OTR tires
OTR outlook: Manufacturers expect demand in the U.S. will be fat By Ann Neal
G
uarded best describes the outlook of four companies with large of-the-road (OTR) tire plants in the U.S. Michelin North America Inc., Bridgestone Americas Inc., Titan International Inc., and Goodyear Tire and Rubber Co. all expect demand for large OTR tires to be fat in 2016. Te perspectives on the large OTR marketplace for 2016 are from: • Jamey Fish, director of marketing, Michelin Earthmover North America; • Johni Francis, global product manager, Titan; • Michelle Lane, director of off-the-road marketing, Bridgestone; and • Cary Budzinski, general manager, OTR North America, Goodyear.
MTD: What is your outlook for the large OTR replacement market in the U.S. in 2016? Lane, Bridgestone: Bridgestone is forecasting 2016 large OTR demand to remain fat to slightly up compared to 2015. Aggregates have shown growth in 2015 despite much documented reductions in production have occurred in the oil and mining industries. Bridgestone does not expect a large enough change in production or pricing in large OTR tire applications to afect 2016 large OTR tire demand. Budzinski, Goodyear: We continue to monitor market conditions, including demand, and remain commited to the OTR business and meeting the evolving needs of our customers. We continue to see opportunities to provide our industry-leading tires and technologies – as well as best-inclass services, expertise and support – to help our customers optimize their operations. Fish, Michelin: Te global commodity market has experienced an extraordinary period since 2000. Te dynamism we witnessed in the Chinese economy with respect to commodity consumption has begun to level out. Tis means the industry and its supporters are adjusting from the period of rapid expansion to one of stabilizing production. Transition is always challenging. Based on current indicators, we feel that the bulk of the adjustment has been realized, and we can look forward to the homestretch leading to the “new normal” that will involve much higher commodity demand than prior to the 2000-2014 super cycle. For the tire industry, OTR customers will be increasingly focused in 2016 and beyond on the total cost of ownership and how well any given provider helps them meet their own business goals. Michelin will suspend operations at its earthmover plant in Starr, S.C. at the end of this year. Te decision to place the plant
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An earthmover in Cedar Lake Mine in Pinson, Ala., is equipped with Titan STL3 29.5R34.5 LSW tires.
in standby mode afects about 100 employees, all of whom will be ofered positions at nearby Michelin facilities. Te plant and its equipment will be maintained so that operations can restart in a timely manner when market conditions improve and customer demand increases. In the meantime, we can produce the number of tires needed for our customers with existing capacity from other earthmover facilities, including the plant nearby in Lexington. Francis, Titan: Commodity prices are a key factor in giant OTR tire demand. Mining companies are continuing to be cautious with production because of low commodity prices, and when coupled with the currently abundant supply of large OTR tires from multiple manufacturers, we anticipate demand to remain relatively fat. MTD: Describe any trends or developments in tire technology. Lane, Bridgestone: 2016 will be an opportunity for Bridgestone to focus on additional solutions and products which deliver value to our end users and dealers. A recent example is the launch of the TreadStat Mobile App which is a mobile companion to the cloud-based TreadStat Tire and Rim Management sofware. It is designed to replace the current paper-based vehicle inspection process and quickly allows you to conduct vehicle inspections online or ofine, upload inspections to an online version of TreadStat, record tire pressure and tread depth, conveniently note critical exceptions that require immediate action and share inspection summary information with others via email. Budzinski, Goodyear: Goodyear is always focused on optimizing customers’ total cost of ownership through tire performance improvement. Challenging operating conditions and the pressure for increased operational efciency at
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