Modern Tire Dealer - December 2021

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New tires and tools dominate SEMA Show and AAPEX How to manage online reviews 3 questions with VIP Tires & Service

BUMPER

CROP

AG TIRE MARKET IS UP BUT HEADWINDS REMAIN December 2021 | Vol. 102, No. 12 | $10 | www.moderntiredealer.com

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12/1/21 11:28 AM

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11/22/2021 1:09:58 PM

The Industry’s Leading Publication December 2021, Volume 102, Number 12

F E AT U R E S 20 New tires and tools dominate SEMA Show, AAPEX

20 Numerous suppliers rolled out new tires and other products during last month’s SEMA Show and AAPEX. Turn to page 20 for details.

DEPARTMENTS

Suppliers roll out profitability-enhancing products as events exceed expectations

32 3 questions with VIP Tires’ Tim Winkeler

Paying higher wages is a ‘philosophical line in the sand’

34 A ‘newbie’ learns the tire business

Kilgore Tire’s owner had ‘big shoes to fill’

4 Editorial Ignore online reviews at your peril How to reset the conversation when faced with negative comments

6 moderntiredealer.com

Commercial Tire Dealer™

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News and navigation tools for MTD’s website

8 Industry News Bridgestone gears up for a strong 2022 Dealers will enjoy new products, more robust supply 16 Numbers That Count Relevant statistics from an industry in constant motion

18 Your Marketplace Dealers continue to experience steady demand Outlook is sunny headed into 2022

56 Business Insight Will 2022 be a record-breaking year?

A look at the big challenges ahead

58 Mergers and Acquisitions Understanding buyer’s risk in an M&A deal Treat your buyer like a customer

68 TPMS

Commercial tire dealers gather for safety summit

38

Bumper crop

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Ag tire brand market share

46

Cultivating new ground

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Ag Tire Talk

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Commercially Viable

ON THE COVER: ©GETTYIMAGES.COM

Modern Tire Dealer is a proud member of:

Ag tire market is up — but headwinds remain

Plus a look at shipments in six categories

MTPL shores up ag, OTR tire distribution in North America

Tips for minimizing soil compaction Traffic paths, run conditions play critical roles

Focus on Dealers/Industry

60 New Tire Pros programs will

enhance consumer experience

Honda Accord 2013-19

73 Products 74 Ad index

‘ There’s no competition when it comes to safety’

Dealer group wants 2,000 locations within next five years

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More places in the Sun?

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‘The timing is right’

With new investor, Sun Auto Tire looks to buy in other regions

New tire makes ATD a player in UTV market

66 College hoops are a slam

dunk for Melvin’s Tire Pros Sponsorship helps dealership bounce along

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Editorial

Ignore online reviews at your peril HOW TO RESET THE CONVERSATION WHEN FACED WITH NEGATIVE COMMENTS By

Mike Manges

I

have mixed feelings about online reviews. They can be helpful when deciding where to spend your money. (Who has the best steak dinner in town? What’s the scoop on that new set of headphones?)

But online reviews also have the power to permanently damage a business’ reputation.

Before Yelp and Google, if you had a bad experience at a business, you might mention it in passing to your family or friends, promise never to return to the place that mistreated you and then move on with your life. Or maybe you had a private word with the owner or manager.

That’s assuming you had a legitimate gripe.

Today, anybody with an ax to grind can tear down what might have taken an honest, hardworking businessperson decades to build — all under the cloak of anonymity, for thousands of people to see.

I really dislike that aspect of online reviews. But I also realize that it’s part and parcel of doing business in “the digital age.”

Like it or not, you need to be aware of what people are saying about your and your dealership. What’s more, you need to take control of the story.

Korey Cutlip, the owner of Regal Auto Care Tire Pros, a single-location dealership in Auburn, Wash., has become extremely adept at managing online reviews.

He recently told me that his company has received around 400 online reviews over the last few years. Most of them — with the exception of 10 or so — have been overwhelmingly positive.

But potential customers don’t always look at the “five-star reviews,” he says. “When people are deciding, ‘Is this a product or service I really want to purchase?’ they look at the negative ones.”

That’s why you should have a plan to counter those rare, thumbs-down appraisals — even if they are cheap shots. Here’s what Korey recommends: Keep things in perspective. It’s easy to take negative reviews personally, he says. “Someone is telling you, ‘You’re not good,’ and that’s hard to hear. Your initial gut reaction is to say, ‘The customer is wrong. He doesn’t know what he’s talking about.’ At that point, all you’re doing is feeding your own ego and that’s not going to help.”

Gather the facts. Before firing off a reply, do your homework.

Look at the customer’s file. Check the service record on his or her vehicle. “I always take a step back,” says Korey. “I go back through all of our notes. We look at texts. What did the service writer jot down? Did we address what the customer’s concern was? There could be communication barriers. Where was the disconnect? I want all the details.”

This helps take emotion out of the conversation, he says.

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“I refuse to have an emotional response” to a customer complaint.

Pick up the phone, if necessary. Don’t let belligerent reviewers rope you into an endless exchange of written retorts. Other people — including potential new customers — are watching.

Korey says he has been able to turn disgruntled clients into loyal ones simply by listening “The way we respond” to negative reviews “will show to their concerns. “It’s easy to potential guests and customreply to a five-star review. It’s ers what kind of shop we are,” not easy to reply to a one-star says Korey Cutlip, owner of Auto Care Tire Pros in review. Ideally, we want to Regal Auburn, Wash. turn that one-star customer into a five-star customer. I’m going to call them and dig into the problem. ‘What did we do wrong? What did we miss?’”

Also be aware that you don’t always have to “win” the argument, says Korey.

“Sometimes the customer is really passionate (about the perception) that you did not take care of them. The way we respond will show potential guests and customers what kind of shop we are.

“I think we’re all smart enough — as consumers — to read between the lines and we know there are always two stories. You can read the customer’s review and read the (shop) owner’s response and determine if you want to do business with that person or not.

“We’ve had new customers come in who have said, ‘That reviewer was nuts. He doesn’t know what he’s talking about.

You guys are great!’”

Tire dealers who believe they are too busy to respond to online reviews or think online reviews are a fad “are flat-out wrong,” says Korey.

As business owners, “we want to do our books right. We want to make sure our receipts match up. This is another key piece” of running a successful tire dealership.

“It has to be at the top of your priority list. And frankly, it’s a requirement in this day and age. If you’re choosing not to embrace it, it’s just going to hurt you in the long run.”

Don’t let somebody else tell your company’s story. Start managing your dealership’s online reviews today. ■ If you have any questions or comments, please email me at mmanges@10missions.com.

MTD December 2021

11/29/21 10:31 AM

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11/23/2021 1:41:53 PM

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HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith gsmith@10missions.com (330) 899-2200, Ext. 2212 EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Ron Ledgard, ext. 2216 rledgard@10missions.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com PRODUCTION Art Director: Zach Pate Graphic Designer: Emme Osmonson Production Artist: Lauren Coleman Production Manager: Karen Runion, ext. 2210 krunion@10missions.com MARKETING STRATEGISTS Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 Marianne Dyal mdyal@10missions.com (706) 344-1388 Dan Thornton dthornton@10missions.com (734) 676-9135 Sean Thornton sthornton@10missions.com (269) 499-0257 Kyle Shaw kshaw@10missions.com (651) 846-9490 Martha Severson mseverson@10missions.com (651) 846-9452

A report about the recent Tire Pros meeting received a lot of attention.

New tires make headlines Articles about new tires have been among the most-read stories on MTD’s website.

And stories about raw materials and the ongoing shipping crisis — particularly the latter’s impact on the availability of auto parts — continue to garner a lot of attention.

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Atturo adds drag radial tire Discount Tire CEO: ‘Nothing is off the table’ Raw materials continue to increase in price Tire Pros unveils new programs, tools to help enhance consumer experience 5. Bridgestone Alenza AS Ultra delivers luxury performance 6. Shipping woes are also hitting auto parts hard 7. CEO Gibbons will leave TireHub 8. ATD refinances its debt capital structure 9. BKT continues to invest in manufacturing capacity, growth 10. Cooper shines a light on Rugged Trek tire

MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc. 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 © 2021 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 2021

12/1/21 8:00 AM

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Industry News

Bridgestone gears up for a strong 2022

DEALERS WILL ENJOY NEW PRODUCTS, MORE ROBUST SUPPLY

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ealers can expect new tires and more consistent supply from Bridgestone Americas Inc. in 2022, Bridgestone officials announced during the company’s recent, all-digital consumer and commercial tire meeting.

“As you all know, 2021 has been an extremely challenging year for product supply and it’s impacting virtually all tire segments,” Scott Damon, Bridgestone Americas’ chief operating officer, said.

“The industry, as a whole, is still grappling with the impact of plant shutdowns” in 2020 due to the COVID-19 pandemic.

“It was the largest shutdown in our company’s history and the same can be said for many of our competitors.”

Demand has since outpaced inventory, he said. “Production is at — or above — 2019 levels.” But the company “can’t recruit and train employees fast enough to run our plants at capacity all of the time.”

This factor — plus the shipping crisis — has created a challenging situation, not just for Bridgestone, but for companies across the industry.

“While supply will remain tight for the foreseeable future, relief is coming. Our shipments are up 15% versus last year” in consumer replacement.

“We’re also benefiting from on-site warehouse expansions at our Wilson City, N.C.; Aiken, S.C.; and Joliette, Quebec, passenger tire plants. And we’re completing a renovation at Wilson that will convert four million units of low-diameter tires into high-diameter tires.”

On the medium truck tire side, Bridgestone is “making conscious decisions to make sure our supply supports replacement first. We are applying our global levers to make sure you get the TBR tires you need.”

Damon said Bridgestone Americas — which represents more than 40% of parent company Bridgestone Corp.’s global TBR sales — sources “a high number of TBR

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tires from our plants in Thailand, Brazil and Japan. Next year, we’ll increase our TBR supply by an incremental 600,000 units — half of which will be imported.

“We also have plenty of tread rubber available. We’ve made significant investments in Bandag.”

The commercial tire business “bounced back quickly from the (2020) shutdown,” said Chris Ripani, president of commercial tire sales, Bridgestone Americas.

“Pent-up demand has made trucking robust. We expect the industry to come in 15% to 17% above 2020. For retreading, we expect to see the industry come in around 10% up versus 2020.”

Bridgestone recently renewed contracts with several key commercial tire accounts, including Penske, Waste Management, FedEx and others. The company also signed new fleets during 2021.

“To deliver on that growth, we need to have our service network engaged,” said Ripani. “You are the most critical factor in that strategy.”

In the OTR tire segment, “we’ve been working proactively to make sure we can support the strong replacement market,” said Rob Seibert, president of OTR. Bridgestone’s OTR tire dealers should expect to see “continued inventory improvement each month. We will meet increased product demand thanks to new capacity in both the United States and southeast Asia.”

Bridgestone’s Firestone Ag division “has had strong results” in 2021, said Tony Orlando, the unit’s president. Firestone Ag continues to ramp up production and recently secured a long-term supply agreement with John Deere.

PROMISING TRENDS

Paolo Ferrari, president and CEO of Bridgestone Americas, discussed macroeconomic dynamics that will influence the company’s future direction.

Damon says replacement consumer tire shipments are up 15%.

“Vehicle miles will continue to go up — both consumer and commercial,” he said.

“Another important point is that electrification is happening. Electrification changes the way the vehicle is serviced and tires will continue to be a critical component. It’s good for tires and good for tire technology.

“We all know we have a broader trend going on and it’s the trend and urgency around sustainability. We believe that what’s good for society is good for business.”

Ferrari also noted that the original equipment sales channel “is still very important” to Bridgestone.

“In the U.S., we have fantastic fitments with OEMS — Ford, Stellantis and General Motors. And we have moved early in the electric vehicle space.”

NEW PRODUCTS

Bridgestone Americas plans to launch a number of new consumer tires in 2022. The Bridgestone Weather Peak is the company’s next-generation all-weather product and will be available in 56 sizes.

The Bridgestone DriveGuard Plus run-flat offering will be available in 27 sizes.

And the company is broadening its Firestone range with the new Firehawk AS V2 all-season tire, which “draws its inspiration from IndyCar tire patterns,” said Jeff Cook, executive director of marketing.

MTD December 2021

11/30/21 8:40 AM

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11/22/2021 1:05:44 PM

Industry News

Bites Best-One Indy founder retires After leading Indy Tire Centers Inc. dba Best-One of Indy for more than 30 years, CEO Dennis Dickson retired in October. He established the Indianapolis-based tire dealership in 1986, along with Best-One founder Paul Zurcher, plus Ray Monteith, Ross Kubacki and Scott Monteith. Together, they formed what then known as Indy Truck Tire Centers.

LWG expands again Leeds West Groups has purchased a Midas store in Firestone, Colo., giving the company 21 stores in the state and 115 locations in the U.S. Linda Murchison sold the store, which is located in a suburb north of Denver, as well as the business’ real estate. The deal was finalized Nov. 12.

Sun Auto buys Martin Tire Sun Auto Tire & Service Inc. is adding to its reach in the Southwest with the acquisition of Martin Tire Co., an eight-store tire dealership with locations in New Mexico and Texas that has specialized in carrying a large inventory, including 30,000 tires and 6,000 wheels. Sun Auto Tire now has 237 locations in eight states.

Court blocks vaccine rule Days after the White House set a Jan. 4 deadline for employers with at least 100 workers to prove all are vaccinated, courts blocked the mandate. The rule would have required vaccines or weekly tests that show unvaccinated workers are free of COVID-19. Employers wouldn’t have to pay for those tests.

Jack Williams nears 40 Jack Williams Tire Co. has opened its 39th location, an eight-bay store in Carlisle, Pa., which is near Harrisburg. The store offers curbside drop-off and pick-up services, online ordering and scheduling, touchless payments and courtesy shuttle service.

Customers also can opt for the company’s mobile tire service.

Continental plans price hike Continental Tire the Americas LLC will start 2022 with a price increase. The company will impose the hike on select Continental and General consumer tires sold in the U.S. on Jan. 3.

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Tireco to roll out MAP, associate dealer program

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e’re on the cusp of some neat things that we are excited about,” says Andrew Hoit, Tireco Inc.’s vice president of sales and marketing. That includes a new minimum advertised price (MAP) policy and an associate dealer program — both of which will debut in 2022.

A first for Tireco, the MAP program, which is scheduled to roll out during the first quarter, “will go hand-in-hand to help position the launch of our dealer program,” says Hoit.

“With MAP, distributors can coexist with retailers.” MAP also will help “small, mom and pop dealers be competitive.”

The dealer program will launch during the second quarter of 2022 and will be open to retailers who carry Tireco’s flagship Milestar brand.

Hoit calls the program “the next logical step for Milestar. We’re fully engaged in getting Milestar to where we think” it should be, while continuing “to differentiate with products, service levels and customer relationships.

“Milestar is the one brand that we own globally,” he explains.

“And the primary focus for that brand is North America. Because it’s fully ours and we control the destiny of it, we’re focusing on branding, customer engagement and bringing more value to the table.

“With Milestar, we’re really trying to develop into a tier-two (brand). I think today we’re in the tier-three space, but when you look at the new prod- Tireco Inc. continues to expand its Patagonia line, which focuses on the light truck segment. ucts we’ve developed — specifically the Weatherguard AS710 all-season, which is built in the United States — we stack up against anyone in the tier-two space.”

Hoit says dealers have responded well to the Weatherguard AS710, which Tireco unveiled in April 2021. Its domestic sourcing has been a big selling point, he adds.

“That’s a huge advantage right now because of all the port and freight problems.

“The other thing we have going for us is that our brands are not sold” through any national distributor. “They’re not in American Tire Distributors Inc. They’re not in TireHub. And with Goodyear’s acquisition of Cooper, there are a lot of Cooper distributors — longtime Cooper distributors — who are now concerned about what the future will hold. All of those things make the idea of an emerging tier-two brand like Milestar more interesting.”

Tireco also will continue to build out its product lineup, according to Hoit. The company recently launched two new products in its Patagonia line: the M/T-02 and the A/T PRO. Both target the rapidly growing light truck market, which Patagonia exclusively addresses.

“We’ve already seen a lot of success with our Patagonia M/T. It has really resonated in the enthusiast market — (with) Jeep owners and off-road enthusiasts. We’re putting big emphasis on our Patagonia line because of its success in the light truck segment.”

The company plans to expand its passenger tire line in late-2022/early-2023 with the introduction of the Interceptor, a new ultra-high performance product.

MTD December 2021

11/29/21 10:41 AM

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11/22/2021 1:03:26 PM

Industry News

Apollo enters LT tire segment with Vredestein Pinza line

Bites Monro is acquiring 17 stores Monro Inc. is adding 17 stores to its network through its latest round of acquisitions, including six more outlets that continue the company’s growing presence in California. Those stores include three Bud’s Tire Pros locations — one in Moreno Valley and two in Riverside.

Nexen moves HQ to Ohio Nexen Tire America Inc. has moved its U.S. headquarters from California to Ohio and into the technical center the company opened in 2019. The $5.2 million facility in Richfield, Ohio, has more than 35,000 square feet. It is one of three Nexen technical centers in the world.

Discount Tire targets fleets Discount Tire is teaming up with InMoment to launch a customer experience program for fleet customers in the B2B segment. The dealership says fleets are an important part of its business and this program will help distinguish between the satisfaction and experience of fleet and non-fleet customers.

Demand for techs doubles The latest report from the TechForce Foundation confirms what tire dealers and others in the automotive industry know too well — demand for and shortage of technicians has gotten significantly worse in the last year.

In fact, the shortage has nearly doubled — from 136,503 in 2020 to 258,000 in 2021.

Virginia Tire hails Andretti Fast-growing Virginia Tire & Auto recently celebrated its 18th store in northern Virginia in grand style with racing legend Mario Andretti. He greeted customers and signed autographs during an opening event on Oct. 15. The new Virginia Tire store, which is located in Leesburg, Va., opened its doors this past June.

CTDA plans luncheon The California Tire Dealers Association (CTDA) is gearing up for its annual CTDA /1-800EveryRim New Year luncheon on Jan. 20, 2022, in Santa Fe Springs, Calif.

Speakers will include new Tire Industry Association (TIA) President Mason Hess, retiring TIA CEO Dr. Roy Littlefield and Steve Swanson, national sales manager at Carlstar Group.

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pollo Tyres Ltd. is expanding its Norh American product range with the launch of a new light truck tire line, the Vredestein Pinza. The line targets the growing SUV and pickup truck segments “and shows our seriousness and dedication to the North American market,” says Abhishek Bisht, assistant vice president, Americas, Apollo, who notes that the Pinza has been in development since 2017. “We spoke to hundreds of end users.

We spoke to more than 70 retailers. And we tried to understand what makes the light truck tire category different and unique.”

Apollo saw opportunity in a sub-segment it calls “balanced all-terrain.” Consumers in this segment want “comfortably rugged,” premium products that achieve a balance of all-terrain capability on a wide range of surfaces, while delivering a high degree of durability and enhanced on-road performance in all weather conditions, says Bisht.

Available now in 47 sizes, the Pinza AT has been extensively tested in a variety of conditions throughout the United States, plus Finland, South Africa and Dubai. Twenty The new Vredestein Pinza light truck tire line from Apollo Tyres Ltd. will more sizes will be added in April 2022. offer highway-terrain and mud-terrain Domestically, the tire is being sold options in the future and is designed through Les Schwab Tire Centers Inc. to compete with tier-one products. and Tire Rack Inc. Apollo is looking for additional distribution. “Markets like Texas, California, Arizona and Florida — these are strong SUV markets. We also want to open other regions. National and regional retailers are our target segments.”

TIA names Dick Gust its new CEO

T

he Tire Industry Association (TIA) has named Dick Gust (pictured right) its new CEO, effective Jan. 1. He replaces longtime TIA CEO Dr. Roy Littlefield, who is retiring.

Gust served as TIA’s president in 2005 and also has served on the association’s board. He is a recent past chair of TIA’s government affairs committee and was instrumental in negotiations that enabled the merger of the Tire Association of North America and the International Tire and Rubber Association to create TIA in 2002.

Gust, who was inducted into the Tire Industry Hall of Fame in 2015, currently chairs TIA’s Environmental Advisory Council and is president of national account sales and director of government affairs for Liberty Tire Recycling.

Former TIA President Dan Nothdurft, who led the CEO search, says Gust “brings an extensive background to the position, including more than 25 years of volunteer service with TIA and other industry organizations, in addition to a successful private sector career.”

MTD December 2021

12/1/21 10:36 AM

Bites BFG plant marks 75 years Michelin North America Inc. is marking 75 years of BFGoodrich tire production in Tuscaloosa, Ala. The plant has produced more than 500 million tires since the first one rolled off the line.

ATD refinances debt American Tire Distributors Inc. (ATD) has closed the refinancing of its debt capital structure, including its existing asset-based line of credit and replacement and issuance of a new Term Loan B. ATD says the transactions reflect its “financial momentum and progress over the past several years.”

Bartec moves to larger space As a result of its “significant growth,” Bartec USA LLC says it has outgrown its facility and has moved into a space that is twice the size of its old one. The company remains in Sterling Heights, Mich., where it has been since its start in 2004.

Belle Tire enters Chicago market

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elle Tire Distributors Inc. officially entered the greater Chicago market last month by opening a store in Naperville, Ill., and another outlet in Villa Park, Ill. “This is an exciting time as we approach our 100th anniversary and enter Illinois,” says Don Barnes III, who discussed Belle Tire’s growth plans in the July 2021 issue of MTD. The next Chicago-area stores to open will be in Joliet and Shorewood, Ill., followed by outlets in St. Charles, Mokena, Orland Park, Aurora and West Chicago in 2022.

Belle Tire has opened the first of its 60 The dealership — which recently formed planned stores in Illinois. a partnership with National Hockey League team the Chicago Blackhawks — plans to open 60 Illinois stores over the next three years. The expansion is expected to create 1,000 jobs “and make an economic impact of $325 million in the region,” according to Belle Tire officials.

The Allen Park, Mich.-based company — which will celebrate its 100th anniversary next year — has locations in its home state, as well as Ohio and Indiana.

“We are thrilled to begin carrying out our Chicagoland expansion plan, but most importantly are ready to make an impact within communities by providing stable job opportunities and ultimately create an outstanding economic impact,” adds Barnes. “This is the start of an incredible new chapter for the whole Belle Tire team as we begin our journey into Illinois.”

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Industry News

Bites Maxam now controls JV Maxam Tire Latin America has acquired full equity interest in the LATAM joint venture previously in place with Gustavo Lima and Marco Zigni. Created in 2015, the joint venture was structured to expand the equity of the Maxam brand in Latin America and form a new strategic partnership in the specialty tire business.

Goodyear promotes leaders Goodyear Tire & Rubber Co. has named Mike Dwyer president of its North America consumer tire business, replacing Scott Rogers, who has left the company.

Longtime Goodyear executive Renee Radabaugh also has been named vice president of Goodyear’s North America consumer channels and categories team and will lead the company’s consumer replacement tire business.

Sun Auto Tire acquires Plaza Tire, Big Brand picks up more retail stores

S

un Tire Auto Tire & Service Inc. has announced that it will acquire Cape Girardeau, Mo.-based Plaza Tire Service Inc. from owners Mark and Scott Rhodes on Dec. 31. Plaza Tire has 70 locations throughout Missouri, Illinois, Kentucky and Arkansas. Sun Tire officials say the acquisition will give the Tucson, Ariz.-based company more than 350 locations nationwide.

In another major deal, Big Brand Tire — which is owned by Percheron Capitol — has acquired nearly 110 retail stores that were owned and operated by Vernon, Calif.-based American Tire Depot.

The transaction does not include American Tire Depot’s other properties or businesses, according to a Percheron spokesman.

Big Brand Tire also recently acquired nine Purcell Tire & Rubber Co. stores in Arizona. The outlets are located in Peoria, Casa Grande, Yuma, Oro Valley, Avondale, Mesa, Phoenix, and Tempe, the latter of which had two Purcell Tire locations.

“By divesting this geographical group of retail-focused stores, we will be able to focus more of our attention and resources to the further development of retreading and commercial business in both current and new geographic areas,” say Purcell Tire officials.

And Big Brand Tire recently acquired Integrity Tire, which has locations throughout California, and six Tire World stores in the Colorado Springs, Colo., area.

TireHub CEO leaves

Ole Miss STEM center named after Jim and Tommy Duff

Peter Gibbons, who has been the CEO of TireHub LLC since its start, is leaving the joint venture that is owned by Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. FTed Becker, TireHub’s vice president of sales and marketing, will serve as the company’s interim CEO.

Hoosier Wheel is bought OTR International has acquired Hoosier Wheel, a manufacturer of standard and custom wheel assemblies for off-the-road applications, including lawn and garden, agriculture and material handling.

Leclair to retire next year Bruno Leclair of Unimax Ltd. (Point S Canada) and Distribution Stox will retire in May 2022. He joined Unimax in 2011 as its president and CEO and has led Distribution Stox since its founding in 2016. He also took part in the creation of Point S North America.

