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August 2022 | Vol. 103, No. 8 | $10 | www.moderntiredealer.com ARE YOU RECESSION-READY? DEALERS SHARE TIPS FOR WEATHERING THE STORM HOW TO BOOSTNEWTOPATTRACTTALENTBILLWILLRETREADERS KING OF THE HILL Light truck tire categories battle for supremacy
3www.ModernTireDealer.com The Industry’s Leading Publication August 2022, Volume 103, Number 8 Modern Tire Dealer is a proud member of: 22 Is your business recession-ready? Dealers share tips for weathering the storm 30 King of the hill Light truck tire categories battle for supremacy 41 Virginia Tire wants more women Dealership hired 31 women last year, campaigns for more 46 Different ways to market brake service Dealers, managers weigh in on effective strategies Commercial Tire Dealer™ 48 Keeping the noise down Bob Sumerel Tire works with OSHA to take the lead in sound safety 54 ‘You have to keep your eyes open’ CMA’s Weller discusses how to manage complexities of a red-hot truck tire market 57 AG Tire Talk: The differences between sprayer and tractor tires Pay attention to traction, operating speeds and more 62 Commercially Viable Focus on Dealers 67 ITDG rolls out new workers comp insurance program Plan gives participants ‘more control,’ bigger returns 68 Big O Tires dealers hit $1 billion in sales Leaders plan for national presence 69 Partners in business and at home It’s a family affair for Kevin Grose, Trisha Andrews and their OK Tire store 4 Editorial A helping hand from Uncle Sam New legislation will boost tire importers, retreaders 6 moderntiredealer.com News and navigation tools for MTD’s website 8 Industry News Growing with dealers is ‘the only way,’ says Pirelli CEO Zanardo also eyes growth in high-diameter, EV tires 18 Numbers That Count Relevant statistics from an industry in constant motion 20 Your Marketplace Retail sellout continutes to decline On the bright side, inventory levels are starting to rebound 63 TEN Insights Is the proposition you’re selling worth buying? To attract top talent, look beyond the basics 64 Mergers and Acquisitions Things to consider when divesting Are you really good at everything? 66 Business Insight How to break the Peter Principle Challenge your employees who show growth potential 70 TPMS 74 Ad index ON THE COVER: UNSPLASH FEATURES DEPARTMENTS 48 Bob Sumerel Tire is partnering with a startup company to constantly measure and monitor the noise levels in its retread shops. Read about the safety efforts on page 48. Photo: Soundtrace
“Moreover, increased retreading will help reduce the number of tires that enter the waste stream and the proposed incentive for eets to engage in a comprehensive tire program inclusive of retreads will lower tire costs and improve eets’ total cost of ownership”
A helping hand from Uncle Sam NEW LEGISLATION WILL BOOST TIRE IMPORTERS, RETREADERS
e retread market has undergone incredible consolidation over the years. Two decades ago, MTD estimated there were 1,070 active medium truck tire retread plants in the United States. at number has since fallen to 640. And while retreaders are arguably more productive than ever — cranking out an estimated 16 million units during 2021 — they could use a leg up. I think the timing of this bill couldn’t be better. We’ll continue to follow its progress. ■
MTD August 20224
I would think this has to come as a welcome development for tread rubber suppliers, too. Jason Roanhouse, executive director, Bandag operations, Bridgestone Americas Inc., told me that the bill “will drive awareness of the exceptional quality and reliability of retreaded tires when retreading is performed by manufacturers following strict quality guidelines.
Mike Manges
By Editorial
And, he added, that if enacted, the legislation “will have a positive impact on the prices of goods and services we use every day.”
“In addition, should this legislation pass, every state will bene t from additional local jobs created by the retread industry.
e other piece of legislation isn’t a law — yet. is past June, Rep. Tim Ryan of Ohio introduced the Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022, which would provide a tax incentive for trucking eets to buySpeciretreads.cally,the bill would o er a tax credit towards the purchase of “a quali ed retreaded truck tire produced and purchased in the United States,” according to a spokesperson from Rep. Ryan’s o ce. What’s a “quali ed” retread, you may ask? Ryan’s o ce hasn’t provided that level of detail, but emphasizes that products must be manufactured in the U.S. in order to make the “Retreadingcut.directly supports more than 51,000 American jobs,” Ryan said in a press release. “By providing a tax incentive for (end users) who purchase retreaded tires, this legislation will support good-paying jobs, level the playing eld for American workers and businesses and position our manu facturers to once again lead this industry with American products built by American workers.”
Photo: MTD
Legislation that directly bene ts independent tire dealers doesn’t come around o en. But a new law and a recently introduced bill have the potential to boost many dealers’ bottom lines, including your own. Let’s take a look at them. e rst piece of legislation, the Ocean Shipping Reform Act, was signed into law by President Joe Biden two months ago. e act — which was championed by the bipartisan Senate Committee on Science, Commerce and Transportation — is designed to crack down on ocean shipping costs, while easing supply chain backlogs.Sky-high freight costs and excruciating shipping delays have plagued tire dealers, importers and wholesalers — not to mention tire manufacturers and the companies that supply them — for the better part of the last two years.
According to a press release issued by the Senate committee, the new law will provide the Federal Maritime Commission with “the tools it needs for e ective oversight of international ocean carriers,” which some tire dealers and importers believe are manipulating the market to their advantage. According to Drewry, a United Kingdom-based shipping industry consultancy that shares information with MTD, ocean carriers gener ated $190 billion in annual pro ts — yes, that’s “billion” — during 2021, with an estimated $56 billion generated during the fourth quarter alone. (In what’s probably an understatement, Drewry o cials recently noted that “the ocean carriers’ cash machine is now working at an exceptional level.”) e Ocean Shipping Reform Act also will try to shi the burden of proof used to justify demurrage and detention charges away from American companies to freight carriers and shippers, which will help both importers and exporters. And it authorizes the U.S. Department of Transportation to collect data on how long ground transportation chassis, which are used to move incoming containers over the road, are “dwelling” — or in simpler terms, sitting around doing nothing — while you wonder, “Where are my tires?” All of these things are good and should provide a signi cant degree of relief for your business.
e Commercial Vehicle Fleet Retreaded Tire Utilization Rein vestment and Recovery Act of 2022 has already been referred to the Ways and Means Committee. “It is our hope to potentially get it included in a tax-extenders bill that encompasses a number of di erent tax credit provisions,” notes the representative from Rep. Ryan’s o ce.
If you have any questions or comments, please email me at mmanges@10missions.com.
Twenty years ago, MTD estimated there were 1,070 active medium truck tire retread plants in the United States. That number has since fallen to 640.
MTD August 20226
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7. Pirelli CEO eyes more growth in high-diameter, EV segments
4.Monro will purchase most tires from ATD
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5.Hankook President Brison to leave company on July 1
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DEALER eNewsletters Sign up now for Modern Tire Dealer’s e-Newsletters. We’ll send you the latest tire news and our most popular articles. Go to www.moderntiredealer. com and scroll down to The Modern Tire Dealer Newsletter is the De nitive Source for Tire Dealer Success. Stay tuned to MTD’s podcast! The Modern Tire Dealer Show is available on Stitcher, Spotify, Apple Podcasts, Google Podcasts, iHeart Radio, Amazon Music, Audible and MTD’s website. Download it today! MTD digital edition Check out MTD’s digital edition at the top of our website’s homepage. Like MTD on Facebook: www.facebook.com/ModernTireDealer Follow MTD on Twitter: @MTDMagazinewww.twitter.com/MTDMagazine Monro says ATD agreement.fultributionpartitsprovidewasthestoresliveriesfrequentprovidewillmorede-toitsthancompanyabletoonownasofadis-andllment Photo: ATD HOME OFFICE 3515 Massillon Rd., Suite 200 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith (330)gsmith@10missions.com899-2200,Ext.2212 Editor:EDITORIALMike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com Associate Editor: Madison Gehring, ext. 2216 mgehring@10missions.com CreativePRODUCTIONServices Director: Zach Pate Art Director: Jonathan Ricketts Graphic Designer: Audrey Mundstock Production Manager: Karen Runion, ext. 2210 krunion@10missions.com MARKETING STRATEGISTS Bob Marinez (330)bmarinez@10missions.com899-2200,ext.2217 Marianne Dyal (706)mdyal@10missions.com344-1388 Dan Thornton (734)dthornton@10missions.com676-9135 Sean Thornton (269)sthornton@10missions.com499-0257 Kyle Shaw (651)kshaw@10missions.com846-9490 Martha Severson (651)mseverson@10missions.com846-9452 Chad Hjellming (651)chjellming@10missions.com846-9463 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 571 Snelling Ave. N. St. Paul, MN 55104 (651) 224-6207 CORPORATE OFFICERS Vice President: Chris Messer
3.Who’s tops in tires, according to J.D. Power’s new aftermarket study?
1. Has replacement tire sellout peaked?
8.Market forces squeeze truck tire manufacturers
2.Podcast: Goodyear-Cooper: One year later
The details matter in Monro-ATD deal
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Some of the industry’s biggest players have made some waves as of late and that includes the new power couple of Monro Inc. and American Tire Distributors Inc. (ATD). Not only has ATD bought Monro’s wholesale operations, but the agreement means Monro will purchase “at least 90%” of its tires from ATD. That means the wholesaler’s customer list grew by 865 tire stores in 32 states. And Monro wants to focus even more of its business on tires. The company’s sales grew by $98 million in its 2022 scal year, which ended in March.
6.New bill would encourage eets to use retreads
9.Ocean Shipping Reform Act could bring relief
Industry News
MTD: You have mentioned that PTNA outpaced the market last year..
