding replacement is underway. career and enabled me to provide for my family in keeping with the American Dream,” says Bromfield. “I am so thankful for the people along the way who have helped me attain success in serving my companies and our employees and customers.

“Toyo Tires has been a great adventure for the past eight years and what a pleasure it has been to get to know beautiful Japan and its unique culture, delightful people and wonderful food. I am honored to be able to head into retirement on a timetable that I have chosen. I will work closely with executive management to find a successor and to set him or her up for a positive transition. Whoever that is will inherit an elite team, excellent products, a great brand and a successful business model.” ■ MTD December 2020 11/30/20 9:44 AM

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11/24/2020 10:21:25 AM

Yo u r M a r k e t p l a c e

Demand remains volatile as 2020 ends By

John Healy

MEANWHILE, TIREMAKERS MANAGE PRICE VERSUS VOLUME

D

emand for consumer tires continues to swing up and down due to the uncertainty surrounding the ongoing COVID-19 pandemic.

The headline of my column last month asked, “Is the market gaining strength?” I reported that dealer commentary suggested that demand was up in September versus levels seen during the month of August.

More recent dealer commentary indicates that demand for passenger and light truck tires was down in October versus the same month in 2019.

The net number of respondents to our latest survey reported that they saw a year-over-year demand increase of 10% during October.

However, 30% of our contacts experienced flat trends for the month. This compares to 30% who said they experienced growth one year prior. We also note that our tire demand index is down 15.4% year-over-year for the month of October.

Our contacts noted that the decline in consumer tire demand can be attributed to the increase in COVID-19 cases throughout the country, which is causing further economic uncertainty.

This translates into many consumers deciding to hold off on purchasing new sets of tires, while opting to buy tires on an as-needed basis as winter arrives.

We continue to hold the perspective that volumes — in the long run — will become more closely aligned with the current level of GDP growth.

However, the months ahead will likely show mixed trends that parallel the rate at which state economies either close again or reopen.

DEALERS ARE STILL OPTIMISTIC

When examining the landscape from a longer-term view, we continue to believe that the pricing environment in North America will remain rational and in-line with raw material costs.

As we have stated in the past, we expect that tire manufacturers will continue to remain disciplined as they attempt to manage price versus volume — with an eye on maximizing profit rather than maximizing market share.

We are happy with the disciplined approach that manufacturers have taken when it comes to production, which has resulted in lean inventory levels.

Moreover, tire dealers and wholesalers continue to manage their inventories very carefully in light of ongoing pricing actions, the threat of more tariffs and other impacts.

As we look ahead to 2021, many dealers maintain an upbeat outlook, despite the aforementioned challenges.

This is being driven by the continued upward trajectory of miles driven, frugal consumers who are opting to maintain older vehicles, the potential for favorable weather conditions and the potential for another round of stimulus checks, which could help consumer recovery.

As such, we are hopeful that sell-out trends in 2021 will gain momentum.

Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year Change) Aug-19

Sep-19

Oct-19

Aug-20

Sep-20

Oct-20

Average

Increase

64%

38%

50%

38%

57%

40%

41%

Flat

29%

38%

30%

31%

14%

30%

29%

Decline

7%

24%

20%

31%

29%

30%

30%

100%

100%

100%

100%

100%

100%

100%

Total

SOURCE: NORTHCOAST RESEARCH ESTIMATES

16 02_MTD_News-Numbers.indd 16

We expect that tire manufacturers will continue to remain disciplined as they attempt to manage price versus volume.

FOCUS ON TIER TWO

In my last column, I mentioned that tier two products experienced the most growth during the month of September. That trend continued throughout October.

Again, this is relatively unsurprising, as the recent spike in COVID-19 cases in some localities, the reality of the long-term economic backdrop and changes in power at the federal government level have caused increases in uncertainty.

It also marks the second consecutive month in which we have seen month-tomonth consistency in tier rankings. (After the pandemic hit, there was a gravitation toward tier three products and brands.)

We maintain our view that consumers have settled into a pattern in which they seek both value and performance from the tires they buy.

THE LATEST ON RAWS

Holding current prices flat, we believe it will cost 7.6% less to produce a standard consumer tire during the fourth quarter versus prior-year levels.

Cost pressures in raw materials have continued as raw material prices were projected to fall nearly 7% year-over-year during the third quarter of 2020.

We note that crude oil prices continue to drop and are now down 41% year-over-year.

But carbon black, as in previous months, is experiencing a rebound. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, which is based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD December 2020 11/30/20 9:46 AM

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11/18/20 3:05 PM

NumbersThatCount

Relevant statistics from an industry in constant motion

1957

The year a vehicle first had a computer component. The 1957 AMC Rambler Rebel had the first electronic fuel injection system designed for a production car.

SOURCE: WWW.YEAHMOTOR.COM COURTESY OF AMERICAN MOTORS CORP.

14

Number of cars Ferrari manufactures per day SOURCE: WWW.ALTDRIVER.COM

13,000

Number of cars Toyota produces per day SOURCE: WWW.ALTDRIVER.COM

90%

1907

Percent fatalities are reduced from accidents by “roundabouts.”

They also reduce wait times, save on gas and enable a:

The year the world’s first purposebuilt motor racing circuit opened, called Brooklands. The track is 2.75 miles long and was home to the first ever British Grand Prix, held in 1927.

37%

SOURCE: WWW.TOPGEAR.COM

$219.74

Average overall advertised price for a size 275/65R18 tire in 2019. The average cost for a major brand was $244.87, while a low-cost tire in this size cost an average of $162.95.

18 02_MTD_News-Numbers.indd 18

SOURCE: LIZEO AMERICAS LLC, MODERN TIRE DEALER JANUARY 2020 FACTS ISSUE

40%

Percent of check engine warning lights that are caused by faulty oxygen sensors.

SOURCE: WWW.YEAHMOTOR.COM

reduction in overall collisions

40%

reduction in pedestrian collisions

75%

drop in injury-causing collisions SOURCE: FEDERAL HIGHWAY ADMINISTRATION, WWW.SAFETY.FHW.DOT.GOV COURTESY OF THE FEDERAL HIGHWAY ADMINISTRATION

1.2 BILLION

The number of cars in the world today. There were 500 million in 1986. According to Bernstein, a research house, there will be a total of two billion cars on the planet by 2040.

SOURCE: WWW.THEFACTFILE.COM COURTESY OF UNSPLASH.COM/@5TEP5

1940

The year the first four-wheel-drive car for the U.S. military was produced. It was called the Jeep.

SOURCE: WWW.THEFACTFILE.ORG COURTESY OF GETTY IMAGES

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11/23/2020 11:18:34 AM

SEMA360/Virtual AAPEX Experience

A new format — and a (slightly) different focus

MANAGEMENT TIPS SHARED SPOTLIGHT WITH NEW PRODUCTS DURING SEMA360 AND THE VIRTUAL AAPEX EXPERIENCE By

MTD staff

T

• Kate Burnett from Tire Rack Inc. in try, Rigney said TIA membership “has remained steady” throughout the year South Bend, Ind., who received a $1,625 as “tire dealers, retreaders and suppliers scholarship to study environmental have recognized the many benefits of sustainability at Indiana University. being a TIA member.”

Her father, Bruce Burnett, works for MTD Editor Mike Manges thanked Tire Rack.

Rigney for his work as president and • Brendan McLernan from McCarthy Tire presented him with a portrait Service, who received a $1,625 scholarship to in appreciation.

Dan Nothdurft is taking study engineering at Rigney’s place as TIA president Penn State University. and talked about how he’s been His father works for “living the dream” as an indethe tire dealership in pendent tire dealer since 1986.

Philadelphia.

He and his brother own four • Charles-Trey Weltens Tires Tires Tires locations in of Pilger’s Tire & Auto Iowa and South Dakota.

Center in College StaNothdurft mentioned others tion, Texas, who received TIA CELEBRATES INDUSTRY who have lived similar dreams a $3,000 scholarship to TIA was forced to put its centennial celof starting a small business study mechanical engiebration on hold when the in-person and working to make it grow, neering at Rice University.

Outgoing TIA President SEMA Show was canceled. But including Ken Lang- Brian Rigney received this His father works for PilTIA’s leaders continued their best hals, the founder of portrait from MTD in honor ger’s Tire. efforts to recognize the industry’s K&M Tire Inc.; Bruce of his accomplishments. accomplishments of 2020 during Halle, the late founder During the event, TIA a virtual session. of Discount Tire and America’s CEO Roy Littlefeld and Roy Littlefield IV, Brian Rigney, TIA’s outgoing Tire; and Billy Eordekian, presithe association’s director of government president, led the association’s dent of 1-800EveryRim. affairs, discussed several legislative issues Tire Industry Honors event, that TIA is trying to solve.

“Here’s to another 100 years which was held via Zoom on of living the dream in the tire These include development of regulaNov. 2. Rigney talked about industry,” said Nothdurft. tion that would spare tire dealers from the some of his own work during Steve Akridge of During the event, TIA preonerous fines that can be imposed in the the Virginia Autoa year that was headlined by motive Associasented its Industry Achievement event that consumer tires are registered COVID-19. improperly or mistakes are made during tion received TIA’s Award to Steve Akridge, executive Rigney said he wanted TIA Industry Achieve- director of the Virginia Automothe tire registration process. to continue its online training ment Award for tive Association, for his work to Both Littlefields reiterated TIA’s opposihis efforts to save programs and even expand the Virginia’s state successfully ward off the elimination to the possible reinstatement of federal offerings with leadership training, vehicle inspection tion of the state’s annual vehicle excise taxes (FET) on passenger tires and as well as tire service courses program. inspection program. tread rubber, as well as an FET increase on offered in Spanish. He appointed Michelin North America Inc.’s commercial truck tires, both of which have Russ Devens, director of safety and risk Cara Cornelius also announced three been discussed as possible infrastructure management at McCarthy Tire Service Co. college students who were presented with funding methods.

Inc., to chair TIA’s training committee and 2020 Michelin/TIA scholarships.

COVID-19 relief also was addressed. lead the planning of how the association The awards are given to children or “We’ve been very active” in fighting for grandchildren of those working in tire additional relief packages that would benefit can offer its training seminars safely.

Despite disruptions to the indusdealerships. Winners for 2020 are: TIA members, said Littlefield IV.

he cancellation of the in-person Specialty Equipment Market Association (SEMA) Show and the Automotive Aftermarket Products Expo (AAPEX) due to concerns around the ongoing COVID-19 pandemic forced the organizers of both events to pivot to an all-digital format.

Exhibors used the virtual shows as vehicles to introduce new products and highlight existing ones. SEMA360 and the Virtual AAPEX Experience also featured business management seminars designed to help attendees run their operations more effectively. And the Tire Industry Association (TIA) found a way to maintain its involvement.

20 03_MTD_SEMA_TIA.indd 20

MTD December 2020 11/30/20 12:29 PM

Tiremakers highlight new products during SEMA360

S

ignificantly fewer tire companies used SEMA360 to unveil new products than normally seen during past editions of the SEMA Show. But those companies that took advantage of the opportunity made a big splash.

optimal stability; wide shoulder channels for wet surface driving; and other features.

By the end of 2020, the tire will be available in 27 P-metric and LT sizes for 74% coverage of the North American all-terrain segment.

GT RADIAL GET-UP-AND-GO

Atturo Tire Corp. displayed its new AZ850 Muscle ultra-high performance passenger tire line, the company’s first foray into the American muscle car market.

“This new lineup features the brand’s same, proven, ultra-high performance AZ850 tire in new sizes specific to muscle car applications,” like the Chevy Camaro, Ford Mustang, Dodge Charger and Dodge Challenger, according to Atturo officials.

The Atturo A Z 8 5 0 Mu s cl e features an asymThe new Atturo metric tread design AZ850 Muscle targets the Chevy with different inside and outside contours Camaro, Ford Mustang, Dodge for optimal balance Charger and other across its tread face. muscle cars.

“This evenly distributes the pressure of the contact surface to enhance traction and handling.”

“Mopar enthusiasts actually discovered us,” says Atturo President Michael Mathis.

“They started using the AZ850 on cars like the Challenger and the Charger. They were hitting the dragstrips and discovering how well the tire performed.”

After seeing the AZ850 used in these applications, Atturo “recognized that the muscle car market is a natural fit” for the brand.

“People who own muscle cars — whether it’s a Challenger, Charger, Mustang or Camaro — are enthusiasts about their vehicle,” notes Mathis.

“One thing they loved about Atturo is that we were delivering great value. And we

Two new GT Radial tires were displayed during SEMA360: the Champiro SX2 RS, an extreme performance summer tire, and the Adventuro ATX, an on/off-road all-terrain product.

The Champiro SX2 RS is a DOTapproved tire that builds upon a product that was developed for Formula Draft, according to Thomas Okihisa, GT Radial director of marketing.

The new tire “is intended for track day enthusiasts,” says Okihisa, who adds that the tire is available in two, W-rated sized: 245/40ZR18 and 295/40ZR18.

It features a high performance, raceinspired compound formulated for both street and track applications; an asymmetric tread pattern; dual shoulder blocks for enhanced cornering and grip; a wide center rib and other elements.

The Champiro SX2 RS is manufactured “at our factory in South Carolina and was developed by our research and development people in the same facility.”

The new A ls o made in Champiro SX2 RS South Carolina, the from GT Radial is a W-rated, DOTAdventuro ATX allapproved extreme terrain tire provides performance pickup truck and product.

SUV owners with aggressive looks and a balance of on/ off-road performance.

The tire boasts 3-Peak Mountain Snowflake certification for enhanced winter performance; an interlocked center rib for w w w . M o d e r n T i r e D e a l e r. c o m 03_MTD_SEMA_TIA.indd 21

ATTURO MUSCLES IN

actually found the muscle car market to be similar to the Jeep segment. Both are full of enthusiasts who love their vehicle and are highly likely to modify it.”

Atturo’s market research has found that of the more than 1.8 million muscle cars currently on the road today, more than 44% of their owners are likely to modify the vehicles, with the most likely modification being a new set of performance tires.

“To cater to this audience, Atturo is releasing initial size ranges for the AZ850 Muscle lineup in 19- and 20-inch rim sizes, with staggered applications for the Challenger, Charger, Mustang and Camaro,” say company officials.

ON THE ARISUN

Zhongce Rubber Group Co. Ltd. (ZC Rubber) is bringing two new truck tires to the North American market under its Arisun brand.

The Arisun AS600+ is designed for long-haul applications and the Arisun AZ692 is made for mixed-service use. ZC Rubber says the tires provide longer mileage, proficient handling and fuel efficiency, among other benefits.

The Arisun AS600+ is designed for the steer and trailer axles on trucks, as well as universal use on buses.

Its wide tread profile promotes stability, while providing precise handling performance in all weather conditions.

Four straight grooves provide fuel efficiency and drainage ability.

The all-position Arisun AZ692 features a wide tread design and zigzag grooves. It also boasts The Arisun AZ692 is one of stone ejectors. two truck tires Both tires will be introduced by ZC warranted through Rubber during three retreads for SEMA360. seven years and showcase the company’s focus on high-end products, according to ZC Rubber officials.

21 11/30/20 12:21 PM

SEMA360/Virtual AAPEX Experience The new Quick Check Drive and Quick Check Edge heavyduty inspection system can “cycle trucks through continuously, eliminating the need for stopping or labor,” according to Hunter officials.