Hankook assists in record Hankook & Co. has helped Volkswagen (VW) complete its ID.4: Great Roadshow with an electric vehicle-specific tire, the Hankook Kinergy AS EV. The tire helped VW achieve a Guinness World Records title “for the longest journey by electric car (non-solar) in a single country,” crossing 48 U.S. states.

14

02_MTD_News-Numbers.indd 14

Jim Duff, second from left, and Tommy Duff, center, help break ground on construction of the new STEM center that will bear their names at Ole Miss. The Duffs were the recipients of MTD’s Tire Dealer of the Year Award in 2021.

J

im and Tommy Duff — the owners of Southern Tire Mart LLC and the recipients of MTD’s 2021 Tire Dealer of the Year Award — were on hand for the ceremonial groundbreaking of a center geared toward boosting science, technology, engineering and mathematics (STEM) education at the University of Mississippi.

The Jim and Thomas Duff Center for Science and Technology Innovation will support STEM education. The school says it will be the largest construction project in history on the college’s Oxford, Miss., campus.

The Duffs have committed $26 million to the facility, which will be home to classrooms and labs for biology, chemistry, computer science, engineering and physics The brothers are major contributors to several universities in their home state of Mississippi. Southern Tire Mart is headquartered in Columbia, Miss. ■ MTD December 2021

11/30/21 9:13 AM

www.yokohama-oht.com | 800-343-3276 | @yokohamaohta

FOUR BRANDS, MULTIPLE TIERS

ALL IN ONE PLACE. Yokohama Off-Highway Tires America, Inc., puts four great brands under one umbrella. That’s more than 4,000 OTR SKUs under the Yokohama OTR, Alliance, Galaxy and Primex brands to meet just about any need your customers may have. One supplier, multiple tiers...and our nationwide sales, service and field engineering teams to back it all up.

Here are just a few of the thousands of options:

YOKOHAMA RB31 • Versatile design with long-lasting tread • Flat-base hexagonal bead construction minimizes slip

GALAXY HULK • Massive tread blocks provide traction and wear resistance • Deep tread and rugged compound minimize abrasion, cuts and chips

YOKOHAMA Y69 • Durable tread compound over heat-minimizing casing • Double-wrapped industrial bead package maximizes stability

GALAXY EZ RIDER • Curved lugs combine traction, ride and self-cleaning • Rim shield and reinforcement protect sidewall

GALAXY SMOOTH COMPACTOR • Smooth, wide tread for even pressure distribution • Long-lasting, oil-resistant compound for extra service life

Contact your Yokohama Off-Highway Tires America, Inc. rep, visit yokohama-oht.com or call (800) 343-3276 for more.

15_YOKOHAMA OHT_1221.indd 15

11/22/2021 1:01:09 PM

NumbersThatCount

Relevant statistics from an industry in constant motion

2.7 MILLION

Estimated total of ag tires that were shipped in the U.S. last year across several categories.

SOURCE: MTD’S 2021 FACTS ISSUE

28,750 96% 6.4 MILLION

The expected production of shipping containers in 2021.

It was 3.1 million in 2020.

The payload — in kilograms — of a standard 40-foot shipping container that is eight feet and six inches tall, with a width of eight feet.

SOURCE: DREWRY SHIPPING CONSULTANTS LTD.

The percentage of shipping containers that are manufactured in China.

SOURCE: DREWRY SHIPPING CONSULTANTS LTD.

SOURCE: DREWRY SHIPPING CONSULTANTS LTD.

24,000

The container capacity in 20-foot equivalent units (TEU) of a mainline ship deployed on routes from China or Europe.

SOURCE: DREWRY SHIPPING CONSULTANTS LTD.

16

02_MTD_News-Numbers.indd 16

MTD December 2021

12/1/21 10:37 AM

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11/22/2021 1:00:24 PM

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

Dealers continue to experience steady demand By

John Healy

OUTLOOK IS SUNNY HEADED INTO 2022

R

ecent dealer commentary suggests that demand for consumer tires this past October was higher on a net basis versus the same month in 2020.

The net number of respondents to our most recent survey who experienced positive year-over-year demand was 45%, which compares to previous-month levels of 57%.

Our contacts noted that the slight fall-off was likely attributable to the unpredictable nature of the auto repair business, as the third quarter was described as showing near-record strength in tire demand.

However, we also note that this optimism has been waning since the end of August.

We continue to hold the perspective that long-term volumes will become more closely aligned with the current level of GDP growth, while consumers continue to thirst for the road and increase their driving habits compared to last year, when there was more uncertanty due to the impact of the COVID-19 pandemic.

A REGIONAL LOOK

We also note that dealers in certain regions of the country have experienced more tire demand than dealers in other areas.

From a volume standpoint, during the month of October, both the southeastern and midwestern U.S. exhibited positive trends compared to 2020 levels, but the southwestern part of the country lagged behind somewhat.

We believe that tire demand will continue to benefit from the rebound in driving levels

to a more normalized state. Miles driven were at a much more depressed level this time last year.

preference for both tier-two and tier-three tires over the long run, as customers strike a balance between value and performance.

THE LATEST ON TIERS

RAWS ARE GOING UP

Our surveys ask dealers to provide commentary around the sales performance of different tiers of tires at their companies.

For the first time in many months, feedback indicates that consumers favor tier-one tires. We view this as a function of consumers having more cash on hand than they did during previous months, along with consumers putting more into their vehicles as they await the cooling of the new and used car retail markets.

That said, given the extensive price increases that have taken place over the last year, we are a bit surprised to see that consumers now seem to favor tier-one products over less expensive alternatives.

While prices have gone up more or less in unison across manufacturers of all tiers, the absolute difference in tire prices is greater than it was prior to the pandemic, causing tier-one tires to have a bigger dollar spread than other offerings compared to last year.

We have seen that consumers seem to change their preferences for different products due to what is happening at the moment with COVID-19.

There is a belief that the COVID-19 situation is largely behind us, given vaccination rates.

However, there will continue to be a

Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year Change) Aug-20

Sep-20

Oct-20

Aug-21

Sep-21

Oct-21

Average

Increase

38%

57%

40%

50%

57%

45%

41%

Flat

31%

14%

30%

13%

14%

10%

28%

Decline

31%

29%

30%

37%

29%

45%

31%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

18

02_MTD_News-Numbers.indd 18

Looking at raw material prices, the “basket” of raw materials needed to build a standard replacement vehicle tire rose 23.2% on a year-over-year basis in October, while increasing on a sequential basis by 4% from September. This continues the overall trend of increasing raw material inputs on a year-over-year basis that began at the start of 2021, though year-over-year gains have moderated since April highs.

Holding current spot prices flat would yield an estimated 21.6% year-over-year increase in input costs during the current quarter.

In assessing raw material price movements, we note that carbon black has seen its price increase on a year-over-year basis for 10 months in a row, with a continued upward trend in year-over-year gains.

Crude oil prices experienced a 99.8% year-over-year increase during October.

Natural rubber prices declined by nearly 12% in October on a year-over-year basis — the first year-over-year decline in this category since July 2020.

Synthetic rubber prices rose 31.2% in October on a year-over-year basis, continuing the trend from August and September — the highest level seen since October 2011.

UPBEAT FORECAST

As we look to the start of 2022, we note that many individuals in the dealer community have an upbeat outlook for volume trends going forward.

This optimism is being driven by several factors, including the expected continued upward trajectory of miles driven. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD December 2021

11/29/21 12:39 PM

NOTE FROM CHAIRMAN As we all know, the current market situation has been challenging due to several adverse events which happened in the previous 18 months. We have been living with COVID-19 and its challenges since then. In the aftereffects on business, we are facing a new and very dynamic era, from raw materials supply constraints as well as costs, to shipping and logistics constraints and anomalies.

Nevertheless, once BKT ensured the health of its employees, customers and partners, business continuity has been our primary concern. During this time, we wanted to ensure that our customers should continuously have access to our products and hence carry on with their operations.

BKT_CC_1221.indd 3

Arvind Poddar, BKT Chairman

Rajiv Poddar, BKT Joint

and Managing Director

Managing Director

“At BKT, we have always believed in working together as a team, which has helped us in taking positive actions during such peculiar times. With commitment, dedication, and hard-work, BKT has emerged stronger and has grown by tackling all the challenges. This has also resulted into higher production and increased shipments as compared to the previous years. Further, we currently witness a strong demand across the world and are fully geared to cater to the same. The next objective is to reduce the lead-times to the pre-COVID levels, so that our customers don’t have to wait longer for our tires. Despite these market variables, we have not only maintained the quality of our tires but have constantly improved the same, offering better mileage as well as added value. Product quality has always been a driving force for us and the various awards we have won from top OEM’s as well as the industry bodies, are a testimony to the same.”

11/22/21 11:39 AM

PLANT EXPANSIONS AND IMPROVEMENTS Based on its track record, BKT is always striving to grow and improve as a company every year and at all levels, be it production capacity, product range & quality or market share. Despite challenges in the marketplace throughout the past 18 months, BKT has worked together to grow and expand at all fronts.

In September 2021, BKT opened a new greenfield plant in Waluj, Aurangabad, (Western India) to produce medium and small diameter agricultural and industrial tires. This plant can produce up to 30,000 metric tons and will employ up to 500 employees.

The investment of US $65 million on 22 acres of land has now increased to 37 acres after further land acquisitions creating a scope for expansion for this plant. BKT has installed the most modern equipment and the plant also includes finished goods storage.

Waluj, India, plant opened in September 2021

Due to the constant market demand, BKT’s Bhuj, India, flagship plant has also been on a land acquisition spree since its inception and has now expanded over 42% to 350 acres in the area. This has helped the company to further expand into existing and new product lines within BKT’s niche domain of OHT (Off-Highway Tires). This includes the addition of a Super Giant OTR plant for tires between 57” to 63” rim diameter and a Super Solid tire plant for tires up to 25” rims. A new Agri-radial tire plant is also under fast development, whose production is slated in the second quarter of 2022. It could render BKT’s Agri-radial capacity to one of the largest in the world.

Rubber tracks is a completely new product line being set-up at BKT’s Bhuj plant. Trial production and testing is currently being done with commercial production to be available by first quarter of 2022. Towards its efforts on backward integration, BKT is also expanding its carbon black production capacity to be doubled in the coming months. Besides these developments, a high-tech auditorium and training center and a new sports arena to showcase the many sponsorships have also been set-up at the Bhuj campus.

Over the years, BKT has showcased its determination to be prepared for the ever-changing market and to develop new solutions to best meet the needs of the end users. It’s ever-expanding and vast product range of over 2,700 SKU’s and the proven quality coupled with lowest claim ratios, offers rich testimony to this effect.

Buhj, India, plant

BKT_CC_1221.indd 4

Buhj, India, carbon black plant expansion

11/22/21 11:40 AM

NEW PRODUCT PRODUCTIONS AND DEVELOPMENTS BKT continuously extends its tire range to cater to any need depending on the type of equipment employed, the requested size, the conditions of the land, and the application in all the segments of operation. All BKT tires are essentially driven by the requests and feedback we receive from our users to answer their needs.

The constant expansion of the range is part of BKT’s strategy: we really want to be able to respond to all needs in terms of compounds and sizes. This is demonstrated by the more than 2,700 SKU’s we offer to our users.

Following this philosophy, this year we have launched several new sizes for machinery operating in both agriculture and OTR industries.

AGRICULTURE Our lead product, AGRIMAX V-FLECTO, is expanding. The new sizes of VF 520/85 R 42 and VF 480/80 R 38 are already available for this tire that improves tractor performance on every type of terrain. AGRIMAX V-FLECTO makes it possible to maximize loads without changing tire pressure, regardless of speed, managing to carry 40% more weight than a standard tire of the same size and with the same recommended rim. At the same time, soil compaction is reduced thanks to a larger footprint area and a 10% wider tread. The great strength is durability, which is 10% longer than the standard equivalent, a benefit in terms of productivity and optimization of farm work. The ultra-resistant casing and the special strengthened bead allow AGRIMAX V-FLECTO to exploit all the tractor’s potential both in the field and on the road with the ability to reach high speeds. This combination of winning features has made AGRIMAX V-FLECTO one of BKT’s most successful products to the extent that we continuously increase the range of sizes available.

AGRIMAX V-FLECTO

AGRIMAX SPARGO

AGRIMAX SPARGO, also is available in the new size VF 320/90 R 50. This tire is also equipped with VF technology and is designed for irrigation machinery used in row-crops. High load capacity is definitely crucial for this type of application, therefore the VF technology to help reduce tire pressure makes it no longer so critical.

The new IF 1250/50 R 32 size for AGRIMAX RT 600 is ideal for grassland and spraying applications with a large contact area to ensure excellent pressure distribution to protect soil and preserve the yield of farming businesses.

AGRIMAX TURF RT 333, launched last year, already has four new sizes: 260/70 R 16, 360/70 R 24, 380/70 R 20, 380/70 R 24 and 420/70 R 24. This tire is designed to fit small tractors used for gardening and for applications in orchards and vineyards. It features a special design with directional blocks which, together with the depth of the tread R-3+, enables reduced soil compaction.

Last, but not least, are the two new VF 255/70 R 22.5, VF 245/70 R 19.5 sizes for SR 713.

This All Steel radial tire features VF technology designed for farming implements. Its large footprint provides reduced soil compaction, while its strong multi-ply steel-belted casing and the multi-rib tread pattern ensures low rolling resistance and uniform tread wear.

OTR EARTHMAX SR 484 is now available in the new 27.00 R 49. This All Steel radial tire equips rigid dump trucks for transport in surface mining applications. The unique E-3 tread design with special tread compound ensures excellent protection in harsh and rocky conditions, together with enhanced traction and excellent self-cleaning properties.

AGRIMAX RT 600

AGRIMAX Turf RT 333

SR 713

These are the highlights right now, but BKT is already working on further developments and improvements.

Earthmax SR 484

BKT_CC_1221.indd 5

11/22/21 11:40 AM

A LONG WAY

TOGETHER CURRENT MARKET CHALLENGES The last 18 months during COVID has been a difficult time for many companies. For the tire industry, in particular, due to the restrictions imposed during and after, the raw material production and availability has been hampered, since many raw material manufacturers had to shut down their operations, thereby creating a shortage. Rubber and other raw material prices continue to increase month over month.

For the logistics industry, there has been a shortage of containers with 12.5% of the global capacity being unavailable. Shipping and freight costs are escalating almost daily. There is a shortage of laborers at the ports as well as truck drivers for smooth last mile transportation. Containers of tires that have already arrived at the ports are many times held up for several extra weeks before reaching the customers.

Concurrently, there is this new energy crisis and due to shortages, the coal futures are soaring with an increase of more than 200%. These macro-economic factors of the market are certainly creating barriers in the growth path of tire companies. The greater challenge for them is to adapt and keep on the movement.

The current situation is not easy, but business is a daily challenge. Despite all the difficulties, BKT received a lot of positive feedback from customers about the way we succeeded in delivering tires to everybody around the world. It was a tough job, but we did it. We will keep on strategically focus on production, doing our best in being at the side of our customers in prosperous but also in difficult times.

WHEREVER YOU ARE, BKT IS WITH YOU No matter how challenging your needs, BKT is with you offering an extensive product portfolio for every field such as agriculture, OTR and industrial applications.

BKT provides concrete, reliable and high-quality solutions to your requests and working needs.

Wherever you are, BKT is with you.

BKT USA Inc. 202 Montrose West Ave. Suite 240 Copley, Ohio 44321 Toll free: (+1) 888-660-0662 - Office: (+1) 330-836-1090 Fax: (+1) 330-836-1091

BKT_CC_1221.indd 2

11/22/21 11:40 AM

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9/1/21 10:49 AM 11/29/2021 3:05:01 PM

SEMA Show/AAPEX coverage

The 2021 edition of the SEMA Show included the Global Tire Expo — Powered by TIA and was full of new tires and related products.

New tires and tools dominate SEMA Show, AAPEX

SUPPLIERS ROLL OUT PROFITABILITY-ENHANCING PRODUCTS AS EVENTS EXCEED EXPECTATIONS By

MTD Staff

20

03_MTD_Features-SEMA-Kilgore.indd 20

“E

xceeded expectations” was an oft-heard phrase during last month’s Specialty Equipment Market Ass o ciat ion (SEMA) and Automotive Aftermarket Products Expo (AAPEX) events, which were held at the Las Vegas Convention Center and Sands Expo Center in Las Vegas, Nev., respectively.

In excess of 100,000 attendees, exhibitors and media members turned out for the SEMA Show — making it “the largest North American automotive trade show” since the COVID-19 pandemic “shut everything down in 2020,” according to SEMA officials.

(The event also included the Global MTD December 2021

12/1/21 10:40 AM

Tire Expo — Powered by TIA section.) AAPEX drew many attendees and exhibitors, as well.

A wide range of companies used the SEMA Show and AAPEX as forums to introduce new products and tools, plus announce upgrades to existing items — all with the profitability of tire dealers in mind.

NEW TIRES

American Kenda Rubber Co. Ltd. rolled out its next-generation off-road tire, the Klever M/T2 KR629, during the SEMA Show.

The mud-terrain tire has been designed for “enthusiasts and consumers who desire maximum traction in off-road environments,” according to Kenda officials.

“To develop a tire that meets the demanding performance criteria of this segment, we did multiple rounds of testing over a two-year period in diverse environments, including the rocks of Arizona, mud in the Midwest and desert sand in California,” says Al Henderson, chief design officer for Kenda USA.

Atturo Tire Corp. displayed its first drag radial, the AZ850DR. Production of the tire will start in the early part of next year.

The new Kenda Klever M/T2 KR629 light truck tire will be available in 30 sizes when it hits the market in 2022.

The Klever M/T2 KR629 features Kenda’s proprietary “T3 Triple Threat Sidewall, an optimized tread compound with proprietary, interlocking tread blocks for aggressive off-road performance,” he adds. The tire’s tread design includes mud, stone and debris ejectors; scalloped shoulder blocks that blend with “functional sidewall contours, enhancing both grip and visual appeal;” and other features.

Brandon Stotsenburg, vice president of Kenda’s automotive division, says that the “ability of the Klever M/T2 to perform at premium levels across diverse terrain was showcased throughout our testing process.”

The tire will be available in 30 sizes, fitting wheels ranging from 15 inches to 22 inches in diameter.

“Many popular sizes are also included, going up to 42 inches,” according to Kenda officials.

In addition to raised black letters, Kenda will offer the product with red letters — in select sizes — “honoring our winning racing heritage.” w w w . M o d e r n T i r e D e a l e r. c o m

03_MTD_Features-SEMA-Kilgore.indd 21

The tire will be available to dealers in late-spring/earlysummer 2022.

Atturo Tire Corp. is expanding its line-up of tires for muscle cars with a product designed for the drag strip.

The company displayed its first drag radial, the AZ850DR, during the SEMA Show.

The Department of Transportation (DOT)-compliant tire — designed to complement Atturo’s AZ850 product — has a directional tread design that features an extra wide shoulder tread, a large center contact strip and an “ultra-sticky” compound.

Atturo says the AZ850DR will have one of the largest shoulder tread sections on the market, giving it plenty of grip.

It will be available in 18-, 19- and 20-inch sizes. Production is set to start in early-2022 and the tire will be ready for the spring racing season.

Goodyear Tire & Rubber Co. displayed the new Cooper Discoverer Rugged Trek for light trucks and SUVs inside its Cooper brand booth.

Jenny Paige, a product manager who’s spent 16 years with Cooper, says the Rugged Trek tire is for those consumers who “want the MT look but don’t do that much off-road.”

The tire — which was launched this past May — features a couple of aesthetic firsts for Cooper, she says.

The sidewall has two designs. One is slightly more beefy than the other. And where white lettering used to be the norm, the Rugged Trek has raised black lettering on its sidewall.

The tire comes in eight sizes and sports the 3-Peak Mountain Snowflake symbol.

Greenball Corp. has updated two of its side-by-side tires,

21

12/1/21 10:40 AM

SEMA Show/AAPEX coverage

Cooper Product Manager Jenny Paige says the new Cooper Rugged Trek tire is for consumers who “want the M/T look but don’t do that much off-road.”

giving them both square shoulders and a flatter contact patch to provide more grip on the road.

Kory Ellis, Greenball’s brand coordinator, says the squared shoulder design provides more traction and bite for the Dirt Commander 2.0 and the Mongrel SQ. The radial Dirt Commander 2.0 offers greater sidewall protection than its predecessor. Its tread blocks were redesigned with maximum clean-out in mind.

The Mongrel SQ, which is based on the company’s popular Mongrel tire, also is getting a makeover with a similar profile shape. Ellis says the tire will be available in a 37-inch option.

Greenball’s Kanati line also is offering a new product, the Commandant ATX. The tire’s tread is based on the brand’s Armor Hog ATX tire, but Ellis says the Commandant ATX weighs less.

It will be available during the first quarter of 2022.

On the heels of the debut of its Celerate line, Keter Tire USA is expanding its popular NeoTerra passenger and light truck tire line.

“We’re adding a lot of new SKUs — close to 200,” says Keter Tire CEO Rick Phillips. “We’re filling in gaps” that exist within the line, which was launched in June 2020.

“NeoTerra is our broad-line offering.”

The Celerate line, which was unveiled last month, “has a different SKU mix” and will be expanded to include SUV and CUV fitments.

“We’re going to come up with more high-inch sizes in the Celerate line.”

After its full roll-out, Celerate will offer eight distinct tread patterns and will encompass more than 250 SKUs. (Celerate products will initially be available in 140 SKUs when production starts during the second quarter of 2022.)

The NeoTerra line has been well-received by customers, according to Phillips. “We’re selling everything we can ship.”

Sentury Tire USA unveiled its new GroundSpeed line, which includes both consumer and commercial truck tires.

Available for ordering now, the GroundSpeed TBR line includes mainstream sizes in the drive, steer and trailer posi-

22

03_MTD_Features-SEMA-Kilgore.indd 22

tions, as well as all-position sizes.“This line is being made at our advanced, fully automated 4.0 Smart factory in Thailand,” says Nick Gutierrez, Sentury Tire USA’s sales director.

GroundSpeed truck tires will be sold globally, with delivery beginning in January 2022. “We will be launching a warranty program with this line, as well,” says Gutierrez.

Sentury also displayed its GroundSpeed passenger and light truck tires during the SEMA Show.

They include the Voyager MT, a mud-terrain tire that offers “exceptional off-road traction in the dirt, on rock or in mud,” all with an aggressive look, according to Sentury Tire USA officials.

The new Voyager AT — which targets light trucks and fits rims ranging from 15 inches to 20 inches in diameter — has been engineered for “exceptional off-road traction, with a durable sidewall and rugged tread pattern.”

The Voyager HT fits wheels ranging from 15 inches to 19 inches in diameter and features an “optimal middle pattern” to enhance vehicle stability at highway speeds, a continuous center rib for excellent braking and more.

Sentury Tire USA unveiled GroundSpeed consumer and medium truck tires during the SEMA Show, including new products in the company’s Voyager family.

Also new are the Voyager ST, an all-season, high-diameter, premium highway tire specifically designed for CUVs and SUVs that offers comfort and traction in wet and dry conditions The Voyager HP ultra-high performance tire — which “delivers enhanced handling and traction for today’s top performance cars” — is available in 10 17-inch sizes, more than 10 18-inch sizes, two 19-inch sizes and five 20-inch sizes.

And rounding out the GroundSpeed consumer tire line, the Voyager GT touring all-season tire has been designed to deliver “high-mileage durability.”

Shandong Linglong Tire Co. Ltd. took a pair of new offroading tires to the SEMA Show — the GritKing Ridge Climber R/T and the GritKing Ridge Climber X/T. Between them, the tires will be available in more than 150 sizes. Both feature 3-Peak Mountain Snowflake certification and are available for order now.

The GritKing Ridge Climber R/T features a block pattern design with giant blocks that provide grip at all angles.

MTD December 2021

11/30/21 5:05 PM

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SEMA Show/AAPEX coverage

Alvin Abalos, regional sales manager for Linglong Americas, says the GritKing Ridge Climber R/T is available in 20 initial sizes.

Some five years in the making, the new Patagonia M/T-02 from Tireco Inc. will be available in 32 sizes, ranging from 15 inches to 22 inches, when it launches in 2022.

24

03_MTD_Features-SEMA-Kilgore.indd 24

The large grooves in the tread of the GritKing Ridge Climber X/T enhance performance in wet and muddy conditions and its sipes aid in snow and wet handling.

Its aggressive sidewall design adds an extra element of protection.

Tireco Inc. introduced two new Milestar Patagonia light truck tires.

The Patagonia A/T PRO balances all-terrain performance with all-weather capabilities and will be available in 63 sizes.

The tire — which will hit the market during the third quarter of 2022 and has earned 3-Peak Mountain Snowflake certification — is engineered to maximize off road grip with a wide contact patch, while improving off-road traction and on-road comfort, according to Tireco officials.

Features include rugged tread blocks for extra grip, angled tread notches for optimal mud and winter traction, staggered step-down grooves for enhanced tread rigidity and more.