MTD: Electric vehicles (EVs) are still a small part of the overall car population in North America. What opportunities do you see for PTNA to be a signi cant player in the EV tire market? Zanardo: e EV market is still small, but is growing a lot. Now we are seeing the rst signals of that in the replacement channel. We have around 250 homologations already on EVs at the worldwide level. And we are
MTD: Can you describe PTNA’s perfor mance last year and during the rst six months of 2022? What have the challenges been? What have the bright spots been?
Zanardo: We are growing very well thanks to all the investment we have done, particularly in the range that is growing more. The 18-and 19- inch market is very resilient and is growing a lot. Our part of the market is growing. People are recognizing our product and are asking for our product.
Zanardo: e Rome plant is around 350,000 to 380,000 tires. It depends on the mix we produce. Coke: Ninety- ve percent of our produc tion (there) is 20-inch and above, of which 45% is 22-inch and 23-inch. e Rome production is more of the niche tments, which we specialize (in).
MTD August 20228
Zanardo: e market has been strange in the last 18 months, because of the pandemic situation and the shortage of raw materials, components — everything. We can say that we are growing. Last year, we were able to go back to numbers and volumes that were more aligned to the pre-pandemic period and this year, we are seeing very strong growth, particularly in the higher (end) of the market — the 18- and 19-inch (segment.) at is where we compete and where we are. North America is a very important market for us. We are growing because we’ve done a lot of investment — and in particular, speci c products for this region.
Zanardo: Silao is the place where we do big volumes. In Rome, it’s small lots …. mostly dedicated to OE. In Silao, we are working for OE, as well, but also replacement is a big percentage.
Zanardo and Ian Coke, chief technical of cer, Pirelli North America, discuss those initiatives in this MTD interview.
Growing with dealers is ‘the only way,’ says Pirelli CEO
MTD: Pirelli is making signi cant invest ments at its plant in Silao, Mexico, which is intended to be a key driver for the company’s growth in North America. Can you elaborate? (Editor’s note: Pirelli recently announced that it will invest $15 million in the Silao plant over the next several years. is includes the establishment of a new research and development center at the facility.)
Zanardo: is year, we are celebrating the 150th anniversary of Pirelli. We have two plants in the region — one is the plant in Rome, Ga,, which is celebrating its 20th anniversary, and one in Silao, Mexico, which is celebrating its 10th (anniversary). It’s a never-ending story of investing, growing and putting new resources there. We need to be in the market, near our customers and near where the demand is. We are investing in two ways. One is capacity. We now have reached, more or less, 7.2 million tires (annual) capacity in Mexico. Most of these tires are dedicated to North America. And on the other side, we are investing in research and development and building a new R&D center in Mexico. We need to have development near the market — not just production.
MTD: PTNA continues to land key OE tments. Can you discuss your OE strategy? Is it the same as it has been? For example, are you looking to expand your tments in the light truck category?
Zanardo: We are. We’re investing a lot. We work together with almost all the carmakers. It’s an important investment for us because we develop technologies together. We are investing a lot in new homologations. And as of today, we are working a lot with all the electric (vehicle) players — not just (new ones), but the traditional ones who are jumping into the electric world.
MTD: Are you running at maximum capacity in Mexico? Zanardo: Almost. We are really pushing hard because the demand is there.
Claudio Zanardo has been CEO of Pirelli Tire North America Inc. (PTNA) for only 10 months, but he’s moving the company forward on a number of fronts, while building on its strengths.
ZANARDO ALSO EYES GROWTH IN HIGH-DIAMETER, EV TIRES
Photo: Pirelli Tire North America Inc.
MTD: What’s the maximum annual capac ity at the Rome, Ga., plant?
“We are developing new projects and new programs — things that can put us near the end consumer, together, with dealers,” says Claudio Zanardo, CEO of Pirelli Tire North America Inc. (left), with Ian Coke, chief technical of cer, Pirelli North America. “We want to make things very easy.”
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WHAT WILL YOUR TIRES SAY ABOUT YOU?
MTD: Do you think demand for tires is going to continue throughout the rest of the year and into 2023?
Pirelli continues to make substantial investments in racing, which serves as “a test lab” for the company, says Coke. Par ticipation in motorsports provides “very valuable data” that “pushes” Pirelli’s con sumer tire technology forward, he adds.
Zanardo: At the end, we have a strong team, so it’s not just me. It’s the entire company that’s behind our product. We are developing new projects and new programs — things that can put us near the end consumer, together, with dealers. We want to make things very easy because this is the key, in my opinion.
MTD: ere have been some changes at PTNA over the last couple of years. Marco Crola was in your shoes from 2018 to 2020 and then Pietro Berardi for slightly less than two years. You were appointed CEO this past November. Some dealers have told us, too, that programs have changed during those years. What are you planning to do in order to stabilize things and then take it to the next level?
Zanardo: It’s not easy because we are coming from years and years where we were not seeing an in ation rate like now. e cost of everything is (increasing) — raw material costs, energy costs and transportation costs. e price increase is really mandatory to (maintain) quality levels. We don’t want to have any compromise. It’s a big challenge for dealers … being able to put this increase into the market, as well.
MTD: How would you describe PTNA’s presence among tire dealers? Are you still actively growing your dealer network or are you at the point where you have enough dealers who are strategically placed?
Zanardo: It’s a combination of all di erent factors. What you have to do to be successful in this environment is to be able to adapt to the situation. We have incredible algorithms to help us understand what demand will be for the next year and years. We know the cars that OEMs are producing and the tments that are there. e biggest challenge at the moment is the supply chain. Raw material prices (also) are going up. Energy prices are going up. e combination of those factors is creating sort of a perfect storm in the market and you have to adapt.
MTD: Like other manufacturers, Pirelli has had to raise tire prices. (Editor’s note: PTNA increased consumer tire prices three times during the rst half of 2022 — most recently a hike of up to 10% that went into e ect on June 15.) How are your dealers reacting as their costs continue to go up?
Photo: MTD
Coke: ese OE projects start two to three years before. Some of them are a little bit shorter, especially with the startups, which have a di erent rhythm of tire development. But you need to have the technology. So it’s an opportunity for a tier-one… that has a strategy to attack this market. We’ve seen a lot of people fail. We’ve seen a lot of people have success. You never know who’s going to come through it. But the volume is coming. SUVs and trucks are now electri ed. All the major guys are bringing out models. Rivian has a truck out, as well. So I think when you see that, there’s going to be a very rapid acceleration in the electri cation of the market — as long as the infrastructure keeps up.
MTD August 202210 working with the U.S. players who are active in electric cars — fully dedicated electric (manufacturers) like Tesla and Rivian, but also traditional carmakers.
Zanardo: We are not covering (enough of the) market. We want to grow. We are developing new programs in order to involve more and more dealers. e easier you can speak with dealers and end consumers, the easier you can put your product into theDealersmarket.are fundamental. I come from this experience in Europe and in the U.S., as well, dealers are at the center of our experience and our presence in the market. We want to present our product to the end user and we cannot do that alone.
MTD: What can tire dealers expect to see from PTNA during the rest of the year?
MTD: Do you see the EV market growing Zanardo:quickly? Yes. The interest in the end consumer is there. And the investment in OE is there.
MTD: e North American market is experiencing big changes, including macroeconomic factors beyond our control, like shipping. What’s the biggest challenge facing PTNA at the moment?
MTD: What sort of educational support and materials are you providing to your dealers so they can effectively talk to customers about Pielli’s EV tires?
Zanardo: We are developing new train ing systems to be launched in the next month for dealers. It’s important to know and understand which cars (where) we are present.
Zanardo: When we look to the U.S. market, almost 80% of (our) new homologations are on eclectic vehicles.We continue to invest in traditional tires, but the electric part is something that is growing. We need to be ready with OE, as well as replacement. at pull-through is very important on electric cars, in particular. If you don’t put the right tire on your car, it’s not the same. is is where we need dealers. ey need to explain to the consumer the di erences in the products.
Zanardo: I think personally, we will keep seeing a market that will grow. In particular, I’m referring to the segment where we play — the 18- and 19-inch market. Double-digit growth will continue this year and next year, as well.
MTD: How many U.S.- based OE tments do you have now?
Zanardo: ere are two things we are work ing on. One is programs to support dealers and the other is training. We are developing these things. Everything will be easy to use and understand. We want to grow and we want our partners to grow. We need to grow together. It’s the only way.
Industry News
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Toyo raises prices
“Groupe Touchette’s plan is to o er powerful solutions that drive e ciencies and streamline the supply chain for the bene t of customers, consumers and manufacturers. NTD’s addition will help us reach our goal to best serve Canadians.”
e divestment “is another important step forward for NTD, ATD and our industry as a whole,” says Stuart Schuette, president and CEO of ATD. “We are very proud of the Canadian business we have built in NTD and are pleased to have reached an agreement with Groupe Touchette that secures a tremendous future for it and the incredible associates, customers and partners who support it.”
Industry News
Toyo Tire U.S.A. Corp. raised prices on select passenger, light truck and commercial truck tires by up to 5% on Aug. 1. Bandag’s prices climb Bridgestone Americas Inc. hiked prices on all Bandag tread rubber up to 15% in the United States and Canada, effective Aug. 1. Prices on cushion and some ancillary items increased, as well.
Bites
Bridgestone opens plant Bridgestone Americas Inc. will make race tires at its new production facility in Akron, Ohio.
“On behalf of the entire Groupe Touchette team, we are absolutely thrilled to welcome NTD into our growing family,” say Nicolas Touchette and Frédéric Bouthillier, co-owners at Groupe Touchette.
Photo: Hankook Tire North America
Big O gets new leader Brian Maciak was promoted to president and chief operating of cer of Big O Tires LLC, which is owned by TBC Corp. He replaced Jim Bull, who retired on July 1. Maciak previously served as Big O Tires’ executive vice president, general counsel and chief compliance of cer. TIA starts electric council
“I am passionate about this industry, about customers and about providing winning experiences that create pro table growth,” says Brison, who adds that he has watched TireHub’s “energy and excitement spread across the tire industry.”