T

Hunter Innovation Expo showcases new shop products

raditionally, Hunter Engineering Co. uses the in-person SEMA Show to unveil a wide range of products and solutions. The company followed suit this year with its all-digital Hunter Innovation Expo.

During the event, which coincided with SEMA360 and the Virtual AAPEX Experience, Hunter introduced its Quick Check Drive and Quick Check Edge heavyduty inspection system, which can “cycle trucks through continuously, eliminating the need for stopping or labor,” according to Hunter officials.

The new heavy-duty inspection system supports multi-trailer configurations, dual axles and super-single tires.

“Once a truck has passed through, alignment and tire tread results can be automatically displayed through Flightboard,” a digital display board that allows customers to see results first-hand.

Shops without digital display capabilities also can present information from any PC or tablet with an Internet connection.

“Customers can get a full health report,” says Pete Liebetreu, Hunter’s vice president of marketing.

The Quick Check Drive and Quick Check Edge heavy-duty inspection system “will really help fleets that are trying to

22 03_MTD_SEMA_TIA.indd 22

control their costs and tire dealers who are trying to increase their revenue by finding needed work.

“Inspection equipment has a great payback on it, especially as it relates to heavy-duty applications.”

Also on display was Hunter’s new HD Elite heavy-duty wheel balancer, which the company says measures run-out and balance faster “than any traditional balancer.”

The machine solves vibration issues by detecting and matching the high spot of tires using a diagnostic load roller and features a patented laser vision system to help eliminate technician errors.

“Run-out is critical in heavy-duty,” according to Liebetreu.

The HD Elite also offers self-calibration via Hunter’s eCal auto-calibration system and comes with a wheel lift that can hoist assemblies up to 500 pounds in weight. “It can do passenger car tires, as well. We call it ‘Kia-to-Kenworth’ capability.”

In addition, Hunter displayed a new, four-post lift for heavy-duty applications, which features 30-inch wide runways; a new tire cutter accessory that uses a vertical blade to cut apart —and remove — foamfilled tires from rims; the TCX58/TCX59 tire changer, which features Hunter’s new FastBlast inflation system; and the company’s

Revolution H tire changer, which is the firm’s “first Internet of Things tire changer.”

The Revolution H machine interfaces with the HunterNet 2 system, a new data portal that allows customers to log in and “and conduct all of their Hunter business.”

Hunter’s customers can use HunterNet 2 to instantly measure the return on investment of their newest pieces of equipment.

The technology also can be used by Hunter customers who own older equipment.

They can see revenue potential, view daily and monthly equipment use and set profit goals for all the equipment in a store.

In addition, customers “can filter results.”

(The system includes historical information, among other data.)

HunterNet 2 is available at no charge to any Hunter customer in North America.

Customers who don’t yet have Hunter’s newest connected machines can use the portal to “purchase Hunter consumables” and also “keep track of each piece of Hunter equipment in a shop, as well as the manuals and documents that go with them,” according to Hunter officials.

HunterNet 2 “will evolve weekly or monthly,” says Liebetreu. “And we’ll continue to add more value to the platform. It’s the framework all of our future products will mesh into.”

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11/18/20 3:04 PM

SEMA360/Virtual AAPEX Experience “This venture brings together two innovative and exciting companies, working together for the first time on important technology for cars today and into the future.”

The new calibration tools will be available through Hunter’s distribution network.

BARTEC TPMS TOOLS

Bosch and Hunter have collaborated on an integrated alignment system to calibrate ADAS.

Bartec USA highlighted two new TPMS service tools during SEMA360. They include the Tech450Pro, a premier TPMS scanner that replaces Bartec’s popular Tech400Pro. “Bartec designed the Tech450Pro to be a direct replacement, so that our many large customers can smoothly transition into our latest hardware technology without disrupting current standard operating procedures and causing unnecessary training requirements,” according to company officials.

“The Tech450Pro operates and functions just like the 400Pro - only on better hardware and with a bigger display.”

Bartec calls the Tech450Pro a “workhorse tool.” It enables full TPMS service, WiFi updating, the ability to adjust recommended inflation settings and more.

The device features a familiar flow menu, a long-lasting battery and Bluetooth connectivity. And it comes with a twoyear warranty.

Also new from Bartec is the Tech600Pro, which “is designed for use by both the beginning service technician and the expert automotive service professional.

“Where high-tech and affordability meet, the Tech600Pro offers many advanced features that will help service many more vehicles that have TPMS.” The Tech600Pro enables OBDII relearns and other functions, while providing faster TPMS service, greater flexibility and wider coverage of sensors.

It features a large, highresolution color display; The new Tech600Pro a graphical user interface; “is designed for use a wireless connection by both the beginning service technician interface; improved signal and the expert detection and is Bluetoothautomotive service enabled. It also comes with professional,” say a two-year warranty.

Bartec USA officials.

ADAS and TPMS products take center stage

S

everal companies highlighted advanced driver assistance systems (ADAS) and tire pressure monitoring system (TPMS) tools, systems and technologies.

BOSCH/HUNTER TEAM UP ON ADAS

Bosch Automotive Aftermarket and Hunter Engineering Co. have collaborated on an integrated alignment system to calibrate ADAS. Bosch says the system marries its ADAS technology with Hunter’s expertise in alignments to provide technicians and dealership owners with a reliable and accurate calibration system.

The system is co-branded with the Bosch and Hunter names and features the hardware to calibrate ADAS systems “for the majority of global automakers.”

In a joint release, the companies say the collaboration provides technicians with the accuracy and workflow efficiency

24 03_MTD_SEMA_TIA.indd 24

they need to perform the time-sensitive work.

“Bosch’s knowledge in ADAS system design adds an understanding of different assistance systems that’s not available on other products,” says Michael Simon, director of strategic business for the Bosch Aftermarket division.

“Our technology background - combined with the credibility customers expect from Hunter - will deliver a calibration system that’s innovative, efficient and accurate.”

Kaleb Silver, director of product management at Hunter, says her company “is proud to collaborate with Bosch.

MTD December 2020 12/1/20 10:46 AM

T

Business management: Dealers find that both old and new marketing work in 2020

ire dealers have learned plenty of lessons while navigating uncertainties in 2020, and the leaders of Grupo Tersa and Waukegan Tire & Supply Inc. say the importance of marketing has been a big one.

The dealers talked about their lessons learned and strategies during a Tire Industry Association-hosted session that focused on successful tire dealers.

Rodrigo Valle Hernandez, executive president of Grupo Tersa, is a tire dealer in Mexico who oversees a business that spans seven Mexican states, 26 cities and more than 150 stores, plus a large wholesaling operation. In addition, he owns 13 car dealerships.

As a result of the COVID-19 pandemic, Valle says the company’s social media marketing has become incredibly important.

He now has a five-person social media staff to coordinate efforts.

Typically, his businesses sponsor and participate in “a lot of events,” while also spending marketing money on television and radio.

“But social media is where we are more focused and are investing more. We’re learning, but we have to be learning fast.”

Steve Nerheim is vice president and chief operating officer of Waukegan Tire.

The 52-year-old tire dealership, with three locations north of Chicago, focuses its

marketing resources on Facebook, Twitter and YouTube.

But even with those social media platforms, Nerheim says one of the more traditional formats of marketing is still viable for the company — radio.

“We do quite a bit of radio,” he said. The company has four local radio stations in its market and hosts live remote events.

Valle says he has found a good deal on another form of old-school marketing in recent months — billboards. “This is something new because before they were very expensive.”

But because of the pandemic and uncertain economy, other companies have canceled their contracts and billboard prices in Mexico’s big cities have dropped significantly, he says.

FINDING AND RETAINING TECHS

Jerry Nerheim, the founder of Waukegan Tire, says his dealership works “closely” with a local community college and hires students in automotive technician classes to learn the ropes.

“They have been a very good source for young people,” he says. “We bring them in and teach them everything on tires. Then they move up to oil changes.”

The hands-on lessons at the tire dealership have complemented the students’ coursework, he says. “Our retention has

Waukegan Tire focuses its marketing resources on Facebook, Twitter and YouTube.

w w w . M o d e r n T i r e D e a l e r. c o m 03_MTD_SEMA_TIA.indd 25

Right to Repair victory Voters favor vehicle data access During the week of SEMA360 and the Virtual AAPEX Experience, voters in Massachusetts cast their ballots in favor of preserving independent tire dealerships’ access to telematically transmitted vehicle diagnostic and repair data.

The measure, which was supported by a majority of the state’s voters, means that vehicle owners “will be able to have their repair data shared directly with their trusted independent shops,” according to the Auto Care Association.

“While this was a hard-fought campaign over many months, it is now our hope that (vehicle) manufacturers will receive the strong message from consumers for control of their data,” says Aaron Lowe, senior vice president, government and regulatory affairs, for the association.

The win in Massachusetts opens the door for a national campaign, he told MTD. “At the national level, we will be pushing for legislation that would mirror the requirements in Massachusetts. There will be federal legislation next year.”

And legislation in other states is a possibility. “We’ve received a lot of calls from legislators about what happened in Massachusetts.”

been really good. Some of them have come into sales and they’re very good at the counter because they understand cars.”

Even though Valle’s company has operations throughout Mexico, the technician issue is particularly difficult in northern Mexico, near the U.S. border. People are constantly moving. “It’s always hard (to get) the best people.”

But the dealership does have long-time employees and recognizes them. Those with 20 years of service are called the company’s “ambassadors.”

25 11/30/20 12:26 PM

SEMA360/Virtual AAPEX Experience

Business management: This is not the time to ditch strategy

P

lanning for the new year might seem especially daunting given the roller-coaster of 2020, but Mike Brown says this isn’t the time to wing it. “You don’t want to throw out strategy when things are uncertain.”

Brown, the founder of The Brainzooming Group, which helps businesses focus on strategy, branding and innovation, is a repeat Specialty Equipment Market Association speaker. During his SEMA360 session, he tackled what might seem like an unlikely combination: uncertainty and strategy.

First, Brown says business owners need to accept that Jan. 1 isn’t going to bring an end to the uncertainties of 2020.

“We’re in this period of disruption right now and that’s going to continue.

That won’t change on January 1.”

He suggests leaders think about strategy in a different way. He has broken down a timeless analysis tool — SWOT (strengths, weaknesses, opportunities and threats) — into 30-minute exercises, and has given each step a COVID-19 spin.

The exercises can be done one at a time and when broken apart into smaller pieces, Brown says they make the process more manageable.

STRENGTHS

Right now, what’s the thing that’s most important to you? Is it attracting new customers? Winning back former customers?

Transitioning to a new way of operating?

Does your whole business need to pivot?

Day-to-day, we look at things from the same point of view, and in the process, lose the detail, according to Brown, who used the Gateway Arch in St. Louis, Mo., as his example. It’s easy to picture in the city’s skyline, but it looks completely different up close, he noted. Brown recommends taking a look from other angles, including those of the customer and competitors.

WEAKNESSES

There are invisible things, such as the coronavirus, and technological advances,

26 03_MTD_SEMA_TIA.indd 26

like the internet, that you can’t anticipate, but affect business just the same, said Brown.

They’re not always big and scary, he noted, but it’s good to look at where your business is right now.

What’s helped you get through? Are there things you’ve bandaged together to keep them running in 2020? What happens if those things fail? What are the pressure points that could fail in the months ahead?

THREATS

“A big threat is having too many ideas, too many possibilities and not being able to make decisions,” said Brown.

Ask your team to take all those ideas and measure them by their potential impact, plus how simple or difficult they would be to implement.

Ideas that land in the corner of high impact and simple to implement are the no-brainers that should be executed immeOPPORTUNITIES diately. Those that are high impact but Brown said that if your brand existed before are more difficult to implement fall next March 1 and still exists today, it’s changed in line as good projects for the coming — “even if you think you’re the same.” Your months and year ahead. The low-impact customers have adapted to lots of items aren’t priorities or should changes in everyday life in recent be skipped altogether. months, and their expectations of Another threat is being disyou are likely different, too. tracted by lots of ideas, but never He recommends considering implementing them. Brown says these three questions: What are leaders should pick one idea and create a mini-plan to execute your customers expecting from you? What would they accept it. Write out the first five steps from you? And what will they to get it done and keep it to a reward you with? single sheet of paper. don’t “If you can find the right “You When team members want to throw combination of (all three), that’s out strategy can see and comprehend the a great platform for innovation when things are whole plan from a simple, single uncertain,” says sheet of paper, things can hapopportunities,” he said.

Mike Brown, Brainstorm a list of other founder of The pen quickly. businesses, organizations or Brainzooming even everyday tools and services Group.

A BONUS SESSION that perform the same general Brown said that a final, 30-minute tasks that your business offers. (We’re not strategy session can help you focus fully talking about another store that sells tires on where your business is now during the or performs oil changes.) pandemic, and how to look ahead. Ask the Think of it with a wider lens, he said. following questions: You serve people, you fix broken things • What are/were our smartest steps to and you solve problems. Now think of other people and industries that do the address the biggest changes during same thing. (Brown’s favorite comparison: the pandemic? a hospital is similar to Home Depot.)

• What worrisome developments from the pandemic are hampering our According to Brown, the farther away performance? from your industry, the better. Then, ask these questions: What would they do? How • On what occasions are we not currently would they market themselves? How do delighting customers and prospects? they serve people?

He noted that this strategy works for And examine the takeaways from 2020 every organization and helps identify ways that should dramatically shape your dealerfor businesses to stay fresh. ship’s activities in the near future.

MTD December 2020 11/30/20 12:26 PM

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11/18/20 3:03 PM

SEMA360/Virtual AAPEX Experience

Business management: ‘Ignorance is more expensive than training’

C

ecil Bullard, CEO at the Institute for Automotive Business Excellence, addressed common myths that tire dealers and auto service repair facility owners sometimes harbor:

only your wits and a test light.”

Myth: “Customers won’t love me if I’m more expensive than the guy down the street.” This may apply to around 2% of your customers, said Bullard. Lots of things go into deciding where to go for auto repair. The price you charge is only DEBUNKING COMMON MYTHS a deciding factor for a small percentage Myth: “If I have enough cars, I’ll make enough of your customers, he added. money.” Car count is not an indicator of Don’t set your prices using the shop success, said Bullard. If you have too many down the street for comparison. And keep cars and are not selling extras, it can be in mind that most customers will pay extra difficult to make a profit. For example, you for convenience. may be performing services that take time, Myth: “I don’t have time or money for but not charging customers for the work. training.” Dealers and shop owners who He advised looking into stay current with education whether you are spending time consistently earn substantially addressing issues that are not more than their less-educated related to the repair that has counterparts, he said. “Ignorance been requested. is more expensive than training.”

And look at what type of Myth: “Employees should know repair you are performing. Is what to do and then just do it.” it a low-paying job, like an oil Employees who are poorly trained change, or a high-paying job with or incorrectly managed will never better margins and more profit? do the job the way you want it “Not knowing “You can make more money your numbers done. “Common sense is a myth,” with the pen than you can with is like trying said Bullard. every tool in your toolbox,” Bul- to diagnose Myth: “If I hold my employlard noted, adding that you should a modern car ees accountable, I’ll lose them.” using only your examine each car to find other wits and a test Employees who have been given service opportunities. Look at light,” says Cecil clear goals and boundaries and increasing your labor rate, too, Bullard, CEO are held accountable to clear at the Institute he said. company policies and goals are for Automotive Myth: “Gross profit dollars Business happier because they know the per hour is the most important Excellence. rules and know that you care number.” Bullard believes that about them, according to Bullard. gross margin is always the most important Myth: “You can’t make real money if you number in any business. own a shop. It’s too hard.” There are many Myth: “I don’t need to track the numbers. owners who achieve 20% profit and work I can see what’s in the checkbook.” Auto fewer than 40 hours a week. Bullard added repair is a cash flow business and what’s that you can earn a great living and have in your checkbook is not necessarily your time for your family. profit, he said.