The all-terrain tire integrates Milestar’s advanced sidewall compound technology and fits wheels ranging from 15 inches to 22 inches in diameter. Popular sizes will include LT265/70R17, LT285/70R17 and 35X12.5R17LT. The new Patagonia M/T-02 will ultimately be available in 32 sizes, including popular original equipment and highflotation sizes. It will launch in “some key sizes” during the fourth quarter of 2021.

Features include a newly formulated tread compound with enhanced cut and chip resistance for longer tread life, without sacrificing off-road traction; an updated tread design that integrates cross-directional siping for optimal tread block strength and a more stable footprint; Milestar’s MileTech three-ply sidewall for enhanced durability and more.

Andrew Hoit, Tireco’s vice president of sales and marketing, says the Patagonia M/T-02 was “five years in the making.”

Toyo Tire U.S.A. Corp. previewed the latest version of its Celsius all-weather passenger tire in its popular TreadPass area.

The Celsius Sport is designed “to deliver superb traction in changing weather conditions for high performance luxury

Toyo Tire U.S.A. Corp. previewed its newest all-weather tire, the Celsius Sport, which will be available in March 2022.

MTD December 2021

11/29/21 10:54 AM

cars, SUVs, and CUVs,” according to Toyo officials.

The tire, which will be available in March 2022, has earned 3-Peak Mountain Snowflake certification, “designating its capability in snow, slush and ice for true all-weather performance.”

The Celsius Sport will come in 43 sizes fitting 17-inch to 22-inch wheels.

“Speed ratings are V, W and Y.” Wholesale Tire Distributors displayed a new drifting tire from Zestino Tyre USA, the Gredge 07RS 140 Treadwear.

The tire fits rims ranging from 15 inches to 20 inches in diameter and features two center grooves to help disperse water. It also contains two wing grooves of different lengths and angles to enhance cornering.

Zhongce Rubber Group Co. Ltd. (ZC Rubber) unveiled two new Arisun brand medium truck tires during the SEMA Show.

The Arisun AD739 is available this month in size 295/75R22.5 and features a wide, closed shoulder for enhanced stability and fuel economy and more.

The Arisun AS600+ is one of two new medium truck tires that ZC Rubber displayed.

Association celebrated centennial before SEMA Show started Association celebrates centennial during SEMA Show week The Tire Industry Association (TIA) celebrated its centennial the night before the 2021 Specialty Equipment Market Association (SEMA) Show began.

TIA was forced to postpone its centennial bash last year when the in-person version of the SEMA Show was canceled.

During this year’s gala, former TIA President Brian Rigney shared highlights from TIA’s long, storied history. (The association’s original predecessor, the National Tire Dealers Association, was formed in Chicago, Ill., in 1921 and was incorporated in 1923.)

The day before the centennial celebration, TIA also inducted its long-serving CEO, Dr. Roy Littlfield, into the Tire Industry Hall of Fame. Littlefield, who joined the association more than 40 years ago, is retiring. He will be replaced by newly announced TIA CEO Dick Gust on Jan. 1.

TIA also inducted the late Martin Barry — its longest-tenured president — into the Hall of Fame. Barry was one of only three, triple-term presidents in the group’s history, having been elected in 1931, 1932 and 1933.

A tire dealer himself, Barry owned and operated a store in Baltimore, Md., which was founded in 1918.

TIA also awarded the 2021 Ed Wagner Leadership Award to Monte Niemi, the CEO of First State Recycling, for his work in establishing the tire-derived aggregate market.

Named after longtime MTD contributor and retread industry stalwart Ed Wagner, the honor is presented to individuals who demonstrate leadership in promoting the tire, retreading and/or tire recycling industries.

And TIA honored veteran tire industry journalist Miles Moore, who retired last year, with its 2021 Friend of the Industry Award.

Retiring TIA CEO Dr. Roy Littlefield, pictured with his family, was inducted into the Tire Industry Hall of Fame, along with the late Martin Barry.

The Arisun AS600+ offers “20% more treadwear than its predecessor, the AS600,” says Billy Dorsey, ZC Rubber regional sales manager. It comes with a wide tread profile, “enriched belts,” an innovative side decoupling groove and other features.

NEW TOOLS

31 Inc. displayed recently upgraded versions of its X Light product. One has w w w . M o d e r n T i r e D e a l e r. c o m

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Industry luminaries attended TIA’s centennial celebration, during which several TIA officials spoke, before the SEMA Show started.

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SEMA Show/AAPEX coverage been designed for use on tire spreaders. “We have made it a lot more heavy-duty,” says Robbie Bushnell, vice president of tire repair materials.

“And we changed it to a two-stage light from a singlestage light.”

The other X Light is designed for tire technicians and comes with “multiple options, like an emergency light and a direct light that shoots a straight beam. The light clips onto any part of a vehicle and also clamps.”

Emily Humpert, ATEQ marketing communications manager, demonstrates how the new VT67 from ATEQ can read tread depth and Department of Transportation codes.

Anyline Inc.’s Andrew Mercorella shows how the company’s optical character recognition software works.

AME International LLC showcased its new Jackzilla Premium 20-Ton Air/Hydraulic Bottle Jack, which is rated up to 50 tons.

The jack comes with new hose technology and a Flexzilla hose assembly, says Keith Jarman, the company’s president.

AME also displayed its new Telescopic 30/15 Ton Air Hydraulic Jack, which is equipped with a long handle for safe positioning underneath vehicles.

The latest TPMS tool from ATEQ TPMS Tools LC helps technicians service more than a vehicle’s tires. It also allows users to document any scratch on a vehicle or wheel before work begins.

The VT67 has more than 30 functions, plus a built-in camera and optical character recognition capabilities, courtesy of Anyline Inc. The Anyline integration allows technicians to use the tablet to scan DOT codes.

Anyline made a splash earlier this year when Discount Tire announced it would bring the company’s optical character recognition capabilities to its 1,100-plus stores.

Discount Tire is using a handheld tool that reads tread depth and DOT codes on tire sidewalls.

Karen Savage, Anyline’s head of sales, says the company also has adapted its technology to read black lettering on sidewalls and sees “tons of opportunity” in the tire space.

In 2022, Anyline software will introduce a new capability — the ability to measure a tire’s dimension, which will help detect how tires are wearing.

Bartec USA LLC displayed its top-of-the-line Tech600Pro

26

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TPMS tool, which, along with Bartec’s Tech450Pro tool, was updated at the beginning of 2021.

Both the Tech450Pro and Tech600Pro feature Bluetooth connectivity, as well as Wi-Fi connectivity to load updates directly from Bartec.

The company recently updated its full line of TPMS tools.

Base USA Corp. (Accu-Turn) introduced two new brake lathes — the 1115HD and the 1215S. The 115HD provides a “one-cut finish,” according to Base officials.

It enables “quick changeover from disc to drum tools in only seconds” and its design allows for easy adaptation “to all existing and future machine applications.” An electronic module measures and controls carriage feed speed.

The 1215S is billed “as an affordable alternative for today’s automotive shops” and allows rapid changeover from disc to drum in a matter of seconds. Speeds are pre-set at the factory.

The lathe “runs smoothly with an efficient, belt-drive system.”

Base includes tooling as part of the lathe’s standard package.

Continental Commercial Vehicles & Aftermarket unveiled its next generation Redi-Sensor Multi-Application TPMS Sensors, which are original equipment-validated and help reduce the different types of sensor SKUs needed.

Bartec USA Account Executive Bob Harvey displays Bartec’s top-line TPMS tool, the Tech600Pro.

The new 1215S brake lathe from Base USA Corp. allows changeover from disc to drum in a matter of seconds.

MTD December 2021

11/30/21 5:07 PM

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26A-D_NEXEN TIRE_1221.indd 27

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26A-D_NEXEN TIRE_1221.indd 28

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26A-D_NEXEN TIRE_1221.indd 29

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Q

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NEW! Product Code

Size

Product Code

Size

Product Code

18788

235/75R15

18736

275/60R20

18751

18783

245/75R16

18737

275/50R22

18654

Product Code

Size

Product Code

LT275/65R18

17051

225/60R17

16583

235/55R19

LT275/70R18

17060

225/65R17

17047

245/55R19

Size

Size

18785

265/70R16

18735

285/45R22

18753

LT285/65R18

17054

235/60R17

17407

255/50R19

18784

265/75R16

18746

305/45R22

18749

LT285/75R18

16581

235/65R17

17414

255/55R19

18771

235/75R17

18779

LT235/75R15

18754

LT295/70R18

17136

235/65R17

17566

255/60R19

18776

245/65R17

18777

LT225/75R16

18738

LT265/60R20

17061

245/65R17

17413

275/55R19

18764

245/70R17

18786

LT235/85R16

18745

LT275/55R20

17052

225/60R18

17046

235/55R20

18768

255/65R17

18782

LT245/75R16

18734

LT275/60R20

17045

235/55R18

17038

245/50R20

18769

255/70R17

18780

LT265/70R16

18740

LT275/65R20

17142

235/60R18

16640

255/45R20

18763

255/75R17

18789

LT265/75R16

18739

LT285/55R20

17571

235/65R18

17039

255/50R20

18765

265/65R17

18790

LT285/75R16

18743

LT285/60R20

17055

245/60R18

17049

255/55R20

17609

265/70R17

18774

LT235/80R17

18741

LT305/55R20

17048

255/55R18

17410

265/45R20

18760

P285/70R17

18762

LT245/70R17

18787

30X9.50R15

17056

255/60R18

17040

265/50R20

18757

255/70R18

18770

LT245/75R17

18778

31X10.50R15

17062

255/65R18

17406

275/40R20

18756

265/60R18

18773

LT265/70R17

18781

33X12.50R15

17057

265/60R18

17408

275/45R20

18755

265/65R18

18775

LT275/70R17

18761

35X12.50R17

17043

225/55R19

17409

275/55R20

18750

265/70R18

18767

LT285/70R17

18759

35X12.50R18

17033

235/45R19

17412

285/45R22

17037

235/50R19

18748

275/65R18

18772

LT285/75R17

18733

33X12.50R20

18732

245/60R20

18766

LT315/70R17

18742

35X12.50R20

18747

265/50R20

18758

LT265/65R18

18744

33X12.50R22

18730

275/55R20

18752

LT265/70R18

18731

35X12.50R22

Product Code

Size

Product Code

Size

Product Code

Size

Product Code

Size

Product Code

Size

17990

225/70R16

17103

265/70R17

17957

275/60R20

15867

33X12.50R15

15898

LT295/70R18

17984

225/75R16

17955

235/60R18

17973

285/45R22

15871

35X12.50R15

16400

LT305/70R18

LT215/85R16

15873

LT265/75R16

16263

33X12.50R18

LT225/75R16

15879

LT285/75R16

16264

35X12.50R18

NEW!

17980

235/70R16

17963

235/65R18

17954

17976

235/75R16

17966

245/60R18

17417

17977

245/70R16

17949

255/65R18

18064

235/65R16C

15883

LT235/80R17

15929

LT275/65R20

17988

245/75R16

17975

255/70R18

17958

LT235/85R16

15884

LT245/75R17

15932

LT285/55R20

17993

255/65R16

17962

265/60R18

17959

LT245/75R16

15886

LT255/75R17

15933

LT295/55R20

LT265/75R16

15887

LT265/70R17

15931

LT295/60R20

15713

LT285/70R17

15930

LT295/65R20

17992

255/70R16

17967

265/65R18

17981

17989

265/70R16

17968

265/70R18

17971

LT235/80R17

17978

265/75R16

17972

275/65R18

17985

LT245/70R17

15888

LT295/70R17

16271

LT305/55R20

17970

225/65R17

17965

245/55R19

17986

LT245/75R17

16398

LT305/65R17

16265

33X12.50R20

17960

235/65R17

17956

255/60R19

18830

LT265/70R17

16399

LT315/70R17

16266

35X12.50R20

LT275/65R18

16261

33X12.50R17

16267

37X12.50R20

35X12.50R17

16401

37X13.50R20

17982

245/65R17

17974

245/60R20

17953

17983

245/70R17

17948

255/50R20

17951

LT275/70R18

16262

17991

255/65R17

17969

255/55R20

17961

LT265/60R20

16348

37X12.50R17

16270

37X13.50R22

17994

255/70R17

17950

265/50R20

17947

LT275/65R20

15925

LT275/65R18

16269

35X12.50R22

17987

265/65R17

17964

275/55R20

17952

LT285/60R20

15897

LT275/70R18

16268

33X12.50R22

15926

LT285/65R18

NEXEN TIRE AMERICA INC. Corporate Headquarters, 4014 Wheatley Rd, Richfield, OH 44286 T: (800) 576-3936 E: info@nexentireusa.com NexenTireUSA.com |

26A-D_NEXEN TIRE_1221.indd 26

11/22/2021 1:15:53 PM

Continental also featured its new Autodiagnos Drive, a remote vehicle data solution designed to deliver advanced diagnostic information.

The technology provides live access to extended vehicle diagnostic data for all popular makes and models of passenger cars, light trucks and commercial vehicles.

It incorporates original equipment manufacturer diagnostic data, unique OEM-grade hardware and secure data routing and storage.

In addition, Continental highlighted its ATE Disc Brake Pad line, which covers more than 95% of European vehicles.

The pads are formulated to strict OE friction specifications and have been built and tested to exceed OEM quality standards.

Dayco Products LLC displayed a new line of electric water pumps in 30 SKUS. The pumps are designed as “direct-fit, bolt-on replacements” that don’t require modification, according to Jay Buckley, director of Dayco’s heavy-duty and specialty markets.

Also new from Dayco is a replacement tensioner designed for shops servicing Detroit Diesel 12 and 15 Series engines.

Dill Air Control Products LLC showcased its newVS-3601 Sprinter Valve, which fits 2002-2019 Dodge, Freightliner and Mercedes-Benz Sprinter DRW outer rear steel wheels.

The valve also is compatible with OEM wheel covers and allows for easy access to inflate tires.

DuroFix Inc. unveiled its new one-inch Jumbo Impact

Continental displayed several new products at AAPEX, including its Redi-Sensor Multi-Application TPMS sensors, plus ATE disc brake pads and its Autodiagnos Drive product.

DuroFix Inc. displayed its new Jumbo Impact Wrench and other products during the SEMA Show.

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Wrench, which has a maximum reverse torque of 2,500 footpounds, plus five-stage torque control with automatic shut-off.

Its slide handle rotates 360 degrees.

The impact wrench can have two batteries attached at the same time for more efficient work.

Epicor Software Corp. recently took a financial stake in SideKick360, which provides on-demand data for shop owners and managers.

It can provide an exact count of how many tires — by brand and store — that a dealership has sold within any timeframe and breaks down each brand by percent of the store’s total.

It also shows revenue and gross profit from tire sales.

SideKick360 provides a dashboard with a high-level look at a store’s performance at any given time and can send that report directly to a tire dealer.

Epicor is working to SideKick360 is teaming with introduce SideKick360 Epicor Software Corp. and ASA to large, multi-location Automotive Systems to bring its analytics tool to independent tire dealerships.

The platform also is dealers both large and small. available to stores that use ASA Automotive Systems Inc.’s TireMaster software. A single click takes TireMaster users to the SideKick360 platform.

Fog Software Group, parent company of ASA Automotive Systems Inc., announced that it has entered the retread business as the exclusive reseller of TreadWare, a software that has been designed to manage the whole retread process.

“It can measure the productivity of both people and machines,” says Marc Belanski, Fog’s automotive portfolio manager.

If tied into a retreader’s point-of-sale or management system, TreadWear can handle billing, as well.

Hamaton Inc. highlighted a new, universal TPMS sensor and a new TPMS scan tool.

The U-Pro Hybrid 2.5 universal sensor features dual frequencies and a dual-valve option, according to Hamaton officials. It offers more coverage than its predecessor, can receive new TPMS protocols and is compatible with TPMS tools that are manufactured by ATEQ. Hamaton describes its Hybrid HT TPMS scanner as a “featurerich, yet affordable, tool.”

The tool is Bluetooth-ready, updates Hamaton Inc. officials describe the via Wi-Fi and features new Hybrid HT TPMS scanner as a a color display. The tool “feature-rich, yet affordable, tool.”

27

11/30/21 5:09 PM

SEMA Show/AAPEX coverage Dealers share secrets of their success Electric cars, Right to Repair also were hot topics Education was a big part of this year’s Specialty Equipment Market Association (SEMA) Show and APPEX events.

The Tire Industry Association (TIA) hosted several info sessions during the SEMA Show, including one in which representatives from two dealerships — Ron Katz, who owns three Midas franchise locations in Florida, and the owners of North Salt Lake City, Utah-based Burt Brothers Tire & Service Inc. — shared a few secrets of their success.

When asked to disclose the first thing he teaches new salespeople who will be working his dealership’s phone, Katz replied, “Smile — and have empathy” for customers.

“We teach them to answer a certain way,” said Cory Burt. “And we respond with, ‘Yes, we can help you with that.’”

The Burts and Katz also were asked about what kind of education they earned before entering the tire industry.

Jake Burt said “an education was a prerequisite” for joining the family business, which was started by brothers Ron and Wendel Burt in 1991.

“It was college and then the school of hard knocks,” said Cory Burt.

“I took the opposite route,” said Katz. “I quit school in the eighth grade.” He had run other businesses and was a long-time employee of a car dealership before going into business for himself.

“I wanted to do something different and treat people differently.”

TIA also hosted a panel discussion about technician training.

Instead of having techs take long classes, delivering training in small chunks — using the latest digital tools — was recommended.

Over at AAPEX, electric vehicles and Right to Repair were hot topics.

The internal combustion engine is not going away anytime soon, said Ben Johnson, director of product management for Mitchell 1. More than 98% of vehicles on the road today have gas-powered motors, he noted.

A panel consisting of top executives from Federated Auto Parts, AutoZone and other companies discussed ongoing Right to Repair efforts.

As electric cars become a bigger part of the market, Sue Godschalk, president of Federated, said original equipment car manufacturers will push for even more repairs to be performed at their dealerships.

And with no oil changes and less brake work on the horizon, the aftermarket will need to fight even harder for repair and diagnostics data access, she added.

Midas franchisee Ron Katz (left) and two of the owners of Burt Brothers Tire & Service Inc., Cory Burt (center) and Jake Burt, shared a few secrets of their success during a Tire Industry Association-sponsored panel discussion.

28

03_MTD_Features-SEMA-Kilgore.indd 28

comes with an OBDII connector and an ID match feature.

“We’re all-in” on equipment for commercial tire service, Pete Liebetreu, Hunter Engineering Co.’s vice president of marketing, told MTD during the SEMA Show.

Hunter displayed its new Quick Check Commercial alignment and tread inspection system — among other new tire service products — during the event.

It “offers an instant and effortless health check on two of the most important safety and economic considerations for commercial vehicles — tires and alignment,” say Hunter officials.

Quick Check Commercial consists of two Hunter inspection procedures.

Heavy-Duty Quick Check Drive provides touchless alignment results, while

Hunter Engineering Co.’s new Quick Check Commercial alignment and tread inspection system captures data that can be easily shared with customers.

Innova Electronics Corp. displayed its new Power Check 5420, a circuit tester that can supply power to activate and test vehicle components.

MTD December 2021

11/30/21 5:10 PM

Quick Check Heavy rapidly and accurately measures tire tread depth.

“Since the unmanned system requires nothing more than driving the vehicle between two towers, trucks can be cycled through continuously — without operator time and labor — providing clear and actionable data that will have an impact on fuel economy and tire life,” according to Hunter officials, who demonstrated the system.

Captured data can be easily shared with customers, “creating transparency and boosting alignment and tire replacement opportunities.”

Hunter’s Quick Check Commercial system supports multitrailer configurations, dual axles and wide-base tires. It can accommodate full-size and medium-duty trucks.

“We have probably doubled the number of SKUs we (offer) for heavy-duty over the last six months,” says Liebetreu.

Innova Electronics Corp. displayed its Power Check 5420, a circuit tester that can supply power to activate and test components on a vehicle.

John Cary, Innova’s digital marketing manager, says the tool’s adjustable shape — it can turn from straight-handled to pistol-shaped — helps technicians access more spots.

The Power Check 5420 also features a backlit display that’s easy to read.

JMK Computerized TDIS unveiled its new Service Smart technology, which “tethers customers” to tire stores via their smartphones.

Service Smart has been designed to seamlessly integrate into any tire store point-of-sale system that can export data.

QR codes give customers easy access to applications and

Though not new, a 24-inch version of the Mickey Thompson Baja Pro XS was displayed outside the Las Vegas Convention Center.

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JMK Computrized TDIS’s new Service Smart program gives dealers the ability to “tether customers” via smartphone technology, in addition to other features and benefits.

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29

11/29/21 10:55 AM

SEMA Show/AAPEX coverage

Tire Service International highlighted a variety of prooducts inside its SEMA Show booth.

Ben Graham, Ken Tool Inc.’s vice president of sales and marketing, discussed features of the company’s HexChex Multi-Size Loose Wheel Nut Indicators.

The ST-1 TPMS tool is the latest in a line of TPMS technologies from Schrader TPMS Solutions.

30

03_MTD_Features-SEMA-Kilgore.indd 30

features. “After scanning, customers are instantly in” the Service Smart system, says Jim Krakower, JMK’s director of system development.

Service Smart provides visual data of vehicle service history, including invoices, plus the timing of recommended vehicle maintenance, the ability to communicate through text and other features.

Ken-Tool Corp. debuted its Stow & Go 4-Way HD Lug Wrench, which features a push button that allows it to fold, according to Ben Graham, Ken-Tool’s vice president of sales and marketing.

Ken-Tool also displayed its HexChex Multi-Size Loose Wheel Nut Indicator, which is available in seven SKUs for 31 different nut sizes.

Graham says the indicator will fit around nuts of any shape, including eight- and 10-sided varieties.

Schrader TPMS Solutions displayed its latest TPMS technology, including its ST-1 TPMS too, which is Wi-Fi capable and features an OBDII quick connect cable.

The ST-1 also measures tire tread depth and is equipped with an ID sync function for matching scanned IDs to the vehicle’s electronic control unit IDs. Tire Rotation Assistant Cart (TRAC) unveiled a quick-lift hydraulic pump that hoists tires precisely. A telescoping support bar keeps tires secure on the platform.

Steel base rollers make moving the cart easy and a holder keeps lug nuts accessible, says Kevin Robinson, TRAC’s creator.

Tire Service International (TSI) highlighted its Viper 18-Liter Aluminum Tank, which emits a large volume of air via push-button discharge to help seat beads.

TSI also displayed its CH-10 Cheetah Bead Seater 10-gallon steel tank, which is designed for seating commercial truck and ag tires.

A two-inch tank opening provides additional “spread” of the air discharge to help seat extra-challenging beads, according to TSI General Manager Brian Doyle.

Topdon USA showcased its new Phoenix ADAS Mobile system, which is compatible with the company’s Phoenix Series of diagnostic scanners.

The system features a collapsible design with foldable arms and folding base legs for easy storage and portability. ■ MTD December 2021

11/29/21 10:55 AM

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3 Questions with VIP Tires’ Tim Winkeler

VIP Tires’ annual managers meeting includes a heavy focus on face-toface time with store managers and the company’s leadership. CEO Tim Winkeler chats and mingles with managers during educational sessions, as well as every meal.

3 questions with VIP Tires’ Tim Winkeler PAYING HIGHER WAGES IS A ‘PHILOSOPHICAL LINE IN THE SAND’ By

Joy Kopcha

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IP Tires & Service brought its entire management team under one roof for the first time in two years this fall.

The Lewiston, Maine-based company — which is one of the 20 largest independent tire dealerships in the United States, according to the 2021 MTD 100 — hosts an annual managers conference for its store, regional and district leaders, where it lays out its game plan for the year to come.

In the midst of various classroom sessions, MTD sat down with VIP CEO and President Tim Winkeler to talk about the pressures of recruiting, opening new stores and expanding the company’s services for fleets.

MTD: Recruiting and retaining employees is such a pain point for businesses of all kinds right now, including tire dealerships. How does that picture look at VIP and what strategies are working for you?

Winkeler: This year Gary MacCausland, (our) senior vice president of operations,

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launched an enhanced compensation program for our entry-level positions. What the industry would call a tire and lube tech, we call an installation tech.

We’ve always had a four-step program (for entrants to move up), including ASE certifications. We just added enhancements to that program. We raised that rate. It’s now $15 minimum.Then they have bonus opportunities to make $16, $17 or $18 an hour.

Our minimum pay went up from $14 to $15 an hour. None of the states (we operate in) had gone up to $15 yet. I’ve always said I never want to be at minimum wage.

We should be paying a premium. That’s a philosophical line in the sand for us. We’ve always been ahead of it.

We have about 70 more associates today than we did a year ago. When many other companies were doing lay-offs and furloughs last summer, we were hiring. We quickly went on the recruiting trail and were able to add a lot of great talent.

There were some new store positions we needed to fill, but even in existing markets

we were pretty aggressive to find great talent who might be looking because maybe their employer didn’t treat them so well last year during the slower months.

We didn’t maximize profits this past fiscal year because we were carrying a lot of payroll. And that was strategic.

Even though the business was COVID19-slowed a little bit, we carried extra payroll through the winter months, knowing that vaccines (were coming and) people were going to want to get out and drive.