Curtis Brison is TireHub LLC’s new vice president of sales, following a stint as president of Hankook Tire North America.
The Advanced Tire Production Center will pro duce all 25,000 Firestone Firehawk race tires for the NTT IndyCar Series, plus small batches of prototypes for testing and development in racing and on-road applications.
e combined Groupe Touchette/NTD business will be headquartered in Montreal, Quebec, with a main support center in Burlington, Ontario, plus regional o ces throughout Canada.
The Tire Industry Association has created an Electric Vehicle Advisory Council, which will focus on training “tire and auto dealers on the proper service techniques and procedures of EVs,” according to association of cials. Other functions will include establishing “potential safety protocols” for EV service and best service and maintenance practices.
Mountain View name lives Since buying Mountain View Tire & Service Inc. in the spring of 2021, Monro Inc. has decided to keep and expand the brand, extending it to at least two other acquisitions in California. The original 30 Mountain View stores continue to use the name and three additionally purchased stores will use it, too.
MTD August 202212
Monro to source from ATD Monro Inc. will buy “at least 90%” of its tires from American Tire Distributors Inc. (ATD), a deal that gives the wholesaler 865 new tire stores to serve in 32 states. The two com panies signed a distribution and ful llment agreement after Monro sold its wholesale operations to ATD.
TireHub says Brison will play “a critical, strategic role” growing TireHub’s business to enable future growth and expansion plans. He also will be responsible for TireHub’s go-to-market strategy. Brison comes to TireHub with more than 16 years of leadership experience in the tire and automotive industry. In addition to his time at Hankook, he previously led the sales and marketing divisions of Exide Technologies and Michelin.
ATD sells Canadian business to Groupe Touchette Groupe Touchette Inc. is acquiring American Tire Distributors Inc.’s (ATD) Canadian subsidiary, National Tire Distributors (NTD). e deal includes 26 distribution centers and about 600 employees. It is expected to close during the fourth quarter of 2022. As part of the agreement, ATD will supply Groupe Touchette and NTD with its Hercules and Ironman brands and will “make its advanced analytics so ware and productivity-enhancing tools available to Groupe Touchette’s network.”
“ e acquisition of NTD will signi cantly contribute to Groupe Touchette’s ability to serve its customers and business partners, bringing enhanced service, increased o ering capacity and more choice to Canadian consumers,” the companies said in a press release. “With NTD, Groupe Touchette’s growth will also create new job opportunities across Canada.”
Brison moves from Hankook to TireHub Curtis Brison, who served the rst half of 2022 as president of Hankook Tire North America, has joined TireHub LLC as vice president of sales, marketing and strategic growth. “Adding Curtis to our executive team is a win for TireHub and for our customers,” says TireHub CEO Ted Becker. “He is a proven leader and accomplished industry executive. He knows the industry, knows our customers and knows what it takes to be successful. Curtis is the right person to lead this next stage of dynamic growth.”
Michelin tests on electric rig Michelin North America Inc. is testing com mercial truck tires on an all-electric Class 8 delivery truck provided by Benore Logistics Systems. The month-long test is taking place at Michelin’s plant in Sandy Springs, S.C.
New Toyo plant opens A new Toyo Tire Corp. consumer tire manu facturing plant in Europe that will help boost the company’s U.S. supply opened in July.
Groups host owners Auto Value and Bumper to Bumper hosted a promotional trip for shop owners and their families in Orlando, Fla. The trip was part of a fall promotion and was tied to purchases throughout the Auto Value and Bumper to Bumper network.
Pirelli extends EV line Pirelli & Cie SpA says its Pirelli Elect electric vehicle (EV) tire is widely available for aftermarket and winter applications. Pirelli calls winter tires for EVs “a relatively new, but rapidly growing sector.”
Marks’ tire industry career began in 1978. Commenting on his upcoming retirement and departure from ITDG, Marks says, “I am extremely grateful to the (group’s) shareholders and the board of ITDG for allowing me the opportunity to help guide this group over the last ve years.
“What a terri c end to a very rewarding career, where I’ve been able to develop everlasting friendships, as well as provide for my family over the last 40 years.”
A new search sub-committee of the ITDG board of directors will identify and present candidates for review.
The Sailun Group will open the Sailun Tire Americas Technical Center in Chat tanooga, Tenn., which will design passenger, light truck, SUV, CUV and medium truck tires, plus tires engineered for electric vehicles. Tires will be designed for both the original equipment and replacement channels. e decision to invest in the center “marks a signi cant step in the growth of R&D and the technical capabilities for the company in North America,” say Sailun o cials.
MTD August 202214
LWG grows in Oklahoma Leeds West Groups (LWG) has purchased real estate in the Tulsa, Okla., area with plans to rebrand it as a Midas location later this year. The company owns and operates 10 Midas and Big O Tires franchise locations across the state.
Terry Edwards will serve as the facility’s chief technical o cer and will lead all activities there. Edwards “brings over four decades of expertise in the areas of OE and replacement tire R&D, quality and manufacturing” to the role.
Industry News
Dave Marks will retire as the leader of ITDG after a 40-plus year career in the tire industry.
“His outstanding sales leader ship and team building — combined with his passion for excellence and getting exceptional results — has led to the group’s tremendous success,” say members of ITDG’s board. Prior to his present role at ITDG, Marks held management, sales leadership and operational/ distribution positions at Tireco/Tire Distributor Experts and American Tire Distributors Inc. He also spent 15 years at Tire Dealers Warehouse.
TIA names secretary Bridgestone Americas Inc.’s Debra Hamlin has been elected secretary of the Tire In dustry Association (TIA). She will start her term in November. She is Bridgestone’s director of environment, health, safety and sustainability in the commercial tire divi sion and will be in line to serve eventually as TIA president. Bites Dave Marks to retire from ITDG D ave Marks, president and CEO of the Independent Tire Dealers Group LLC (ITDG) since August 2017, will retire in 2023 upon the selection of — and successful transition to — his Undersuccessor.hisleadership, ITDG boosted its number of member locations by more than 50% to 1,000 and grew its sales to nearly $350 million annually.
RNR gifts Jeep RNR Tire Express gave a restored 1995 Jeep Wrangler YJ Sahara, customized with Juras sic Park graphics, to Chris Festo of Archer, Fla., as part of its Father’s Day promotion.
The Serbian facility will make passenger and light truck tires and will have a capacity of 2.5 million units annually.
Photo: ITDG
“Our goal is to ensure that Dave’s replacement is the best t to lead us into the future” says Rob Slagle, chairman of the ITDG board. “ e timeline for Marks’ departure in 2023 will be determined once a successor has accepted the position.”
“I am very thankful to the many friends and mentors who have helped guide and support me over the years and I am also honored to be able to head into retire ment on a timetable that I have chosen. I will work closely with the board to nd a successor and to set him or her up for a positive transition. Whoever that is will inherit an elite team, excellent programs, a great new ITDG private brand and a successful business model.”
Sailun will open U.S. tech center
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TIA members can vote via paper ballot or online via TIA’s tireindustry.org site.
MTD August 202216
• T.J. Trum (incumbent), general counsel, Pomp’s Tire Service Inc., Kansas City, Kan.
Thirteen candidates are competing for four open spots on the 2022-2023 Tire Industry Association (TIA) board of directors. ose elected will serve three-year terms.
nominees are:
• Bill Bailey, vice president of sales, customer service and training, Myers Tire Supply, Akron, Ohio;
• Rob Czukor, CEO of Tire Recycling Consultants, Fort Lauderdale, Fla.;
• Billy Eordekian, president of 1-800EveryRim OEM Wheels, Santa Fe Springs, Calif.;
Nokian Tyres plc and Michelin Group are both leaving their production facilities in Russia due to the ongoing con ict in neighboring Ukraine. For Nokian, it means closing the tire plant in Vsevolozhsk, where just a year ago the company produced 80% of its passenger tires. Nokian says its assets in Russia and Belarus totaled about 400 million euros, as of May 31. e company will record impairments of about 300 million euros during the second quarter. In recent months, Nokian has worked to increase capacity at its other factories in Finland and in the U.S. Nokian also has decided to invest in new capacity in Europe. Michelin says it is “technically impossible to resume production” at its tire plant in Davydovo, Russia. e tiremaker plans to leave the plant and transfer it to local Russian management by the end of 2022. e plant has the capacity to produce between 1.5 million and 2 million tires a year, mostly for passenger cars. Michelin suspended tire production there in March. (Michelin’s sales in Russia account for 2% of its total global sales.) News
■ Industry
SEMA goes electric
• Eri Muca, global a ermarket TPMS manager, ATEQ TPMS Tools, Novi, Mich.;
• Ed Jones, director of sales, Bartec USA LLC, Sterling Heights, Mich.;
Nokian, Michelin plan exits from Russia
Titan International LLC is kicking off its second annual Flags Over Harvest cam paign, which encourages farmers to buy American-made Titan and Goodyear brand ag tires. Titan is giving away American ags to farmers to display on their machines during harvest.
Photo: Nokian
• Gary MacCausland, senior vice president of operations, VIP Tires & Service, Auburn, Maine;
ASE registration available
• Travis Glidden (incumbent), regional sales manager, Stellar Industries Inc., Garner, Iowa;
Voting opens for TIA board
• Gil Applegate, director of operations, Tredroc Tire Service, Elk Grove, Ill.;
e
• Craig Tinklenberg, sales and safety trainer, Fuller Brothers Inc., Clackamas, Ore., and;
The National Institute for Automotive Service Excellence (ASE) summer registration period is open through the end of September. More than 50 ASE certi cation tests covering nearly every aspect of the motor vehicle service and repair industry are available. Love’s expands Speedco Love’s Travel Stops has added ve new Speedco centers. They are located in Junc tion, Iowa; Rockville, Minn.; Waterloo, N.Y.; Ripley, N.Y.; and Cameron, Mo. Sun Auto Tire keeps growing Sun Auto Tire & Service Inc. is continuing its push into the Paci c Northwest with the acquisition of Coopers Auto Repair Special ists, which has a location in Tacoma, Wash., and another store in Puyallup, Wash. Sun Auto Tire has 369 locations in 18 states. IMI uses automation IMI, developer of the turnkey Milcure steel wheel re nishing system and process, is offering an automated truck wheel pow der coating solution, in conjunction with LestaUSA.