Rather, your checkbook reflects the TOOLS OF THE TRADE amount of cash you have.

Bullard noted that you need the following things to be successful: Run your business by the numbers or risk losing hundreds of thousands of dol• A good, timely and accurate P&L lars throughout your career, said Bullard.

“Not knowing your numbers is like statement, with monthly management trying to diagnose a modern car using numbers, car counts and labor rates;

28 03_MTD_SEMA_TIA.indd 28

Customers consider lots of factors when deciding to go for auto care.

• A good projection spreadsheet; • Daily and weekly management numbers, and; • A solid understanding of your numbers and what they mean.

Important numbers to track include: • • • • • • • • • • • • • • •

Gross profit/sales; Gross profit dollars and margins; Parts margins; Labor margins; Opportunities; Average repair order; Effective/actual labor rate; Car count Average productivity/efficiency of techs; Break even point; Desired profit; Labor inventory; Fixed expenses; Net profit; Key performance indicators.

Make sure you have continuous communication with those who work for you, Bullard advised. Hold department meetings, set goals, establish processes and get buy-in from your employees.

Tell them what you expect and let them know they need to be responsible. You also need to understand your customers and target the right ones. ■ MTD December 2020 11/30/20 12:27 PM

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11/18/20 3:02 PM

New TIA President

“TIA predominantly deals with government affairs and safety training, but I would also like to see the association expand into leadership and management training for independent tire dealers,” says Nothdurft, pictured at this year’s TIA OTR Tire Conference.

New TIA president outlines key issues for 2021

DAN NOTHDURFT BRINGS A TIRE DEALER’S PERSPECTIVE TO ROLE By

Mike Manges

T

he Tire Industry Association (TIA) has a new president in Dan Nothdurft, who took the helm of the organization last month.

Nothdurft is the president of Sioux City, Iowa-based Tires Tires Tires, which he founded in 1986. The dealership has two locations in Sioux City, plus two more locations in Sioux Falls, S.D. An optimist by nature, Nothdurft is excited about the year ahead, despite challenges presented by the COVID-19 pandemic.

“It’s amazing how many opportunities TIA gives you to get involved” in legislative affairs and other issues that impact independent tire dealers, he says. “And it’s very rewarding in that you get to help shape our industry.”

In this interview, Nothdurft previews

30 03_MTD_SEMA_TIA.indd 30

some of the things that TIA members can expect to see from the association in 2021. This includes the continuation of TIA’s popular training webinars and other efforts.

MTD: COVID-19 has had a major impact on our industry with travel restrictions and the cancellation of the 2020 Specialty Equipment Market Association Show, the Global Tire Expo — Powered by TIA and TIA’s 100th anniversary celebration.

How has TIA adjusted?

Nothdurft: As you know, earlier this year, we developed online Automotive Tire Service (ATS) webinars. We put together six weeks of webinars for our members, starting in May. We had a pretty good response. The first two weeks, we had over 350 participants and then, by the time

we were done, over 800 (students) had completed the class. People wanted the information. So now we’re looking at if we are going to expand it into commercial tire training. (Editor’s note: Throughout the month of October, TIA hosted 200-Level Basic Commercial Tire Service training sessions online. Additional training sessions are taking place.)

There’s nothing better than hands-on training because you absorb and retain more. But I really do believe that in the future we will have to look at more online training. It’s still a work in progress. We’re in uncharted waters. But I don’t care if you’re a tire manufacturer or an independent tire dealer, you have to change how you do things.

We’re redoing all of our Commercial Tire Service and ATS training modules and MTD December 2020 11/30/20 12:30 PM

are updating them. The technicians whom we’ve used for hands-on training have been working on updates and reshooting and filming all the basic training components.

‘I’ve always been a man of faith’ Nothdurft’s tire industry career started with a surprise

MTD: The pandemic has made getting together on a big scale almost impossible. TIA announced that its 100th anniversary celebration has been moved to next year…

Nothdurft: I think moving the celebration to next year will make it even better. One hundred years is quite an accomplishment and to celebrate the vision that a handful of tire dealers had in 1920 to start something like this and all the years of changes and improvements — it’s going to be a great celebration.

MTD: Moving onto legislative matters that could impact the association’s members, TIA CEO Roy Littlefield recently cited tire registration and possible infrastructure legislation as two issues that the association will continue to watch. What are some other legislative issues that TIA will continue to monitor on behalf of its members?

Nothdurft: With tire registration, the biggest thing we are fighting for is the proper way to get tires registered. And we are fighting against the exorbitant fines that can be applied when tires are improperly registered or not registered at all. Your first fine for failure to register is $23,000!

I just think that’s crazy.

We’re also going to fight infrastructure funding. Right now, it’s tied to tires through federal excise taxes (FET) and that’s extremely unfair. We do not want to put FET back on passenger car tires or light truck tires. And we definitely don’t want to increase the FET on truck tires.

MTD: How does your background and status as an independent tire dealer help shape your agenda for 2021?

Nothdurft: As an independent dealer, I face the same issues as our members every day. Our biggest challenge right now is recruiting, training and retaining quality employees — people who want to make the tire business their career.

Unfortunately, the education system we send our children through has largely eliminated shop class. Kids who are more mechanically inclined are not catered to anymore. Schools almost want to force w w w . M o d e r n T i r e D e a l e r. c o m 03_MTD_SEMA_TIA.indd 31

“By being involved in TIA, you are really giving yourself a voice,” says new TIA President Dan Nothdurft. “It’s the only way to make things happen.”

kids to go into a four-year college when in fact, they can make more money, in some cases, by going through a two-year program and working as an auto service technician.

MTD: Does TIA have plans to help its members identify, recruit and train auto service techs?

Nothdurft: I would love to see that. TIA predominantly deals with government affairs and safety training, but I would also like to see the association expand into leadership and management training for independent tire dealers. Most dealers start, like I did, by selling tires and changing tires. You learn little by little. There are a lot of areas where dealers probably need some help. And these are some areas that we will look at in the future. You can always learn something new.

MTD: What are some of the other pressing issues facing tire dealers right now?

Are there other challenges that you see, from your position as an active dealer?

Nothdurft: We are going to have problems with tire disposal. If we can turn crumb rubber into all asphalt, it would be a great way to use what we have as recycled material, and roads will last longer. There are other things we have to work on. I would like to see this tire registration thing finished. I also think that someday we will have to do something about tire aging because it’s a safety issue.

Dan Nothdurft opened his first tire store, Tires Tires Tires, in 1986. He now has four stores, which he runs with his brother, Dale. They include a 10-bay outlet and a 17-bay location in Sioux City, Iowa, as well as two stores — a 26-bay location and a 27-bay facility — in Sioux Falls, S.D. Prior to launching Tires Tires Tires, Nothdurft worked in farming. “The early 80’s came through and we had some financial issues,” he recalls. “I needed something else to do. I went to night school and was wholesaling tires for my uncle. He said, ‘Maybe you should open a tire store.’ So that’s what I did.

“I opened up with only the cash in my pocket and a prayer, and fortunately, everything worked out very well,” starting with an unexpected boost he received on his first day in business.

“On the day I opened, it snowed in Sioux City,” he says. “I was busy all day long. I’ve always been a man of faith. It was a great sign!

“My parents taught us there are only two things you need to be successful in life: one is following the Golden Rule and the other is very easy — be honest.

Those two principles have worked for us for the last 34 years.”

MTD: Why is TIA needed now more than ever?

Nothdurft: Representing the tire industry, including tire dealers, we realize there are a lot of things in government that will impact us. We need to watch the estate tax, for example. I have a son who works in one of my stores and he’s already mentioned that one day he would like the company to be his. There are so many things to deal with that will always affect our business.

“This past year has been a whirlwind with the COVID-19 problem,” he says. “We’re in uncharted territory. Going forward, we will have to react to what’s handed to us. But by being involved in TIA, you are really giving yourself a voice. It’s the only way to make things happen.” ■

31 11/30/20 12:33 PM

Commercial Tire Dealer™

STEADY DEMAND FLOATS AG TIRE SEGMENT IN 2020, A ‘FLAT’ MARKET IS A GOOD THING, SAY MANUFACTURERS

By

Mike Manges

Ag tire manufacturers are confident that 2021 will be a productive year.

T

he COVID-19 pandemic left no tire industry product segment untouched. But the ag tire segment was impacted less than others. At least that’s the general consensus among major ag tire manufacturers in North America.

Also in CTD Pat’s Tire serves custom niche ........40 Snider Fleet Solutions, WheelRight provide a ‘third eye’ ...........................43 AG Tire Talk: How ag tire deflection impacts yield .......................................45 Commercially Viable .........................49

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It hasn’t been smooth sailing across the board, though. Some equipment manufacturers, including John Deere, enacted temporary production shutdowns early in the year. Others, like Kubota, experienced “minor disruptions,” but managed to maintain deliveries.

Through it all, demand for tires in the six categories that MTD tracks — radial rear OE, radial rear replacement, bias rear OE, bias rear replacement, small farm OE and small farm replacement — remained steady, resulting in what several ag tire manufacturers have described as a flat market, year-over-year. (See sidebar on page 36 for MTD’s shipment and market share estimates for 2020.)

MTD recently caught up with executives

from several ag tire manufacturers that operate in North America for a look at how their business was impacted by COVID-19, plus the state of ag tire demand as the year winds down. They also provided a preview of 2021 and identified market trends that ag tire dealers should track.

MTD: How has the COVID-19 pandemic impacted your ag tire business in North America?

NICK PHILLIPPI, national product manager, agriculture, Alliance Tire Americas Inc.: Farmers have done a great job of keeping North America and the world supplied with food, feed, fuel and fiber, despite the pandemic, which MTD December 2020 11/30/20 1:28 PM

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Commercial Tire Dealer Weather, trade and commodity prices are just three of the many factors that could influence ag tire sales next year.

that make their way to the U.S. and Canada.

Our business has continued to grow, despite the COVID-19 crisis. Agriculture is a bright spot for us.

RICK HARRIS, regional sales manager, Global Rubber Industries (Pvt) Ltd. (GRI:) GRI’s agricultural business continued to grow through the uncharted waters of COVID-19 in North America. The Sri Lankan government considered the manufacturing segment as an essential sector, enabling GRI to continue production with strict COVID-19 preventive measures in place. Continued production allowed GRI to satisfy market demand for agricultural and industrial tires in North America.

means their equipment has been rolling this whole time. Our supply of tires to the North American market remained very stable in spite of the nationally mandated shutdowns of our factories in India for about three weeks in the spring as part of a national COVID-19 lockdown. That affected our bias-ply and conventional radial farm tire production to some extent.

But our high-tech, increased flexion (IF), very-high flexion (VF) and flotation radial tires are made at our plant in Hadera, Israel, which remained in production, so there was no interruption in supply of those tires.

On the OE side, there was some slowdown in the farm equipment market. Part of that was probably the impact of the early stages of the pandemic lockdown. But I think more of it had to do with overall poor margins in agriculture, which cleared up as the year went on.

DOUG KERSHAW, vice president, BKT USA Inc.: Overall, we are ahead of where we were a year ago at this time. It has been challenging to call on customers and work with them to build their businesses because of COVID-19-related restrictions.

The biggest challenge with COVID-19’s impact on worldwide business is the shipping industry disruptions, with container shortages, freight increases, poor aftersales service and the pooling of resources by shipping companies. This indirectly hurts the flow of raw materials to finished products. As far as BKT as a company,

34 04_MTD_CTD_Pat_Snider.indd 34

our ag team has remained fully intact. We remain focused on growth.

TONY ORLANDO, president, Bridgestone Americas Inc./Firestone Ag: Certainly, this has been a challenging year — not just for our business and the industry, but also for our teammates, customers and the communities where we operate.

Despite the pandemic, our business has remained relatively resilient as farmers provide an essential service. Our Firestone ag tire plant in Des Moines, Iowa, has been back up and running since mid-April, following a brief, three-week closure at the beginning of the pandemic. Today, we remain focused on delivering the tires that farmers need to keep their operations up and running, while also mitigating the spread of the virus in our facilities.

VIJAY GAMBHIRE, chief executive, CEAT Specialty Tyres: Farmers have certainly become more cautious with their spending.

CEAT has found greater consideration among farmers and this has resulted in a growth in our business, even during COVID-19.

MATTHEW FUTRELLE, head of sales and marketing for the Americas, Continental Specialty Tires: Continental relaunched our agricultural line in the U.S. and Canada in 2018. From that starting point, we have been able to add new distribution, sell more into our commercial dealer network and take advantage of our OE fitments on tractors

BILL DASHIELL, senior vice president, commercial tire division, TBC Brands LLC: TBC Brands has continued to experience year-over-year sales increases on the ag tire side of our business throughout the COVID-19 pandemic.

PAUL HAWKINS, senior vice president, aftermarket sales, Titan International Inc.: Initially, we did see a slight dip in the aftermarket in March, largely because most tire dealers were trying to learn how to continue servicing their customers safely during that time. That said, our aftermarket performance has been good since then. We have been well-positioned to support (customers) throughout the pandemic for several reasons. First, both our tires and wheels are made right here in the U.S. We are less reliant on the global supply chain, so our dealers have been able to get a consistent, dependable supply from us. Secondly, because we are a global company, we had the benefit of applying learnings from our facilities in countries that were hard-hit by the pandemic early.

ANDREA MASELLA, commercial director North America, agriculture, Trelleborg Wheel Systems: All our sites dedicated to the production of agricultural tires remained open during the height of the pandemic.

This was possible thanks to continuous investment in processes, tools and staff training. As a result, we have been able to support our customers and the entire supply chain throughout the pandemic and at the same time, we have built an efficient and flexible global production platform.

MTD December 2020 11/30/20 1:29 PM

Commercial Tire Dealer MTD: Can you describe the current state of overall ag tire demand in the U.S. and Canada?

PHILLIPPI (ALLIANCE): When farmers keep their current machines running an extra season or two or invest in used equipment, we pick up replacement tire business. Our replacement farm tire business, which helps farmers get more life out of older machinery, has gone very well over the past several years and this year was no different.

KERSHAW (BKT): There has been very strong demand for products in the ag market, but the challenge has been meeting that demand. We have a very strong and loyal customer base, so we work closely with them to help sell and stock the products they need. Ag tire demand also has been influenced by government policies, with regard to the exporting of farm products, assistance given to farmers through farm bills and the tariffs imposed on imported tires.

w w w . M o d e r n T i r e D e a l e r. c o m 04_MTD_CTD_Pat_Snider.indd 35

ORLANDO (BRIDGESTONE): American farmers continue to navigate the economic impact of COVID-19, which includes managing the effects of low commodity prices.

The effects of COVID-19, combined with tough winter conditions, have resulted in a slight decrease in demand for agricultural tires in 2020.

those of us in the ag tire business.

GAMBHIRE (CEAT): COVID-19 has definitely impacted the ag economy adversely.

Farmers, carrying on last year’s trend, are actively considering value brands (versus) premium brands. We are pleased to see a decent uptick in sales.