The economy was going to boom is what all the forecasters were saying, so we wanted to be the company that was best-positioned to take advantage of the boom when it happened. So we did everything we could to retain employees and we did everything we could to bring on additional talent.

MTD: VIP has been steadily growing its store count and expanding its footprint in New England in recent years. Is the “people problem” slowing down your company’ growth?

MTD December 2021

11/29/21 10:55 AM

Winkeler: We opened five new stores last year. Across 65 stores we’re probably about 40 to 45 people short of where we’d like to be. We have challenges and positions we’d like to fill. I’m of the mindset that’s always going to be the case when you’re growing.

We’re by no means shorter- staffed than we’ve been in the past. I think it’s because we had our foot on the gas pedal from a people standpoint last year.

One of the toughest areas we’ve found for recruiting is Burlington, Vt. I’m guessing at the reasons — we have three colleges, lots of people with degrees and fewer people growing up working on their own cars.

Burlington was a market we didn’t serve very well, but it’s where 60% of Vermonters live. We knew it was going to be a long road to build the business we want there and it was going to be more challenging from the people standpoint. But we have a lot of confidence in our team, in our district managers and our two regional guys. We know what to do. It’s just a matter of doing enough of it. In that market, it just takes more work.

We tend to recruit really well in areas that are just outside the city because you have somewhat of a rural approach and people learn how to work on cars.

In the city of Portland, Maine, we don’t have many employees who live in Portland, but we have lots of employees who live west of Portland. Burlington is in the same situation. We are having success. It’s just more challenging. It’s taking more work to find those people.

We’ve opened five stores. We’ve got three or four in the pipeline for the next 12 months. We have decided at the front end of the funnel to slow down just a bit.

Our forecast is always that a new store isn’t profitable on day one. There’s always a ramp-up. During COVID-19, that made new stores more difficult.

We also opened some of those new stores in markets where we didn’t have a presence in the past — in markets where we didn’t have brand recognition. So our new store results were slightly below our expectations and because of that, we’ve decided that we don’t want to push too hard and grow too fast.

MTD: Tell me about your relatively new fleet program. How does it fit into your existing model? Is the goal to offer fleet services across your entire geography? w w w . M o d e r n T i r e D e a l e r. c o m

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Winkeler: Absolutely. We are in so many rural markets, it will be interesting to figure that out as we go on.

Our first foray into (fleets) was two years ago. Bill Galantxx is our director of fleet sales. We started with a focus on the greater Manchester, N.H., area. We have six or eight stores that he can really feed into. It took him a while to figure his way through and get it done.

Cold-call selling is never easy, but he’s learned lessons and he’s done a great job of really helping grow our presence from a fleet perspective. Over time, those customers have transitioned a lot of their communications to the service managers at the stores (where they get service.)

We have two more positions that we wanted to add, (including) one in Massachusetts, so that’s six stores, and we have a position for a fleet sales manager in the greater Portland, Maine, area. We have nine stores in the greater Portland market.

I’ve heard from other dealers who have gone big and hired five or six people at once and they’ve made a big splash, but then they typically end up thinning the herd. I didn’t want to go about it that way.

I wanted to add slowly.

Our seven-day-a-week model fits great (with fleets.) They drop off vehicles on Friday after the last appointment or last route and pick it up Monday morning. That gives us Saturday and Sunday to work on a vehicle or vehicles.

You don’t have to discount much. They’re not looking for the cheapest. They’re looking for who’s going to service them the best — with the best quality. They want to make sure when they put money in that vehicle, it’s going to be done right. More than anything, they’re looking for you to do it on their schedule. They’d rather not do repairs. They’d rather do maintenance ahead of time.

One of the things I love about our sevenday-a-week model is that it gives our assistant managers two days (during which) they get to run the store. Our managers only work five days a week, so for two days a week, the assistant manager is the manager on duty. That’s how we groom.

We give our assistant managers a chance to beat expectations. That goes back to our culture of always helping people get better, get promoted and always move ahead. ■

VIP Tires’ store managers swap best practices, support one another When VIP Tires & Service brought together its 100-person management team in September for the dealership’s annual managers conference, it was more than just a return to normal programming since COVID-19 upended things. It was a boost to the culture that VIP creates for its employees.

The company’s leaders talk a lot about culture. That includes CEO and President Tim Winkeler. They want employees to feel like they’re part of the team — and that it’s the team’s job to serve consumers and solve problems.

“There are a lot of benefits to being as big as we are, but we also operate smaller when it comes to relationships,” says Winkeler.

VIP Tires’ culture is built around transparency. The company shares everything — from financial results to customer feedback from company-wide surveys — with its workers.

Goals are built around core strategies that don’t change from year to year, such as investing in the VIP Tires team and focusing customer engagement on a five-step action plan.

Winkeler says bringing every store manager together, alongside their regional and district leaders, for a couple days of training and fun helps cement the team energy around the dealership’s common goals and strategies.

“These managers are the leaders of their teams. Whether they’ve got seven, 10 or 15 people, they’re the ones leading and doing the things to help that business run. We give them a lot of freedom to run it like it’s their business, but that can get a little lonely.”.

Bringing employees together builds connections “because no one can appreciate what you do like someone else who does it, too.”

Managers sit next to each other in training sessions and trade stories over meals. They discover common problems and learn fixes from someone who might be a few steps ahead.

They also learn practical things, like troubleshooting common vehicle service issues.

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11/30/21 9:07 AM

Kilgore Tire

A ‘newbie’ learns the tire business KILGORE TIRE’S OWNER HAD ‘BIG SHOES TO FILL’ By

Joy Kopcha

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arrin Mallet has worked as a general contractor, once sold groceries and even managed a meat counter. Until about five years ago, he had never sold a single tire.

But Mallet just happened to marry into a tire dealer family. And his mother-inlaw, Mary Alexander, needed someone to manage the business that her late husband, Vernon Alexander, had started.

So Mallet took the job. And during his short time in charge, he’s helped Kilgore Tire Service grow.

Vernon Alexander opened the singlestore tire dealership in Kilgore, Texas, in 1975. Back then, the Alexanders focused on tires, brakes and alignments. There were other businesses in town that serviced mufflers and offered underhood automotive repair.

“We’re in the heartland of the oil fields,” says Mallet. “Our main focus for many, many years was just tires and supplying oil field-related trucks. When oil prices are up, it’s good, but when they’re down, it’s down.”

For many years, Alexander had a right hand man in Kent Jackson, who kept the business going after Vernon died in 2006. When the time came for Jackson to retire, the family turned to Mallet.

“I had some big shoes to fill,” he says.

But he had earned his undergraduate degree in business management and then added his MBA while he was working full-time in the grocery business. The idea of running a business appealed to him and he was willing to make the leap.

As it turns out, just as Mallet was joining the business, its landlord and property owner was looking to sell. So Kilgore Tire went from tenant to owner.

And Mallet put his construction skills to work to remodel and make some updates.

Two years later, he added a second location in Kilgore — closer to Interstate 20 — designed for commercial customers.

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Darrin Mallet is working to solidify and expand Kilgore Tire, the business his in-laws started more than four decades ago. One goal is to provide more automotive services to eventually achieve a 50-50 split between tire sales and auto repair.

With three bays now at the truck tire center, Mallet says technicians can change tires with a roof over their heads — at the older location, all commercial work was done outdoors — and it’s also

easier for truck drivers to maneuver in and out. Moving commercial tire work off-site also opened up opportunities at the dealership’s original location, which serves as Kilgore’s retail center. There, MTD December 2021

11/30/21 5:12 PM

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Technician Compensation — How to Stay Competitive

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How to Make the Most of Every Phone Call

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A Step-by-Step Guide for Identifying — and Developing — Your Replacement

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How to Manage Inventory and Cash Flow

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Servicing Electric Vehicles at Your Dealership

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Making Digital Doable for Your Dealership!

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12/2/21 8:16 AM

TECHNICIAN COMPENSATION — HOW TO STAY COMPETITIVE A LOOK AT DIFFERENT (AND BETTER) TECH COMPENSATION PROGRAMS

By Jeff Morgan

Staffing a tire dealership has never been an easy feat. You need to maintain a skilled workforce out of a limited supply of qualified people. That problem has existed for many years, but lately it has become even more difficult.

Wage pressures and the fight for talent are not only hitting us from inside the industry, but challenges are also coming from other places like never before. The need to find and develop the right people is a high priority. However, if we are going to attract and keep those people, we must be willing to compensate them.

There are different compensation plans that are used today.

Being creative in finding new ways to reward production and quality are even more important than ever. Paying a straight hourly wage is just not going to get you what you want and need, nor will you be able to truly be competitive in today’s heated “wage wars.”

Before I get into different types of compensation plans, I feel the need to focus on those technicians whom you are training and providing with new skills.

During my career, I have too often seen one of two things happen. First, many dealers refuse to train their staff because they are afraid those employees will take those skills to the competition.

Which is worse — training someone and losing them or keeping untrained, unskilled workers? In this market, you cannot survive if you are not developing your people.

Second, we often do not compensate technicians for the new skill level that they are at. And we are slow to give them an increase to pay them what someone with these skills would make on the open market. We try too often to save a buck or two here or there.

Granted, if you invest in their development, they generally are less likely to leave, but only if you pay them fairly for what they can do. And the cost of trying to hire someone new to fill those shoes will likely be significantly greater than what you should be paying them now anyway!

Now that we understand the need to pay people appropriately for what they can do, let’s discuss ways to do it. As I mentioned previously, paying a straight hourly wage is really not going to be competitive anymore. On top of that, you are giving your technicians no incentive to perform at their best capacity.

Flat rate is a good program for top producers, but there is always the concern that average producers might get scared of an inconsistent paycheck and the possibility of poor weeks.

One solution that can help here is implementation of a hybrid between the two programs. In this compensation plan, the tech has a base hourly rate. This is when they get paid for the hours that they clock, including overtime. Then they get an additional rate on top of that for flag hours produced.

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Let me give you an example. Instead of paying a tech $26 per flag hour, perhaps they get $18 per clock hour and $8 per flag hour produced. This not only protects them during slow weeks, but also provides them with a strong incentive to maximize their productivity.

Let’s say in this example that the technician clocks 40 hours and flags 35 hours. His pay for that week would be $1,000 ($720 on the clock and $280 from flag hours.) If you paid the technician straight flag hours, his pay would be $910. What if that technician clocked 40 and flagged 50? In this case, his pay would be $1,120. Granted, the technician would make more in straight flag hours, but for those techs who are always teetering on 100% productivity, this provides a more consistent paycheck, while still incentivizing them to do more.

Also keep in mind that the money produced for the flag hours would also need to be taken into consideration for the effective rate calculation if overtime comes into play.

You can also use a program like this to incentivize technicians to increase their skills. You could add dollars to the flag hour production, based on learning new skills or gaining certain certifications. In the previous example, perhaps you can add $2 to the flag hour production, bringing it to $10, if they obtain their refrigerant certifications to work on air conditioning systems.

Another possibility would be to add $1 to that number based on ASE certifications. The choice is yours, but the idea is to give employees a tangible reason to improve their skills and abilities.

This same concept can be used with your tire technicians or lube technicians. They would have a lower base hourly rate, but you could add an incentive for billed hours. Perhaps after they complete a 30-day orientation period, they start getting $2 per billed hour. Then if they complete various training programs — such as industry e-learning modules — additional money can be added. The same basic premise here applies. As they grow their skills, they grow their paycheck.

Another possible compensation program to consider is to bonus technicians based on the performance of your overall business. This would be on top of whatever their base program is.

The goal of a program like this is to foster a sense of urgency and teamwork to complete work. Technicians are more likely to help each other in order to get jobs done accurately and efficiently.

The easiest way to do this bonus program is to base it on sales dollars collected. However, you could do it on gross profit dollars collected, if you prefer. The idea is that a bonus dollar pool is created to be shared. For example, let’s say you do $35,000 in sales each week. If you create a bonus pool based on 2.5% of sales per week, then the bonus pool for that week is $875. You can choose whatever calculation you want to determine the amount of the pool, but just make sure that the calculation method remains consistent.

You also have a choice on how to distribute this bonus pool. One option is to split the bonus equally between all technicians in your shop. Another is to divide it based on hours worked or hours billed.

In other words, technicians that either worked the most hours or produced the most billable hours will get a bigger piece of the pie.

A third option is to divide the bonus based on technician level.

For example, if you have eight technicians, your top one gets 25% of the pool. The next two technicians will get 20%. The entry-level technician gets 15%. And the tire and lube technicians each get 10%.

Regardless of what you base the bonus pool on or how you wish to distribute, I recommend that your program be based weekly. While I realize that this creates a bit more work, the idea of making this bonus weekly keeps it top of mind for your technicians and that makes it more impactful. The more immediate the reward, the more likely your technicians will work to impact it, which is the ultimate goal.

Again, remember to include these earnings into effective rate overtime calculations, should that come into play.

Your technician compensation program should be designed with four main things in mind.

First, is it fair and equitable in the marketplace? If not, you will have a consistently revolving door of technicians coming and going. This is significantly more expensive to your business than paying more up front. You will also likely be settling for less than what your business needs with regards to skill sets.

Second, the program should allow your technicians to earn more as they become more productive. This puts their paycheck in their hands and allows them to make what they are worth. As they earn more, the business earns more. This is what you want. And it will keep your business healthy and your technicians happy.

Third, you need to make sure that your technicians fully understand how they are compensated. Too many only see

dollars per hour and not the whole package. They need to understand the various factors that can impact their earnings.

And you need to help show them how to maximize what they earn. Help them understand that their earning success equals your success, so you want them to excel.

Finally, you need to remain a businessperson. This means that you still need to manage the payroll of your business. It has been suggested that total payroll for any single location should not exceed 45% of gross profit. This includes sales and management of the location, along with technicians.

This also means that you need to find a good balance. Being more production-based in compensation will certainly help.

And finding a good balance also means that you need to control overtime spending.

However, the biggest thing you need to do is make sure you are collecting what you are worth in sales. Do not be afraid to raise your labor rate, when needed. Look at your package prices and make adjustments, as appropriate. Make sure you are collecting proper margins on your parts and tires.

Your business success is predicated on the experience your customers receive. This is a direct reflection on the people within your business.

Making sure that you attract and keep the right people who are doing the right things is vital. Your compensation programs are part of that equation. Make sure you give that as much attention as you would give to any other part of your business.

The better you become at retaining your best people, the better it will be for the long-term health and continued success of your dealership.

Having worked for one of the world's largest tire manufacturers, Jeff Morgan has more than 30 years of retail tire experience across multiple disciplines, including human resources and training.

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HOW TO MAKE THE MOST OF EVERY PHONE CALL FOLLOW THESE 10 STEPS TO CREATE A MEMORABLE CUSTOMER EXPERIENCE — AND CLOSE THE SALE

By Mike Townsend

On any given day at any given time, your front counter salespeople, managers and service managers can be flooded with business. I like to call this the “whirlwind” because it’s like a tornado that is out of control.

Picture this: two customers have just walked into your dealership, a parts vendor is waiting to get a signature, your ASE-certified technician has an issue, someone just pulled up to bay number one with an illuminated tire pressure monitoring system light, your manager is out to lunch and one of your salespeople is out sick today.

And to compound these challenges, your store’s phone is ringing off the hook.

I have seen this situation hundreds of times and it can be daunting.

In this article, I’ll discuss how to make the most of your phone interactions with customers.

Many independent tire dealers get 50 to 100 phone calls every day, but have no process that can help improve those interactions. And they miss many opportunities to show the person who is physically in front of them how they will take 4

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care of them when they need to call before they come into the store. Furthermore, most of the time the customer is directing the call and precious time is wasted on both sides of the phone.

And customers want service at warp speed.

I recently called seven independent tire dealerships — as well as a couple of national tire store chains — and only one remotely understood how to make the most of initial phone interactions.

The best of the group had a very good greeting, but nothing that would make me want to buy after that.

I also mystery-shopped a half-dozen stores and observed how in some cases, the phone rang more than 10 times before someone answered it.

Here are 10 ways to make the most of each phone call: 1. Have a process. To make the most out of every call, you must have a process. Then you must perfect and trust that process. Having a process for every part of a phone call will ensure that the customer experience is elevated for the caller, as well as anyone standing at your front counter. You will impress both at the same time.

2. Use multiple greetings. Mixing up your greeting when answering the phone will help you avoid sounding like a robot.

And keep your word pace slow enough to where the caller can actually hear you. I was mystery-shopping at a store once on Valentine’s Day and the sales person there answered the phone with, “Nothing says ‘I love you’ on Valentine’s Day like a new set of tires! My name is Adam. Who do I have the pleasure of speaking with?” The key here is to keep your greetings professional and authentic, but clear enough to where the person on the other end immediately surrenders at least their first name. This helps save valuable time and will build trust.

3. Get the customer’s name and phone number. It’s amazing how many don’t do this. If you fail to get the customer’s name and number, you are an order-taker. To be a sales-maker, you must record both the name and number and use them to follow up with the customer within 72 hours if that customer decides not to buy at the end of your call. You also can revisit what you quoted the next day or a week later.

4. Use the customer’s name during the call. It is important to build trust right away. This can be done by calling the customer by name multiple times. I recommend calling them by name when you are about to say something you want them to remember and/or when you are about to ask for a purchase commitment.

Research has proven that people love to hear their names. It really is “music to their ears.”

5. Ask questions and question their answers. The best way to control the rhythm and time limit of any phone call is for you to ask almost all of the questions. If customers ask you multiple questions, it’s easier for them to take control of the call. This adds more time to the call and most often makes it harder for you to get them to say “yes.” And when asking questions, you must ask for more than just the tire’s size. Ask the basic questions about driving habits, driving distances, driving surfaces, etc. This keeps the customer engaged.

When you ask for a commitment and the customer asks, “When can you put the new tires on?” make sure you then ask, “When would you like to have them installed?” After the customer gives you an idea, negotiate an amicable time. Believe it or not, this will shorten most phone calls by up to 1.5 minutes.

6. Smile when speaking with customers. Show me someone who smiles a lot and I will show you someone who has a positive attitude. Attitude — and smiles — can be heard on a phone call.

I recently called a high-end resort while working on a project for another client and the lady who answered the phone displayed a great attitude. I called her by name and asked, “Are you smiling right now?” She pleasantly said, “Yes, I am, Mr. Townsend." It was clear she had written down my name during the greeting process — another important thing to do.

7. Be engaged, enabled and energetic. Towers and Watson did a study on global companies that had employees who were engaged, enabled and energetic. These companies were three times more profitable than the companies whose employees were semi-engaged. The challenge with “the three E’s” is most stores don’t know when their people are engaged and without a process,

employees are certainly not enabled. Lastly, to be energized, a salesperson must refuse to get less than seven hours of sleep every night and should maintain a healthy diet, especially on work days.

I have witnessed many salespeople “carb up” during their lunch break, only to slow down later.

8. Use the right words at the right time. The Wall Street Journal printed an article many years ago about verbal tics, the words we use and how they can build or tear down trust. I hear the phrase “to be honest with you” — and also the adverb “honestly” — too often. These words — which can damage trust — should be removed from your phone call verbiage. In addition, the words “can’t”, “don’t”, “unable”, “we can’t order those tires” or anything else that can be construed as negative should never be uttered. If a customer asks, “Do you have them in stock?” most salespeople will respond by saying, “I don’t have them here” or “I can order them for you." The best response would be answering that question with a question of your own, such as, “When would you like to have us install them?” Ninety percent of the time, this is successful.

9. Always position your store. Now more than ever, this is important, but most never do it. Positioning your store happens when you fill silence — therefore improving the flow of information — with exactly what you will “do” for your customer that other stores don’t or can’t do. And many times, it’s not only what you may offer, but what your competitor is too lazy to tell the customer.

One of the most powerful statements when positioning your store is to tell the person on the phone that you are locally owned and operated. Why? In most studies, this factor rates higher than price when consumers are asked, “What motivates you to buy from a certain store?”

10. Ask for the sale. As elementary as this may sound, less than 3% of the stores I have shopped via telephone or face-to-face asked me to commit to scheduling an installation for my tires that they just went through a lot of trouble pricing for me. I have heard many people say that if you don’t ask for the sale, you don’t deserve it. How true this is!

It is extremely important for your salespeople to have processes that can create a meaningful, memorable and measurable experience for someone who goes through the trouble of calling your store and requesting to do business with you.

Whether that consumer is a regular customer or has not done business with you before, the person who answers your store’s phone is the “voice” of your business to them.

Make sure your salespeople follow the above steps consistently and you will create an experience that your customers will remember and tell their friends about.

Mike Townsend is the owner of Townsend Strategies, a sales coaching and leadership coaching business. He has 30 years of sales experience—half of them in the tire industry. As a Six Sigma black belt and professional trainer, Townsend says he “has witnessed every scenario and heard every objection in the retail tire environment.” For more information, email Townsend at mike@ townsendstrategies.com.

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A STE P - BY - S T EP G U I D E FOR ID E NT IFYING—A ND D E VE LO PI NG — YO U R R EP L AC E M E NT

By Dennis McCarron

In many independent tire dealerships across the country, the question is being asked: “I’ve been doing this a long time and am ready to retire. Who will step in to carry the torch?”

The answer to that question varies considerably. For some, a son or daughter is the obvious choice. In other cases, a son or daughter may want the top job, but the parents don’t think it’s a good idea. Other owners may have a long-time employee they feel they can trust their business with after they retire. And others understand that when multiple shops are involved — to maximize their retirement — selling to a regional, national or strategic buyer is the logical choice.

And yet others who are not quite ready to retire would like the heavy crown to be lifted and are looking for someone else to simply take over the day-to-day grind of running their business.

Building your leadership pipeline is not a weekend exercise.

For many, apprehension around even addressing the concept is the reason that the replacement slot has remained empty or has been left to chance.

To be sure, addressing your current leadership structure and building the next generation of owners can be fraught with hurt feelings and tough conversations. But if an owner wants their “baby” to thrive, they must put in the hard work.

In this column, I will attempt to address as many scenarios as I can and lay out a path for every tire dealership owner— from a single-location dealership to a three- or five-store operation to a large, multi-state operator — with the goal of helping them develop a leadership pipeline that will allow their company to thrive.

If you are an owner who is reluctant to hand over the reins to a son or daughter, take heed. There are a lot of you out there.

Whether that child lacks soft skills, vision, financial acumen or is a bump on a log just waiting to take the profits and run, you are not condemned to watch your life’s work crumble. You do, however, need to have a difficult conversation.

If your child expects to be coronated and has shown no interest in learning the ropes or simply can’t grasp the basics, you must have a heart-to-heart talk with them and explain that if their goal is to take over, they must walk a certain path. If the child refuses or blocks attempts at building the pipeline, you still have an obligation to protect the company and your other employees.

In these types of difficult conversations, it is important to prepare and then lay out your argument in logical terms.

You must be prepared for the obvious objections and have counter-reasons.

Do not soften your feelings. They are yours to own.

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Be direct and straightforward, but learn to say it out loud properly in order to reduce the sting. Work through the disagreements where and whenever possible and always have your non-negotiables on the table. Non-negotiables are those items that cannot be changed, no matter what is discussed.

For those of you who find a way to put a child in your leadership pipeline — whether they agree to committing to the hard work of learning your business or they have been doing so all along — now is the time to develop a strategy to expose them to all facets of what you have built. As you know, one of the least common, daily things that you personally do is sell tires. Instead, you’re the HR department, the complaint center, the accounts payable person, the marketing guru, the inventory specialist — the list goes on and on. It is vital that your nextin-line is exposed to these — and all — aspects of the business.

For medium-sized dealerships — those with a handful of stores — much of the success in creating a strong leadership pipeline boils down to striking the right blend of outside help and loyal employees. For outside help, it is important to understand the value that someone with external experience can bring to the table. (And make sure that person also aligns with your values.) It also can be a great idea to bring someone in with experience not just in other tire dealerships, but possibly in other industries. Fresh, new ideas require new perspectives.

However, fresh faces must also make sure they don’t toss out the tradition and values on which your company was built.

Employees who have risen through the ranks from within should learn early to work with those who bring different views on how to generate sales and profits. Working through

differences of opinion while respecting where the business came from can create tension. But tension is good. It forces people to focus on what matters.

However, if the partnership results in stress and isolation, this will need to be addressed quickly. It is particularly critical for medium-sized businesses to understand the difference between a high-potential performer and a high performer. A high-potential employee is one who exhibits the necessary talents and drive to succeed in their current position and shows glimmers of ability to grow into a job further up the pipeline.

A high performer is invaluable to the company at their current position — for example, a top salesperson or a top technician.

However, this person doesn’t show the potential to develop the skills required for the next position.

It is imperative that a high performer not be mistaken for a high-potential employee. A high performer who is taken out of their role and put into one they can’t succeed in will not only burn out, but you also will have lost your top dog in that existing spot.

Owners of large dealerships must understand that they aren’t in the tire business. They are in the people business.

Managers in large dealerships deal with departments. They deal with strategies and five-year planning. To build a leadership pipeline in this case means that outside people should strongly be considered as a viable option, along with those internal employees who flat-out shine.