After 17 years of tire production, Nokian says it will exit Russia, home of its second tire plant. The site in Vsevolozhsk produced 80% of the company’s passenger tires in 2021.
• Russell Devens (incumbent), director of safety and risk management, McCarthy Tire Service Co. Inc., Wilkes-Barre, Pa.;
Titan kicks off campaign
The 2022 Specialty Equipment Market Association (SEMA) Show will feature an expanded SEMA Electrified section in the North Hall of the Las Vegas Conven tion Center. The exhibit area will feature the latest advancements in electric vehicle technology. Bites
• Craig Stevens, sales manager, Big Horn Tire, Gillette, Wyo.;
• John Evankovich, director of Sam’s Club Tire & Battery Centers, Bentonville, Ark.;
Openbay increases reach Openbay is extending its consumer reach with two recent additions — inclusion with Toco Warranty, a vehicle service contract provider, and a partnership with Gopuff, an instant delivery service.
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MTD August 202218 Relevant statistics from an industry in constant motion Numbers ThatCount 156 Total number of warehouses operated by independent tire dealerships listed on the 2022 MTD 100. SOURCE: 2022 MTD 100 Photo: S&S Firestone Inc. $20.66 Hourly wage of an average auto service technician in 2021, 6.3% more than the previous year SOURCE: AUTO CARE ASSOCIATION’S 2023 AUTO CARE FACTBOOK Photo: Getty 8.7% Increase in used vehicle registrations in the U.S. during 2021. SOURCE: AUTO CARE ASSOCIATION’S 2023 AUTO CARE FACTBOOK Photo: Getty 6 Number of tire dealerships that fell o the MTD 100 due to being acquired in the last year. SOURCE: 2022 MTD 100 Photo: Sun Auto Tire & Service 16 MILLION Total number of passenger tires exported to the U.S. from Canada last year. SOURCE: MTD’S 2022 FACTS ISSUE Photo: MTD
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In examining raw material price move ments in speci c categories, we note the carbon black has seen its price increase on a year-over-year basis for the past 18 months. In June 2022 alone, carbon black experienced a 55.8% year-over-year jump in Lookingprice.atcrude oil, 2021 saw massive price increases, which have carried over into 2022 due to geopolitical factors and in ation. We note that June saw a 60.9% year-over-year increase, while posting a sequential gain of nearly 5% from May. Natural rubber prices grew 3% in June 2022 — on top of elevated prices in the prior month. e price of synthetic rubber grew 16.3% on a year-over-year basis, while climbing 2.4% from May 2022.
THE RETURN OF TIER-TWO In response to our question about the “best and worst performers” from a product mix point of view, our recent survey of tire dealers reveals that tier-two tires were the most in-demand among consumers during June. is follows a rare, three-way tie in May — when tier-one, tier-two and tier-three brands had reached a moment of parity.Wealso note that tier-two tires were the most in-demand of all three tiers during 2021 — 10 out of 12 months, speci cally. Given continued pricing actions from manufacturers and an overall decline in consumers’ discretionary income, we were not surprised to see tier-one demand decline during the month of June. It remains true that consumers change their brand and tier preferences based on the volatile economic situation. Over the long run, we believe consumers will gravitate towards tier-two tires as they try to strike a balance between value and performance.
Twenty-nine percent fewer respondents to our most recent survey said they observed positive year-over-year demand in June, which follows trends reported by dealers in both May and April. In previous months, we had indicated that we believed delayed tax refunds may have contributed to these declines. But with refunds now largely behind us, there has been no pickup in demand. We also note that tire manufacturer price increases and in ationary pressures in the broader economy worked to dampen consumerDealersspending.alsotell us that recent price hikes are becoming less sticky and inventory levels are improving. is poses further risk to consumer tire sellout trends. While we continue to maintain our belief that long-term volumes will become more closely aligned with current levels of GDP growth, we also will be closely watching Federal Reserve actions as interest rate hikes pose an additional risk to economic expansion and could drive a short-term contraction in GDP growth.
RAWS ARE ON THE RISE e price of tires isn’t the only thing that continues to increase. e basket of raw materials needed to build a common replacement consumer tire rose 35% on a year-over-year basis this past June, while also increasing by 2.6% since May 2022. This continues the trend of rising raw material inputs on a year-over-year basis, which started at the beginning of 2022. Looking back on the second quarter of the year, we note there was a 33.7% year-over-year increase in general input costs, plus a 6.7% sequential increase from the rst quarter of 2022. Holding current spot prices at would yield a 32.9% year-over-year increase next quarter, which would represent a 2.7% sequential increase from the second quarter.
We continue to track geographic regions that show positive growth and note that during the month of June, no region reported sellout increases. The Mid Atlantic region showed the strongest performance, but was flat compared to the same period in 2021. The Northwest region performed the worst on a yearover-yearDealersbasis.onceagain indicate that overall in ationary impacts on consumers — as well as pricing actions from tire manufac turers — are driving the declines in both demand and retail sellout.
Retail sellout continues to decline ON THE BRIGHT SIDE, INVENTORY LEVELS ARE STARTING TO REBOUND John HealyBy
MTD August 202220 Your Marketplace
Apr-21May-21Jun-21Apr-22May-22Jun-22Average Increase83%34%25% Decline17%33%50%67%50%57%32%Flat0%33%25%17%33%14%27%16%17%29%41% Total100%100%100%100%100%100%100% SOURCE: NORTHCOAST RESEARCH ESTIMATES
Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year Change)
Lastly, the price of various tire rein forcement items continued to increase, jumping 39.2% on a year-over-year basis in June — a strong increase similar to what was observed the previous month. ■
John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland. Healy covers a variety of subsectors of the automotive industry.
Recent dealer commentary suggests that consumer demand for passenger and light truck tires continues to drop. Demand fell on a net basis this past June versus the same month in 2021.
Photo: Butler Tires and Wheels
E conomic indicators point to the possibility of a general downturn — if not a full-fledged recession — taking place in the United States sometime next year. “I recently heard someone say, ‘A recession is com ing like a hurricane,’” says Joe Ramsay, the owner of Venice, Fla.-based Pit Stop Auto Repair. “But we don’t know if it’s going to be a category one hurricane or a category five hurricane. There’s going to be some destruction. We just don’t know to what extent.”
MTD staffBy Craig Dobrin, vice president of operations at Butler Tires and Wheels, which has four stores in the Atlanta, Ga., market, says cutting staff is the “last thing” the dealership wants to do. “There have been two or three other tire shops” in Butler’s area that have let employees go, leaving these companies unable to service customers effectively, he reveals.
MTD August 202222
How can you prepare for a possible dip and the impact it could have on your profitability? Fellow dealers share their advice in this MTD exclusive. Keep your people. Butler Tires and Wheels has four locations across the Atlanta, Ga., area, where the majority of its “prep work” will happen in anticipation of an economic downturn, says Dani Freedman, the dealership’s vice president of marketing. “I think we are at a difficult time right now because inflation is at its highest and supply is at its lowest,” says Freedman. Recession-ready
Is your recession-ready?business DEALERS SHARE TIPS FOR WEATHERING THE STORM
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“We have an electrical contractor not far from us who has 30 vehicles. We work on his vans. He has a giant trencher that we fixed. We’ve rewired his trailers for him. “We do school buses and local fleets that use Ford Transit vans to transport clients.
MTD August 202224 “Typically, if you were preparing for a recession, you would start lowering prices, letting people go and really tightening everything up.”
To combat inflation, Sparks Tire has had to reevaluate some of its operating procedures. “With the fuel surcharges and everything else that we’re seeing, we’ve had to readjust some of our service rates and things like that just to try and lighten the blow,” says Sparks, who adds that surcharges also impact his supply of tires — another area where readjustment might be needed.
Adjust, adjust and adjust again: John Sparks, president of Sparks Commercial Tire Inc., a five-location dealership based in Findlay, Ohio, says the scariest thing about today’s economy is theThat’s“unknown.”whySparks’
Photo: Sparks Commercial Tire Youngstown, Ohio-based Westside Tire & Service is expanding its business by servicing more eet accounts. “Those eets are there 365 days a year,” says Rich Rogenski, the dealership’s president (pictured with Lisa Walters, its vice president.) “And we understand their needs better than most shops.”
“With the fuel surcharges and everything else that we’re seeing, we’ve had to readjust some of our service rates and things like that just to try and lighten the blow,” says John Sparks, president of Sparks Commercial Tire Inc., which is based in Findlay, Ohio.
“We want to continue doing what we are doing and just find a way to do it better and be a little more efficient,” adds Dobrin.
biggest piece of advice for other tire dealers is to adjust and readjust, as needed. And watch inven tory levels closely. “We just don’t know what’s going to change,” he says. “Will everything going on overseas affect us? Will it not? Is manufacturing going to be impacted? I don’t know. I don’t have a crystal ball. “But I do have ways to prepare, like keeping an eye on inventory levels — and adjusting those, when needed — and preserving cash.”
“Whether it’s (investing in) new equipment or doing something differently based on what our customers are saying their outlook is, we try to adjust to keep efficiency up.”
Photo: MTD
Recession-ready
The dealership maintains close contact with its suppliers and customers. “We can talk to our major customers and find out what they’re forecasting for production or what economists or people that they listen to are forecasting for the next six to 12 months and try to adjust not only for our inventories, but any kind of capital outlay that we may be looking at.