DASHIELL (TBC): In 2019, farmers battled weather and suffered setbacks due to difficulties with major trade partners.However, the ag business has experienced some recovery in 2020. Despite the impact of COVID-19, the overall ag economy — especially for value brands — remains healthy. We continue to see increasing demand for our products and expect it to remain strong.

FUTRELLE (CONTINENTAL): On the micro side, our ag tire demand is increasing as we rebuild our brand and our distribution. Continental has a strong name, a strong team, strong products and a strong distribution network to support our growth. On the macro side, the total ag tire business also seems to be growing, which is good for farmers and good for

HARRIS (GRI): We believe that overall agricultural tire demand in the U.S. remains stable. Even though new OE tractor sales have slowed down, the replacement market has been growing in the U.S., thereby stabilizing the market.

HAWKINS (TITAN): Weather is always a major factor in farmer profitability and thus, ag tire demand. We’ve been much better off this year as compared to last year. The flooding across the western corn belt last year had such a major impact on planting

35 11/30/20 1:29 PM

Commercial Tire Dealer to a drop in the supply of OE tires. On the other hand, the demand for agricultural tires in the first quarter continued in the replacement market.

‘There has been very strong demand for products in the ag market.’

—DOUG KERSHAW, VICE PRESIDENT, BKT USA INC.

and harvesting schedules. Our aftermarket business in ag remains quite strong. As we close out the year, we’re excited to see how the additional round of $14 billion in coronavirus aid to farmers announced in September will impact farmer spending.

MASELLA (TRELLEBORG): Compared with other industries, the agricultural market was only moderately impacted by the health crisis, as it is seen as an essential industry. However, during the first half of 2020, some agricultural machinery manufacturers had to temporarily shut their production units down, which led

MTD: What will 2021 look like?

PHILIPPI (ALLIANCE): I think we will see a nice bump in farmers’ investment in equipment in 2021, whether it’s in new machinery sales or in buying good, used machines. There should be some pent-up demand in the market and if we don’t have any major events, 2021 should be a strong year for farm tires. We’re also expecting significant increases in our replacement tire sales for 2021.

KERSHAW (BKT): We don’t feel that the first quarter will look much different than it does right now. If government policies remain the same, demand will remain strong. It is very hard to say what the remainder of the year will look like

at this point, as the advancements in the development of a COVID-19 vaccine will play a part. Weather conditions always have a huge impact on the industry. But worldwide markets — and the production and purchasing of agricultural products — will be a large factor, also.

ORLANDO (BRIDGESTONE): We continue to monitor the ongoing COVID19 crisis, weather conditions and other market dynamics closely and are cautiously optimistic about 2021. We expect to see additional recovery in the ag tire segment in 2021 and beyond, with sales slightly better than this year.

GAMBHIRE (CEAT): We are very optimistic about 2021. We also hope that the overall economy finds itself out of the pandemic-induced slowdown.

FUTRELLE (CONTINENTAL): We anticipate that the ag tire market will be

2020 FARM TIRE MARKET SHARE

BY SEGMENT AND BRAND RADIAL REAR OE Estimated shipments: 190,000 Firestone...................... 37.5% Goodyear..................... 30.0% Michelin....................... 15.5% BKT................................. 5.5% Titan................................ 4.5% Alliance.......................... 3.5% Trelleborg...................... 2.0% Mitas.............................. 1.0% Others............................ 0.5% Total:........................... 100.0% RADIAL REAR REPLACEMENT Estimated shipments: 298,700 BKT............................... 26.5% Firestone...................... 25.5% Michelin....................... 16.0% Goodyear..................... 13.0% Alliance.......................... 8.5% Titan................................ 5.0% Trelleborg...................... 1.5% CEAT............................... 1.0% Harvest King................. 1.0% Mitas.............................. 1.0% Others............................ 1.0% Total............................... 100%

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BIAS REAR OE Estimated shipments: 320,000 Titan.............................. 33.0% Firestone...................... 28.5% Goodyear..................... 24.0% Alliance.......................... 7.5% BKT................................. 3.5% Trelleborg...................... 2.0% Others............................ 1.5% Total:........................... 100.0% BIAS REAR REPLACEMENT Estimated shipments: 390,000 BKT............................... 38.5% Firestone...................... 23.0% Alliance........................ 12.5% Goodyear....................... 7.0% Harvest King................. 7.0% Titan................................ 5.0% Carlisle........................... 1.5% American Farmer......... 1.5% Trelleborg...................... 1.5% CEAT............................... 1.0% Others............................ 1.5% Total:........................... 100.0% *AG TIRE BRANDS MUST HAVE AT LEAST 1% SHARE OF MARKET TO BE LISTED. SOURCE: MODERN TIRE DEALER ESTIMATES

SMALL FARM OE Estimated shipments: 310,000 Goodyear..................... 26.0% Titan.............................. 19.0% Firestone...................... 16.0% BKT............................... 13.5% Carlisle......................... 10.0% Alliance........................ 10.0% American Farmer......... 2.0% Trelleborg...................... 1.5% Others............................ 2.0% Total:........................... 100.0% SMALL FARM REPLACEMENT Estimated shipments: 1.25 million Firestone...................... 22.5% BKT............................... 18.0% Goodyear..................... 15.5% Titan.............................. 14.5% Carlisle......................... 10.0% Harvest King............... 10.0% Alliance.......................... 4.5% Trelleborg...................... 2.0% American Farmer......... 1.0% Deestone....................... 1.0% Others............................ 1.0% Total:........................... 100.0%

MTD December 2020 11/30/20 1:29 PM

K&M V I RT

VI R

E C

K&M

CE

EALER CONFE D RE AL U N T

ER CON F E EAL RE LD N UA

JANUARY 20TH & 21ST

• SEMINARS • • VIRTUAL TRADE SHOW • • SHOW SPECIALS • • GIVE-A-WAYS • • GAMES • VISIT K&M WEBLINK FOR REGISTRATION & SHOW INFORMATION

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11/18/20 3:02 PM

Commercial Tire Dealer slightly up for North America, at least in the replacement business. On the OE equipment side, we predict an uptick from 2020, which will most likely finish slightly down from 2019. OE could easily be affected if farmers have any uncertainty regarding financial conditions from the economy, taxes, tariffs or even COVID-19-related shutdowns.

HARRIS (GRI): GRI expects the current COVID-19 situation and related business outlook to continue into much of 2021. GRI expects the current demand for agricultural tires to remain the same in 2021 as it is in 2020.

HAWKINS (TITAN): Based on a really good year in the aftermarket, we’re optimistic heading into 2021. We’re continuing to invest in product development that will open up new opportunities for us.

MTD: What trends should ag tire dealers monitor as the new year begins?

PHILLIPPI (ALLIANCE): The most basic driver is whether farmers are making money.

Of course, another COVID-19 lockdown would be rough on the farm economy, especially in its effects on food service supply chains, like we saw this year. We’ll be watching the commodity markets to see whether crop prices stay decent and watching the news to see how trade is going with China and our other overseas customers.

But most of all, ag tire dealers should be listening to what their customers are saying.

Tires are so vital to farmers’ livelihoods that they really represent a great opportunity for dealers to shine.

KERSHAW (BKT): Equipment is continuing to get larger and larger, carrying heavier and heavier loads. IF technology and VF technology in tires are becoming more and more popular in order to be able to carry heavier loads without increasing soil compaction. Also, with more equipment being driven on roads, more implement tires are moving from bias construction to radial construction and from a standard compound to a stubble-resistant compound to improve the life of the tire.

ORLANDO (BRIDGESTONE): More and more, farmers are asking for better performance from their ag tires. Trends such as the move to radial tires will continue

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‘I think we will see a nice bump in farmers’ investment in equipment in 2021.’

— NICK PHILLIPPI, NATIONAL PRODUCT MANAGER, AGRICULTURE, ALLIANCE TIRE AMERICAS INC.

throughout the coming years. Now more than ever, farmers understand that the benefits of radial tires — longer tread wear, reduced soil compaction and better comfort and traction — lead to greater productivity and improved yields.

Plus, as equipment continues to increase, more farmers are looking to IF and VF solutions, which are designed to carry the same load at lower inflation pressure or heavier loads at the same pressure as equivalent-sized, standard tires, thereby reducing soil compaction.

GAMBHIRE (CEAT): Overall, the ag economy will be influenced by post-COVID-19 recovery, demand recovery from consuming industries, international trade dynamics, etc. However, the premium-to-value shift is one of the irreversible trends showing now. It also will be important to watch developments on the supply side. Some manufacturers are more adversely impacted than others. Ensuring supply security and stock availability will be key.

FUTRELLE (CONTINENTAL): We see a consolidation of farms. While large farms make up less than half of the entire farm population, they continue to grow. As farm families look to pass farms down to the next generation, they can have difficulties dealing with the tax burden and struggle, in some cases, with the reality that their land is worth more as something other than a farm. Another reality is that more and more tire manufacturers are entering the farm tire market segment. Lastly, there is also the trend of digitalization. We are working in the direction of “smart” farm tires that can tie to the vehicle’s information platform and into its telematics solutions.

HARRIS (GRI): Weather patterns are at the forefront as unplanted ground reduced demand. Any U.S. trade negotiations with other countries, as well as tire tariffs on foreign imports that could have an impact,

Sprouting up

Commodity prices, other factors spur investment Is farming on the upswing? Purdue University thinks so. The Purdue University/ CME Group Ag Economy Barometer rose nearly 30 points in October 2020, an all-time record for the index.

“The late-summer/early-fall rally in commodity prices — combined with government program payments arising from the second round of the Coronavirus Food Assistance Program — provided a boost to many producers’ incomes,” said the university.

“Corn and soybean prices continued to rally, even though U.S. corn yields are expected to set a record high.”

Meanwhile, soybean yields are predicted to be the fourth highest on record.

The university’s Farm Capital Investment Index also hit an all-time high in October, up 9% from September. “The percentage of producers expecting to increase their purchases of machinery in the upcoming year rose to 14% from 11% a month earlier.” must be tracked. COVID-19’s impact on rural farm communities is worthy of tracking, as cases in the Farm Belt are on the rise.

DASHIELL (TBC): With the uncertainty of the economy due to COVID-19, farmers will continue to migrate more heavily to value tier products to supplement major brand offerings and improve their bottom line, especially in commodity sizes. We also expect to see continued growth in IF tires as the market continues to embrace lower inflation/compaction tires.

HAWKINS (TITAN): It’s going to continue to be about having a reliable, high-quality supplier close to home.

MASELLA (TRELLEBORG): It is abundantly clear that to manage both future population growth and environmental challenges, we need larger harvests per cultivated area and significant investments in more efficient agricultural machinery.

The agricultural industry is undergoing remarkable change, as emerging technologies reshape farming operations to provide more sustainable and productive systems.

MTD December 2020 11/30/20 1:31 PM

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11/24/2020 10:24:55 AM

P a t ’s T i r e

PAT’S TIRE SERVES A CUSTOM NICHE

AG TIRE DEALERSHIP’S NEXT GENERATION PLANS FOR THE FUTURE By

Joy Kopcha

There isn’t a surge of new farmers moving into rural Wisconsin, Illinois and Michigan, fueling growth. The secret for Pat’s Tire to continue its growth? “Do a good job,” says Koenigs.

B

igger tires with heavier farm equipment add up to more complex fitments. They require more precision and expertise. For Pat’s Tire Sales & Service Inc. in Chilton, Wis., the bigger the better. Those combines, large four-wheel-drive tractors and choppers drive this 42-year-old family business.

Pat and Karen Koenigs founded Pat’s Tire in 1978, and as their son, Brad Koenigs, says, “Pat did the work, but Karen made the money.”

His dad built the business working 80 hours a week — and expecting his employees to do the same. His mom managed the money, the insurance and how to invest in the business to make it profitable. “Pat’s the sledgehammer and she’s the one who made it work.”

Their teamwork has helped this singlelocation, farm-focused tire dealership grow.

Pat’s Tire serves customers in three states and while it sells upwards of 6,000 passenger

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tires a year, this is a business built on ag tire sales and service. About 80% of the company’s units sold are for commercial applications on the farm.

And now the second-generation is in the process of taking over ownership. Brad Koenigs and his brother-in-law, Josh Lemke, are buying the business gradually, rather than in a one-time, lump sum deal. Pat Koenigs is “down to 60 hours a week. He’s starting to step back.”

So now it’s up to the next generation to determine how to continue the dealership’s success, while also making its own mark.

Critical to growth in recent years has been the company’s connections and partnerships with farm implement dealers nearby. “Your John Deere salesman doesn’t know a lot about tire and rim combinations, so they call us and we’ll take care of it,” says Brad.

“We’ll set the wheel spacing and put duals on. Instead of having their technicians do it, they call us to set it up for them.”

And those phone calls are constant, he adds. “When customers call the (implement) dealer with questions about tires and rims, they tell them to call us.”

Much of that has come from the commitment by Pat’s Tire to stock a large inventory of both tires and wheels for all of the equipment on the farm. Two large warehouses on the dealership’s 10-acre site are stocked with about $2 million in inventory.

“We’ve always been very aggressive as far as that goes,” he says. “We’re willing to invest where a lot of smaller shops won’t.”

Pat’s Tire also has made a name for itself with creative solutions and fitments. “Pat doesn’t say no to any job — for good or for bad. We do a lot of creative stuff.”

One customer wanted his Kawasaki Mule to maneuver through 30-inch corn rows. Brad remembers this was his first meeting with this particular customer, and he couldn’t imagine what the farmer had in mind. But the customer’s grandchildren MTD December 2020 11/30/20 1:31 PM

P a t ’s T i r e use the Mule to pick stones in the spring.

He wanted to give them more wiggle room so they weren’t running over anything in the field. “It made sense.”

Another customer asked for duals on the back end of his John Deere Gator. Why? He hauls a sprayer to do spot treatments and didn’t want to leave ruts. “He’s worried about compaction.” Pat’s Tire made it work.

The dealership has put flotation tires on everything from a manlift to a telehandler.

Those projects appeal to the younger Koenigs, who never imagined he’d land in his hometown taking over the family business.

He went to college, studied engineering and dreamed of building stadiums or bridges.

During an internship, he got his first taste of office politics. He didn’t want any part of it.

“In a tire shop, especially my dad’s tire shop, you work together. You get stuff done.”

He finished his degree and returned to Pat’s Tire. “The best part of college for me was moving away and finding out what really fit me and what didn’t. It gave me an appreciation for the business and my parents and the small town.”

Today, his engineering skills still come in handy. “We build a lot of wheels from scratch. If it’s something goofy, we’re going to try it.”

He prefers those problem solving projects.

“It’s not as mundane.”

The dealership’s farming customers often buy new equipment, knowing it will need some adjustments before use. Making changes to wheel spacing and swapping single tires for duals are frequent requests.

Brad says he’s seen the modifications Pat’s Tire has made on new models offered as an original equipment option a few years later.

He estimates about two-thirds of his customers can see the need for those changes when buying a piece of equipment. Pat’s Tire works up an estimate and tells the customer “it should cost this or less” in order to make the adjustment. That gives the farmer a dollar amount to use in his budget.

Because the dealership does swap different-size tires on equipment often, Brad says it gives Pat’s Tire a plentiful inventory of good quality used tires. And those come in handy, especially when a farmer is

strapped for cash or when there’s a piece of equipment broken down in the field during planting season.

“We don’t really have a slow season anymore.”

When farmers start to put equipment away for the winter, they address maintenance needs. “February, March and April are our busiest months of the year, as far as setting up big jobs. That’s when you do four or five tractors for the same guy in a week because they don’t want to be messing around when it’s time to go.”

