OTR tires

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OTR tires

tions, mount it quickly and manage it correctly. We’re also going to see more paving and compaction machinery out there, thanks to the road-building elements of the infrastructure law.

PHOTHISANE (ZC Rubber): The mining industry will be challenged by Environmental Social Governance. Climate change, supply chain disruption and trade restriction will impact the mining industry. As the world moves toward life powered by electricity, the demand for copper also rises. Copper will be in high demand.

The shift from coal to natural gas and renewable resources has changed the industry. Coal mining is expected to decrease over time, but coal mining should be OK in 2023. Road construction will drive up demand for gravel, rock and sand.

High interest rates, rising material costs and a labor shortage will slow down residential construction. Lumber demand has slowed down in certain regions. Overstocked mills are lowering lumber prices.

Corporate employees are working from home and meeting on Zoom. There is less need for office space today than there was yesterday. Downsizing to empty offices will be filled before new construction offices are built. We expect residential and warehouse construction to slow down in 2023.

The U.S. economy is on the rise and the dollar is stronger. Highways, rail, bridge, airports and ports will get a facelift. We expect growth in commercial, industrial, infrastructure and institutional construction. Construction tire demand will continue to be strong in 2023.

MTD: What’s your advice for OTR tire dealers in 2023?

HOLUB (BKT): With OTR inventory increasing and OTR tire pricing stabilizing, we recommend that tire dealers keep a close eye on manufacturers’ programs to maximize buying discounts. We would also encourage dealers to really partner up with manufacturers that have shared values and business goals.

Dealers should work with manufacturers to maximize new smart tire technologies. Now more than ever, dealers need to give end users that extra value.

Every dealer can get tires and offer service, so dealers need to find ways to stand out.

SEIBERT (Bridgestone): We encourage dealers to focus on the construction segment this year, particularly an expected uptick in 25-inch (tire) sales. This is largely due to tailwinds from the infrastructure bill within this size range and upside in the construction segment, which accounts for the majority (of) demand in these sizes. In the end, 25-inch tire demand is expected to increase versus prior-year.

Moreover, dealers are encouraged to keep an eye on customer interest in technology and solutions that maximize efficiency. With sustainability top of mind in the industry, that should continue into 2023.

CRESTA (CMA): We have been hearing from dealers across the country that their warehouses are stuffed full with tires from all segments. Considering this trend, it’s unlikely that every OTR tire dealer has the warehouse space or current inventory on hand for their 2023 OTR tire needs.

With all that being said, tire dealers will need to begin to look at where they had limitations with their current OTR tire suppliers in 2022 — inventory availability, sizing options — and make sure they have a plan in place to fill the gaps in their supply.

FUTRELLE (Continental): Pick reliable partners that can support your business — partners who are adaptable in the event of market changes, who can bring reliable products that add value to your business and customers and who have a vision for the future in the area of digitalization.

RAVASIO (Goodyear): My advice for OTR tire dealers in 2023 is to find partners that will help build and manage their inventory properly. Close partnerships between suppliers and dealers will ensure you can manage challenges, look ahead for new opportunities and make sure you have a plan in place to get the tires you need. In 2023, planning ahead will mean planning differently and that takes collaboration and partnership.

MCDONNELL (Maxam): Manage inventory closely and stay focused on adding value to the customers’ business by ensuring efficiency and cost reduction measures.

SMITH (Michelin): With the influx in demand for tires in North America, it is important to know your customer base and what tires can bring them the best total cost of ownership. Knowing what tires you sell — along with their features, advantages and benefits — provides a dealer a deeper relationship with their customer.

REYNOLDS (Triangle): Given the impact of inflation, it is more important than ever to provide diligent and informed services to end users. In most cases, fuel and tires are their top two costs.

As an OTR dealer and trusted adviser to your clients, it is your responsibility to make sure you are recommending the proper tires, facilitating best maintenance practices in order to maximize tire life and determining that the products you recommend are giving (customers) the best value for their money. Tackling these issues isn’t easy and often requires some investment on the dealer’s part — in the form of training for OTR sales staff or investing in a more diverse inventory.

A well-trained, knowledgeable staff and the correct products available for key, specific applications will certainly