Craig Dobrin, vice president of opera tions at the dealership, says cutting employ ees is the “last thing” Butler wants to do. “There have been two or three other tire shops” in Butler’s area that have slashed head count, rendering these companies unable to service customers effectively, he reveals.“Wewant to be well-staffed enough that we can blow (customers’) minds withFreedmanservice.”
Take it to the fleets. Westside Tire & Service, a three-location dealership based in Youngstown, Ohio, is pursuing fleet busi ness to supplement its normal work. The company has more than 30 fleet accounts — including building contractors, an ambulance service, a TV station, a tree removal company, a funeral home and others — and is looking to pick up new clients all the time, says President Rich Rogenski.
and Dobrin emphasize that both customers and employees need to be taken care of during economic downturns. Butler also is looking at other actions that worked for it during the COVID-19 pandemic.“When the pandemic first started, Craig took sort of a gamble,” says Freedman. “He started taking a lot of our working capital and investing it in more inventory. He started stacking our warehouses with about a million dollars (of tires and wheels), which allowed us to effectively quadruple our central warehouse inventory.” Freedman says Butler also is using this time to do some “housekeeping. We are making sure not only that the staff are the best they can be, but that the stores are in shipshape (condition) and inventory is in order.”
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“Since tire prices have gone up, I’m trying not to replenish everything that I would normally stock. In a lot of cases, I’ve had good-better-best (in inventory) and now I’m (stocking) entry-level and medium and the ‘best’ is on demand.”
Recession-ready
For now, he’s focusing on inventory. “I’ve been through downturns before and had too much wheel inventory that I couldn’t turn into cash. We’ve had a couple of mild winters and carried over winter tires (from previous seasons.) So we’re not ordering any winter tires. We’re going to sell what we have. We haven’t had to stock up.” He acknowledges the availability of all-weather tires will help him hedge that bet. But his inventory management efforts extend to every tire category.
Elliott says tire shortages from multiple manufacturers and
Buy, don’t build. Venice, Fla.-based Pit Stop Auto Repair isn’t letting the threat of a recession curtail its growth. The dealer ship has seven locations along the southwest coast of Florida and will add more. But not all will be new builds, according to Joe Ramsay, Pit Stop’s owner. “The last three stores we opened were new builds. It was cheaper to buy or lease newly built buildings. But we’re anticipating a swing back to acquisitions,” which he admits, can be more expensive up front.
His advice to other dealers who are looking to get into the eet business? “Just go to Google and nd out the amount of potential customers you can have. We also send out letters to eets, telling them about us and what we can do for them.”
Venice, Fla.-based Pit Stop Auto Repair isn’t letting the threat of a recession curtail its growth. The dealership has seven locations along the southwest coast of Florida and will add more. But not all will be new builds, says Joe Ramsay, Pit Stop’s owner. Acquisitions might make more sense. “If you start a new store, you’re starting with no sales.”
Photo: Pit Stop Auto Repair
Despite those actions, Tuck notes his team is setting monthly and annual sales records. “We’re hoping to break a record again this year. We’re on track for $3.2 million” in gross sales.
Focus on today’s demand: With 15 locations in central Indiana, Indy Tire Centers Inc. dba Best-One of Indy is tuned into the uncertain economy. But President Rich Elliott says the tire dealership also is working to meet the demand that still exists in its retail and commercial locations, as well as at the company’s retread plant. “We’re definitely seeing a lot of different indicators that are pointing toward a recession and not just what you hear from the government or the media,” says Elliott. “We’re certainly concerned about that. We’ve had conversations about it so we’re not just moving ahead blindly. “Yet demand is so great and the people shortage is still a challenge in order to take care of the demand. It’s really hard to begin making plans for a potential recession.”
MTD August 202226
“The painting contractors, electrical contractors and heat ing and air conditioning contractors — they’ve been great business for us. Those fleets are there 365 days a year. And we understand their needs better than most shops.”
Fleet customers, he says, “always get first dibs” at Westside Tire & Service. “When that vehicle is in my bay, it’s not making the fleet any money. We’ll have someone assigned to the vehicle so we can get it inspected, find out what it needs, put together an estimate, present it to the customer and then give him a timeframe so he’s able to make plans. And we’re so certain of the work our technicians perform that we offer a three-year, 36,000-mile parts and labor warranty. That’s why we’ve been so successful and one reason why we’ve been able to keep our bays full.”
“However, if you have a store you can acquire and your payment on it is going to be $7,000 a month, but the store is turning out consistent revenue and profit at, say, $140,000 a year, that means in year one, you’re” generating good returns.
“If you start a new store, you’re starting with no sales. So you may not profit at all the first year. The pay-off is longer” on a new build in most cases, he notes. An acquisition can “help get you there quicker. And my feeling is that we’re going to see slower growth in new stores in a down economy, so that catch-up period might be extended a little longer.”
Scrutinize your inventory: Operating in Tacoma, Wash., has its advantages, says Ed Tuck III. Among them is that in his experience, economic downturns disrupt business on the East Coast first. Tuck, the president and CEO of T&T Tire Point S, says that means historically, he’s had extra time to make adjustments before his local economy takes a dip. “I’ve been cautiously optimistic waiting for the bottom to fall out.” He’s watched gas prices rise and then drop, but knows that for plenty of households, “discretionary spending has been eaten up by fuel.”
A tough economy also might lead to more tire dealers exiting the business, says Ramsay. “Once it gets rough, some places might not be prepared to weather the storm,” creating opportunities for Pit Stop to “grab” a couple of new stores.
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Warren Tire Service has made big investments in properties, vehicles and equipment. “We own (the properties of) 11 of our locations,” says Robert Kellogg, the company’s president. The rest of the dealership’s stores are leased.
After an exceptionally busy year in acquisitions — the company bought three Indiana tire dealerships in five months in 2021 — Elliott says there aren’t plans to expand in 2022. “I think last year was kind of a perfect storm. This year, we’re more focused on getting our arms around what we acquired and making all those people and those locations feel like they’re part of our Best-One of Indy family — like our current locations have felt.”
■
Recession-ready
Continue to diversify. “One of the things we’re really focusing on is keeping our customer base diviserse,” says Brian Chase, executive vice president of Frederick, Md.-based Rice Tire Co., which has 11 combination retail/commercial locations. “We make sure we don’t have all of our eggs in one basket in terms of one, two or three customers. And we are pretty well-diversified between our local book commercial accounts and our big national account fleets. We do a lot of government work and we still do a fair amount of retail. “And that’s been a focus for us — not to get too heavy in any one direction, so if there’s a downturn in trucking, we’ll have a lot of government business to keep us going,” as well as other accounts. “The challenge now is you have to invest in people and you have to invest in equipment in order to find new customers and service them.”
“Since tire prices have gone up, I’m trying not to replenish everything that I would normally stock,” says Ed Tuck III, president and CEO of T&T Tire Point S in Tacoma, Wash. He adds that his company is setting monthly and annual sales records.
Indy Tire Centers dba Best-One of Indy acquired three other tire dealerships in 2021. “This year, we’re more focused on getting our arms around what we acquired,” says Rich Elliott, Best-One of Indy’s president.
MTD August 202228 even a tread rubber shortage have “created a lot of challenges,” while demand is still great. So at this point, the focus is on serving“We’recustomers.mindfulthat things are pointing towards a slowdown or recession of some kind, but we have not made any specific adjustments because the demand remains so high.”
He says the tire industry is a good one to be in at the moment. “We have steadily thrived and grown our business — including during the 2008 recession — and every challenge has been met with a successful outcome.”
Photo: T&T Tire Point S
Photo: Best-One of Indy
Stay positive: Headquartered in Queensbury, N.Y., Warren Tire Service Center Inc. has 15 locations and employs 147 people. The dealership, which has been operating for nearly four decades, knows what works for it when an economic downturn is looming.
Kellogg feels that he and his team could go “for a few years cutting those expenses back drastically, if needed. “Our biggest expense — like any business in our industry — is payroll. In the past, we have incorporated hiring freezes during recessions. For example, during the 2008 recession, we had nine people retire or leave the company for various reasons in a year’s time and that worked well to keep expenses in line with (our) 8% loss in sales during the same period. We eventually replaced those positions as business picked back up. Note that we did not have any layoffs. In fact, in our 39-year history, we have never needed layoffs.”
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MTD August 202230
To say that the light truck segment is booming would be an under statement. In 2021, 38.6 million replacement light truck tire units were shipped in the United States, a 17.2% increase over previous-year levels.
e U.S. Tire Manufacturers Association predicts that nearly the same number of light truck tires will be shipped within the replacement channel this year. Which category within the light truck segment — all-terrain (A/T), mud-terrain (M/T) or rugged-terrain (R/T) — will have the biggest potential for growth? Light truck tire suppliers’ opinions di er. However, all agree that each of the three categories will yield big pro t opportunities for dealers who understand their nuances and how to sell them.
Photo: American Kenda Rubber Co. Ltd.
Stephen Liu, senior director, proprietary brands, American Tire Distributors Inc.: While the R/T segment has the largest growth potential, many consumers will have their needs met by a new generation of A/T tires. e A/T segment has evolved. It has more aggressive features and more t ment coverage, giving us a broader reach. Because A/T products have evolved and provide more tment coverage, dealers can look for more organic sales. Consumers want plenty of options to meet a variety of needs. Many A/T tires have aggressive features that come close to an R/T, while still meeting consumers’ everyday needs.