GROWTH TIME

Brad says business has been growing, but there’s been nothing steady or predictable about it. “One year, we went from selling 2,000 semi tires to 3,500 tires — and it never went back down.”

Pat’s Tire has seen those kinds of anomalies in several categories in recent years, including medium truck tires, passenger tires and ATV tires. And when good weather meets favorable farm prices, it happens with farm tires, too.

TRAVELSTAR TIRES

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8/17/2020 1:03:41 PM

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P a t ’s T i r e

Zach Yanke is among the 20-plus employees serving Pat’s Tire customers in three states.

make the investment and take whatever business is left?”

THE IMPACT OF COVID-19 COVID-19 came as Pat Koenigs, center, gradually has been transitioning ownership of his business to the next generation: Josh Lemke, left, and his son Brad Koenigs, right. Brad says they’ve weathered the storm so far and they’ve found it’s been important to take precautions and “respect everybody’s take on it.”

“We’d have two or three trucks at implement dealers setting up new equipment,” he says. “When the market went down and money wasn’t there for farming, we started putting tires on (equipment that) would have been traded in. So we’re very fortunate that the work’s been consistent “What we’re selling changes, where we’re doing it changes, but the work has always been there.”

And though it depends on the application, the dealership’s top-selling and go-to farm tire brands are Michelin, BKT and Mitas. The dealership sells other brands and lines, too.

Brad says there are times when a farmer wants to keep the price down and if he doesn’t have a used tire option in stock, that’s a time to offer a lower tier product.

He also suggests that the customer think about how often the piece of equipment is being used and “maybe you should do something better if this is a tractor you use everyday.”

Brad says the key is that the customer has input and makes the decision.

INVESTING IN EQUIPMENT

Pat’s Tire operates five service trucks. Brad says the trucks are all set up identically. “If one breaks down, you can start shuffling drivers. You want it to be as familiar as possible.”

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They buy Kenworth chassis and leave the set-up to Stellar Industries.

Brad says they purchase the biggest trucks possible that don’t require a commercial driver’s license.

“We’d like to have bigger trucks for more capacity, but trying to find someone who will change tires and has a CDL, you’re looking for a whole new guy. We’re very fortunate. We’ve got five of the best road guys in Wisconsin.”

The dealership buys one new truck a year, so its oldest is five years old. Brad says the plan is to invest in a sixth truck — “not necessarily that we have the work for a sixth truck all day, every day, but there are some days of the year it would be nice to have an extra truck in the yard.”

Planning for that kind of long-term investment is a sign of change for Pat’s Tire. Brad says he sees value in having more back-up equipment at the ready. It will reduce stress, but most importantly it will allow the business to continue to respond quickly to a customer “who needs service now.”

With every replacement, there seems to be an opportunity to buy a larger piece of equipment designed for the bigger and heavier tires in heavy-duty applications.

“You make a choice as a dealer: Do you equip yourselves so your guys can do it safely and efficiently or do you not

This year has required plenty of adjustments, but Brad says “the amount of work didn’t change. It just got harder to get everything done.”

Pat’s Tire has taken precautions to keep its workforce healthy and Brad admits they’ve probably even gone overboard.

Early in the spring, one of the company’s road service employees had been inside the local auto parts store. It turns out one of the managers there tested positive for COVID-19. Even though the two never saw each other, Pat’s Tire sent its employee home for two weeks.

Another employee learned he was potentially exposed and then developed a cough. He too, was sent home for two weeks. The company used its Paycheck Protection Program money to pay those workers, even while they were off the job.

“We were more careful than a lot of other places,” he says.

The big concern was keeping Pat’s Tire open to serve customers.

“If we had to close our doors for two weeks, that’s a lot of people we’re not taking care of. There were a lot of decisions where we (made) ourselves short-staffed to be on the safe side — to protect our business and our customers.”

Even with the disruptions, he says Pat’s Tire has had a good year. It won’t match 2019, but that’s because there was a twomonth period where “the flotation market was just nuts” and tires with 50% tread had to be pulled off dump carts because they didn’t have enough traction. But absent that, profitability and tire sales are “right in the same ballpark” as a normal year.

MTD December 2020 11/30/20 1:33 PM

Snider Fleet Solutions

WHEELRIGHT GIVES FLEETS A ‘THIRD EYE’ ON TIRES SNIDER FLEET SOLUTIONS SEES POTENTIAL IN TECHNOLOGY By

Joy Kopcha

P

lenty of truck tire manufacturers offer tools and software to monitor the health of a fleet’s tires. Some use chips. There are patches. Others utilize barcodes. With every new tracker or tracking system, the tire company develops its own tool to read and access the data.

With 7,500 tractors and 30,000 trailers, Estes Express Lines relies on three primary tiremakers to keep its trucks on the road: Michelin North America Inc., Bridgestone Americas Inc. and Continental Tire the Americas LLC. Mike Palmer, vice president of fleet services, says Estes is “sensitive about putting all our eggs in one basket with one supplier.”

The result is a menagerie of tools and products to measure and track the fleet’s tires.

That’s what made a new product from Snider Tire Inc., which does business as Snider Fleet Solutions, sound so appealing: a drive-over reader capable of checking the tire pressure and tread depth of any tire that rolls across it.

AN AI SOLUTION

As Snider was planning for 2020, Keith Allen, its vice president of sales, says one of the company’s strategic goals was to expand its offerings. The commercial-focused dealership — the third largest independent commercial tire dealer in the country — sells new and retreaded truck tires and offers mechanical services. It also offers industrial tires for forklifts, plus OTR tires and services. The company realized it needed a category with a focus on technology.

One piece of that technology puzzle came in January when the company made a “significant investment” in WheelRight Ltd., a U.K.-based company that created a drive-over tire management system with real-time reporting.

“We’ve looked at different technologies over the years to automate air pressure measurement, but all required something — maybe a chip or patch — that had to be installed on a tire or vehicle.

The challenge with any of those systems is always going to be implmentation across tire brands and dealers,” says Allen.

Since trucking fleets are constantly removing tires from wheels and replacing them, keeping track of those assets was a logistical nightmare. Retreading added another level of difficulty to tracking.

WheelRight is an agnostic system, so it doesn’t matter what brand of tire is on the vehicle or where they were purchased. The system leverages artificial intelligence and machine learning.

Snider is the authorized distributor of WheelRight in the U.S., and the dealership is first rolling out the product to its customers. (The company showcased the system last February at The Technology & Maintenance Council show in Atlanta, Ga.) Allen says WheelRight automates the tire inspection process that fleets typically assign to a couple of technicians working in a quick check lane. When those workers spot an issue — a tire with w w w . M o d e r n T i r e D e a l e r. c o m 04_MTD_CTD_Pat_Snider.indd 43

Mike Palmer, vice president of fleet operations at Estes Express Lines, says WheelRight inspects tires faster and more thoroughly than the company’s employees could ever do.

It’s given the company “a third eye.”

low air pressure, insufficient tread, an obstruction or some other kind of failure condition — they create a report and hand it off to another team member to take action.

WheelRight can do the full inspection. With cameras, it can provide a fuller view of each tire — plus it does so automatically.

It eliminates human error and impediments like the weather or what time of day a truck rolls into the yard.

ROI IN MONTH ONE

The top goal is to reduce a fleet’s emergency roadside service events. “Those are expensive for a fleet, both in terms of the service event itself and vehicle downtime, of course, but more importantly, it is also a safety issue,” Allen says.

Secondly, Allen says WheelRight can help customers better predict the life of their tires. The system measures tread depth, and even if

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Snider Fleet Solutions WheelRight at a glance

Snider Fleet Solutions’ WheelRight system will inspect the majority of tires on equipment spotted on the road, everything from medium truck commercial vehicles to smaller vehicles, including passenger cars. It covers standard trucking fleets, waste fleets running 315/80R22.5 tires and even fleets running super single tires, with section widths of 445 mm or 455 mm.

the depth is fine today, the fleet manager can see when replacement or the need for a retread is one month or two months away.

The system’s cameras can also spot anomalies. For example, a tire’s pressure might show 100 psi, but the camera finds a finishing nail in the tread and sends up an alert.

“The tire may read the correct air pressure today, but with our tread imaging solution, we can potentially detect problems now that will be a road service event tomorrow,” says Allen. “Fleets using our system are seeing up to a 40% reduction in road service events.”

With fleets, offering generalities when it comes to savings isn’t enough. Snider has developed a return-on-investment calculator and pairs it with a fleet’s metrics to look at roadside service costs versus the expense of installing WheelRight.

Fleets don’t purchase the WheelRight hardware. They pay a monthly fee to use it. There’s no additional up-front cost.

Allen says the goal is for a fleet to have a positive return on its investment in the first month.

AIMING FOR NO ROAD SERVICE CALLS

Estes Express Lines installed its first WheelRight system in Charlotte, N.C., in large part because it would be close to Snider’s headquarters some 90 miles away in Greensboro, N.C. The fleet company needed to decide where on its property to install the drive-over reader. Palmer considered a spot inside the yard, with directions instructing that drivers pass over it at some point while on site. But he wasn’t sure every driver would comply. He thought if drivers crossed it on their way out with a load, they might ignore any warnings. So the company settled on its inbound lane.

Emergency roadside service events have dropped by 30%.

Palmer, who’s worked for Estes Express Lines for 30-plus years, was pleased, but eventually wondered, “Why aren’t we at 100%?”

The WheelRight system in Charlotte is measuring both tread depth and tire pressure, and Palmer figures there are trucks entering the yard with tires that might have a slight leak, but at the moment they roll across the threshold, the air pressure is adequate. If those trailers sit for a day or two, the pressure drops over time and can still cause a roadside service event.

So Palmer continues to tweak how his company uses the system, including now doing outbound inspections in Charlotte. “I want

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Keith Allen, vice president of sales for Snider Tire Inc. dba Snider Fleet Solutions says the WheelRight base package checks a tire’s air pressure and tread depth. But from there, fleets can add on hardware to customize its capabilities. Among the extra options are: • • • •

Sidewall inspections; Tread imaging; Tire temperature, and; Tire weight

Most Snider customers utilizing WheelRight are measuring tire pressure and tread depth, says Allen. He thinks the add-ons are driven by specific business needs.

If a fleet monitors weight with the use of scales in its

yard, he says WheelRight can replace those scales. A fleet that regularly works both on-road and off-road might have issues with sidewall damage, causing emergency roadside service events, and might want to install sidewall readers.

Research and development is underway to expand WheelRight’s capabilities, says Allen.

“We believe that inspecting tires is just the first step, and as the technology evolves, we will be able to do much more.”

One day, tire inspections could evolve into vehicle inspections.

He declined to specify a timeline, but says, “We believe there is a lot of potential with this technology.”

to be 100% no road service calls,” he says.

“We feel like it’s improving the health of our tire program in Charlotte. I include the CSA (Compliance, Safety, Accountability) stuff in there, too. We’re working on mapping that out.”

Estes Express Lines has since added WheelRight systems at its terminals in Dallas, Texas and Joliet, Ill., two busy, large-volume locations. Joliet is among the fleet’s newest and largest terminals, with 200 doors on 60-plus acres.

The number of trucks and trailers passing through those larger locations naturally leads to more roadside service events, Palmer says. He says Dallas was one of the company’s worst locations for this.

“Before any of this came along, we were going to take Dallas and we were going to do outbound inspections because we had to do something to help curb these road calls. We couldn’t keep up.”

The WheelRight system should provide a lot of labor savings, he says, in addition to improving the fleet’s tire program. Palmer suspects it also could be a big help in places like Phoenix, Ariz., where the summertime heat can cause a season of tire blowouts.

He doesn’t predict a need to install the system at all of Estes Express Lines’ 265 terminals — but instead says by pinpointing enough of the fleet’s high-traffic locations, he could monitor 80% of its trailers in a year’s time.

“I think we can get the information we need, maintain our tires and not have to get deep into the weeds with this stuff like you would if you had to program a chip,” says Palmer. “I’ve seen a lot of new stuff, but this is really intriguing. This is the slickest thing I’ve seen in a while.”

MTD December 2020 11/30/20 1:36 PM

A G T i r e Ta l k

HOW TIRE DEFLECTION IMPACTS YIELD UNDERSTANDING THE NUANCES WILL LEAD TO OPTIMAL PERFORMANCE

Modern Tire Dealer has partnered with AG Tire Talk to provide answers to insightful questions that farm tire dealers have about farm tire technology. This is the next installment in our ongoing series, which is designed to help ag tire dealers better connect with their customers. A trending question, followed by answers, will appear in our Commercial Tire Dealer section every other month.

For complete answers, click on www.agtiretalk.com.

QUESTION: What is tire deflection, why is it important, how does it impact flotation and traction and how does it impact yield?

NICK PHILLIPPI, national product manager, agriculture, Alliance Tire Americas Inc.: Tire deflection, or the difference in radius between a loaded and unloaded tire, is caused by the flexing of the sidewall under load. When a tire is experiencing proper deflection, the tire’s sidewall is flexing the way it was designed to, its contact patch with the ground is optimal and you’re reducing soil compaction, while promoting even tire wear.

Engineers design and manufacturers build tires to maintain a specific range of deflection to optimize tire capabilities and service life. That’s why it is so important to match load and inflation pressure. Proper inflation pressure—when matched to the load and speed—is what allows a tire to deflect the way it is designed to. Too much pressure reduces deflection. Too little pressure allows the sidewall to flex too much. w w w . M o d e r n T i r e D e a l e r. c o m 04_MTD_CTD_Pat_Snider.indd 45

If the tire is not flexing enough, you’ll experience a rougher ride and reduced footprint, leading to faster wear in the center of your tread. If a tire flexes too much, the movement of the sidewall creates friction and builds up heat.

That’s what makes very-high flexion (VF) tires so special.

Their sidewalls are designed for extra flexion, which puts more lugs on the ground for better traction, better flotation and better wear, without increasing the risk of overheating from excessive flexing.

You don’t want to maximize flexion. You really want to optimize it. The key is to check the tire manufacturer’s inflation table for the proper pressure for the load and speed at which your customer will be running.

To confirm that you have the proper amount of flexion, you can check the static load radius of a new tire. If the tire is inflated properly and flexing appropriately, the distance from the center of the hub to the ground will be equal to the listed static load radius.

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A G T i r e Ta l k

Proper sidewall deflection allows tires to achieve optimal performance, says David Graden, operational marketing manager, agriculture, Michelin North America Inc.

DAVE PAULK, manager, field technical services, BKT USA, Inc. Deflection is a tire section height decrease measured from the center of the tire rim to the surface of the ground and is due to a tire load at a certain inflation pressure.

The static loaded radius (SLR) of a tire gives a good indication of deflection. SLR is measured with the tire inflated at its nominal pressure and properly mounted on the correct wheel at maximum load.

The static loaded width (SLW) is an indication of the tire contact patch area under a load. SLW is the measurement of the outer distance between tire sidewalls, with the tire inflated at its nominal air pressure at maximum load.

Deflection is critical in radial tire performance because it allows the tire to flex and generate a wider contact area with the ground. The increased contact patch generates higher traction and greater flotation. The benefits of increased traction include improved time efficiency, reduced fuel costs and optimized machinery performance. Increased flotation characteristics lead to reduced soil disturbance and decreased soil compaction, which increases product yield.

Radial tires specifically are designed for tire deflection within specific ranges that can help with both traction and flotation. Radial tires, in general, are designed to run with a degree of deflection.