In large dealerships, it’s unlikely that a sales advisor or a service technician will have a background in HR or will show an interest in the day-to-day tasks of the various departments that are needed to run a 20-location operation. It’s not impossible and you should continue to look for that diamond, but it’s unlikely you will find that person, especially if you haven’t been grooming people all along.

So what is the process of building a leadership pipeline?

First is an assessment of current potentials within the company and identifying any known gaps, such as positions that will not or cannot be filled internally. Now is the time to be brutally honest about people’s capabilities and who is and isn’t a high-potential player.

Next is setting up a path for those in the pipeline to experience various positions. Internally, it’s time to start those people on rotations in other areas of the company — not so they can master those jobs, but so they can be exposed to how those jobs work and gain empathy for the people that perform those jobs every day.

Leaders do not have to be experts at every job in a company, but they must have the humility and understanding of what it takes to do the job. It can be time to bring in people who either have the experience or bring them in and exercise them like an internal employee.

When setting up the path, it’s also important to consider exit ramps. All roads do not lead to the president position.

The idea of a leadership pipeline is to expose high-potentials to areas within your company and let the process play out. Exit ramps can be placed for store personnel, store management, field operation people and others, depending on the size of your company.

In what order should a pipeline be laid out? First and foremost, anyone with bigger aspirations should have exposure to individual contributors who work front-line jobs. These employees — such technicians, service advisors or delivery drivers — rely on their own skills and judgement to reach goals.

The second stop in the pipeline should be exposure to managers of individual contributors.

This area focuses on how well a person does when overseeing individual contributors. Possibly the most important question to ask here is, “Can this person let others be successful for them or do they get frustrated and decide to ‘do the job themselves?’”

The third stop is exposure to a manager of managers. The biggest skill development here is learning to manage from a distance.

How well does the manager of managers influence others to the point where they do what they are told without constant oversight?

In larger companies, the next stop is usually exposure to department heads. This is the level where people learn to manage a function of the company, while successfully aligning with other departments. How well do they help support the objectives of other departments?

And finally, for those high-potentials who shine brightly enough to be considered for the top job, find out how well they carry out unpopular decisions, as well as the scope of their vision. Being the top leader in any company requires understanding what is right for the greater good of the business and the ability to focus on a point that is far out in the future. You need someone who can look into the future and accurately assess the threats and opportunities coming in six months or six years. This is who you are now and this is who the person that eventually takes the baton from you should be. As the top leader within your organization, you have a whole company of people looking at — and working on — the day-to-day stuff. Your job is to chart your dealership’s future course. That includes finding the right person to take the wheel from you when you’re ready to hand it over. Building a strong leadership pipeline will help you accomplish this.

'YOUR JOB IS TO CHART YOUR DEALERSHIP'S FUTURE COURSE'

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 Tire Dealer Sur vival Guide

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HOW TO MANAGE INVENTORY AND CASH FLOW REAL-WORLD STRATEGIES FOR MAKING THE MOST OF YOUR ASSETS

By Dennis McCarron

There are three vital documents to every business’ success. They are the income statement, the cash flow statement and the balance sheet.

The income statement’s job is to record the sales, costs, profits and expenses of doing business. The cash flow statement explains how cash comes into the company and how it goes out. The balance sheet records the company’s resources and obligations at any given moment.

Most business owners are familiar with the income statement.

Fewer are familiar with the other two.

A cash flow statement is important because it tells you how well you manage generating cash, paying your debts and funding the operations of your business.

A balance sheet is important because it shows what a company owns (assets), what it owes (liabilities) and what the owner owns (equity.) Essentially, it shows how stable the company is or how much risk the company is exposed to financially.

“Inventory is an asset — not an expense” is an old adage that has stood the test of time. It’s important to revisit why.

In accounting terms, when you buy a product you intend to sell, it gets recorded on the balance sheet as a reduction in cash (asset) and inventory (asset) is increased. Your overall asset value doesn’t change, but your cash position certainly does. And cash flow is very different from net profit.

Your income statement may tell you that your company generated a net profit of $5,000 in a month. But if you need $10,000 to buy the next container of tires, you better have money in the bank or you will need to borrow money, which will increase your costs of carrying inventory.

You should be concerned with both profitability and cash flow. As a matter of fact, I would argue that cash flow is more important. Take these two scenarios into account.

John’s Tire & Automotive isn’t very busy. The company works on about nine cars a day and since its volume is relatively low, John doesn’t inventory much in the way of parts or tires. At the end of most months, John either records a loss on his P&L or a very small profit. He’s been doing this for a long time.

Albert’s Tire & Service is very busy. Its owner is usually looking for deals so he can improve his profit and speed up the wait time a vehicle sits in the air on a lift. Last month, he got very aggressive with his purchasing and realized he didn’t have enough in his bank account to cover the purchase. He asked his bank for a loan. After all, he’s the busiest shop in the town! But when the bank looked at his financial statements and in particular, his balance sheet, it declined 8

to loan him the money. Albert already has a large loan out on his company and his current liabilities are more than his current assets.

If Albert gets to payday and doesn’t make the proper payroll requirements, he’s technically bankrupt and must shut his doors.

Yet John, who almost never makes a profit, keeps his doors open all the time. Why? The answer is cash flow. You see, cash availability must be the number one goal of any business — even over profit. Profit comes in at a close second. But you can operate a business for years without making a profit. However, if you run out of cash and miss payroll, it’s time to close the doors.

I’m not advocating an all-or-nothing approach to inventory. It’s important to have parts and tires on hand to effectively service the needs of your customers. But like many other things, inventory needs to be managed properly for your business to survive and thrive. Is the right amount of inventory $5,000? Is it $50,000?

Is it $500,000? There is no dollar amount that is a universal answer. However, there is a ratio. Your total inventory in any given 12-month period should “turn” or be replaced a minimum of eight times. So if you stock four tires at your dealership, over 12 months you should have sold that tire 32 times.

To be clear, this is a measurement for retail tire sales only. When factoring commercial truck, OTR and ag tires, the turn is much lower for a variety of reasons. But in retail, your minimum goal is eight

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turns. (If you are closer to a major metro area and receive multiple deliveries a day, your turns should be higher.)

Why should your inventory turn at least eight times? There are several reasons.

First, faster turns convert back to cash more quickly. If you buy a tire to put into inventory, you are locking up cash until you sell that tire. If that tire sits for three months, you can’t do anything with it. One tire might not seem like a big deal, but if a large portion of your inventory only turns four times a year — that’s one turn every three months — your cash is locked up for most of the year.

If you’re converting inventory back to cash (selling the tire) almost monthly, that keeps cash flowing through your company faster, allowing you to be flexible and avoid having to go to the bank. Not holding any loans for inventory is crucial today since the interest on the loans must be put into the cost of goods and tire pricing has never been so transparent.

Turning inventory quickly will help you put more savings into your company, so if the economy weakens, another pandemic hits or there is a major shortage of tires, you have the cash to be flexible.

Carrying a huge amount of inventory in case those things happen is like trying to predict the market. Every expert will tell you that’s a bad idea. Manage your inventory. Don’t gamble with it.

Next, square footage costs money. It’s called “rent.” Running a tire store requires attention to a lot of different details and making sure every month that what you invest in either inventory, machinery or employees is done so to make a profit.

If a tire machine breaks, you need to fix it quickly. Otherwise, you won’t be selling a lot of tires. If an employee routinely doesn’t show up for work on time, you would fire that employee and hire a better one. Well, the same goes for inventory. Maintaining a store costs money, regardless of any sales having been made. The rent is always due.

Whether you have a 10,000- or a 20,000-square-foot shop, every inch needs to be trying to make cash. Your people need to work, your machines need to work and your inventory needs to work. And inventory works by moving in and out frequently. If inventory just sits around, it’s like still having a bubble balancer in the corner of your shop. (You did get rid of that old bubble balancer, right?)

Finally, tires have expiration dates. Many manufacturers and distributors have tight controls on tire returns. I know there’s been much debate on when and under what conditions, but it’s indisputable that when a tire “ages out,” you can’t sell it anymore. Usually after just a few months, you can’t return it, either.

Dead inventory not only hurts cash flow, but it also kills gross profit when you have to write it off and junk it. When any product has an expiration date, inventory turns are of an even greater importance.

How do you know what inventory to keep? The simple answer is to look at what you have sold over the last year and divide that by eight. This is what your on-hand inventory should be.

At this point, you might be thinking about SKU proliferation.

And it’s true that some dealerships will carry six or seven options of the same size tire. You should keep your options open as supplemental inventory, instead of having all brands in all sizes.

Supplemental inventory is where if one particular tire is out of stock, you can switch to a comparable brand. This is more common in lower-tier tires.

Also remember that only using historical data to drive your inventory levels is not advisable. And it’s important to have some aspect of predictive inventory.

It certainly wouldn’t hurt to contact your state’s Department of Motor Vehicle Services or a marketing company that can acquire data on the make and model of registered vehicles within a certain radius of your store — using a smaller radius if you’re in a major metro area and a larger radius if you’re in a suburban or rural area.

Typically, if you’re in a major metro market, you’ll want to focus on closer to a three-mile radius, while the target radius of a very rural tire dealership could be as wide as 50 miles.

The information you gain will tell you what people are driving and will give you a good sense of what their upcoming tire needs will be.

Not everyone in your dealership’s radius is going to be buying tires from you nor will need new tires within the next 12 months.

The data you gather should only influence your stocking levels — not dictate it.

Additionally, you should stay current on new and used car sales data. Look at what was popular two or three years ago and you can bet many of those vehicles will be needing new sneakers soon.

Finally, do not forget about any business-to-business accounts you may have. If you land a post office account or a fleet of plumbing company vans, you will have to be ready to service those companies’ tire needs in due time.

Remember, inventory is a critical asset. While inventories, in general, are lower than they used to be 10 or 20 years ago, we are not yet — nor will be in the near future — operating in a completely just-in-time environment.

Having two deliveries a day is certainly better than two deliveries a week, but nothing beats having some inventory on-hand. You just need to balance the convenience of on-hand inventory with managing cash flow. And be mindful that stale inventory not only hurts cash flow, but can become a profitability problem, as well.

'CASH AVAILABILITY MUST BE THE NUMBER ONE GOAL OF ANY BUSINESS — EVEN OVER PROFIT'

Dennis McCarron is a partner at Cardinal Brokers, one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com).

To contact McCarron, email him at dennis@cardinalbrokers.com Tire Dealer Sur vival Guide

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SERVICING ELECTRIC VEHICLES AT YOUR DEALERSHIP HOW EVS WILL CHANGE YOUR BUSINESS MODEL

By Craig Van Batenburg

Let me explain how I ended up writing this article, as it may set the context for those who do not know me. My relationship with tires, which are the most important part on any vehicle, starts with the fact that when I was a teenager, I only had two. They were mounted on a Honda Scrambler that I rode to high school.

Later on, I opened an independent repair shop, Van Batenburg’s Garage Inc., where I sold tires. I’m also the CEO of the Automotive Career Development Center, a leading provider of electric vehicle (EV) and hybrid vehicle training resources.

Based on my experience, I can tell you that the world around us is constantly changing. That includes the shift to EVs. (The sponsor of this article, Hankook, makes a variety of tires for EVs.) Is your dealership ready to service these vehicles? Are you in an “EV frame of mind?” How you answer these questions will help determine your company’s future success.

I also know that as a business owner, you need data in order to make the right decisions for the future of your company. So first, let’s look at the growth rate of EVs on a global level.

Growth rates were extraordinary during the first six months of 2021, reaching 157 % in Europe, 197 % in China, 166 % in the United States and 95 % in the remaining global markets. Japan was the only market that did not see an increase.

What happened during the first half of 2021 that made such a jump possible? A newfound emphasis on EVs in Washington D.C. and many new EVs hitting the market, including the Ford Mustang Mach-E and some "sleepers," like the Kia Niro EV. New EVs from the likes of Rivian, Ford Motor Co. (with the Ford F-150 Lightning pick-up) and other companies also will be available.

And we have seen more hybrid vehicle owners move away from fossil fuels.

There are bigger forces at play, too. In 2019, U.S. annual energy consumption from renewable sources exceeded coal consumption for the first time since before 1885, according to the U.S. Energy Information Administration’s Monthly Energy Review.

This outcome mainly reflects the continued decline in the amount of coal used for electricity generation over the past decade, as well as growth in renewable energy, mostly from wind and solar.

Compared with 2018, coal consumption in the United States decreased nearly 15% and total renewable energy consumption grew by 1%.

Many EV buyers have a sense of responsibility toward the environment. And many responded on a financial level as the cost of more EVs are within their reach. How much of this is temporary?

Most likely none, as more bad news about fires and floods will continue and the cost of EVs will decline.

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Tire Dealer Sur vival Guide

Now, if you are not convinced we will be fully electric at some point in the future, you are not alone. But here’s the issue. By sitting back and doing nothing, your competition may outsmart you. What if you wait too long and the tire store down the street goes all-in and captures the local EV market before you do? What then?

If you want a bigger piece of the EV business in your market, here are 10 tips to consider. (I recommend implementing one each month.)

1. Meet with your entire staff and get feedback into how and what they think about EVs and EV service; 2. Rent or borrow a modern EV and have it at the shop for all employees to see and drive; 3. Find out if you have local competition; 4. Look into training for everyone, including your service writers, salespeople and technicians; 5. Look for government programs that will help with workforce development funding; 6. See if a DC fast charger or a level-two charger can be installed in your parking lot; 7. Check with you local utility provider for programs to help install and pay for the charger; 8. Visit your local technical college or high school that has an automotive program and see what they are doing with EVs; 9. Attend an EV event and talk to EV owners about what they are expect, and; 10. When you roll out your EV program, make sure you are ready. Go all-in.

I have seen many changes in our industry and you have to change with them in order to stay in the game and win. Gear up today.

Craig Van Batenburg is the CEO of Van Batenburg’s Garage Inc. dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass. A 50-year automotive service industry veteran, Van Batenburg and his great staff provide training and equipment for auto service facilities that service — or want to service — electric and hybrid vehicles. For more information, see www.fixev.com, email him at craig@ fixhybrid.com or call (508) 826-4546.

MAKING DIGITAL DOABLE FOR YOUR DEALERSHIP GET YOUR DIGITAL MARKETING ROLLING

By Dan MacDonald

As a busy tire dealer, you have a ton of priorities pulling you in many different directions. You need to optimize your inventory; keep your dealership properly staffed, which is a big challenge; stay up with industry trends; take care of your customers and so much more.

It’s a lot and you might ask, “Who has time for digital marketing?”

Well, simply put, you must find time. If you’re not investing time and resources in digital marketing, you are falling behind your competitors and losing out on a ton of customers who may be looking for you online. In effect, without a digital presence, you’re invisible.

Consider this: Google processes more than 3.5 billion internet searches per day and has 92.18% of search engine market share. For many consumers looking to buy a product or service, Google is the first place they go.

All of this points to the fact that if you’re not showing up in Google searches, you are missing out on a lot of potential new business. If you are showing up in Google searches, but if your website is tired and dated, that’s probably not going to attract a new customer to your door. It all fits together.

To have a winning digital strategy, you need to have a great website, a strong Google presence and you must effectively leverage social media channels and advertising to proactively put your message in front of customers who are looking to buy tires or automotive service.

The digital stool has three legs. And if all three legs aren’t in balance, the stool will topple over. The good news is you can do these three things. It will take some effort and strategy, but not a lot of money.

So now you’re thinking, “I’m in, but where do I start?" Here’s a digital marketing toolkit outlining the three key steps you need to take to get your dealership shining online: 1. Make your website world-class. Your web presence is the last place to cut corners. In this digital age, your website is the front porch or your business. It’s your best chance to make a great first impression and drive people to your outlet. You really need to think about your website as a continually evolving, dynamic marketing tool for your business. You are always on the way to making your company’s website better, more eye-catching and more relevant to your customers.

For starters, you must have a solid tire locator so customers can easily search your inventory online for the tire they need. That’s a “must” and you will find that nearly all of your competitors have that.

The challenge is to stand out. Are the photos of your dealership old and poorly shot? Hire a local photographer and have some great new digital images shot of your dealership, inside and out, and you’ll

quickly upgrade the look and feel of your site and social pages. Is your “About Us” section empty? Are the photos of your team 10 years old and out of focus? Each team member should have a great, current photo and a fun, informative bio. Also give your site some depth. Most of the tire dealerships’ websites and social pages I see are flat and really don’t tell the story of their company. Your website and social media pages should showcase the best things about your business and tell your unique story. And don’t be afraid to embrace video. Every good site should feature a professionally shot and edited video on its homepage.

2. Claim your Google business profile. What happens when you Google “tires near me?” Does your dealership pop up on the first page of that search? If it doesn’t, you are invisible to potential customers.

Very few people scroll past the first page of any Google search.

To have a chance at winning over that potential new customer, you need to improve your search engine optimization Don’t hesitate.

Claim your Google profile. It is completely free. (That’s not a typo!)

Just go to Google and type “Google my business.” A link will pop up and you just start filling in the requested information, including your business’name, its hours of operation, its location and more.

Smaller, independent dealerships — in most cases — don’t have the marketing resources of big national chains. Google can be an equalizer.

3. Embrace digital advertising. If you’re spending money on an ad and it’s not generating new business, try something new. If you’re not running ads on social platforms, you’re passing up a lot of opportunities to drive new customers to your dealership. Facebook, Instagram and Google are the most cost-effective ways to reach your target audience. And don’t forget that you can work with your suppliers to help amplify your digital presence. Ask your vendor if it offers co-branded advertising programs. Work closely with marketing contacts to ensure they can help you achieve maximum benefit. And make sure your business is listed on your suppliers’ dealer locators and other tools — and that this information is current.

Dan MacDonald is a freelance writer and former public relations vice president for Bridgestone Americas Inc. Dan founded MacDonald Communications, which focuses on PR and digital marketing. He can be reached at 615-681-5387 or dan@maccomm.net website: www.maccomm.net Tire Dealer Sur vival Guide

11

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Mallet added six service bays to the store’s original five and began offering automotive repairs.

That outlet’s sales are now 60% tires and 40% automotive service. The percentage of auto service sales is growing, says Mallet. Two years ago, auto service made up 20% of Kilgore Tire’s sales.

He admits the transformation has taken longer than he expected.

“Our biggest challenge is finding good, talented people. As far as being able to borrow money or make money to open up another location, I’d love to open another location and grow. The biggest constraint is finding those people that you can count on to help run the front end and turn the wrenches. Mechanics jump from place to place.”

The goal, he says, is “finding those people and retaining those people who can help you grow your business, while still maintaining profits.”

Mallet knows he’s not alone in his staffing quandary. He’s found good prospects, but they sometimes have unreasonable salary expectations. One technician wanted a flat hourly rate, but didn’t bring in the work to cover the wage.

“We’ve been down that road before,” says Mallett.

PLANNING FOR THE FUTURE

Five years from now, Mallet would love to have “a few more locations.”

He also would like to diversify in the kinds of communities Kilgore Tire serves as a way to balance against the ups and downs of the oil industry.

One option would be specializing in certain emerging services, like repairs on electric vehicles (EV.) Mallet says investing in the technicians and equipment to offer EV service now is a way to plan for the future.

“If you don’t do it, you’re going to get left behind. We hope to move this company into another generation of family. But if we’re going to do that — as the leader of the company — I need to be looking not at the day-to-day, but where we are going to be in 30 years. And we can’t wait 25 years to start worrying about 30 years.”

That’s why “we’ve got to start doing it now, so when we get to that point, we do have our hands in electric vehicles.

Because if we don’t, someone else will. To stay around, that’s what we have to do.” w w w . M o d e r n T i r e D e a l e r. c o m

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Serving oil industry clients and workers has long been an important part of Kilgore Tire’s business. The dealership opened a second location to streamline its commercial tire work and that also opened the door to expanding its retail presence.

Kilgore Tire operates more than 10 consumer tire and auto service bays.

ADVICE FOR NEW OWNERS

When he took over at Kilgore Tire, Mallet says the best advice he received was to spend time inside his shop.

He entered the tire business with a background in streamlining processes, making things more efficient and cleaning up clutter. But he says when he asked his team what they needed in order to improve their efficiency, he received blank stares.

“I had to get out there and get my hands dirty.”

So he learned how to install tires and change oil and found ways to improve various processes. There had been one workstation with tools and supplies that served three bays, so a technician had to walk the length of the building to grab a socket and did it twice when he grabbed the wrong size. Now there are stations between every service bay.

Mallet also purchased more equipment to streamline workflow.

He says his experience in the grocery business has served him well.

Mallett worked for a grocer that focused on customer service. As a newly hired courtesy clerk, Mallett remembers being given a notepad and pencil to keep in his pocket. He was told to make notes so he could remember customers and greet them by name when they returned to the store.

That attention to detail serves him well as a tire dealer, he says.

“We’re in a small town here. Everybody knows everybody. One of the competitive advantages we have over other people coming in is that we’re very community-oriented.

“We still have a long way to go. I am proud of what we’ve done so far and I want to do a lot more." ■

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Commercial Tire Dealer™

‘THERE’S NO COMPETITION WHEN IT COMES TO SAFETY’

COMMERCIAL TIRE DEALERS GATHER FOR SAFETY SUMMIT By

Joy Kopcha

Snider Tire’s headquarters served as the meeting spot for commercial tire safety experts and the second Safety Leadership Summit.

Representatives from Best-One Tire Group, Bob Sumerel Tire Co., Colony Tire Corp., Commercial Tire Inc., Kal Tire, McCarthy Tire Service Co. Inc., Pomp’s Tire Service Inc., Purcell Tire & Rubber Co., Redburn Tire, Shrader Tire & Oil Co., Snider Fleet Solutions, Sullivan Tire Co Inc. and Tredroc Tire Service Inc. — plus reps from Goodyear Tire & Rubber Co. and Michelin North America Inc. — were all on-hand.

“T

here’s no competition when it comes to safety.” That has become the backbone and unofficial motto of the Safety Leadership Summit, an initiative led by and involving some of the nation’s largest commercial tire dealerships.

In October, 35 safety personnel gathered near Charlotte, N.C., to share best practices and ideas on how to make their employees, workplaces and the industry , as a whole , safer.

The summit is the brainchild of Russ Devens, director of safety and risk assessment at Wilkes-Barre, Pa.-based McCarthy Tire Service Co. Inc. and Tony Mullen, director of risk management at Greensboro, N.C.based Snider Tire Inc.

Also in CTD Ag tire market is up, but headwinds remain....................................................38 Ag tire market share/shipments.......40 MTPL shores up distribution.............46 AG Tire Talk: Cutting compaction.....48 Commercially Viable..........................54

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The two were introduced when a shared insurance company representative suggested they connect. “I quickly realized his problems were my problems,” said Mullen.

They decided they needed to get other commercial tire dealers in on the conversation.

The first summit in 2019 brought together 21 safety-focused representatives from 14 commercial tire dealerships. The pandemic prevented the event from happening last year.

This year, Snider played host to representatives from 15 dealerships and commercial truck tire manufacturers, along with four more supporting companies.

And this year, T.J. Trum, general counsel for Green Bay, Wis.-based Pomp’s Tire Service Inc., joined Devens and Mullen in organizing the event.

MTD had an exclusive seat at the summit, where dealers talked about everything from Occupational Safety and Health Administration (OSHA) inspections to technology and how any new initiative might affect the ongoing critical shortage of commercial tire technicians.

Keith Jarman and his team from AME International LLC demonstrated the proper

use of jacks and jack stands when lifting oversized pieces of equipment.

Steve Ohar from Federated Mutual Insurance presented the latest information on claims trends.

Kevin Rohlwing, senior vice president of training at the Tire Industry Association (TIA), gave an overview of the group’s plans to update some of its training modules.

Presenters are invited to share their expertise. “We think some of their solutions are best practices,” says Mullen. “These are the hot topics.”

The hottest safety topic of all remains COVID-19, and specifically, vaccination mandates.

Every dealership was concerned with what might happen due to potential vaccine or testing rules. (On Sept. 9, the White House announced that a vaccination mandate would be forthcoming. It then provided details and a January 2022 compliance deadline. But courts have so far blocked the mandate’s implementation.)

Most who attended the summit came from the nation’s largest commercial dealership, but there’s no rule keeping out small dealers. “If you’re a one-stop shop, you’ve got MTD December 2021

Leigh-Ann Stewart, safety manager for Kal Tire, center, asks a question of the group during a discussion about pandemic-related safety measures.

a voice in safety just as much as everybody else,” says Trum. “They’re doing the same work and their viewpoint could be different.”

“The issues are the same,” says Mullen.

“It’s just the scale of the issues.”

One commonality is membership in TIA. Both Devens and Trum are on the association’s board of directors.

“If you come to one of these things and aren’t a member of TIA, the first thing we’re going to tell you is to join the TIA,

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because you need to have access to the proper training and they’re the only ones offering it,” says Devens.

THE ‘NEXT LIFT GATE?’

Technology plays a big role in safety. Mullen says he’s on the lookout for “the next game changer.”

“You don’t have to go back that far (when) the idea of a lift gate on your truck was considered a luxury,” says Trum. “Now it’s

pretty much standard equipment among our group of dealers. What’s the next lift gate?”