LIGHT TRUCK TIRE CATEGORIES BATTLE FOR SUPREMACY Light truck tires
Brandon Stotsenburg, vice president, automotive division, American Kenda Rubber Co. Ltd.: e overall volume of the A/T segment should outpace the R/T and M/T (segments), but the R/T segment will likely outpace the others in percentage of growth. e overall ability of A/T tires to provide capable o -road performance while meeting daily on-road needs will continue to drive its appeal. e A/T consumer will generally include CUV, SUV, light truck and many Jeep or Bronco applications. R/T consumers will include light truck, SUV, Jeep and Bronco owners who desire a bolder look and o en intend to spend signi cantly more time o -road. is tire is particularly attractive for the growing overland communities that are spending time with families and friends in challeng ing outdoor environments. e best tires identi ed as R/T o er enhanced aesthetics to allow the owner to customize their looks. Kenda does see the M/T segment grow ing, too, but not at the higher volumes of the R/T and A/T segments. ere remains a large contingent of primarily young men who want the more extreme look of an M/T tire. We recommend that dealers understand the actual capabilities the M/T options o er or consumers will only consider initial looks and price. Consumers who buy o -road tires do more online research than most other a ermarket tire customers. Dealers who take the time to update their websites to show these consumers they understand (their) lifestyle needs and have images and/ or videos showing options will stand out. Kenda also recommends that there is a store-level light truck tire expert who can discuss li ing, plus sizing and 3-Peak Mountain Snow ake certi cation and has experience with these segments to discuss options and trade-o s. We recommend that dealers display tires on wheels in the store to allow consumers to visualize options.
King of the hill
Mike MangesBy “The overall volume of the A/T segment should outpace the R/T and M/T (segments), but the R/T segment will likely outpace the others in percentage of growth,” says Brandon Stotsenburg, vice president, automotive division, American Kenda Rubber Co. Ltd. R/T tire buyers, he adds, “desire a bolder look.”
31www.ModernTireDealer.com
Photo: American Tire Distributors Inc.
J. Downey Sr., product manager, Apollo Tyres Ltd.: e light truck vehicle cat egory has experienced a sizable surge since 2015, jumping from 9.9 million vehicles sold annually to 12.2 million in 2019. e signi cance and implications to our industry will be (that) tier-one and tier-two replacement tire demand in 2022 and 2023 will be at an all-time high.
Brad Robison, senior product manager, Bridgestone Americas Inc.: We’re expect ing to see further growth in the o -road segment being led by all-terrain. Within this segment, we can see varying degrees of o -road performance, from very mild allterrain tires to extreme o -road tires, which touches on many of these sub-categories. e all-terrain market has grown steadily over the last few years, primarily driven by a ermarket modi cations. It is now being propelled forward with original equipment manufacturers adding all-terrain tires to more of their vehicles. We don’t foresee this trend All-terrainslowing.tiresare great for drivers who want o -road capability, but also spend a great deal of time on the highway. A premium all-terrain product will provide the o -road traction drivers desire and deliver strong performance on dry, wet and snowy roads and a comfortable ride. is will keep the commute enjoyable and con dence high if o -road capability is needed. For those looking for more aggressive all-terrain capability, you have M/T and R/T. Both segments are gaining traction in the last few years as we see more recreational vehicles. We anticipate further growth as other manufacturers continue making vehicles for consumers who like to explore the o -the-beaten path.
“Many A/T tires have aggressive features that come close to an R/T tire, while still meeting consumers’ everyday needs,” says Stephen Liu, senior director, proprietary brands, American Tire Distributors Inc., which sells Hercules brand light truck tires.
“Consumer demand for A/T, M/T and the emerging R/T market will continue to grow,” says J. Downey Sr., product manager, Apollo Tyres Ltd., which manufactures and markets Vredestein brand light truck tire products.
e impact to any dealer will be the ability to secure an o ering of a product portfolio to consumers of A/T, M/T and an emerging new segment of R/T. e R/T products currently on the market have a combination of an aesthetic appearance of an M/T, with the longevity and somewhat traditional tread patterns as an A/T design. Consumer demand for A/T, M/T and the emerging R/T market will continue to grow, as will demand from dealers to manufacturers. Understanding the manufacturers’ product plan pipelines is vital to meeting your current and future customers’ needs.
Michael Mathis, president, Atturo Tire Corp.: e biggest potential growth for the LT market is in the hybrid category. e reason that hybrid patterns are so important in the market is their versatility. e hybrid pattern is a great option to the owner coming from an H/T or A/T pattern who wants a more aggressive tire. It is also attractive for the li ed truck owner who started with an M/T and now wants a quieter and better-riding tire. It is our belief that while the other LT segments — H/T, A/T and M/T — are not going anywhere, the hybrid pattern is the future of the LT a ermarket.
Light truck tires
Travis Ro er, director of marketing, Continental Tire the Americas LLC: We still believe the A/T market has a
Photo: Apollo Tyres Ltd.
“The biggest potential growth for the LT market is in the hybrid category,” says Michael Mathis, president, Atturo Tire Corp. “The reason that hybrid patterns are so important in the market is their versatility.”
Photo: Atturo Tire Corp.
“We’re expecting to see further growth in the off-road segment being led by allterrain,” says Brad Robison, senior product manager, Bridgestone Americas Inc.
Photo: Bridgestone Americas Inc.
Absolutely.Asonemoves from an A/T-type to the aggressiveness of M/T styles, ride comfort usually diminishes, tires are noisier, wet traction on pavement may suffer and irregular wear is more likely to occur. Over the past decade, M/T market volumes also have been growing at an accelerated rate. Your task is to gure out whether your customer is an avid o -roader or if they just want the appearance of this “rugged individualist” capability. If it’s the latter, nd a tire that gives them the look they desire, but with the ride, comfort, wet grip and tread life they expect — maybe an R/T. Be sure to know the features and bene ts of your products and of course, those products you can get quickly. Also ensure your counter people ask the right questions to recognize the key items for customer satisfaction.
Rob Williams, senior vice president, North American sales, Hankook Tire North
Light truck tires
MTD August 202232 tremendous potential for growth, but we view the market in a little di erent way. We believe there are two distinct levels of A/T customers. ere are customers who got an A/T tire when they bought their vehicle, even though it wasn’t their choice. We call these folks unsuspecting A/T customers. We believe this portion makes up about 75% of the A/T market. en you have others who want a more aggressive stance for their vehicles. We believe both of these segments are poised for additional growth as truck and SUV sales continue to surge. LT-metric tires, for the most part, are more durable, they can carry more air and more load, they are built with thicker cord plies and (have) more rubber in critical areas than their P-metric counterparts. Certainly, price can be an issue for the sale. But to any of us who have been stuck somewhere o -road with a at tire, the price will pale in comparison to that experience. So if your customer comes in looking for additional durability and impact resistance, an LT-metric tire could be right for them. David Shelton, director of industry rela tions, Giti Tire (USA) Ltd.: The A/T category has grown over the past seven to 10 years at an accelerating rate. e A/T range of o erings vary by brand — and within brands —from a very highway tread appearance to a very aggressive ... almost to the R/T, in tread design. is category has o erings and products in P-metric/metric sizes and LT-type sizes. Some of these products are designed for being on the pavement 99.9% of the time. Some are designed to look like they can go anywhere and yet have the comforts of milder designs. R/T tires are a blend of the character istics of the A/T and M/T so that those who really do intend to go o -road or into deep snow can get there and back, even in some of the nastier conditions. Yet (customers) still want reasonable ride and comfort conditions for their vehicle. is group is growing as the appearance market grows. As a hybrid of the two groups on each side of the A/T and M/T divide is growing at an accelerating rate, so is the market for R/T. e M/T category features some really aggressive tread designs, with big blocks and deep treads, as well as big void areas. ese (tires) are designed for getting into and out of deep mud. Are there trade-o s?
© 2022 Bridgestone Americas Tire Operations, LLC. 1Conditions apply. See bridgestonetire.com/warranty for Fordetails.the customer that goes the distance and beyond, Bridgestone has a tire to match. The Alenza AS Ultra delivers an exceptionally long tread life and a luxury driving experience. Give your customer more longevity in their purchase with an 80,000 mile warranty1—the longest limited warranty offered by a CUV, SUV and truck tire. A luxury ride matters. Long-lasting peace of mind—that’s what really matters. When Endurance and Comfort Matter.
Rick Phillips, CEO, Keter Tire Inc.: We have seen growth across all light truck segments, although not quite as robust this year as last. e A/T segment continues to have the biggest share of the light truck business, but we are seeing the most growth in the R/TItsegment.seemsto have found a sweet spot between the A/T and M/T products. Con sumers appreciate that balance of o -road performance and on-highway service.
“The A/T category has grown over the past seven to 10 years at an accelerating rate,” says David Shelton, director of industry relations, Giti Tire (USA) Ltd.
MTD August 202234 America: At this moment, R/T has the biggest potential in this speci c category. All of the light truck tire categories are continuously growing. e market for A/T is still signi cant and consumers want to be able to drive quietly and comfortably in their daily lives. But we have seen a trend with consumers wanting a more aggressive design than A/T. R/T is a newly created category that deliv ers both comfort and an aggressive design. The R/T market has now become a category that most people recognize and a variety of new products are being released for this (category.) Dealers should be aware and prepare for market demands and trends. Consumers should be aware of their driving habits and know their specific needs, such as an aggressive design and strong traction or a quiet ride with longevity, so dealers can suggest the appropriate category.
Chris Jenkins, programs and marketing manager, automotive division, Maxxis International — USA: Maxxis sees that all-terrain sport and A/T tires will actually have the biggest growth in the years to come. Like many new vehicles on the market, the A/T is really a hybrid type of tire today. It has to be able to give you the on-road characteristics and agility of an A/T sport tire, along with the off-road stability and aggressiveness of an M/T tire. With crossovers, SUVs and trucks being the most prevalent vehicles in the market, the A/T tire will need to have comfort, control, tread wear and low noise, like an A/T sport, while also incorporating a tougher and stronger look, like the M/T.