In contrast, bias tires cannot be run at low air pressures.

Maximizing traction is important to covering more ground and saving on fuel costs by eliminating unnecessary wheel slip.

This allows the tractor to pull equipment the way it was designed.

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MTD December 2020 11/30/20 1:37 PM

A G T i r e Ta l k It also is important to know the tractor weight and use the correct air pressures for that weight. The air pressures at field speeds are not always the same air pressures at highway speeds, so it is important to adjust the air pressure accordingly.

JIM ENYART, technical manager, CEAT Specialty Tires: The sidewall of an ag tire is quite remarkable since it has to transfer the power from the bead to the tread of a drive tire while rolling, flexing and carrying the load.

Sidewalls on radial tires are designed to provide radial deflection that spreads the load over a larger area by increasing the footprint in length, while maintaining uniform weight distribution. The larger the footprint, the more that compaction is reduced.

The contact area will be at its maximum length with no air pressure in the tire. This will not work for long because air carries the load in all pneumatic tires. Flat and under-inflated tires will be damaged due to over-deflection of the sidewall in the shoulder and bead areas. The more under-inflated a tire is for the load, the quicker and more extensive the damage will be. You need to hit the happy medium by inflating to the most demanding application to avoid tire damage and to maximize flotation and traction by maximizing sidewall deflection.

Bias tires also have sidewall deflection, but that deflection is not in a radial fashion. Due to the bias construction, the entire carcass is distorted, as well as the weight distribution in the contact patch. The bias sidewall deflection does the same basic functions, just not with the same results.

HARM-HENDRIK LANGE, customer solutions engineer, Continental Specialty Tires: To really understand deflection, start with the example of a solid steel ring touching the hard ground. The contact area is only a line with the length identical to the width of the ring. Compared to that, the contact patch of a round tire is not only a line, but an area. This requires that the ideal, round shape of the tire flattens in the area of the patch.

While the contact patch of a bias tire has a more elliptical shape, in most cases due to several overlapping layers, they are more rectangular for radial tires. Why? Radial tires normally have a belt inside, beneath the tread, that works like a rubber track. Between this belt or track, the radial cords in the carcass rubber are very flexible in a sideways direction, but very strong in a forward pulling direction.

In a tire not making contact with the ground, the inflation pressure pulls the carcass and belt to the outside and the belt reaches a perfect, round shape. But if you put the tire on the ground, the load on the tire pushes the tire down to the ground.

So in the contact patch area, inflation air pressure inside the tire and resistance from the ground collide.

Deflection means that the carcass supports the belt in changing the round shape in the contact area towards a flat shape. The higher the load and the lower the inflation pressure, the bigger the resulting contact patch area, creating a need for more deflection work by the carcass.

Interactions that come with deflection include reduced ground contact pressure, tire deformation and more.

Too much deformation or deflection can damage the tire.

High deflection also translates into less ability to transfer lateral forces, meaning tires with low pressure levels are spongier and will w w w . M o d e r n T i r e D e a l e r. c o m 04_MTD_CTD_Pat_Snider.indd 47

have the potential to start floating. This is not optimal for inclines or fast road transport.

GREG GILLAND, vice president, global agricultural program Maxam Tire International: All agricultural tires — either radial or bias — are designed by size or footprint to fulfill following specific functions: carry loads, transmit torque, resist lateral forces and allow equipment to fulfill its purpose.

Optimal deflection ensures that as a tire compresses or deflects under the given load, its footprint extends to ensure that the maximum coverage is derived from the tread face, delivering both the traction or flotation necessary for equipment to work.

The deflection created by managing the correct air pressure for a given load or speed will adjust the tire footprint length or size, increasing both the tractive power or flotation. In some instances, tires may appear to be under-inflated, when in fact, they are deflecting at the sidewall to ensure the tread face is providing the correct gross flat plate.

Adjusting the air pressure to ensure correct tire deflection and a footprint that is optimized for working conditions will help end users achieve traction, reduced fuel cost and compaction, faster speed through the field and improved tire life.

DAVID GRADEN, operational marketing manager, agriculture, Michelin North America Inc.: Proper sidewall deflection allows a tire to achieve maximum performance by optimizing footprint.

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A G T i r e Ta l k Traction and flotation are two of the greatest benefits, with rider comfort and increased carrying capacity being an additional benefit.

To maximize deflection and its benefits, the tire manufacturer’s recommended air pressure must be maintained for a given load.

When air pressure is precisely set, the footprint of a tire is at its maximum, providing more lugs on the ground, greater surface area, better traction and better flotation.

Once precise air pressures are determined for both field and on-road operation, you can input these air pressures into a tractor’s central tire inflation system and the equipment operator can change pressures with the push of a button, while on the move.

A growing number of larger flotation tires are designed using VF technology to reduce inflation pressure levels by 40%. Scott Sloan, ag product manager/global LSW, Titan International Inc., calls this “the ultimate” in minimizing ground bearing pressure.

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SCOTT SLOAN, ag product manager/global LSW, Titan International Inc.: Today, growers are looking for more efficient ways of doing business, like the uptick in precision farming practices over the last decade. Equipment and technology have evolved to the point of enabling them to monitor the conditions of plant and soil health on a daily basis. With that in mind, there has be a focus placed on soil compaction. Any piece of equipment rolling through a field affects the soil and crop ability to reach its fullest potential.

Having a larger footprint accomplishes two things. It reduces soil compaction and also puts more lugs on the ground, increasing tractive efficiency and improving fuel efficiency.

Along with IF/VF technology, another trend that has been growing is converting from row crop duals to super-single fitments. Larger flotation tires are designed using VF technology to reduce inflation pressures by 40%, making this combination the ultimate in minimizing ground bearing pressure. By bolting this combination to a tractor, you can increase the total footprint of the tractor by over 30%. This allows a grower greater access into areas sooner, which ultimately increases yields and most importantly, profits.

NORBERTO HERBENER, OE applications engineer, Trelleborg Wheel Systems: Modern ag tire designs and constructions are aimed at providing the farmer with a tire that has the highest traction capability and the highest flotation for lower compaction, while providing the highest operator comfort.

Why is deflection important and how does it affect the tire performance? Apart from tire lug design, the way to have more lugs on the ground is to increase the tire’s contact area.

It is not only the width that makes a difference, but also the length of the contact area. If you have a more flexible tire, it will be capable of increasing the footprint area versus a rigid sidewall design tire.

How can you be certain you are getting the largest footprint possible without the risk of damaging the tire? Here are some simple steps.

First, determine the load the tire must carry, then search for the correct inflation pressure based on the working speed at which the load will be applied.

This will help ensure that the tire will provide the correct deflection, plus optimal footprint and transfer of transmission power to the ground with the highest efficiency. The correct tire air pressure will achieve the largest footprint and lowest soil compaction. Also note studies have shown that over-inflation reduces footprint, traction and flotation. And under-inflation can damage the tire. ■

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Commercially Viable ZC Rubber expands Arisun line

BKT adds to AgriMax line

Zhongce Rubber Group Co. Ltd. (ZC Rubber) is bringing two new truck tires to the North American market under its Arisun banner. The Arisun AS600+ is designed for long-haul applications and features a wide tread profile for enhanced stability, plus four straight grooves to promote improved fuel economy. The Arisun AZ692 is an all-position tire for mixed-service applications. It has been engineered to help deliver enhanced durability and traction. Both tires will be warranted through three retreads for up to seven years.

ZHONGCE RUBBER GROUP CO. LTD. www.arisuntires.com

Balkrishna Industries Ltd. (BKT) has released the AgriMax Turf RT 333 for small tractors used in orchards, vineyards and gardens, where soil compaction is a primary concern. The tire contains an extra-deep tread for improved traction and extended service life; directional blocks that help reduce soil compaction; rounded shoulders; and other features.

The AgriMax Turf RT 333 also offers low rolling resistance.

It is currently available in two sizes: 280/70R16 and 280/70R18.

BALKRISHNA INDUSTRIES LTD. www.bkt-tires.com

Double Coin superwide tire debuts China Manufacturers Alliance LLC (CMA) has introduced a new, superwide trailer tire, the Double Coin FT125+. Available in size 445/50R22.5, the tire features “groove bottom protection that resists stone penetration and a durable casing design, providing resistance to punctures,” according to CMA officials. “The tire is made using Double Coin’s superior compound, which will maximize performance by providing outstanding durability and optimal fuel and weight savings.”

CMA LLC www.doublecointires.com

Hunter introduces heavy-duty changer Hunter Engineering Co. has added to its heavy-duty tire changer lineup with the introduction of the TCX635HD, which the company says offers 18% more speed and 30% more torque than its predecessor. The changer features a lower carriage that enables more ergonomic roll-up, while providing additional safety. Hunter says the machine’s new, high-efficiency gearbox helps ensure long service life and delivers increased power.

HUNTER ENGINEERING CO. www.hunter.com

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Galaxy Garden Pro XTD gets new sizes The Galaxy Garden Pro XTD from Alliance Tire Americas Inc. now has 12 new sizes. The tire contains a new, high-density compound; a large footprint; and other features. Overall, the Galaxy Garden Pro XTD comes in nearly 25 sizes, including 17.5-inch and 19.5-inch options, fitting rims up to 24 inches in diameter.

Alliance says the tire will fit nearly any compact or sub-compact tractor on the market, plus a wide variety of mowers and other turf equipment.

ALLIANCE TIRE AMERICAS INC. www.atgtire.com

Maxam unveils airless tire Maxam Tire North America Inc. has rolled out an all-new, airless tire, the MS709, for telehandler applications. The MS709 provides “a rugged and long-lasting solution for demanding construction applications,” according to Maxam officials. The tire boasts a unique, reinforced centerline to eliminate lug flexing and tearing; a special, cool-running compound; two-stage construction for extra strength; and other features. It is available in size 13.00-24 and size 14.00-24.

MAXAM TIRE NORTH AMERICA INC. www.maxamtirena.com

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Focus on Industry

Bridgestone embraces ‘turning point’ COMPANY BUILDS FOR FUTURE WITH MOBILITY SOLUTIONS, NEW PRODUCTS By

Mike Manges

G

abriel Asbun succinctly articulated Bridgestone Americas Inc.’s long-term strategy during the company’s recent, all-digital 2020 Consumer Tire Business Meeting.

“Our number one priority is to continue to create a stronger tire business that will start with delivering the right mix of products to help meet the needs of your customers today, while at the same time investing in tire-centric and mobility solutions for tomorrow,” said Asbun, who is president of the company’s Americas Tire Group.

“We all know that tires are a critical enabler of mobility. Now consider what happens when you monitor and manage that tire across its full lifecycle. You are able to maximize tire performance to deliver even more value.”

New, future mobility-based initiatives for Bridgestone could include the development of what Asbun called a “subscription-based model,” in which consumers would pay a monthly fee for tire rotations, roadside assistance and other services.

Paolo Ferrari, president, CEO and COO of Bridgestone Americas Inc., echoed Asbun’s remarks.

The new Bridgestone Alenza AS Ultra will be the company’s flagship tire for SUV, CUV and pickup owners.

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“It’s about creating and selling value and thinking more about a subscription-based model,” he said. “We need to participate in the network of platforms that (comprise) the new mobility ecosystem.”

The COVID-19 pandemic “has shown us that everybody is more ready” to embrace new mobility solutions, according to Ferrari.

“We need to be agile. Multiple, concurrent and drastic changes will continue to occur. We also need to take advantage of the massive data that is being collected — tire data and connected vehicle data. It’s a world of digital platforms.

“We can’t do it all,” he told dealers. “You can’t do it all. We have to co-create.”

‘AT THE INTERSECTION’

“The world around us is at a turning point,” said Riccardo Cichi, president and chief sales officer, Americas Tire Group, Bridgestone Americas. “We are at the intersection of multiple, macro-level changes happening concurrently, including changes in auto technology, regulations and society.

“The amount of change can feel overwhelming at times, but with it comes great opportunities to innovate, evolve and create a (better) future for all.”

Shifting purchase behaviors — including the preference for online shopping — coupled with rapidly developing digital technologies will generate more opportunities “for our industry to embrace innovation and for you to capture new business,” Cichi told dealers.

“Online commerce has experienced the equivalent of four to six years of growth since March,” he said. “This trend has continued for consumer tire sales, too,” with some brick-and-mortar tire retailers seeing more than 15% of their revenue coming from online tire sales, he added.

Cichi also cited the growth of last-mile delivery fleets as another opportunity for dealers.

“The last mile segment is outpacing the overall market,” he said, adding that it has “untapped potential.”

NEARLY 80 NEW FITMENTS

Dealers also should keep an eye on trends at the original equipment vehicle level, said Shannon Quinn, president, consumer OE tires, Americas Tire Group. Large rim diameter tires will comprise more than 70% of the U.S. OE market by 2025. “This will be fueled by growth in the premium segment and the continued shift to light trucks and SUVs, which are projected to be 78% of the market” some five years from now.

Quinn said that Bridgestone will bring 78 new OE fitments to vehicles like the Toyota RAV4 and Toyota Highlander, the Ford Escape and Ford Ranger, the Chevy Silverado and others.

“We have started to see a rebound” in new vehicle production “and are expecting the year to end 15% below 2019, with more than 14 million cars being sold.”

NEW POTENZAS (AND AN ALENZA)

Addressing the replacement channel, Bridgestone officials announced that the company is refreshing its Potenza line with the introduction of two new products — the Potenza Sport and the Potenza RE980AS+ — during 2021.

Available during the first half of the year, the Potenza Sport is “an ultra-high performance summer champion,” said Jeff Cook, executive director, product strategy and portfolio management, Americas Tire Group. The tire will launch in 65 sizes, covering 81% of sports cars and sedans.

The Potenza RE980AS+ builds upon the success of its predecessor, the Potenza RE980AS, by offering enhanced ride comfort and other benefits. It will be available during the first half of 2021 in 53 sizes.

Bridgestone also unveiled the latest addition to its Alenza line, the Alenza AS Ultra, which will be available in 49 sizes during the second half of 2021. Cook called it the company’s “flagship premium highway option for drivers who are looking for a luxury driving experience from their SUV, CUV and pickup.” ■ MTD December 2020 11/30/20 1:37 PM

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11/23/2020 11:28:58 AM

DSP Insight

Time to work ‘on’— instead of ‘in’ — your business

PUT THESE ACTION PLANS IN MOTION FOR A SUCCESSFUL 2021 By

Jeff Morgan

W

ow! What a year 2020 has been. Talk about a roller-coaster! The year started out like any other, with great expectations. We started hearing rumbling about some virus, but didn’t really pay much attention, at first.

Then came March. The COVID-19 pandemic was real, businesses started shutting down, governments began locking down and tire dealerships started to feel the hit. Fortunately, we were identified as “essential businesses” and could remain open. But customers were scared to come in. April hurt — bad!

We scrambled for whatever assistance we could get, like Paycheck Protection Plan loans. We adjusted our hours and our processes — anything to help us get by. As May progressed, we began to see a light ahead.

Then came the summer, which produced record numbers for many! We carried that momentum into the fall. Then we started mini roller-coasters of ups and downs, as COVID-19 cases increased again. However, through all of this, you kept moving forward and now you have reached the end of this very challenging year.

You made it!

Now, it’s time for us to look forward and think of what we need to do to make 2021 the best year ever. This past year forced many of us to work “in” our business, with everything we were dealing with.