“Some (dealers) say they feel like they’re on an island,” when trying to find a solution to a problem, says Devens.

Leigh-Ann Stewart, safety manager for Edmonton, Alberta-based Kal Tire, led a discussion about how the company handles its incident reports.

The dealership has embraced technology to file, manage and track those reports. Its dashboard was a bit startling to some in the room, with dozens of new reports, but Stewart noted it represented the company’s global footprint.

And each report does not represent a catastrophe. Some are requests for equipment repairs or replacement. “We can’t get better if we don’t know what’s going on,” she says.

Trum says it goes back to that idea of raising the bar for safety across the industry.

“We don’t want to be behind the times in terms of safety. What are our peers doing training-wise (and) management development-wise? How can we be at or above the trend line on safety?”

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12/1/21 10:44 AM

Ag tire market

BUMPER CROP

THE AG TIRE MARKET IS UP — BUT HEADWINDS REMAIN By

Mike Manges

“The market is in a state of higher demand momentum for all types of agricultural tires,” says Arvind Poddar, chairman and managing director, Balkrishna Industries Ltd. “I feel the market will continue to be strong.”

A

g tire manufactures report that the North American ag tire market is up significantly this year versus last year. But shipping complications, the lingering effects of COVID-19 and other issues continue to cast a shadow as 2021 draws to a close.

What’s the current state of the ag tire market? What can we expect to see in 2022?

Representatives from a number of ag tire manufacturers and suppliers share their thoughts below.

MTD: Can you describe the state of the North American ag tire market? Is it up, down or flat versus last year?

Dana Berger, ag business development manager, Continental Tire the Americas LLC: The North American ag market is definitely up over last year. The pandemic may have slowed some businesses and halted otters, but for those running farm equipment, their business was essential. Equipment was in regular use and tires still needed to be replaced.

38

Bill Dashiell, senior vice president, commercial tire division, TBC Brands: The overall North American ag tire market is up versus last year. The ag sector has remained strong, minus weatherrelated issues in certain areas, such as California, due to drought.

Throughout the tire industry, COVID-19-related challenges continue to affect supply, resulting in high demand for in-stock tires. While we are no exception, our Harvest King program has experienced extreme growth.

Greg Gilland, vice president, global agriculture, Maxam Tire North America: The ag tire market is up significantly compared to last year. The primary factors for this incredible leap in demand are based on core crop prices for 2021.

Despite the economic impact of the COVID-19 pandemic, we have experienced almost a doubling of crop prices in less than 15 months, beginning in the second half of 2020. This explosion of demand is primarily centered on global demand for wheat, soybeans, corn and cotton.

Improved profits for farmers and growers because of crop prices MTD December 2021

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Ag tire market have fueled unprecedented global demand for new equipment and/or tires to re-equip vehicles.

David Graden, operational marketing manager, agriculture, Michelin North America Inc.: The North American ag market is very strong right now — about 17% up, year-to-date. However, it will probably flatten, due to the abnormally strong market in late-2020.

Demand is and has been extremely strong. This demand has been driven primarily by lack of original equipment supply and growth in farm net income. At this time, we expect this strong demand to continue throughout 2022.

I can sell every tire I can get to the U.S. I think what we also see right now is uncertainty in the original equipment markets, with certain OEMs having labor issues and the inability to get supply from overseas. We’re going to see huge demand for used tractors, which will drive demand for replacement tires.

Paul Hawkins, senior vice president, aftermarket sales, North America, Titan International Inc.: Overall, the state of the market is strong and we expect to continue that way as we head into 2022. On the aftermarket side, we’ve had a very successful year. In fact, we have filled our ag tire order deck through April 2022. We don’t expect to see demand slowing down anytime soon.

Tony Orlando, president, Firestone Ag, Bridgestone Americas Inc.: When considering the ag market overall, I think it can be viewed quite favorably — certainly against 2020 and even going back to 2018 and 2019 — with a positive regulatory environment, strong planting estimates and most significantly, an increase in large equipment sales.

Although farmer confidence is higher overall compared to the past few years, sentiment has recently plateaued somewhat from the spring season, driven primarily by uncertainty related to the geopolitical climate and crop prices. For example, corn and soybean prices are well aboge 2020 levels, but recent declines have led to softening farmer opinions and caution about fall yields.

Ryan Loethen, president, CEAT Specialty Tires: We expected 7% to 10% growth in the market versus last year. That being said, it’s difficult to tell if that’s been achieved or not due to lack of supply from everybody and supply chain woes. Demand is there.

Arvind Poddar, chairman and managing director, Balkrishna Industries Ltd. (BKT): The market is in a state of higher demand momentum for all types of agricultural tires. We at BKT are experiencing growth. Even though there are challenges in shipping

2021 FARM TIRE MARKET SHARE

BY BRAND AND SEGMENT RADIAL REAR OE Estimated shipments for 2021: 228,000 Firestone...................... 37.5% Goodyear..................... 30.0% Michelin....................... 15.5% BKT................................. 6.0% Titan................................ 4.5% Alliance.......................... 4.0% Trelleborg...................... 1.5% Others............................ 1.0% Total:........................... 100.0% RADIAL REAR REPLACEMENT Estimated shipments for 2021: 328,570 BKT............................... 27.0% Firestone...................... 25.5% Michelin....................... 16.0% Goodyear..................... 13.0% Alliance.......................... 8.5% Titan................................ 5.0% CEAT............................... 1.5% Harvest King................. 1.0% Trelleborg...................... 1.0% Mitas.............................. 1.0% Others............................ 0.5% Total............................... 100%

BIAS REAR OE Estimated shipments for 2021: 384,000 Titan.............................. 33.0% Firestone...................... 29.0% Goodyear..................... 23.5% Alliance.......................... 8.0% BKT................................. 4.0% Trelleborg...................... 1.5% Others............................ 1.0% Total:........................... 100.0% BIAS REAR REPLACEMENT Estimated shipments for 2021: 429,000 BKT............................... 39.0% Firestone...................... 23.0% Alliance........................ 13.0% Goodyear....................... 7.0% Harvest King................. 7.0% Titan................................ 5.0% Carlisle........................... 1.5% Trelleborg...................... 1.0% American Farmer......... 1.0% CEAT............................... 1.0% Others............................ 1.5% Total:........................... 100.0%

SMALL FARM OE Estimated shipments for 2021: 349,000 Goodyear..................... 26.0% Titan.............................. 19.0% Firestone...................... 16.0% BKT............................... 14.0% Alliance........................ 11.0% Carlisle......................... 10.0% American Farmer......... 2.0% Trelleborg...................... 1.0% Others............................ 1.0% Total:........................... 100.0% SMALL FARM REPLACEMENT Estimated shipments for 2021: 1.37 million Firestone...................... 22.5% BKT............................... 19.0% Goodyear..................... 15.0% Titan.............................. 14.5% Harvest King............... 10.0% Carlisle........................... 9.5% Alliance.......................... 5.0% Trelleborg...................... 1.5% American Farmer......... 1.0% Deestone....................... 1.0% Others............................ 1.0% Total:........................... 100.0%

*AG TIRE BRANDS MUST HAVE AT LEAST 1% SHARE OF MARKET TO BE LISTED.

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Ag tire market

“Net farm income appears to remain high throughout the remainder of 2021, which will fuel demand into 2022,” says David Graden, operational marketing manager, agriculture, Michelin North America Inc. The ag market”is very strong right now.”

and freight costs are escalating almost on a daily or weekly basis, we are still managing to manufacture products and ship above previous year’s numbers. Demand has been very healthy.

Dr. Mahesha Ranasoma, Global Rubber Industries Pvt. Ltd. (GRI): We clearly see an increase in demand for ag tires in the North American market, in general, and in our sales figures, too.

Reasons could be aging equipment, where end users are choosing to invest in upgrades; the trend toward farm mechanization; U.S. government subsidy payments in late-2020 (that) provided a springboard effect within the aftermarket segment, creating high demand in early-2021; (and) low inventory levels across all channels of distribution.

We’re seeing more volume on the OE side of the business, which in turn, will help the aftermarket business. Large equipment segments — such as four-wheel-drive tractors and combines — are showing the highest growth potential.

MTD: What will the market in 2022 look like?

Berger (Continental): 2022 is likely going to be a year of catch-up.

It’s becoming an unfortunate norm to struggle to supply demand, but there will be an end. Equipment sales ebb and flow. Ag tire sales have seasonal curves. There will be opportunities to gain ground next year.

Dashiell (TBC): We expect ag tire demand to remain high in 2022, despite continued challenges as a result of COVID-19.

Gilland (Maxam): The ag tire market in 2022 appears to be on track to maintain the same level of demand or increase as experienced so far in 2021. OEM demand for tires remains very high as tire manufacturers react to factory needs. Farmers and growers will need to purchase equipment and tires to amortize their 2021 profits earned.

Cash crop prices are expected to remain high. And current global delays caused by container or port distribution and ground

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MTD December 2021

11/30/21 5:17 PM

Ag tire market freight problems — with no end in sight — will continue to drive and sustain current crop prices.

Graden (Michelin): As of now, we are expecting the agriculture market to remain positive throughout 2022, but return to more normal growth, based on easing supply constraints at OE. Net farm income appears to remain high throughout the remainder of 2021, which will fuel demand into 2022.

Crop prices continue to climb Crop prices are a key indicator of the overall health of the ag industry. The following chart, provided by Maxam Tire North America, tracks the evolution of prices from 2018 through the end of October 2021: Cash Crop

2018

2019

2020

2021 YTD (October)

Corn (per bushel)

$3.03

$3.94

$4.07

$5.70

Soybeans (per bushel) $7.69 $8.51 $10.55 $13.70 Hawkins (Titan): We expect 2022 to be a good Wheat (per bushel) $6.49 $5.85 $5.66 $7.08 year for ag tire sales. Orders are expected to be up through the first half of this year, like it was last Cotton (per pound) $0.07 $0.69 $1.08 $1.08 year. It’s a little early to predict what the second half of 2022 will look like, but we expect to see continued strong demand throughout the year.

With overall market demand remaining at very high levels for Loethen (CEAT): It depends on a couple of factors. One of them the foreseeable future, we will continue to prioritize production is the supply chain. Will we see an increase in OEM sales or will to meet our key aftermarket customers’ expectations. We plan to that slow down due to the fact it’s hard to get parts in the U.S. increase production for these key aftermarket customers in 2022. because of supply chain issues? Will that factor into the replacement Commodity prices also will play a big part in farm spending tire market? I think it will be a high-demand market. People are and tire demand in 2022. Corn and soybean prices are higher, going to buy used tractors and keep their tractors. with corn above $5 per bushel and soybeans above $12 per bushel.

I think you will see another good year for replacement. I see If prices stay around these levels, we’ll continue to see a strong the market in 2022 continuing to grow. demand in ag tires in 2022.

I think we’ll probably see some resolution on (the supply chain issue) — a return not to where shipping costs were a year ago, but to a more reasonable cost than what we’re seeing right now. We’re hoping to see some normalization by the end SEE OUR of the first quarter.

NEW CATALOG

Orlando (Bridgestone): The expectation is that growth will continue into 2022. Economic indicators for 2022 appear to be on a similar trajectory from this year and the expectation is that the tire market will once again be strong.

Poddar (BKT): I feel the market will continue to be strong and I think we are facing a new era where all elements and factors have changed, from raw materials to shipping and logistics. However, we have a constant in BKT, which is the quality of our products. It is and will always be a driving force for us. We will therefore try to mitigate the possible difficulties, due to the causes that we all know, and we will continue to implement a careful distribution policy to ensure that everyone receives our products.

We aim to satisfy the strong demand. This is why we have just inaugurated our Waluj, India, plant, which increases our production and makes it more efficient.

Our interventions to improve the production level are many and in all our plants. This is the part we can contribute to and this is where we are focusing our efforts.

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Ranasoma (GRI): We expect North American tire and equipment demand to continue its upward trajectory, even though supply side challenges are constraining growth potential to some extent.

To satisfy increasing demand, GRI is investing heavily in its production capacity, which is expected to be doubled by December 2021, compared to the same period last year.

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Ag tires

CULTIVATING NEW GROUND

MTPL SHORES UP AG, OTR TIRE DISTRIBUTION IN NORTH AMERICA By

Mike Manges

M

ahansaria Tyres Private Ltd. (MTPL) may be a relatively small player in the North American ag and OTR tire markets, but it intends to grow quickly.

The Mumbai, India-based company’s majority acquisition of Stow, Ohio-based Tyres International will help supercharge its expansion, according to MTPL Managing Director Yogesh Mahansaria.

Announced last June, the deal helps solidify MTPL’s North American distribution. (Tyres International has two distribution centers — a recently expanded, 100,000-square-foot facility in Ohio and a slightly smaller warehouse in Sparks, Nev.) The transaction also benefits Tyres International. The distributor has exclusive access to MTPL’s Ascenso ag and OTR brand tires, direct from the factory.

RAMPING UP

MTPL builds a wide range of ag and constriction tires — all under the Ascenso brand name — at its manufacturing plant in Gujarat, India.

The facility, which represents a $100 million investment, has a capacity of one million units per year, according to Mahansaria.

“Production is ramping up step-bystep. We expect to be at full utilization within 18 months or so. And we’re thinking about doubling the capacity of the plant.”

Ascenso “is not a known brand,” he explains. “That was one of the drivers for us to invest in distribution because that is, in my opinion, the fastest way to build a brand.

“Fortunately, the ag and OTR markets have been very good from a demand perspective.

“It’s always easier to introduce a brand when the market is seeking supply.”

The Ascenso line is “comprehensive,” with radial and bias-ply ag tire offerings ranging from 12 inches to 50 inches in rim diameter, says Mahansaria.

46

MTPL builds a wide range of ag and constriction tires — all under the Ascenso brand name — at its greenfield manufacturing plant in Gujarat, India. The facility represents a $100 million investment and can build one million units per year at full capacity.

Its construction tire portfolio addresses popular applications like loaders, backhoes, telehandlers and more and is designed to fit rims up to 25 inches in diameter.

“We are committed to adding 150 to 200 new products every year for the next several years” — both new tires and new SKUs, says Mahansaria.

“We have a lot of experience doing that. We have a 25-person research and development team at our factory.”

A NATURAL FIT

Mahansaria says Ascenso is positioned as a “value brand.” And he’s quick to define what he means by “value.

“It’s not a budget brand. It’s not a cheap brand. I want to make sure our end users understand that a ‘value brand’ delivers value for money.

“And I think that’s where the real opportunity lies.

“Generally, based on what we’ve seen in the ag and construction tire sectors, the growing trend has been (toward) value brands,” he says.

“Farmers and contractors are business people. They’re buying tires to help them do their jobs. So if they can get a good, quality tire at a competitive price, they’re going to try it. We think there’s a place for someone like us.”

Longtime Tyres International owner Marty Bezbatchenko is excited about MTPL’s investment in his company.

“We have support from (their) factory.

I have a product line” that’s exclusive to Tyres International.

“We’ve also been able to keep our personnel,” he adds. “And that was important to me.”

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A G T i r e Ta l k

TIPS FOR MINIMIZING SOIL COMPACTION TRAFFIC PATHS, RUN CONDITIONS PLAY CRITICAL ROLES 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 farm 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: How much soil compaction is typically done on the first pass, what are recommended tips relative to defining traffic paths (easy operator changes) and run conditions (dry or wet) to reduce soil compaction and do you have a recommendation on penetrometer usage to determine level and depth of compaction?

DAVE PAULK, manager, field technical services, BKT USA, Inc: Soil compaction can reduce plant growth, root penetration into the soil and root size. Soil becomes compressed or compacted through agricultural practices, cultivation and wheeled traffic. It restricts water and air distribution in the soil. This can result in a lack of water and nutrient distribution and can cause slow seed emergence and diminished crop yields.

For soil to be healthy, soil particles and pore spaces should be close to 50/50.

When pore spacing is decreased, air and

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moisture are driven out of the soil and soil density increases.

Deep soil compaction is of greater concern than near surface compaction. Soil compaction can be managed and minimized.

Prevention of compaction is better than trying to repair it. Once compacted, it can take years to undo the damage.

Research has shown that 70% to 80% of compaction is done in the first pass.

Compaction can vary depending on the soil type, soil moisture, tire size, air pressure levels and total loads. With conventional tillage, research has estimated that 90% of a field can be tracked on during the year.

Some of this area can receive as many as four or five passes a year. By cutting down on the traffic in a field, compaction can be managed and the subsoil allowed to regenerate.

If possible, farming should not be done on wet soil. If the soil is near saturation, the load can be greater than the soil’s ability to

support it — causing deep ruts and excessive wheel slippage. Heavy fertilizer spreaders, combines, grain carts and trucks can be destructive when run on overly wet soil.

It is much better to work on dry or moist soil. Managing traffic patterns and using only portions of the field for traffic can help manage compaction by not driving on it.

A penetrometer can measure the force needed to insert a cone into the soil. This is inserted by hand at a steady speed to determine the force required to penetrate the soil at a certain depth. The measurement is generally given in megapascals (MPa).

Typically, root growth becomes affected when resistance exceeds 1.5 MPa. Root growth is severely restricted at 2.5 MPa or more. Deep soil compaction is excessive compaction below the normal tillage depth.

Generally, this starts at about eight inches, depending on the type of soil.

Some other ways to reduce soil compaction include using only enough ballast to reduce slippage; running correct air pressures for the loads and reducing axle weight, as axle loads of greater than five tons increase subsoil compaction; and using radial tires instead of bias-ply tires.

Radials can run at lower air pressure, which is directly correlated to soil compaction.

The more air needed, the more compaction on the soil.

HARM-HENDRIK LANGE, customer solutions engineer, Continental Commercial Specialty Tires: Many institutions and universities have been testing and assessing soil compaction for years. It is well-known that soil types with high clay particle content are more prone to staying compacted and are not easily churned up with implements, like with more sandy soil types.

When you work in wet — or partially MTD December 2021

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A G T i r e Ta l k wet —clay soil fields or even on loam that is a mixture of different particles, but predominantly clay, be aware of the potential harm that can be caused to the soil. Higher humidity works a little like glue when creating a paper mache’ mold.

Climates with high humidity (are like applying) paste to the clay paper strips, that once dry, creates a hardened and compacted structure. In field applications, surface tension between the dried clay particles prevents the soil from being released easily with implements.

In addition, the first passage with equipment in muddy, swampy or post-storm conditions can compact the clay/loam type soil almost to the maximum level. It is advised not to do field work with this level of moisture, if it can be prevented. At mid-to-slightly-higher humidity, drastic soil compaction can happen. But here it’s more likely on the second passage or if you ride the first passage very slowly, but with vibration excitation.

Soil assist sensor systems (SASS) can be placed in the soil to measure the deforma-

tion from tire pressure and deflection.

Normal soil penetrometers can give a first feeling, while measuring the compaction of untouched and under-tracked soil, in comparison to the same soil and on the same day. But with the penetrometer it’s difficult to really repeat comparable numbers on different days or to compare values measured on different fields and with different humidity levels.

Furthermore, if small stones are in the soil, this can disturb the values and precision of a penetrometer a lot. Compared to SASS, the penetrometer is rather a rough indicator to give the end user a feeling of how he/she is harming the soil. But unfortunately, it’s less repeatable.

GREG GILLAND, vice president, global agriculture, Maxam Tire North America: In agricultural operations, the primary driver of increased crop results or yields is the impact of soil compaction on the plant’s ability to grow. Soil compaction occurs when stress is applied to a surface soil, causing artificial densification

or thickening as the air is displaced or pushed out from between the soil grains or pores — reducing the oxygen content and impeding plant root growth.

In agricultural operations when weight or load is applied, this will cause densification due to air and water being pushed or displaced from between the soil grain molecules.

Therefore, soil compaction is a normal and inevitable part of agricultural operations.

Soils will vary around the world, but they are essentially made up of the following materials in various amounts: clay, silt, sand, organic material and water. The amount or content of the various components listed above will determine the soil porosity of the field. Understanding the type of soil and moisture conditions a farmer or grower is facing will help optimize his equipment utilization and selection of air pressure to carry the load, with the intent to minimize soil compaction and improve his yields.

Soil compaction is impacted by the following: initial soil pore volume (porosity of the soil / mix of soil); perceived or measured water content in the soil; vehicle

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A G T i r e Ta l k speed or compaction speed when operating equipment in the field; the amount of ground pressure, consisting of tire footprint and air pressure caused by axle load; and the effect of multiple passes on the same area or rows by equipment.

Ground pressure is therefore directly impacted by the tires working the field

Four proven tips to help reduce compaction Here are four practices that will help your customers reduce soil compaction and achieve greater yields, courtesy of Greg Gilland, vice president, global agriculture program, Maxam Tire North America: 1. Utilize the right tire size at the right air pressure to increase tire footprint, which will result in reduced ground pressure or soil compaction.

2. Use a penetrometer to track soil compaction. “A penetrometer is a tool that will allow a farmer or grower to determine the amount of soil compaction on his field,” says Gilland. It also “can help determine how machine loads or axle loads are impacting ground pressure and the resulting soil compaction. The information gleaned can also be used to review and change traffic patterns or row alignment to reduce the impact of soil compaction and increase crop yields.”

3. Recommend that customers avoid any hard tillage work when the soil in their fields is extremely wet. Gilland calls this “the most critical consideration” when reducing compaction. “A larger tire footprint — larger diameter or tread width — will deliver improved performance and reduced ground pressure.

You can also impact your tire footprint size by reducing or managing the inflation pressure, using scales to weigh each vehicle axle, resulting in reduced ground pressure. Therefore, a larger tire footprint reduces ground pressure, thus reducing soil compaction by increasing the ground coverage area or tread area.”

4. Recommend that customers use tires with longer or larger contact areas, coupled with fewer field passes, to minimize soil compaction.

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based on the below contributing factors: total vehicle load per axle and number of tires; the distribution of the load on each individual, dualed or tripled wheel position; the type of tire construction — radial or bias — with the tires’ corresponding ground pressure; tire inflation pressure per the vehicle or towed weight; the tire’s gross flat plate or contact surface area due to tread dimension and lug design; the amount of power applied and subsequent ground slippage; and the type and weight of the selected implement in operation.

Surface soil compaction is mainly impacted by tire footprint pressures. The larger the footprint, the lower the pressure.

Deep soil compaction is the resulting function of utilized equipment weight and repeated passes, but is largely impacted by the type of soil and moisture content.

A widely accepted solution to the problem of soil compaction is the implementation of controlled traffic or controlled path plans. Controlled path plans are precise traffic lanes designed to reduce soil compaction by restricting the powered elements of the equipment to travel over exact rows for repeated passes. A traffic path plan will improve vehicle performance, limit the impact to soil conditions and improve productivity by avoiding row or traffic overlapping.

Overlapping the row or traffic lanes results in wasted energy, escalating fuel costs and increased soil damage due to the subsequent ground pressure generated with every pass. The use of new, GPS-driven controlled path technology is revolutionizing equipment operation by improving vehicle utilization and reducing the impact of soil compaction on crop yield.

Keep in mind that the selected equipment will pass over the same field multiple times to deliver seed, nitrogen, fertilizers, nutrient and pesticides during the growing cycle. From Maxam’s perspective, if the right tire is utilized and the vehicle actively employs guidance technology or employs a traffic plan, the farmer or grower will avoid row skips or overlaps, ensuring reduced soil damage and improving crop yields.

DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: During speaking engagements, I like to ask my audiences, ‘As a percentage, how much of your soil surface is touched by rubber in a normal annual farming cycle?’

Most of the time, the answers will range between 15% and 65%. I then point out spring fertilizing, tillage, planting, spraying, etc., and that’s where I begin to see a few ‘a-ha’ faces in the audience. Finally, I give the answer, which is ‘about 90%.’

From a soil standpoint, every pass of a machine contributes to more and more compaction.

The first pass of a machine will contribute to shallow compaction. However, repeated/overlapping passes contribute to deep compaction, which will eventually lead to hard pan soil. This is a layer of soil that is impermeable to water and oxygen, thus hindering the development of yield. In fact, if soil has a higher moisture content, soil compaction damage will be even greater due to the liquid state of the soil drying into a solid.

There are different theories as to how a producer can avoid this issue. One idea is to simply follow the same tire tracks whenever possible.

Additionally, taking the grain load process off the field has a major impact on field ends as high-pressure tires with exceedingly high weights — coupled with existing multiple tire track soil compaction — can easily result in a difficult- to-remedy hard pan.

Another idea is to create or use controlled traffic paths. By following the same tracks on every pass, growers can remove all impact from most of the ground and focus all of that compaction into a limited number of tire tracks crossing their fields.

The downside is that the end user may have to purchase new equipment with matching widths, so all machines cover the same number of rows.

Another idea is to outfit end users’ machines with very-high flexion (VF) tires.

Independent studies at Harper Adams University in the United Kingdom and the University of Illinois have proven a yield gain of up to 4.31% using properly inflated Michelin VF tires versus standard radial tires. This means improved efficiency, higher yields and a much faster return on investment.

Finally, if your customer thinks that soil compaction has or is hindering the root development of his crop or is negatively affecting yield, you could use a cone penetrometer.

This tool is used to measure and record the downward force required to penetrate different layers of soil at different depths.