Light truck tires
Photo: Continental Tire the Americas LLC
Photo: Giti Tire (USA) Ltd.
Victor Qui, vice president of sales and marketing, Horizon Tire Inc.: R/T still has the bigger potential for growth as SUV/ LT dominates the automobile market. R/T gives that muscular look, but (is) easy on pavement with lower noise and a comfort able ride. Dealers in that market segment should be o ering some popular sizes.
“We still believe the A/T market has a tremendous potential for growth, but we view the market in a little different way,” says Travis Rof er, director of marketing for Continental Tire the Americas LLC, which produces and sells General brand tires. “We believe there are two distinct levels of A/T customers.”
Brandon Sturgis, BFGoodrich product manager for CUV/SUV/LT/O -Road tires, Michelin North America Inc.: BFGoodrich feels that the A/T category has the largest potential for growth over the next few years. is category is already growing, but new, o -road-oriented packages from original equipment manufacturers on pickups, SUVs and even CUVs will continue to fuel this Dealersgrowth.canprepare for this growth by having the right products for what customers really need.
Most dealers are already on top of the trends in their respective markets. ey should use the trends to keep their inventory on hand in sync with market demand.
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Jason Yard, marketing director, Nexen Tire America Inc.: All three are going to continue to grow. Many factors will determine which will grow the biggest, including regions, availability, pricing and performance.eA/Tmarket continues to be one of the most popular due to road manners, combined with capability. Also this category continues to gain popularity with mid-size SUV and CUV owners. e M/T market is popular for replacement tires and since many people are keeping their trucks longer, this is o en an early upgrade. e R/T market is still fairly new and enthusiasts are gravitating to it, but it’s not as mainstream yet. It will probably be a bigger growing market as more options are available. ese factors all di er in di erent climates and by availability from dealers and distributors.
“The A/T market continues to be one of the most popular due to road manners” and other factors, says Jason Yard, marketing director, Nexen Tire America Inc.
“Both A/T and R/T tires are becoming more capable (in) off-road and other performance settings, while delivering an improved highway ride,” says Stephen Leu, director of brand publishing, Nitto Tire U.S.A. Inc.
Photo: Nexen Tire America Inc.
Stephen Leu, director of brand publish ing, Nitto Tire U.S.A. Inc.: We have seen dealers opting for more A/T and hybrid R/T-type tires as of late. Although there will always be a dedicated M/T buyer group, we do see increasing consumer demand for both A/T and R/T products due to the value proposition — cost versus performance — provided. Both A/T and R/T tires are becom ing more capable (in) o -road and other performance settings, while delivering an improved highway ride.
MTD August 202236
Erdem Halulu, chief commercial o cer, Pirelli Tire North America Inc.: e A/T segment is the one that is the biggest in that segment and growing very fast. It’s where we see the biggest potential for the future. That’s why we are focusing on this segment with the development of dedicated products. ere are new players in the market that will push even more growth of the A/T segment. Dealers should follow these car parc changes and monitor the growth of this category in order to get prepared with necessary inventory actions.
Jack McClure, director of product development, Sailun Tire Americas: e R/T market stands out in the light truck tire segment. R/T (tires) are the new, cool kid on the block. e tire has style, deeper treads, aggressive sidewalls and still o ers customers a great option (for) their daily drivers. Dealers enjoy the versatility of R/Ts and need to continue to supply products according to minimum original equip ment standards. Dealers also will be able to help customers with upsizing, wheel packages and possibly more. When it comes to options, the sky is the limit. Many consumers will (select) a small upsize or add that beefier look, but will not go to extremes. R/Ts will fit a variety of tastes.
Photo: Nitto Tire U.S.A. Inc.
Ken Coltrane, vice president, marketing and product development, Prinx Cheng shan Tire North America: We believe it will most likely be the R/T category. Dealers are telling us consumers want a more aggressive design versus the A/T, but also a tire that is more comfortable to drive and with better mileage than the traditional M/T.
Light truck tires
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Photo: Toyo Tire U.S.A Corp.
Andrew Hoit, vice president of sales and marketing, brands division, Tireco: We project that the A/T segment will have the biggest growth over the next few years. We believe the A/T category has evolved into two sub-categories — mild and aggressive A/T. With the growth of overlanding and outdoor recreation, in general, we are seeing many CUV owners now gravitating towards the A/T category for their tire purchases. ose consumers want their A/T tires to look more aggressive with a robust shoulder and have an aggressive sidewall design, without completely compromising on-road performance and fuel economy. Dealers need to make sure their product screen provides more options when helping customers choose. ere are customers for both the mild and aggressive A/T tires and it’s important to have options for both.
Rugged-terrain tires marry the best features that A/T and M/T tires have to o er — giving users the aesthetic look M/T tires have in a bee er and chunkier frame with all the bene ts of a smoother and quieter ride (that) an A/T provides. We have seen more and more migration to this type of tire than any other in the light truck range. Dealers should make sure they carry a line that provides them an option in the R/T category. While sizing is the same as the A/T andM/T categories, not all manufacturers carry a true R/T tire in their portfolio. Making sure you have access to one is key, speci cally in this segment, as consumers tend to do a lot of research and are more informed when it comes to making a tire buying decision in this category.
Photo: Tireco
Joaquin Gonzalez Jr., president, Tire Group International Inc.: e biggest growth will come from the R/T category.
“We project that the A/T segment will have the biggest growth over the next few years,” says Andrew Hoit, vice president of sales and marketing, brands division, Tireco.
MTD August 202238
Conrad Galamgam, vice president, prod uct planning and technical services, Toyo Tire U.S.A. Corp.: e A/T and R/T categories, in particular, have the biggest potential for growth and continue to evolve — adapting to a wider variety of o -road enthusiasts, vehicle customizers and adventure seekers. Although new vehicle sales have been limited by supply, pent-up demand for SUVs and pickups remains consistent. In 2021, new trucks outsold new cars three-to-one and there are more registered light trucks on the road today than passenger cars, which is leading to more opportunities to help customize both new and new-to-me pickups, SUVs, and CUVs. A/T and R/T category tires have features, sizes and load ratings to meet the needs and wants of the growing o -road community.
“The A/T and R/T categories, in particular, have the biggest potential for growth and continue to evolve — adapting to a wider variety of off-road enthusiasts, vehicle customizers and adventure seekers,” says Conrad Galamgan, vice president, product planning and technical services, Toyo Tire U.S.A. Corp.
Tire dealers should be prepared to be solution providers to help identify the right tire to complement their customer’s o -road project. Whether so -road com muter, weekend trail warrior or expedition overlander, the fundamentals remain the same — (provide a) friendly greeting, get out to the truck, interview the customer Light truck tires
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Roman Racela, marketing director, Transamerica Tire Co. Ltd.: e o -road adventure travel scene has been growing steadily over the last ve years. All light truck tire categories experienced growth in the last couple of years, but projecting future growth, we think that the R/T tire category will experience continued growth that is better than that of the A/T and M/T (categories.) By how much? It’s hard to guess. We think that the strongest attribute of an R/T tire is its hybrid characteristics. It has the mild road manners of an all-terrain tire, while having the aggressive good looks and o -road performance of a mud-terrain tire. You get the best of both worlds. We think that’s what most customers will gravitate to in the coming years. Also let’s not forget that because of the rising cost of gasoline, a new trend has emerged in up tting smaller or compact rigs like the Subaru Crosstrek, Jeep Renegade and Toyota RAV4 that require smaller but aggressive all-terrain tires. at’s another category in the o -road scene that tire dealers need to be aware of.
Photo: Trimax Tire “The A/T market will have the biggest potential for growth over the next few years,” says Drew Dayton, senior product planning manager, consumer, Yokohama Tire Corp.
A/T tire technology has advanced over the years, where the norm has become tires with longer mileage warranties, severe weather ratings and reduced noise levels on the highway, while still having an aggressive appearance.Allthese features will help the A/T category grow over the next few years as consumers will have less anxiety switching from an H/T tire to an A/T tire. ■
MTD August 202240 and sell the features and bene ts that your customer values the most. Regardless of on- or o -road use, it is imperative that replacement tires for any vehicle must be of a size, load range and load capacity — by in ation — that is capable of supporting the same load as the vehicle’s originally installed tires.
Chris Tolbert, director of sales, Trimax Tire: The R/T market is still a fairly new product segment and in the growth phase. With the future growth of light truck electric vehicles, the A/T segment’s design will need to have a balance between roll ing resistance, less noise versus traction and handling.eR/Tsegment … o ers the rugged look and on/o -road capabilities of M/T with a smoother ride (and) less noise, plus complements the custom wheel segment. Work with your tire distributors on size and pattern trends to help with the retail product screen and find additional ways to help educate your sales staff. Follow up with tire manufacturers (on) education material. Drew Dayton, senior product planning manager, consumer, Yokohama Tire Light truck tires
“The R/T market is still a fairly new product segment and in the growth phase,” says Chris Tolbert, director of sales, Trimax Tire.
Photo: Yokohama Tire Corp. Corp.: e A/T market will have the big gest potential for growth over the next few years. is is due to new vehicle sales in the light truck, SUV and CUV segments growing year-over-year, with several models focused on o -road capabilities that come with A/T tires from the factory. is in turn will translate into consumers coming in for rst and second replacement tires for their vehicles.
HIRING POST-PANDEMIC e COVID-19 pandemic has put a strain on nding new workers, says Holmes, who adds that Virginia Tire is experimenting with di erent recruitment methods. She says the majority of applicants for roles at her company are men and that can exclude another demographic that may be just as skilled — women. “We are not (always) getting the bene t of employing di erent kinds of people who would handle situations di erently,” says Holmes.elackof female applicants sets Vir ginia Tire behind other retail businesses in the dealership’s area that compete for workers, she says, including “grocery stores, co ee shops — anyone in retail. “At the end of the day, we are selling a product to customers like the rest of the retailers, except we only get applications from half of the population.”