Now you should plan on how you will work “on” your business in 2021. This should have already started with creating your budgets for 2021. I recommend that you should use 2019 as your baseline, since 2020 was so crazy. Consider your goals for sales and gross profit. Month by month, where do you want and need to be?

As with any goal, it should be realistic, but also challenging. I have seen too many

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people set goals that they would achieve customers who have come into your store to without really trying. In the same light, I price tires or are you going to let them leave have seen people set goals that are simply your store to check for themselves? Are your unrealistic. All this does is create frustration employees actively offering appointments to when you do not get close to achieving it. get a customer in or are they simply waiting Setting objectives is really the easier part. for the customer to ask? All the advertising Stating that you want a 5% sales improvein the world won’t do you any good if your ment and that you want to grow your gross people aren’t finding a way to get the customer profit by 3 percentage points is one thing. to hand over their keys.

However, without a specific plan around Often you will find the biggest opporhow you will achieve these things, you are tunity to get more cars into your service bays lies with your people, as opposed to simply hoping to get there. your advertising.

As the old saying goes, “A goal without a plan is a wish.” Do not leave your success If gross profit improvement as a percent to chance! Create specific plans around the to sales is your goal, again you need to have actions you will take to make these goals specific, actionable plans in place to make a reality. Give yourself and your business that needle move. As I have mentioned specific tasks that will align with reaching numerous times in this column, perhaps your objectives. For example, if your goal is it is time to raise your labor rate? That will to increase your sales by 5% over last year, make an impact right away. However, there what steps will you and your employees are additional steps you can take. Focusing follow in order to get there? on labor intensive services will certainly help One way to accomplish this is to increase boost your gross profit. Our industry gives us the quality and quantity of vehicle inspeca couple of great opportunities to do that in tions you perform the form of alignments every day. Set a daily and wheel balances. inspection goal. (I Make it a point that Give each of your goals would recommend any vehicle that gets a percentage to your more than one new specific action items tire also gets on your car count.) that you can track Just as imporalignment rack, even tantly, set an expecif in the form of a free and manage. tation with your check. Odds are high technicians that only that you will find the thorough and accurate inspections will be alignment needs adjustment. When you accepted. Once your “inspection culture” present the alignment printout showing the is strong, sales will come. angles needing adjustment, it is validation Perhaps your best sales opportunity exists to the customer that this service is needed, through just getting more customers in and more sales are likely to occur. the door? Obviously, you want to consider When a customer only replaces two tires, marketing options, but also look at the internal suggest balancing all four. Quite frankly, it opportunities that exist. Are your employees really is the right thing to do. This is especially proactively trying to find ways to get customtrue if the customer puts the new tires on ers off the phone and in the store? Are you the rear and rotates the old rears to the willing to offer a price match guarantee to front. If those tires were just slightly out of MTD December 2020 11/30/20 1:41 PM

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DSP Insight

Build your employees’ work schedules with the intent to come in under your target numbers. This will cover you for the unexpected.

balance on the rear, it is likely that the driver wouldn’t notice. However, put those tires on the front and now the steering wheel is vibrating at 65 miles per hour. This will get the driver’s attention. He or she will likely come back to you very dissatisfied and you might end up balancing those tires for free.

Perhaps simply collecting for what you do will help. I see way too many instances of dealers devaluing their products and services by giving discounts that are not needed. Sometimes we offer to perform a check or a diagnostic at no charge if the customer lets us do the repair. Why? Was the check or diagnostic not worth it?

I recently had to have shoulder surgery.

Trust me — my doctor did not give me my exam and tests for free since he was doing the surgery. The check or diagnostic helps save the customer money by pinpointing the issue, as opposed to just throwing parts at it to see what sticks. It is valuable and you should collect for it.

The same goes for giving a discount of some kind just to try and sell the job. How often have you said, “And if you let us do it today, we’ll knock off 10%?” Again, why? All you have really done is told the customer that your original price was too high. This creates doubt in their mind about all of your prices.

Instead of selling on price, start selling the benefits and value of the product or service.

When explaining the benefits, understand that this practice answers the customer’s question,“What’s in it for me?” The more

54 05_MTD_Columns-TPMS.indd 54

they understand, the greater the value. At closing time. If you schedule this person to leave at closing time, you are instantly that point, the price becomes secondary. adding additional overtime that you have Keep in mind that actionable plans are not just for reaching your sales and gross not budgeted for. Scheduling in the manner profit goals. Your budget and planning must I suggest will either keep your payroll as also include expenses and how to manage intended or even come in better. them. Again, you cannot leave this to chance.

Now that you have built your schedule, More than just reviewing your equipment you need to monitor results and payroll daily. needs and planning purchases, you need to If your sales and gross profit numbers are not have a plan to address the most controllable where you need them, be ready to adjust the expense of all, which is payroll. Once you schedule, send someone home early, take a have a plan to hit your sales and gross longer lunch, come in later, etc. Putting this profit goals, now you discipline into your can determine how payroll management much payroll you can will help you better afford to get there. As manage your expenses Depending on the size opposed to measuring and bottom line. of your business, payroll your payroll as a perSetting objectives cent to sales, measure that you want to attain should be 41% to 45% it as a percent to gross in 2021 is important. of your gross profit. profit. Besides, gross You need to know profit is what is going where you want to be. into the bank to write But more importantly, those paychecks against. Depending on the you need a road map to get there. size of your business, payroll should be 41% Give each of your goals specific action to 45% of your gross profit. items that you can track and manage Now that you have set your payroll target, to ensure that the objectives you set are you need to have a plan to achieve it. This obtained. This puts you in control. starts with proper scheduling. You need It is so much better to take control of to build work schedules with the intent to your success than being a sideline observer come in under your target number. This who is hoping for the best. ■ will cover you for the unexpected.

Also, schedule to minimize overtime Tire industry veteran Jeff Morgan is the executive director of Dealer Strategic Planning, the DSP Group. for hourly employees. A good way to do He can be reached at jeff.morgan@20dsp.com or this is to build the schedule with the closer (651) 846-9871. For more, see www.20DSP.com. scheduled to work until one hour after store MTD December 2020 11/30/20 1:42 PM

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11/24/2020 12:02:36 PM

Business Insight

Discuss — but don’t forget to document THE FOUR ELEMENTS OF AN ANNUAL REVIEW By

Dennis McCarron

T

he end of 2020 is finally in view, and in only a few weeks it will be in the rear view mirror for good.

Our industry should stand tall, based on how it handled the pandemic and kept essential workers’ vehicles running on the road.

It also navigated a political, financial, and human resource minefield that will hopefully be a once-in-a-lifetime experience.

As disjointed as 2020 was, most independent tire dealerships will end up flat financially or slightly up.

Demand was chaotic, with drastic ups and downs, but all 12 months combined should result in a fair year.

With December coming to a close, it is time to start looking at getting 2021 off to the best start possible. This starts with your people.

People perform best when their job is predictable and they clearly know how to define success.

Start the new year by scheduling performance reviews and make sure they are completed by the end of January.

Before we get into the details, there are two rules about performance reviews that are critical to making a positive impact on employees. And make sure you consistently adhere to them, regardless of the employee’s role within your business.

1. Performance reviews should never be a surprise. An employee should know exactly what will be said in a performance review. When a formal performance review is held at the beginning of the year, that document’s content should be a regular, recurring topic of conversation over the next 12 months. Many informal, private conversations about progress and some sit-down conversations about goals should take place regularly throughout the year. If a performance review comes as a surprise to the employee, management has failed. In this case, skip the

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review and focus on setting goals for the upcoming year.

2. Employee pay should not be a part of a performance review. If pay is brought into the conversation, the employee will tune out much of what will be said, while anxiously awaiting the results of any possible wage or salary bump. Instead, choose the employee’s anniversary date of employment to do pay reviews. This has the added benefit of making it harder for underperforming employees to go around asking what “everyone got” on the same day at the beginning of the year, which can cause problems. Using anniversary dates spreads out everyone’s pay raise — or lack thereof — over the course of the year.

Remember that all formal employee performance reviews should contain these four elements: Review of previous year’s document: To reiterate, this should not be the first time since last January you and your employee looked at this document. It is unfair to the employee. There should be an area on the document where you can grade each individual’s performance. It can be a number system that adds up to 100 or you can use words like “fails,” “meets,” “succeeds” or “leads.” These types of ratings scales are called Likert scales, and it’s easy enough to search the internet and find a style that you like.

Discussion of previous year’s goals. You should review the previous year’s goals line by line and celebrate success or discuss what caused failures. Identify failures as personal (employee responsibility) or structural (company roadblocks, like bad processes.)

It is important to invite employee input, so differences can be resolved. One of the main objectives of a review is to get the

One of the main objectives of a review is to get the employee back on track. employee back on track — not just lecture them about perceived failures. This tough discussion is the reason reviews should not be a surprise. Stay focused on the facts and the road to improvement. Don’t assign blame.

Upcoming year conversation. Goal-setting must be a shared experience. Let’s say you expect service advisor, Jane Donut, to sell 250 tires a month. However, Jane quietly thinks that 250 is simply unreachable and that she will struggle to get to 220. If she thinks 250 is undeniably unachievable, she won’t engage the goal, leading to her being correct. In fact, she won’t hit 250, ever. But if you have a conversation about it and maybe compromise to 225, imagine the excitement when she hits that target, with four more days to go in the month.

What a confidence builder!

Document the upcoming year’s plan. Once goals are agreed upon, document the discussion for future reference throughout the year and to prepare for the next review.

Make a copy so both you and your employee are in possession of the goals.

Use the document throughout the year to check in on progress, discover problems early so you can fix them or maybe even agree that a goal was not a good idea and revise. You’re allowed to do that. ■ Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com.

MTD December 2020 11/30/20 1:42 PM

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Creating a Buzz

Make your website work for you FIRST STEPS TO MAKING A POWERFUL ONLINE IMPRESSION By

Dan MacDonald

W

e’ve talked quite a bit Are the photos of your dealership old and poorly shot? This is an easy fix. Hire a local in this space about photographer and have some great new the importance of digital images shot of your dealership, inside opt imizing your and out, and you’ll quickly upgrade the look internet presence. and feel of your site. Is the “About Us” section A big part of that is making Google an empty or are the photos of your team 10 asset to your business.

Just as a refresher, Google processes years old and out of focus? Each member more than 3.5 billion internet searches of the team should have a great, current per day and has 92.18% of search engine photo and a fun, informative bio. John market share. For many consumers looking Gamauf, who was president of consumer to buy a product or service, Google is the tire sales at Bridgestone Americas before he retired, would often say, “People buy first place they go.

In my last column, we talked about why tires from people.” John knew how to sell you need to claim your Google Business Protires. You’re proud of your people, right? file. Just go to Google Your website should and type “Google reflect that.

My Business.” A link You really need to think will pop up and you Give your site some just start filling in the depth. Most tire dealabout your website as information, including ership websites that I a continually evolving, your business’ name, see are flat and really its hours of operation, don’t tell the story of dynamic marketing tool its location and logo, the business. Here’s for your business. plus a description of where you can have your business. some fun and brag a That’s a great first step, but you can’t stop little. Do you support charities or sponsor there. Now that you’re getting more traffic a little league team? Does your business flowing to your website, what do potential have a long, rich history in the community? customers see when they go there?

Have you won awards for service or sales?

Most tire dealership websites I’ve seen Are you the best dealer in town for highfeature a good tire locator, which is crucial. performance tires and custom wheels?

That’s a must and just about everyone has Your website should showcase the best that. The challenge is to stand out from things about your business and tell your your competitors. unique story.

You really need to think about your website as a continually evolving, dynamic Embrace video. Every good site should marketing tool for your business. You can’t feature a professionally shot and edited just build it, check the box, and you’re done. video in the middle of your homepage. It’s It’s not a destination. It’s a journey. You the best way to tell your story. This isn’t a are always on the way to making it better, do-it-yourself project unless you already more eye-catching and more relevant to know how to write, shoot and edit a firstyour customers. Here are three ways you class video. The video shouldn’t be longer than two minutes. It should be short and can improve your web presence: impactful. And it should tell the story of Do the basics better. I would put this under your business: your history, your culture the category of basic “blocking and tackling.” and your commitment to customer service.

58 05_MTD_Columns-TPMS.indd 58

Your website should showcase the best things about your business and tell your dealership’s unique story.

I’m guessing you might be asking, “When do I have time to do this?” The answer is “now.” Think of it as your New Year’s resolution, so you can hit the ground running in 2021.

It’s OK to take it one step at a time. First, get the basics right, then customize your online story and then create that video to tell your story in the most impactful way.

When you do this, future customers who land on your site will say, “Wow, this is impressive!”

And that’s a great way to start the new year! ■ Dan MacDonald is a freelance writer and former public relations director for Bridgestone Americas Inc. Dan founded MacDonald Communications, which focuses on public relations and digital marketing. He can be reached at 615-681-5387 or dan@maccomm.net website: www.maccomm.net

MTD December 2020 11/30/20 1:43 PM

Mergers and Acquisitions

‘If you don’t know where you’re going, any road will take you there’ USE YOUR YEAR-END REVIEW TO CREATE A GREAT 2021 By

Michael McGregor

I

t’s a good idea to take some time at the end of the year to assess how you’ve done and plan for the year ahead. It’s particularly important in the tire business because it’s easy for calcification to set in. Margins can slip, inspection rates can falter and sales and profits may decline.

Here’s a methodology for conducting your year-end strategic review and formulating next year’s plan. It starts with looking internally and assessing where you are, then looking outwards at your competitive environment and finally converting your plans into financial goals.

Think back over the last year to what worked, what didn’t and what you wished that you had done better. Here are some things to think about as you assess internally:

1. People. You are nothing without the people in your business. They are your most valuable assets, by far. By the end of the year, you should assess your store managers, your assistant managers and your sales bench and identify the holes across your organization. Make the moves you need to make so you can have the teams in place to achieve your goals for the next year.

2. Process. How well and consistently have your stores adhered to your sales and inspection process? What enhancements can you make by investing in training, measurement and technology to keep improving in this area?

3. Price. Assume that you are underpricing.

Where can you increase pricing without sacrificing sales? Which locations haven’t increased labor rates in a while?

Which small and not visible products and services can you raise the price of without raising an eyebrow?

4. Promotion. Break your ad budget into customer acquisition and customer retention. Lean into programs that you can measure and track their ROI. w w w . M o d e r n T i r e D e a l e r. c o m 05_MTD_Columns-TPMS.indd 59

Your advantage over the large national chains is your nimbleness and ability to execute micro-programs. Get your promotion plan dialed in, but embrace continuous improvement.

5. Place. Assess your visual image and see if the “stage” needs to be reset. Set your capital improvement budgets.

Decide what new geographies you would like to move into if you had the capital to do so.

6. Product. Is it time to bring on new lines and expand your services or should you consolidate? Make decisions with an eye towards lowering your costs and increasing your back-end rebates, while still appealing to your customers with a multi-brand assortment.

find opportunities, vulnerabilities or threats.

The last step here should be to convert your plans into numbers. Each initiative has a cost and a benefit to your business.

Quantifying those initiatives in a sales budget by location is the next step.