MTD December 2021

12/1/21 10:46 AM

A G T i r e Ta l k Soil compaction is a very big issue and it is difficult to measure its effects, yearover-year, in normal farming operations.

On the other hand, most of us completely understand that oxygen, water and nutrients are necessary for healthy root development and compacted soil restricts all of these. At Michelin, we continue to focus on the development of technologies that improve yield and efficiency by reducing soil compaction.

BLAINE COX, Yokohama Off-Highway Tires America Inc.: Soil compaction can have a huge impact on crop yields, soil health and water infiltration and it’s something you can help your customers minimize through careful tire selection and maintaining proper inflation pressure.

Tires are actually a key part of the solution.

It’s actually easy to figure out. Soil compaction force is usually close to a tire’s inflation pressure, so a VF or flotation tire running at 12 psi causes about half as much compaction as a conventional radial tire that’s running at 25 psi.

Compaction isn’t just isolated to the ruts left by tractors during planting.

Researchers at the University of North Carolina determined that 50% to 85% of the area of a corn field gets rolled over by at least one piece of equipment during a season.

We talk with farmers about the importance of selecting low-pressure options for as much machinery as possible. We also strongly emphasize the importance of operating at the lowest appropriate inflation pressure for the load and speed of operation. Central tire inflation systems will really help with that as they become more common, because they make it possible for farmers to adjust between lower pressure for fieldwork and higher pressure for road travel by just pushing a button. And they help tires last longer, too.

We would love to see more use of penetrometers to get to know what’s happening beneath the surface — as far as the severity and depth of soil compaction — but we know that’s also rare. But at the very least, we encourage dealers to dissuade farmers

from working in fields that are too wet.

What’s ‘too wet?’ I like the old trick of making a ball of soil in your hands like you’re making a snowball. Toss it a few inches in the air and let it land in your palm. If it breaks apart, you should be good to go. If it sticks together, it’s too wet to work. Driving on that field will cause soil compaction, for sure.

There are some other things you can do to help your customers manage compaction.

In many parts of the world, farmers drive in the same tracks with all their equipment when they can — pass after pass, year after year. Those lines are high-compaction sacrifice areas and they allow farmers to keep off the rest of the field surface.

Another thing you can do is look at yield maps and see if you can spot — or help your customers spot — tire tracks or other compaction damage. And take a look when cultivating or spraying this summer and see what’s stunted or yellow.

You may see first-hand the effects of soil compaction. The good news is that tires can help minimize that in the future. ■

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11/29/21 11:10 AM

Commercially Viable Yokohama adds all-position truck tires

Hunter adds heavy-duty racks

The Yokohama 124R and the Yokohama 505C are the newest additions to Yokohama Tire Corp.’s commercial truck tire line-up. Both all-position tires carry the 3-Peak Mountain Snowflake designation.

“The 124R radial tire is designed to keep regional pick-up and delivery fleets moving all year long,” says Tom Clauer, Yokohama’s senior manager of commercial product planning. It comes in nine sizes, ranging from 17.5 to 22.5. Inches.

The Yokohama 505C “is engineered to keep on/off-highway trucks working on the job and is offered in three sizes: 385/65R/22.5, 425/65R/22.5 and 445/65R/22.5.”

YOKOHAMA TIRE CORP. www.yokohamatruck.com

Hunter Engineering Co. has unveiled a series of heavyduty pit racks designed to service a wide variety of trucks. The P490HD provides maximum flexibility. Its compact, 226-inch runway allows for any number of rear axles, with the only size constraint being the size of the shop.

The new P491HD features a 360-inch runway for longercab vehicles, with rear-axle adjustments performed on slip plates. And the P490 and P491 both will serve extended trucks.

HUNTER ENGINEERING CO. www.hunter.com

BKT launches Agrimax Fortis

AME unveils heavy-duty jack stands

Balkrishna Industries Ltd. (BKT) has unveiled the new Agrimax Fortis, which is designed for soil preparation, planting and treatment operations. The tire has been engineered to provide optimal traction when rolling across tough terrain. “Cuts, tears, sharp stones and stress — the Agrimax Fortis is designed to meet all these challenges and can be further reinforced by choosing the special compound developed by BKT,” according to BKT officials.

BALKRISHNA INDUSTRIES LTD. www.bkt-tires.com

AME International LLC’s recently introduced 14401 Heavy Duty Pin Style Jack Stands are sold in pairs and can each hold up to 22 U.S. tons. “The 14401 Heavy Duty Jack Stands take our most popular 44-U.S. ton stands and sets the bar even higher,” say AME officials. “Heavy-duty wheels and a two-piece handle prevent the need for the technician to place themselves under equipment to set the stands.” The stands have a minimum height of 13 inches and a maximum height of 20 inches.

AME INTERNATIONAL LLC www.ameintl.net

New GT Radial truck tires

GRI expands sizes, tread patterns

The new GT Radial Cross Regional and Cross Urban tires are designed for fleets that perform a combination of long-haul, regional and urban runs. GT Radial Cross Regional tires are SmartWayverified and target long-haul and regional operations. GT Radial Cross Urban products are designed for mixed regional and urban operations and feature high-traction tread patterns, plus sidewall construction and compounding designed to combat scrubbing.

Giti Tire (USA) Ltd. www.gtradial.com

Global Rubber Industries Pvt. Ltd. (GRI) has expanded the size and tread pattern options in its farm tire and construction tire segments. The Green XLR 95 tire, made for row crop and spraying applications, is available in a new size: 230/95R32.

In the Green EX series, the Green EX RT100, a bias-ply tire built for tractors, is available in size 23.1-26. The Green EX FT 1 comes in two new sizes: 6.00-19 and 7.50-20. And the Green EX RIB3 is available in three new sizes: 10.0/80-12, 10.5/80-18, and 11.00-20.

GLOBAL RUBBER INDUSTRIES PVT. LTD. www.gritires.com

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MTD December 2021

11/30/21 5:19 PM

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Business Insight

Will 2022 be a record-breaking year?

A LOOK AT THE BIG CHALLENGES AHEAD By

Dennis McCarron

T

he year 2021 is drawing to a close. For independent tire dealers across the country, it has largely been a profitable — but difficult — year. With just a few weeks remaining, it’s time to take stock of the last 12 months and start looking at the next 12 months.

The year had many ups and downs.

Business volume was strong across the nation, with most dealers up 10% to 15% in sales and margins holding strong.

New car sales were down in a big way and prices of used cars are sky-high.

This traditionally has translated into higher repair orders and more maintenance as consumers hold onto their cars longer. And this was the case throughout the year.

The potholes during 2021 were also numerous. Staffing continues to be the biggest threat to dealers’ livelihoods. The pipeline of qualified, eager employees who want to make a living in this business is particularly weak, especially at the entry level.

Professional training — at least at the basic levels — is going to continue to fall on the shoulders of independent shops.

Any dealership that saw its bottom-line profits increase in 2021 would be welladvised to plow a decent amount of that back into education for technicians and service advisors.

You’ve likely enacted base pay increases for your employees, which is a natural reflection of the shallow employee pool and high demand for qualified, skilled people. In situations like this — where we have little control — I think the best advice is to be generous with highly talented employees who have great attitudes, at any level, and let mediocre employees feel the pinch.

The good news here is that the unemployment rate is already lowering and

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while we will remain in a talent pool crunch, it won’t be as bad as 2021 has been.

While 2021 was good for sales, expect volume and average repair orders to come back down to earth.

Much of the free money from the government is ending. Plus, our industry’s highs and lows are often tied to gasoline prices.

In the United States, consumers rarely budget for gasoline. They may make minor adjustments, such as consolidating trips, but they don’t budget, so an increase in the cost of a gallon of gas takes away from other non-essential purchases.

Combine gas prices with inflation and repair orders will get smaller. It’s not the end of the world, but consumer priorities are shifting around.

I predict a decent year, profit-wise, for those tire dealers who can roll with some punches and be nimble.

What will 2022 hold? Well, each year I try to read the tea leaves and I’ve been fairly accurate, save for the pandemic.

However, 2022 remains elusive in prediction because the past two years have been so wildly unpredictable and there are about as many forces pushing on the industry as can be imagined.

However, there are a few things to count on remaining at least for half the new year. Shipping and transportation will remain a burden on the tire and automotive industry. Even with extended hours at ports, there are only so many containers that can be unloaded and there is still a shortage

of truck drivers. Shipping woes will ease, but will still put pressure on tire and parts back-orders.

Inflation is likely to remain for the first half, as well, and most likely beyond. The good news is our industry is nearly recession-proof. People need to get to work and most cities do not have adequate public transportation.

Cars need to be fixed when they break.

You will likely see a small decrease in maintenance-related services and an uptick in repairs.

Tire dealerships in northern states will likely experience a profitable winter.

In addition, snowbirds have been cooped up for 19 months now and the number of destination vacations is predicted to be up, especially those that require road travel.

Employment issues also are expected to improve, although they will still be a sore point, as mentioned earlier.

Ultimately, I predict a decent year, profit-wise, for those tire dealers who can roll with some punches and be nimble.

It won’t be a record-breaking year like 2021 was, but it will come with fewer headaches as we start to unwind the damage of the pandemic.

In the meantime, keep focused on maintaining margins. Tire margins are very healthy across the board and parts margins remain manageable. Also keep an eye on your labor rate. Don’t wait two years to raise it.

You should implement at least four labor rate increases during the new year, with a minimum of $1 per quarter. If you’re already behind, you will need to increase your labor rate even more. ■ Dennis McCarron is a partner at Cardinal Brokers, 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 2021

11/29/21 11:11 AM

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11/23/2021 10:48:29 AM

Mergers and Acquisitions

Understanding buyer’s risk in an M&A deal TREAT YOUR BUYER LIKE A CUSTOMER By

I

Michael McGregor

t’s always true that the owners of a tirerelated business know everything about their particular business, while the parties looking to buy it know very little.

Whether you are a tire retailer, a commercial tire dealer or a wholesaler, it helps to treat potential buyers as if they were your customers. And in this case, they are customers for your business. Stepping into their shoes and trying to understand how they view the risks in acquiring your business will help you achieve a successful outcome.

This can be an adjustment for some. Many owners have built their companies from the ground up and have grown completely comfortable over time with whatever business risks their enterprises face. It is only when a credible buyer raises concerns that certain risks need to be assessed for their probability of occurring and the economic impact that might entail.

My general recommendation when assisting any tire dealer who wants to exit their business is to just be transparent. Presenting the challenges and deficits in your business is just as important as presenting what you excel at. This transparency enhances a buyer‘s trust in you and allows them to start formulating their post-acquisition business plans. I believe It helps lower their perceived risk in any deal.

Just in the last year, we’ve been involved in M&A deals where these following risks have been causes for concerns among buyers:

1. Customer concentration. If more than 20% of your business can be traced to one customer, that may be too much revenue and profit risk for some buyers — regardless of how long you’ve had the relationship or how important you are to that customer. It becomes an easy reason for private equity buyers to give a quick “no” on some opportunities.

2. Recent profit run-up (also known as the “COVID-19 bump.”) With consumers flush with government cash, many chose

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If more than 20% of your business can be traced to one customer, that may be too much revenue and profit risk for some buyers — regardless of how long you’ve had the relationship or how important you are to that customer.

to spend it on their cars. While certain dealership M&A transactions. When they clients of ours are certainly picking up arise, there are only four ways a buyer deals market share, buyers are looking to the with risk. They can accept it, avoid it, transfer coming year and questioning whether it or mitigate it. they face risk that growth will falter In one recent transaction, a client was under their ownership. concerned that some locations in their 40-year-old tire business were not Amer3. Poor financial transparency. Your cians with Disabilities Act performance may (ADA)-compliant. They be great, but if the accounting behind proactively engaged an ADA Don’t hide the bad it is questionable, no consultant and repaired and stuff. In fact, bring one will believe it. adjusted everything within Sophisticated invesreason to mitigate future it to light. tors like to drill down non-compliance impacts to into your numbers and having no detail the buyer. In cases where the cost was so or not following generally accepted ridiculous that it did not make any sense, accounting principles (GAAP)only our client explained the issue to the buyers, makes them nervous that they could who then chose to accept the risk that any be buying a “pig in a poke.” other future costs would likely be minimal.

In another case, the owner of a distribuThose are three big ones, but there are tion business has a month-to-month lease on the warehouse he’s been operating out of many other risks that can come up in tire MTD December 2021

11/30/21 10:22 AM

for 20 years. Only when he speaks with the landlord and helps his company’s buyer get a long-term lease, will the risk that the buyer could lose the lease and move — thus incurring costs — be mitigated.

In a third case, the ownership records in an old C-corporation could have been better organized for our stock transaction, so we secured representations and warranties insurance. This is a relatively new form of insurance and it is increasingly being used in smaller transactions. It indemnifies the buyer from loss as a result of breaches of representations and warranties after a transaction and minimizes the amount of funds a seller might need to tie up in an escrow. In this deal, the buyer and seller split the representations and warranties insurance to transfer the risk to a third party, which was an insurance company.

There are certain procedures in an M&A transaction process that are designed to identify, quantify and then deal with risk. One of them is the due diligence process.

Due diligence is intended to validate the business opportunity as represented by the seller, as well as uncover risks to buyers. It’s a comprehensive review of your financial performance, business performance, legal issues, human resource policies, locations, environmental compliance, tax records and more. It’s a lot of work gathering, reviewing and explaining all of that information to buyers, but it has to be done.

Remember, you know everything about your business. They don’t. Sellers hate due diligence and it is never fun. I liken it to an invasive medical exam. You’re never quite ready for it and it seems to go on forever.

As part of due diligence, buyers typically get a third-party quality of earnings (QOE) report from independent financial consultants or accounting firms. A QOE report assesses past financial performance, as well as the “quality” or likelihood that it will continue.

This helps buyers mitigate the risk that they are looking at things through rose-colored glasses and it fulfills their fiduciary duty of care to stakeholders and investors.

Increasingly, to move a deal along faster and help maximize value, we are encouraging clients in larger transactions to invest the $40,000 or more that it costs to get a “seller’s QOE” report.

This helps the seller identify all of the relevant add-backs and adjustments to EBITDA so they can maximize value. It also helps them obtain a quality check on their compliance with GAAP and allows them to adjust accounting policies, while lending credibility w w w . M o d e r n T i r e D e a l e r. c o m

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to their representations of profitability, accelerating the process by gathering all of the relevant information for buyers to review, helping establish a working capital target and presenting financials in the “trailing 12-month” period, which is most important to both parties.

Seller’s QOE reports are ways for sellers to validate for themselves their own profitability so that when they do get an acceptable offer from a credible buyer, they feel more confident that a transaction will go through and that they won’t face pricing discount pressure based on their numbers not holding up in the buyer’s QOE. As investment bankers, we don’t want to get involved in bad deals and life is too short to spend it inside a courtroom. I find that transparency is always the best policy.

Don’t hide the bad stuff. In fact, bring it to light. By doing so, the other party can assess your risks and better understand how they can make your problem less of a liability and more of an opportunity. ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/ automotive/tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.

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11/30/21 10:25 AM

Focus on Dealers

New Tire Pros programs will enhance consumer experience DEALER GROUP WANTS 2,000 LOCATIONS WITHIN NEXT FIVE YEARS By

Mike Manges

A

merican Tire Distributors Inc.’s Tire Pros franchise group is building for the future with new support programs for its members — all unveiled during its recent dealer meeting in Nashville, Tenn.

“We want to bring new customers into Tire Pros locations,” says Greg Bell, president of Tire Pros. “We want to show what we can do for them. And we want to create this connection and emotional benefit” with consumers.

That includes new, “flexible ways to engage with customers,” such as a new showroom concept — which Tire Pros displayed during the trade show component of its meeting — a digital portal that lets consumers “interact with our dealers when they want,” a refreshed Tire Pros logo and tagline and more, according to Bell.

The Nashville conference was “foundationally about setting our three-year strategic direction. And this isn’t Tire Pros telling our franchisees what the direction is.

“Our national dealer council — representing the (whole) group — came to us and said, ‘Here’s what we need to do.’”

INTO THE FUTURE

Tire Pros’ “Showroom of the Future” concept includes a variety of components — each designed to enhance the consumer experience, says Bell.

“We want to create ease of use and convenience for both the consumer and the sales team, so we have brand new Tire Pros (store) kiosks.

“In a traditional location, you see a lot of physical tires on display. We’re taking that into the digital world” with minimalist wall displays featuring “QR codes that customers can scan” to receive content about tires, instantly downloaded to their phones.

“We’ve also created a consumer portal that connects right into the point-of-sale

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system” at Tire Pros members’ locations.

Through their smartphones, consumers can enter information about their vehicles, view invoices, access “a digital tire health report,” track their vehicles through the various steps of the auto repair or tire service process in real time, authorize or decline additional work and pay for services rendered.

During the event, Tire Pros unveiled “digital key drop boxes” that dealers can install outside their stores.

“If it’s convenient for the customer to come in at 7 p.m. and drop their car off, they can go to the portal, scan a QR code to open up a secure locker and drop their keys off.

The shop opens the next morning and the work order has already been created in the point-of-sale system.”

TWO THOUSAND OR MORE

Tire Pros currently has 400 “owner-operators and they represent 609 locations,” says Bell.

The group has added 25 locations during 2021 “through a combination of prospects we’ve brought on and growth through our existing franchises.”

Tire Pros’ growth rate has been “flat” versus 2020, he adds. “But we recognize that we’re in unique times. The fact we’ve been able to keep pace during the last 18 months of the pandemic is something we’re proud of.”

Tire Pros wants to expand to 2,000 locations within the next five or so years. “But we don’t want to stop there.”

EXCITED DEALERS

A number of Tire Pros dealers told MTD they were impressed with the new programs and concepts that were presented during the conference.

Commenting on “The Showroom of the Future,” Korey Cutlip, co-owned of Regal Auto Care Tire Pros in Auburn, Wash., says “I could never contemplate undertaking

Southern California dealers were wellrepresented at the recent Tire Pros meeting in Nashville, Tenn. From left to right, Ron Shockley, owner of Oceanside Tire & Service Centers Tire Pros; Jim Riley, director of sales for American Tire Distributors Inc.; Tim Ferguson, owner of Bradley Auto Service Tire Pros in Sun City; and Mark Ducharm, owner of Canyon Lake Auto Tire Pros in Menifee.

something like that on my own. Even if I had 10 stores, the cost” to develop something similar “would be astronomical. And there are other things that I want to at least try.

I’m one of the first to say ‘yes’” to a new program or tool.

“Think of how far behind we would be if we did things the same way today we did five years ago.”

Others said they continue to benefit from existing Tire Pros programs.

Ryan Goff, owner of Roger’s Tire Pros, a two-store dealership based in Caldwell, Idaho, says he “doesn’t know how a small, independent dealership without access to training, buying power and infrastructure support can stay profitable.”

Mbie Dowd is the general manager of Casey’s Tire Pros & Automotive, a twolocation dealership based in Greensboro, N.C. She says that “when you’re a small company, there are things you don’t necessarily have access to — marketing initiatives, buying power. There’s no way I can go to a supplier and say, ‘I want your best possible rate.’ But they come to us because we’re a Tire Pros dealer.”

MTD December 2021

11/29/21 11:13 AM

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12/1/21 8:24 AM

Focus on Dealers

More places in the Sun? WITH NEW INVESTOR, SUN AUTO TIRE LOOKS TO BUY IN OTHER REGIONS By

Mike Manges

T

he pace at which Sun Auto Tire & Service Inc. has been acquiring tire dealerships and auto service chains “has been pretty rapid,” says Chris Garman, the Tucson, Ariz.-based company’s vice president of business development.

With the backing of a new majority owner, Los Angeles, Calif-based Leonard Green & Partners (LGP), buy-ups are expected to continue at a brisk clip.

And they won’t be confined to the southwestern United States, Sun Auto Tire’s traditional domain, he adds.

“We’ll move a little bit north — maybe into the Northwest.” (Immediately before this issue of MTD went to press, Sun Auto Tire revealed that it will acquire Cape Girardeau, Mo.-based Plaza Tire Service Inc., a 70-store dealership that has locations in Missouri, Illinois, Kentucky and Arkansas. The transaction is expected to close on Dec. 31) In October, the company picked up 16 auto service locations in the Pacific Northwest — all based in Washington.

More acquisitions in the southeastern part of the U.S. — like Hogan & Sons, a seven-location, Virginia-based tire dealership that Sun Auto purchased in September — also are possible.

The Hogan & Sons acquisition was Sun Auto’s first East Coast transaction.

The dealership “comes with a great leadership team and we feel we can grow” in the Virginia market over the next few years, says Garman.

“We still think there is plenty of opportunity in the Southwest, but where we feel like we can establish a footprint with a good brand and good people and have room to grow — those are opportunities we will not want to pass up.”

body chain Caliber Collision, which has evolved into what Sun Auto Tire officials call “the largest provider of collision repair services in the country.”

Garman says LGP’s “experience with Caliber and other brands they’ve invested in, which started out like Sun,” will prove to be invaluable.

“The expertise to get from where we are today to where we want to be five years from now is an important part of what they bring to the table.”

Independent tire dealerships are an attractive target for investors, he notes.

“We’re in an industry that is very fragmented — even with all the M&A activity going on — with lots of opportunity.

“We always like to say we’re a relatively recession-proof industry and that makes us attractive. I think we’re going to see (M&A) activity for the foreseeable future.”

When looking to acquire tire dealerships, Sun Auto considers different criteria, according to Garman.

An attractive footprint, “a solid reputation” among customers and “then obviously, earnings” are key pieces of the puzzle.

“If we’re going into a new market, those requirements may be a little different. If

‘LOTS OF OPPORTUNITY’

Sun Auto Tire & Service recently entered the Pacific Northwest market via three acquisitions in Washington, including Greg’s Japanese Auto, which is based in the greater Seattle area.

Founded in 1989, LGP holds more than $50 billion in assets and has invested in more than 100 companies, including auto

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we’re in a market already and are looking to expand our footprint, is (the potential acquisition) complementary to what we’re doing there?

“Ultimately, we’re looking to buy good businesses,” he says. “We’ve been fortunate to have bought great companies.”

Looking to sell?

Consider these points, says Sun Auto Tire’s Garman Chris Garman knows what it’s like to be acquired. He sold his nine-store business, Wilhelm Automotive, to GB Auto Service Inc. in 2019. (GB Auto Service rebranded as Sun Auto Tire & Service earlier this year.)

His advice for tire dealers who want to sell their business? From a practical standpoint, “prepare yourself for someone to come in and inspect your company. Clean up your books.”

And decide what you ultimately want out of the transaction, he says.

“Make sure you understand what your business is probably worth and what you’ll need to retire. How much are you going to have left? You’re never going to get it all. The government is going to get some of it.”

Seek advice from qualified professionals who can guide you through the process. And be ready to move on a deal, “if there’s someone who wants to take action,” he adds.

“You’re only going to go through this process once. It’s important to take your time and get it right. Everyone wants to rush through it, but at the end of the day, make sure it’s the right decision for you and your family.”

MTD December 2021

11/30/21 5:21 PM

RUGGED MEETS REFINED

RUGGED A/T

R

The newly-upgraded Americus Rugged A/TR is more than a tire.

It's freedom. The freedom to seamlessly travel between any terrain, on or off-road. Whether the road ahead is highway, dirt, mud, ice, snow, or sand, this hybrid tire is built to conquer.

12 New Sizes UPGRADED 50,000-Mile Treadwear Protection 3PMSF Tread Compound Upgraded Upg Advanced 3D Siping Technology Rigid Interior Tread Blocks for Superior Traction

d e d a r g p U y Newl sales@american-omni.com

63_AMERICAN OMNI_1221.indd 63

281-600-TIRE

11/30/21 5:26 PM

Focus on Industry

‘The timing is right’ NEW TIRE MAKES ATD A PLAYER IN THE UTV MARKET By

Ron Ledgard

There is no better place to show off a new UTV tire than in Moab, Utah, while driving on some muddy side-by-sides, according to American Tire Distributors Inc.

A

merican Tire Distributors Inc. (ATD) recently previewed a new Hercules brand UTV tire during a ride-and-drive event in Moab, Utah.

The Hercules TIS UT1 is specifically designed for UTV and side-by-side vehicles.

It will be available during the first quarter of 2022.

ATD says the tire has a balanced void ratio with biting edges on its tread blocks.

And the company adds that the eight-ply TIS UT1 offers enhanced traction while traveling across a variety of surfaces.

“This is going to be a home run for us,” says Stephen Liu, senior director of proprietary brands, ATD. “This makes it a one-stop shop for ATD.” Liu notes that ATD plans to make the tire available through all of its distribution centers.

“That will be the key for us — having UTV tires in stock and available,” says Cory Ray Carter, supervisor of a Big Brand Tire & Service outlet in Port Hueneme, Calif.

ATD says the UTV tire — which offer predictable forward and lateral traction — will come in six sizes, ranging from

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06_MTD_FocusOn_TPMS.indd 64

28 inches to 35 inches in diameter. The company is partnering with TIS Wheels, which is based in Santa Fe Springs, Calif., for the project and believes this will be key to the tire’s expected success.