Develop an integrated financial model (i.e. a spreadsheet) that starts with a monthly sales and expense budget for each store for the upcoming year. Doing it by month and store will allow you to track things better and adjust your plans as the year progresses. Start with last year’s store results as a base and incorporate your plans and new initiatives in the months that you plan to launch them. Add in new store locations in the month you expect them to be opened. Once you have the individual store budgets, roll these up into a consolidated, As you plan new initiatives, try to monthly P&L that includes your corporate quantify the costs and benefits to better overhead expenses. inform your store budgets and capital Next, have this consolidated P&L roll needs. Identify what can be funded out into a monthly cash flow statement so of ongoing operations your monthly profit and which efforts (or loss) informs a require capital invest“sources-and-uses As you plan new ment. Sometimes you of-cash” analysis. have to quantify the cash flow stateinitiatives, try to quantify This unquantifiable. ment by month will In your chosen spotlight when and the costs and benefits geography, you need for what purposes you to better inform your to keep an eye on the need cash to support competition because your plans. store budgets and you don’t operate in Lastly, integrate capital needs. a bubble. I’d keep an the cash flow stateeye on the national ment with a monthly chains, regional chains and local competiconsolidated balance sheet so you can figure tors that have a similar product and service out whether debt or equity will be employed mix to yours. Plot their locations and see to fund your plans. Keep an eye on your where the geographic holes might be. debt levels and avoid growing straight into Assess their strengths and weaknesses to bankruptcy. ■ inform your competitive positioning. Keep Michael McGregor is a partner at Focus Investment your ears open for anecdotal information.

Banking LLC (focusbankers.com/tire-and-service) Drive by their stores. (Are there any cars and advises and assists multi-location tire dealers in the bays?) Count sales and tech staff to on mergers and acquisitions in the automotive estimate their sales. aftermarket. For more information, contact him at michael.mcgregor@focusbankers.com.

The objective of the external review is to

59 11/30/20 1:44 PM

TPMS

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60 05_MTD_Columns-TPMS.indd 60

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he tire pressure monitoring system is an indirect type of TPMS, and is included in the software of the ABS control module. The system will recognize a slow and gradual decrease in tire pressure on a wheel. DTC memory faults for tire pressure monitoring are stored in the ABS control module. With the help of the ABS speed sensor, the TPMS compares the speed and rolling circumference of the individual wheels. There are no sensors installed in the vehicle’s tires.

Rolling circumference of a tire may change due to: • • • •

Insufficient tire pressure; Structural damage of tires; Vehicle loaded heavily on one side; One axle being heavily loaded (i.e., when pulling a trailer); • When snow chains are used; • When a spare tire is installed, and; • One wheel being replaced

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MTD December 2020 11/30/20 1:44 PM

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Figure 1: Identifying the TPMS set switch.

TIRE PRESSURE MONITOR WARNING INDICATOR

TPMS warnings are shown via a TPMS indictor light in the instrument panel.When the low tire pressure warning light comes on, immediately check air pressure of all tires and adjust to the specified pressure.

Reset the TPMS. If the light is still on, there is a malfunction in the TPMS. See the appropriate manufacturer service information.If the ASR/ESP control lamp or the traction control indicator lamp indicate a malfunction in the ABS system, then the TPMS indicator light will also illuminate. A malfunction in the tire pressure monitoring system has not been stored.

The TPMS indicator light cannot be turned off by pressing the TPMS SET Button. See the appropriate manufacturer service information.

TPMS RESET PROCEDURES

NOTE: Whenever a wheel is changed or replaced, tire pressure ais djusted or the tires are rotated, the TPMS needs to be reset. When the low tire pressure warning light comes on, immediately check air pressure of all tires and adjust to the specified pressure. Reset the TPMS. Ensure that warning indicators are not displayed.

TIRE PRESSURE MONITOR SYSTEM RESET

CAUTION: DO NOT reset the TPMS until all problems are fixed and the tire pressure in all tires has been adjusted. If the reset procedure is done when tire pressures are incorrect, the TPMS system will not work properly and may not set an alert when a tire pressure is low or high.

1. Set the tire pressure of all wheels to the specified pressure; w w w . M o d e r n T i r e D e a l e r. c o m 05_MTD_Columns-TPMS.indd 61

2. With the vehicle stopped and the parking brake applied, turn the ignition switch to the ON position.

NOTE: On some models, the SET button is located inside the glove compartment. There may be models where the SET button is located next to the gearshift lever, and; 3. Press the TPMS SET button until an audio signal is heard. The signal confirms the basic setting (see Figure 1).

DEMOUNTING/MOUNTING PROCEDURES

CAUTION: The tire should be demounted from the wheel using the tire changer manufacturer’s instructions.

NOTE: Vehicles are equipped with an Indirect TPMS. The indirect system does not use tire pressure sensors installed on the four wheels.

NOTE: Whenever a wheel is changed or replaced, tire pressure is adjusted, or the tires are rotated, the TPMS needs to be reset. See RESET PROCEDURES. ■ Information for this column comes from the tire pressure monitoring systems data in ProDemand®, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www. mitchell1.com. To read archived TPMS articles, visit www.moderntiredealer.com.

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61 11/30/20 1:52 PM

Products Nokian expands Hakkapeliitta TRI sizes Nokian has added six sizes to its Hakkapeliitta TRI, a commercial tire designed for enhanced performance in winter conditions.

The new sizes are: 360/70R20, 480/80R30, 340/80R24, 440/80R30, 300/80R24 and 360/80R28. The Hakkapeliitta TRI, introduced last year with 20 sizes, features a new rubber compound, tread pattern and contact profile. It is specially developed to work in low temperatures and on icy surfaces, but doesn’t compromise performance in the summer, says Nokian. Its siping and activators provide predictable handling, along with driving comfort, due to the design’s low vibration.

NOKIAN TYRES PLC www.nokiantyres.com/ heavy

Advics adds 62 SKUs to brake pad line Advics is adding 62 SKUs to its line of ultra-premium disc brake pads, which significantly boosts the company’s coverage of all late model Japanese and Korean vehicles. In addition to adding coverage for vehicles that were not already in the company’s portfolio, it also is expanding its current offering by matching front pads with rears. This product line expansion demonstrates the company’s continued commitment to technology and developing products for the entire brake system. Additionally, all of the new applications have been engineered to meet or exceed OE standards for durability and performance.

Advics ultra-premium brake pads are made from certified “high carbon” and use OEquality precision machining to achieve tight, precise tolerances, maximum friction reduction and heat diffusion, according to Advics officials.

ADVICS www.advicsaftermarket.com

GT Radial Champiro SX2 RS is ready to perform The latest GT Radial tire brings race-inspired performance to enthusiasts on the road and on the track. The Champiro SX2 RS is a summer performance tire that has evolved from the company’s SX2 design. It features an aggressive, asymmetric tread design and a new tread compound designed to step up performance in dry and wet conditions. Initially, the Champiro SX2 RS is available for 18-inch wheels and has a W speed rating. More sizes will be available later. The tire’s advanced construction is engineered to limit sidewall flex for predictable handling and the extra-large dual shoulder blocks give improved cornering and grip.

GITI TIRE (USA) LTD. www.gtradial-us.com

62 06_MTD_Products-Classified.indd 62

Mevotech offers upgraded control arm bushing Mevotech has released an upgraded spherical control arm bushing for popular 2019-2011 Ford and Lincoln vehicles. The rear upper control arm on these vehicles feature a “block type” rearward bushing. Among its many, performance-enhancing features, the Mevotech MS404320 boasts a spherical greaseable sintered metal bearing that has been engineered to extend the part’s service life. Additionally, a spherical stud is used for full range of motion and the product’s housing is converted from a lightweight aluminum to a full steel forging.

These improvements provide increased durability and create a part that is built to perform, according to the company. All fastenings and hardware are also included to eliminate installation headaches. The MS404320 covers 2019-2011 Ford and Lincoln passenger and SUV vehicles with a North American VIO of over 2.4 million.

MEVOTECH www.mevotech.com

Sizes added to Carlisle Versa Turf tire The Carlstar Group has released three new sizes of its Carlisle Versa Turf radial construction tire: 24x12.0012, 23x8.50R12; and 12R16.5.

The 24x12.0012 fits many zeroturning radius mowers on the market.

The company says the Versa Turf provides great traction, while still being turf- friendly in applications. The Versa Turf also boasts a directional tread pattern and engineered breaker bars for improved self-cleaning, plus greater tread depth than standard R-3 tire designs. The steel-belted tires offer puncture resistance, while tapered shoulders minimize turf damage during turns.

THE CARLSTAR GROUP www.carlstargroup.com

Dill updates digital inflator Dill Air Controls Products has unveiled a revamped, more durable digital inflator with replaceable AAA batteries that are easy to access. The builtto-order tool has a large, back-lit LCD display and a bleed feature built right into its handle. To support the improved Digital Inflator, Dill also has launched a Build Your Own Inflator page on its website. The interactive page allows users to select a preferred inflator type (digital or analog) and then choose components. After each category is selected, a custom part number is automatically generated.

DILL AIR CONTROLS PRODUCTS www.dillvalves.com MTD December 2020 11/30/20 2:06 PM

Products Four Seasons motor resistor kits are self-contained

Continental TPMS tool offers universal help The new Autodiagnos TPMS D tool from Continental can read and diagnose all original equipment and 20 aftermarket tire pressure monitoring system sensors. According to Continental, the tool also performs relearns on 98.6% of all domestic, European and Asian vehicles.The TPMS D tool can program sensors from historical data and features a mode that streamlines relearns for all of a vehicle’s sensors in less than two minutes. In addition, the tool has a built-in vehicle identification number scanner “for faster look-ups and can download the latest vehicle applications.”

CONTINENTAL COMMERCIAL VEHICLES AND SERVICES www.us.continental-aftermarket.com

Lumileds rolls out Ultinon Essential LED fog light bulbs Lumileds’ new Philips Ultinon Esssential LED fog light bulbs serve as direct replacements for conventional halogen fog light bulbs, producing a powerful white light for enhanced visibility.

Specifically, Ultinon Essential LED fog light bulbs are a direct replacement for conventional H7, H8, H11, H16, 9006, 9145, and PS24W fog light bulbs. A compact design makes for easy installation in cars, SUVs, vans and light trucks. The bulbs offer performance and style by giving the vehicle a modern, high-end look, while beaming a powerful white light that helps drivers see and be seen.

The bulbs are compatible with 12V and 24V systems and will be available during the first quarter of 2021.

LUMILEDS LLC www.lumileds.com

Vipal VT850 is geared toward traction The VT850 tread from Vipal has been developed for graders and loaders, plus other traction-dependent vehicles that operate offroad. Available in the U.S., the VT850’s design provides both traction and power, as well as self-cleaning properties. Its groove sculpture minimizes rock retention and prevents damage. The tread is marked “M+S” for enhanced performance in snow and mud conditions. The VT850 features a wear indicator to show when it’s time for retreading, so the end user can keep the casing intact and extend its service life. In addition, Vipal says the tread’s blocks are designed to offer enhanced mileage in extreme driving conditions.

VIPAL RUBBER CORP. www.vipal-usa.com w w w . M o d e r n T i r e D e a l e r. c o m 06_MTD_Products-Classified.indd 63

Due to its confined location, blower motor replacement can be a time consuming and difficult process. Recently introduced Four Seasons brand motor resistor kits feature a quality direct-fit blower motor, resistor and harness connector, all in a single carton. The kits are application-specific and are designed to reduce comebacks by providing all of the electrical components that can fail together when replacing a blower motor. Four Seasons Motor Resistor Kits contain all the necessary components for a successful, long-lasting repair.

STANDARD MOTOR PRODUCTS/FOUR SEASONS www.4s.com

Bosch recalibration system services ADAS-equipped cars Bosch has unveiled a new recalibration system, the DAS 3000, which is designed for repairing current and future advanced driver assistance systems (ADAS). The DAS 3000 gives technicians the ability to calibrate ADAS technology for the most popular OEMs, like General Motors, Ford, Toyota and Volkswagen. The system includes 13 camera targets that align each camera; a radar board for accurate sensor recalibration; distance and wheel hub alignment markers; and Bosch’s ADAS Positioning System, which utilizes the latest technology and industrial-grade vision cameras to measure the distance and angles of the fixture, all in relation to the vehicle.

BOSCH www.boschdiagnostics.com

Intercomp offers digital torque wrench tester Intercomp Co. is offering a Digital Torque Wrench Tester that will save time and money by allowing the accuracy of torque wrenches to be checked in your shop. Even when used as directed, torque wrenches can become inaccurate over time.

It is also hard to tell when one of these tools requires service until a vital part is damaged, says Intercomp. Shops will often send multiple torque wrenches back to the manufacturer on a particular schedule, even if service is not needed. Over time, that has a negative impact on efficiency and the bottom line. Additional benefits of the Digital Torque Wrench Tester include the ability to determine exactly which tools need to be calibrated, no risk of tools getting lost or damaged in shipping and repeatable load cell measurement, among others, according to Intercomp officials.

INTERCOMP CO. www.intercompcompany.com

63 11/30/20 2:06 PM

Ad Index WHEN YOU CONTACT ONE OF OUR ADVERTISERS PLEASE BE SURE TO MENTION YOU SAW THEIR AD IN MODERN TIRE DEALER ADVERTISER

PAGE

WEBSITE

1-800EveryRim OEM Wheels

47

www.everyrim.com/MTD

Alliance Tire Group

15

www.agtire.com

American Omni Trading

9

www.thunderertireusa.com

American Omni Trading

39

www.veneziatires.com

AUTEL

23, 60, 61

www.autel.com

AutoNation

17

www.autonation.com

BendPak Inc. Ranger Products

13

www.mybendpak.com

BKT USA Inc.

11

www.bkt-tires.com

Blackburn OEM Wheel Solutions

57

www.blackburnswheelfinder.com

CEAT Specialty Tires Inc.

35

www.ceatspecialty.com/us

Continental Tire

29

www.continentaltire.com

DSP 20 Group

65

www.20dsp.com

Falken Tires

53

www.falkentire.com

FOCUS Investment Banking LLC

46

www.focusbankers.com

Fury Tires

5

www.furytires.com

K & M Tire Inc.

37

www.kmtire.com

Ken-Tool

48

www.kentool.com

Kenda Tires USA

IBC

www.kendatraction.com

Linglong Americas Inc.

7

www.linglongtire.com

Maxxis Tires

55

www.maxxis.com/razrat

Nexen Tire America Inc.

IFC

www.nexentireusa.com/dealers

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com/enthusiastcircuit

Prinx Tire North America Inc.

27

www.prinxtire.com

Sentury Tire

19

www.landsailtires.com/dealer-inquiries

TechForce Foundation

51

www.techforce.org

Travelstar Tires

41

www.travelstartires.com

Vipal Rubber Corporation

33

www.vipal-usa.com

64 06_MTD_Products-Classified.indd 64

MTD December 2020 11/30/20 2:04 PM

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MTD December 2020 11/30/20 2:06 PM

Black Card Rewards Earn monetary rewards quarterly on a Kenda Traction Black Card.

CO-OP Rewards/Point-Of-Sale Support Gain co-op rewards that you can use for in-store advertising or promotional giveaways via the online Kenda Store.

Marketing Portal Receive access to Kenda branding tools such as product images, logos and our digital catalog.

Dealer Locator Customers using the dealer locator on KendaTire.com will be guided to your store.

Global Brand with Local Support New products are being designed for North America in our state-of-the-art technical center located in Akron, OH. We also have a full team of experienced support staff to help you with any product questions at Kenda USA headquarters in Columbus, OH.

In-Demand Products Our passenger and light truck tires are designed to give your customers solid performance at a great price. Associate Dealers also have access to branded specialty products with many O.E. fitments such as trailer tires, ATV, golf, and lawn and garden tires.

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