“Combining efforts with a marketing powerhouse like (TIS President) Myles Kovacs and his team to promote the new UT1 will create a buzz with consumers, driving traffic to our retail locations,” says Liu. “I feel the partnership with TIS Wheel will do great for Hercules,” says Philip Biscan, who represented Van’s Tire Pros of Alliance, Ohio, during the ride-and-drive.

“There really aren’t too many options right now at the sizes they are offering.”

Stephen Liu, senior director of proprietary brands, ATD, examines the new Hercules TIS UT1 before a test drive. “This is going to be a home run for us,” he says.

During the multi-day event, dealers tested the TIS UT1 on side-by-sides — driving over rocks and through mud and sand.

“I think the UT1 did great on the trail,” says Biscan. “From the wet conditions we drove in, the tire did great at grabbing in the mud and cleaning out the tread so it could continue to bite.

“Also when climbing up any rock, I never felt the tire slip at all, which was impressive. And when we got to the sand trails, the tire would spin just a little on heavy acceleration, but after that, it just grabbed and off you went.”

Liu says the tire is the logical next step for the Hercules brand.

“The timing is right for several reasons.

The UTV market has experienced strong growth in recent years and is projected to continue to grow.

“Manufacturers are clearly tapping into this trend by increasing the number of trim levels for each of these vehicles.

Consumers are continuing to customize their vehicles and tires for off-road use, whether driving on trails (or) going fishing, hunting or rock climbing.

“There is also evidence of rising demand as more states pass legislation to make these vehicles legal to drive on city streets. For example, West Virginia passed legislation last year and North Carolina law made it legal to drive UTVs on city streets on Oct. 1.

“Finally, we want to make certain our dealers have the right product for any customers,” he says.

“It’s part of Hercules’ growth strategy to expand our portfolio and continue to be the ‘one-stop shop’ for consumers seeking any replacement tire.”

It takes some time to get a new tire off the ground, he says.

“We have been working for the past 12 to 18 months to develop this product. We created (the tire) based on information and demand from our dealers, who saw a rising demand for a strong value brand to participate in this market category.”

MTD December 2021

11/29/21 11:14 AM

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11/23/2021 10:39:15 AM

Focus on Dealers

College hoops are a slam dunk for Melvin’s Tire Pros SPONSORSHIP HELPS DEALERSHIP BOUNCE ALONG By

Ron Ledgard

P

rovidence College is one of the largest universities in Rhode Island.

And Jim Melvin Jr., longtime owner of North Kingstown, R.I.-based tire dealership, Melvin’s Tire Pros, says his company’s sponsorship of the college’s basketball program has been a slam dunk.

“Rhode Island is a small state,” says Melvin. “And in Rhode Island, there is no professional sports team.”

Rhode Islanders instead tend to be fans of the New England Patriots, the Boston Red Sox, the Boston Celtics and the Boston Bruins, he notes.

“For all intents and purposes, Providence College basketball — which is Big East basketball — is like Rhode Island’s professional sport. And it’s a big draw for us.”

Melvin’s Tire Pros partners with Continental Tire the Americas LLC and American Tire Distributors Inc. to use co-op money to sponsor Providence College basketball, which the dealership has done for most of the past decade.

One activity that allows Melvin Tire Pros to grab attention at Providence College games is a halftime event in which two fans race from one end of the court to the other and back while rolling a tire.

Providence College plays in a 19,000-seat arena, according to Melvin, who admits it can be difficult to quantify the connection between sports marketing and number of tires sold.

But the popular half-time activity “has been a real positive promotion for us.”

ON TARGET FOR BEST YEAR

Melvin got involved in the tire industry because of his father, Jim Melvin Sr., who himself started by working for Firestone Tire & Rubber Co. in Pennsylvania.

Working his way up through Firestone’s system, he became a store manager and then was promoted to store supervisor.

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06_MTD_FocusOn_TPMS.indd 66

Melvin’s Tire Pros has sponsored Providence College basketball for most of the past decade, a deal that has paid dividends for the dealership.

Melvin Sr. was eventually transferred to the tire manufacturer’s New England district, where he supervised more than 30 stores.

In 1974, he bought a Firestone companyowned retail tire store and went into business for himself.

“He likes to tell the story that he went from having three secretaries” at Firestone, “to the next day, pumping gas and getting asked, ‘Hey kid, will you check the oil and clean my rear window?’” says Melvin Jr., who started as a tire changer at his father’s dealership one week before his 14th birthday.

After working at the store through high school — including full-time in the summers — Melvin Jr. went to the University of South Carolina and worked for another tire company.

In 1991, his father told him that he was going to build a second location and asked him to return to Rhode Island to run it.

Through the years, Melvin’s Tire Pros has enjoyed steady, organized growth. The company has four stores. Its main location in North Kingstown does slightly less than $5 million in retail business each year.

Three generations of Melvins — from left to right, Jim Sr., Joe and Jim Jr. — have kept their family business thriving in Rhode Island.

Melvin’s Tire Pros stores have eight to 16 bays each. “We have had older stores in urban markets. But about five years ago, we started a restructuring. I wanted stores in really strong, suburban locations — modern, clean stores.

“I didn’t want the prototypical 1950s tire store in downtown, urban areas in Rhode Island. We got away from that.”

Melvin Jr. is pleased with where the company is now. He says July 2021 was its best month ever “in sales, gross profit and net profit. This year is going to be the best year we’ve ever had.”

MTD December 2021

11/29/21 11:15 AM

END THE

PAPERCHASE IT S600

DIGITAL TIRE REGISTRATION - DOT COMPLIANT

ONTOOL

AVOID NON COMPLIANCE FINES

BY USING DIGITAL CIMS TIRE REGISTRATION ON THE ITS600!

PLUS: • PERFORM TPMS DIAGNOSTICS • SENSOR PROGRAMMING • VEHICLE RELEARNS

DIGITA L TIRE REGISTRATION 1. Select “TIRE REGISTRATION” on the ITS600 Main Screen

2. Select the Tire Manufacturer 3. Type in the DOT Number in Correct Format and the Quantity

4. Tap “SUBMIT” and You’re All Set!

TEL: 1.855.288.3587 I WEB: AUTEL.COM EMAIL: USSUPPORT@AUTEL.COM FOLLOW US @AUTELTOOLS ©2021 Autel U.S. Inc., All Rights Reserved

67_AUTEL_1221.indd 67

SCAN TO WATCH

TRAINING VIDEOS

YOUTUBE

11/22/2021 1:24:21 PM

TPMS

Honda Accord 2013-2019

T

his vehicle is equipped with an indirect tire pressure monitoring system (TPMS). The vehicle is not equipped with tire pressure sensors mounted on the wheels.

The TPMS may not function properly if tire type and size are mixed.

Instead of directly measuring the pressure in each tire with pressure sensors, the TPMS, on this vehicle, is controlled by the vehicle stability assist

(VSA) modulator-control unit and it monitors and compares the rolling radius and rotational characteristics of each wheel and tire while driving.

This helps technicians determine if one or more tires are significantly under-inflated.

Low tire pressure will cause the low tire pressure/TPMS indicator to come on and a message to appear on the multiinformation display.

TIRE PRESSURE MONITOR SYSTEM (TPMS)

CAUTION: The TPMS may not function properly if tire type and size are mixed.

Make sure to use the same size and type of tire. Instead of directly measuring the pressure in each tire with pressure sensors, the TPMS, on this vehicle, is controlled by the VSA modulator-control unit and it monitors and compares the rolling radius and rotational characteristics

Figure 1: Identifying TPMS Button & Indicators/Messages: The calibration method is determined by the vehicle’s dashboard equipment.

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MTD December 2021

11/29/21 11:17 AM

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TPMS AUTOMOTIVE INTELLIGENCE

turned to the ON mode, the initiators send a low frequency (LF) band wave signal to the tire pressure sensor, switching them from sleep mode to normal function mode. When the vehicle is turned to the OFF (LOCK) mode, the sensors switch from normal function mode back to sleep mode to extend their battery life.

The original equipment wheels have a “TPMS” mark on them and are counterweighted by adding material to counterbalance the sensor’s weight.

TPMS KITS Ask Your Autel Distributor for Details

TIRE PRESSURE MONITOR WARNING INDICATORS Figure 2: Identifying TPMS Button & Information Display Indicator: You must press the TPMS switch (A) for three seconds.

of each wheel and tire while driving to determine if one or more tires are significantly under-inflated. Low tire pressure will cause the low tire pressure/TPMS indicator to come on and a message to appear on the multi-information display.

TPMS SYSTEM DESCRIPTION — COMPONENTS

TS508/TS508WF PLUS

COMPLETE

SOLUTION

TEL: (855) 288-3587 • USSUPPORT@AUTEL.COM AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM

©2021 AUTEL U.S. INC., ALL RIGHTS RESERVED

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06_MTD_FocusOn_TPMS.indd 70

TPMS Control Unit The TPMS control unit sends signals to the initiators and receives signals from the tire pressure sensor to verify pressure sensor IDs every time the vehicle is turned to the ON mode.

It also receives signals from the transmitters for tire pressure, tire temperature and the sensor battery condition, and it continuously monitors and controls the system.

Tire Pressure Sensor A tire pressure sensor is an integrated unit made up of each tire valve stem, a pressure sensor and a transmitter. The tire pressure sensors are attached to the inside of each wheel, around the valve stem.

The sensor transmits internal tire information using a radio frequency (RF) band wave signal one time per 60 seconds to the TPMS control unit. Each tire pressure sensor has its own tire pressure sensor ID to prevent jamming by similar systems on other vehicles.

Initiator The initiators are mounted on the top of each wheel well. When the vehicle is

NOTE: The low tire pressure/TPMS indicator blinks for about one minute, and then stays on under the following conditions: • A compact spare tire is used; • There is a heavier and uneven load on the tires, such as when towing a trailer, than the condition at calibration; • Snow chains are used.

CAUTION: If the low tire pressure/ TPMS indicator comes on even when the tires are properly inflated and the TPMS has been calibrated, see appropriate manufacturer service information. If the system detects low tire pressure in any of the four tires, the low tire pressure/ TPMS indicator comes on, as well as the message indicator. It will keep being turned on until calibration starts. If a problem in the system is detected, the VSA indicator comes on, and the CHECK SYSTEM message (TPMS) on the Multi-Information Display (MID) is displayed. The low tire pressure/TPMS indicator comes on after blinking for about 75 seconds.

Figure 3: Identifying Multi-Information Display & Control Buttons: Press and hold the INFORMATION button (A) to enter the VEHICLE SETTINGS mode.

MTD December 2021

11/30/21 9:05 AM

TPMS TPMS RESET PROCEDURES

NOTE: Whenever the pressure has been adjusted on one or more tires, tires have been rotated, or one or more tires have been replaced, the TPMS must be calibrated.

If the system detects low tire pressure in any of the four tires, the low tire pressure/ TPMS indicator comes on, as well as the message indicator. It will keep being turned on until calibration starts.

TPMS CALIBRATION PROCEDURE

Calibration begins when the TPMS switch is pressed or calibration is selected through the Multi-Information Display or the Center Display. Calibration is completed after driving at 31 to 62 mph (50 to 100 km/h), steadily without much acceleration or deceleration, for about 18 minutes.

Full functionality of the system cannot be performed properly if the calibration is not completed. The calibration method is determined by the vehicle’s dashboard equipment.

See Models With Information Display, Models With Multi-Information Display, or Models With Center Display.

See Models With Information Display, or Models With Center Display (See Figure 1).

Models With Information Display 1. Make sure the tires are inflated to the specified tire pressure listed on the doorjamb label. NOTE: Vehicle must be stopped with the transmission in neutral (M/T) or P or N (A/T, CVT); 2. Turn the ignition switch to ON (II), or press the engine start/stop button to select the ON mode; 3. Press the TPMS switch (A) for three seconds. (See Figure 2); 4. When the calibration successfully begins, the indicator (B) blinks twice; 5. See Calibration Completion Check.

Models With Multi-Information Display 1. Make sure the tires are inflated to the specified tire pressure listed on the doorjamb label. NOTE: The vehicle must be stopped with the transmission in neutral (M/T) or P or N (A/T, CVT); 2. Turn the ignition switch to ON (II), or press the engine start/stop button to select the ON mode; 3. Press and hold the INFORMATION button (A) to enter the VEHICLE w w w . M o d e r n T i r e D e a l e r. c o m

SETTINGS mode. (See Figure 3); 4. Press the SEL/RESET button (B) to select TPMS CALIBRATION; 5. When the calibration successfully begins, “Calibration Started” gets displayed on Multi-Information Display (C) when the system received the calibration; 6. See Calibration Completion Check.

NOTE: If the calibration does not begin successfully, “Calibration Failed to Start” gets displayed on Multi-Information Display. See appropriate manufacturer troubleshooting information.

Models With Center Display 1. Make sure the tires are inflated to the specified tire pressure listed on the doorjamb label. NOTE: Vehicle must be stopped with the transmission in neutral (M/T) or P or N (A/T, CVT); 2. Turn the ignition switch to ON (II), or press the engine start/stop button to select the ON mode; 3. Select the HOME button on the screen.

(See Figure 4); 4. Select SETTINGS;

IS THE ONLY

COMPLETE

Figure 4: Identifying Center Display: Select the HOME button on the screen.

5. Select the VEHICLE (display audio type) or VEHICLE SETTINGS (color audio type); 6. Select TPMS CALIBRATION; 7. Select CALIBRATE; 8. When calibration successfully begins, “Calibration Started” is displayed on the screen when the system received the calibration; 9. See Calibration Completion Check

TPMS MANUFACTURER TO OFFER A

SOLUTION

OE QUALITY SENSORS

POWERFUL SCAN TOOLS

UPDATES POWERED BY

DIAGNOSTICS

ALUMINUM OR RUBBER VALVE STEMS AVAILABLE

1-SENSOR • 1-SKU Limited Inventory • Dual Frequency 315MHz + 433MHz • 99% Vehicle Coverage • Interchangeable Valve Stems

TS508KMV-1 • Read/Relearn All Known Sensors • 4 MX-Sensor Programming Methods • FREE Software Updates for Life of Tool • Exclusive TPMS Status Screen

CONTACT YOUR AUTEL DISTRIBUTOR FOR MORE TPMS KIT OPTIONS SCAN TO WATCH

TEL: 1.855.288.3587 I WEB: AUTEL.COM EMAIL: USSUPPORT@AUTEL.COM AUTEL.COM FOLLOW US @AUTELTOOLS

TRAINING VIDEOS

YOUTUBE

©2021 Autel U.S. Inc., All Rights Reserved

1SensorKits-TS508-4.563x4.875-TPS-MTD-06172021.indd 1

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TPMS NOTE: If the calibration does not begin successfully, “Unable to initialize TPMS” is displayed on the screen. See appropriate manufacturer troubleshooting information.

CALIBRATION COMPLETION CHECK

Check if calibration is completed by doing the following:

REDI-Sensor TPMS: Introducing the next generation of fast, easy, and reliable.

• Multi-Application sensor • No added sensor programming or cloning • Reduces SKUs • Covering 150 million vehicles with 4 sensors

REDI-Sensor – A Trademark of the Continental Corporation

Learn more: REDI-Sensor.com

1. Stop the vehicle and shift into neutral (M/T) or P or N (A/T, CVT) position; 2. Turn the ignition switch to LOCK (0), or press the engine start/stop button to select the OFF mode; 3. Turn the ignition switch to ON (II), or press the engine start/stop button to select the ON mode and wait to see the low-pressure indicator come on for two seconds and then off; 4. Do not drive the vehicle and wait for 45 seconds, as-is; 5. If the calibration is completed, the indicator does not come on. If the calibration is not yet completed, then the indicator will come on for two seconds and then go off.

NOTE: The calibration check process will be interrupted if the vehicle moves.

Perform troubleshooting if the indicator does not go off after two seconds, keeps blinking or stays on when the vehicle is in the ON mode.

DISMOUNTING/MOUNTING PROCEDURES

NOTE: This vehicle is equipped with an indirect TPMS System. The vehicle is not equipped with tire pressure sensors mounted on the wheels.

NOTE: Whenever the air pressure level has been adjusted on one or more tires, tires have been rotated or one or more tires have been replaced, the TPMS must be calibrated. See RESET PROCEDURES. CAUTION: The TPMS may not function properly if tire type and size are mixed. Make sure to use the same size and type of tire. ■

TORQUE SPECIFICATIONS

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06_MTD_FocusOn_TPMS.indd 72

Component

Ft.-lbs.

(N.m)

Wheel nut

80

(108)

MTD December 2021

11/30/21 9:28 AM

Products

MoreSensor is designed to simplify TPMS service BendPak introduces portable LED work light BendPak has introduced Litestix, a versatile LED work light powered by a rechargeable lithium battery. Litestix uses 36 LED bulbs to provide 1,200 lumens of bright light. With high and low brightness settings, Litestix can provide up to six hours of continuous use between charges, the company says. Since it uses LEDs, the light is energy-efficient and stays cool. It also is easy to move around the vehicle. BendPak says it designed the light for a long life of heavy-duty use, featuring an impact-resistant polycarbonate housing. The light also has a telescoping holder and magnetic swivel mounts to secure it exactly where a technician needs it.

BENDPAK INC. www.bendpak.com

The universal TPMS MoreSensor from DuroFix Inc. combines two frequencies into one. Techs can program MoreSensor to fit any vehicle and can clone factory sensors with it. The tool comes with an interchangeable valve stem that fits all sizes of wheels and tires. Its total vehicle coverage is 98%, covering vehicles from the late ‘90s to the latest vehicle models in the U.S. market. The MoreSensor averages eight to 10 years of battery life under regular usage. It is built with premium-quality electronic components and is certified to meet all safety standards.

DUROFIX INC. www.more-sensor.com/universal-sensor

Hankook goes for RT with Dynapro XT The Dynapro XT signals Hankook’s entry into the ruggedterrain tire market and is part of the company’s larger lineup of tires designed for off-roading applications. It comes in 30 sizes and has rigid polygonal blocks and wide zig-zag grooves that perform double-duty in providing an aggressive-looking sidewall while delivering with off-road traction. The tire’s sidewall is protected against punctures and the product has earned the 3-Peak Mountain Snowflake rating for use in severe winter weather conditions. Its tread pattern is designed to be quiet, with shoulder block cushions absorbing noises from the road.

The Dynapro XT also offers a comfortable ride.

HANKOOK TIRE AMERICA CORP. www.hankooktire.com

Firestone Destination LE3 targets light trucks, SUVs and CUVs The Firestone Destination LE3 tire offers broad, all-season coverage for the CUV, SUV and light truck market and is backed by a 70,000-mile limited warranty. The tire features Bridgestone’s HydroGrip Technology Package. Its tread pattern cuts through water to reduce the risk of hydroplaning and full-depth, 3D sipes give the tire improved snow performance. The Firestone Destination LE3 is made to provide more consistent wear over its extended tire life. Its sizes cover 87% of the light trucks, SUVs and CUVs on the road today.

BRIDGESTONE AMERICAS INC. www.firestonetire.com w w w . M o d e r n T i r e D e a l e r. c o m

07_MTD_Products-AdIndex.indd 73

Vogue extends Red Stripe to 24 inches Vogue Tyre is introducing the 24-inch Red Stripe Custom Built Radial SCT tire, designed with large SUVs and pickup trucks in mind.

The size 305/35R24 product is manufactured with Vogue’s traditional whitewall design, but with a red stripe twist. The product has been designed with an advanced, silica-infused compound to provide traction and responsiveness, as well as a broad shoulder element design for greater handling confidence. The addition of wide, circumferential grooves in the tread allows for all-weather traction and better handling in wet weather conditions.

VOGUE TYRE & RUBBER CO. www.voguetyre.com

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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

29

www.everyrim.com/MTD

Aftermarket Auto Parts Alliance Inc.

65

www.aftermarketjackpot.com

Alligator

13

www.alligator-valves.com

American Omni Trading

5

www.thunderertireusa.com

American Omni Trading

63

www.americustire.com

Atlas Equipment

41

www.atlasautoequipment.com

AUTEL

67, 70, 71

www.autel.com

BendPak Inc. Ranger Products

45

www.mybendpak.com

BKT USA Inc.

11, 18 A-D

www.bkt-tires.com

Blackburn OEM Wheel Solutions

23

www.blackburnswheelfinder.com

Brake Parts Inc., Raybestos

47

www.raybestos.com

CEAT Specialty Tires Inc.

37

www.ceatspecialty.com/us

Continental Corporation

72

www.redi-sensor.com

Continental Specialty Tire

39

www.continental-specialty.com/ag-dealers

Continental Tire

57

ww.continentaltire.com

Deestone

61

www.deestone.com

Durofix Inc.

69

www.durofix.com

Falken Tires

31

www.falkentire.com

GRI Tires

42

www.gritires.com

Hankook Tire

34 A-L

www.hankooktire.com/us

Hunter Engineering Company

43

www.hunter.com/hd

K & M Tire Inc.

49

www.kmtire.com

Ken-Tool

44

www.kentool.com

Kenda Tires USA

IBC

www.kendatractionrewards.com

Linglong Americas Inc.

7

www.linglongtire.com

Maxxis Tires

55

www.maxxis.com

Nexen Tire America Inc.

IFC, 26 A-D

www.nexentireusa.com

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Nokian Tyres Inc.

51

www.nokiantires.com/one

Rotary Lift

9

www.rotarywheelservice.com/R1200

Sentury Tire

17

www.senturytireusa.com

Tyres International

53

www.tyresinternational.com

Unverferth Mfg. Company Inc.

50

www.unverferth.com

Van Batenburg’s Garage Inc.

59

www.fixhybrid.com

Yokohama Off-Highway Tires America Inc.

15

www.yokohama-oht.com

74

07_MTD_Products-AdIndex.indd 74

MTD December 2021

11/30/21 5:22 PM

TRACTION SPEAKS LOUDER THAN WORDS.

Dig in with the new and improved Kenda Traction Program in 2021 – bringing dealers one of the strongest rewards programs in the industry with even more benefits.

Earn Quarterly Cash-Back Rewards

Full Product Screen: Ohio-Designed for North American Market

Dealer Locator on KendaTire.com

US-Based Sales Support & Warranty Team

Enhanced Dealer Performance Dashboard

Trade Area Management for Dealer Success

‘Double Dollar’ Promotions

Realistic MAP Policy

Flexible Payment Options

Premium Performance at a Value Price for Consumers

Improved Mobile Access

Strong Margin Opportunities for Dealers

New Dealer Promo – purchase only 75 units in first quarter of enrollment to achieve Tier 1 status

Learn more about becoming a Kenda Traction associate dealer at KendaTractionRewards.com.

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11/22/2021 1:07:20 PM

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National Beer Day

Good Friday

Easter Sunday

Earth Day

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SATURDAY

Autism Awareness Day

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MAY

2022

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MONDAY

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WEDNESDAY

THURSDAY

Star Wars Day

Cinco de Mayo

FRIDAY

SATURDAY

Mother’s Day

Armed Forces Day

National Brother’s Day

Memorial Day

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JUNE

2022

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MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

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SATURDAY

National Cheese Day

National Cancer Survivors Day

Flag Day

Father’s Day Juneteenth

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JULY

2022

Increase store traffic! Reach new customers and drive repeat business with our exclusive Snap EDGE program.

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MONDAY

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THURSDAY

FRIDAY

SATURDAY

World UFO Day

Independence Day

National Ice Cream Day

National Father-in-Law Day

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AUGUST

2022

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SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

National Chocolate Chip Cookie Day

National Bowling Day

National Sister’s Day

National Potato Day

National Senior Citizen’s Day

National Waffle Day

Women’s Equality Day

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This month, win one of five $100 gift cards. learn.snapfinance.com/2022calendar 8 4 4 .5 8 1.7898 | SN APSALES@SN APF IN AN C E.C OM | LEARN .SN APF IN AN CE.C OM /2022C A LEN D A R

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2022

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MONDAY

TUESDAY

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THURSDAY

FRIDAY

SATURDAY

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Labor Day

International Chocolate Day

Patriot Day

Oktoberfest

World Gratitude Day

Wife Appreciation Day

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OCTOBER

2022

With Snap, you can provide purchasing power to your customers and reach your full sales potential.

SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

International Coffee Day

National Taco Day

National First Responders Day

Halloween

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NOVEMBER

2022

Fast approvals, higher invoice amounts, and flexible payment terms help your customers get what they need today.

SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

Daylight Saving Time Ends

FRIDAY

SATURDAY

Veterans Day

World Diabetes Day

National Fast Food Day

Thanksgiving

Cyber Monday

Black Friday

Small Business Saturday

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DECEMBER

2022

Motivate your salespeople this holiday season with exclusive, preapproved sales leads.

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MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

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Winter Solstice

Hanukkah Begins

Christmas Day

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Christmas Eve

New Year’s Eve

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844.923.7299 | SNAPSALES@SNAPFINANCE.COM | SNAPFINANCE.COM This advertised service is a lease-to-own agreement provided by Snap Finance or its affiliates. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with the lease application. Not all applicants are approved. Not available in NJ, MN, or WI. © 2021 Snap Finance LLC. All Rights Reserved.