Holmes, who runs Virginia Tire with her husband, Mike, has four daughters and a son. She says knowing that her daughters are watching her being treated as an equal
41www.ModernTireDealer.com Virginia Tire & Auto
“I ’ve been in the business for over a decade now, and of course, I can’t help but notice that not many people look like me,” says Julie Holmes, co-CEO of Virginia Tire & Auto LLC, a 17-store dealership based in Fairfax, Va. She wants to change this. So Holmes has started a campaign at Virginia Tire & Auto to recruit more women to work at theThedealership.campaign has been a gradual process for Virginia Tire, with its kick-o last summer and a renewed drive to hire women that started in the fall of 2021. ere are a total of four people who hold positions of leadership at Virginia Tire. Half of them are women. Holmes wants to make sure that female representa tion is equal on all levels of employment within the company.
DEALERSHIP HIRED 31 WOMEN LAST YEAR, CAMPAIGNS FOR MORE
Photo: Virginia Tire & Auto
Maddie GehringBy Julie Holmes (right), co-CEO of Fairfax, Va.-based Virginia Tire & Auto “is happy with where we are starting” when it comes to employing more women across the dealership’s 17-store footprint.
Virginia Tire wants more women
Holmes says her employees take calls, deal with customers, relay information to service techs and much more. “You have to be able to walk and talk at the same time to function in a high-volume automotive repair shop,” says Holmes.
In 1983, Lori Mavrigian — then Lori Wiese, who eventually retired from MTD in Janu ary 2021 — wrote an article in MTD titled “Women Tire Dealers.”
Sandie Crawford, co-owner of Economy Tire & Service in Elgin, Ill., called female tire dealers a “breed of our own” and compared being a female tire dealer to “breaking into the steelworkers union.”
Virginia Tire & Auto
The idea started with a note from a female tire dealer, Nancy Beaty, who at the time was the president and owner of Brothers Tire Co. Inc. in Dallas, Texas. Beaty wanted to know if there were others like her.
Ruth Halloway, president and general manager of Superior Tire & Rubber Inc. in Houston, Texas, which also owned a Bandag retread plant, said she was treated like “any other employee” by her customers. She also served on Bandag’s advisory board.
Lori took the question to MTD’s readers. Responses to her call came in quickly. “Yes, Nancy Beaty, we are out here,” said Betty Wilson, owner of Wilson Garage & Tire Store in Roseland, Ind. “Never fear. You are not alone in the tire business.
THE BENEFITS OF DIVERSITY Holmes says that the men she works with — and who work for her — have a great set of skills that make them excel at their However,jobs. she thinks that bringing in more women will add an even greater bene t to the Virginia Tire team. Holmes believes women excel at com munication, empathy and multitasking — skills that are necessary in the tire and auto repair business. She says empathy and communication skills are especially important because customers are coming to the dealership “from a point of pain. “When customers come to us, they have a pain point and they are trying to either move towards pain or away from pain. “We x cars and sell tires. People have to buy this stuff because of a need or because they are literally in pain right now.”
Crawford continued by saying her knowledge of tires was her most useful selling tool. She used this to gain customers’ trust, but also noticed female customers were more dif cult to sell to. Crawford revealed that many women seemed “intimidated” by her “ability to compre hend tires and vehicles.”
Photo: Virginia Tire & Auto ADVERTISING FOR WOMEN
“If it’s a job listing that says ‘ ve years experience’ for a manager position … men will look at that requirement and disregard it. But something as small as that verbiage can hold back a woman
“In the past, I was the only female on the board in (Bandag’s) South Central division. They always ask me to take the minutes in the meeting, but I feel that a male member can do secretary chores as good as or better than me. Therefore, I leave it to the males to get this done!”
Female tire dealers were well-represented nearly 30 years ago They shared their experiences with MTD
To increase its number of female employees, Virginia Tire is tweaking its job recruitment ads to be geared more towards women. And Holmes says her company is being vocal about wanting to hire more females. She also believes that it’s important for men to realize the lack of women in the tire and auto repair business. e challenge, she says, is that men at tire dealerships are almost always exclusively around — and working with — other men all day. “You don’t know you’re the only one in the room who looks like you until you stand in a room lled with people who don’t look like you,” she says.
Terry Hawthorne was part owner of Hawthorne Wholesale Tire in San Marcos, Calif. She said only one customer ever refused to buy tires from her because of her gender. For most of her customers, buying tires from a woman wasn’t a big deal. However, this was not the case for her mother, who also ran a tire dealership. “My mother, Rosemary Tucker, found herself as the owner and active runner of a agging Tucker Tire Co. In 1960, service station owners she approached would not only hang up on her, but add a few colorful words, too.”
Virginia Tire has tweaked a lot of its advertising to appeal to potential female employees. In this ad, the dealership emphasizes Julie Holmes’ role as Virginia Tire’s co-CEO.
“I manage a small store with three bays,” she continued. “We are very small, just started in March this year … but watch our dust!”
Virginia Tire is including images of more women in its ads, using inclusive pronouns in job descriptions, holding events for women who already work for the company and more. “We are trying to make little tweaks to the verbiage of our job listings,” says Holmes.
MTD August 202242 in a business setting has had a positive impact on them. “I tell my daughters all the time. ‘If you want to make your own decisions, make sure you’re the one sitting in the driver’s seat.’”
Virginia Tire & Auto LLC co-CEO Julie Holmes’ campaign to recruit more women to tire industry jobs is new. But the concept of populating tire dealerships with more female employees has been around for decades.
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Virginia Tire & Auto
Changing tires and xing cars “really was a very dirty and physically demanding job, but with new technology, the work isn’t so ‘dirty’ or laborious.”
■
Photo: Virginia Tire & Auto
“I noticed my son loved playing with toy cars and my girls just weren’t into them.
Hiring even more females will be a priority.
ese preconceived notions are going to take awhile to unlearn, Holmes acknowledges.
e dealership is doing what it can to make its own facilities moreVirginiafemale-friendly.Tireopened a new store in Leesburg, Va., in JuneThe2021.outlet includes a female dressing room that doubles as a nursing room for mothers who work at the location, saysSheHolmes.saysshe understands it will take time to update all of the company’s stores to include women’s dressing rooms, but the Leesburg location is “a good start.”
In 2020, Virginia Tire hired ve women and in 2021, the dealership hired 31 more women, according to Holmes, who adds that the new employees have integrated seamlessly into the company’s operations.
“I feel like the more we can show bene ts and a ect change, I think the more people will be excited about it.”
“I understand that (automotive) may not appeal to every person. But selling high-value services is appealing and I want to make that appeal to women.”
Holmes believes that a big reason that the tire and automotive industry is dominated by men is because of the “stigma” that’s been attached to various tire and auto service jobs over generations, says Holmes. “I think, traditionally, you go back 50 to 60 years to gender stereotypes and how dirty the work was,” she says.
“And no one is going to say this is a bad idea. ere is a reason why (many) women are heads of households. ere is a reason why women, I think, really make society move.”
‘HIGH-VALUE SERVICES’
“ e people who do that don’t mean to be derogatory,” she says. “ ey’re good people following the norm of our society. But no one calls men ‘boys.’”
And events like weekly co ee dates for all of the company’s female employees allow them to get together and form a sense of community.“isisamarathon, not a sprint. It will take years — decades — to change and we’re comfortable that this isn’t going to be an overnight e ort. “But you have to start somewhere and I am happy with where we are starting.”
Even though she wants more women to work in tire retailing and auto repair, she understands that these jobs don’t appeal to everyone.Shecitesher kids as examples.
Holmes says that women are just as capable as men and Virginia Tire wants to promote this as much as possible.
MTD August 202244 from even applying.” Virginia Tire is also conscious of how it addresses female workers. Holmes says in the tire and auto repair business, there is a tendency to refer to all women as “girls.”
“Selling high-value services is appealing and I want to make that appeal to women,” says Holmes. Virginia Tire hired more than 30 women in 2021, a big increase from the previous year.
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ADVERTISE DIFFERENTLY Kilgore Tire Service is a smaller dealership with two locations in Kilgore, Texas, that relies heavily on web advertising.
Photo: Getty Auto service
All four agreed that the ‘holidays” are the busiest times for brake serviceMoserrepairs.says customers have more downtime to get their vehicles worked on.
MTD August 202246
Facebook is a popular place for dealerships to advertise, as well.
Mallet says springtime is the busiest season for Kilgore Tire’s brake services, but for a di erent reason. “People are usually waiting to get that income tax check and we’ve found people usually hold o on getting their brakes xed until they have the money,” he says.
Performing routine car inspections is another big way St. Lucie generates brake service tickets.
Lamb says oil changes and tire rotations are common at the dealership and technicians always check the condition of customers’ brakes while performing these services.
e consensus from dealers interviewed by MTD is that ads and promotions are e ective in getting customers into their stores and those customers’ cars into service bays.
“Our service department de nitely cranks out a lot of brake work,” says Jamie Deans, service and shop manager at St. Lucie’s Battery & Tire’s Fort Pierce, Fla, location. “A lot of it is found through the fact that we do tires, so we have to take the wheels o and can see (brakes), but we do get a lot of people who respond to ads, as well, so I think it’s a good mixture of both.”
Fort Pierce, Fla.-based St. Lucie Battery & Tire Co. has 15 locations across Florida. It mainly advertises through Facebook.
A web host service is a secure place for businesses to store content and promote it on di erent online platforms. Kilgore Tire uses TCS Technologies to power its site. “ is de nitely works for us and in the rst month of us doing these ads, I noticed a huge di erence in the amount of tra c that comes through our store.”
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Rice Tire sends out mail advertisements with coupons in them — usually to existing customers — to get them to come to the dealership for their brake repair needs, instead of going to another automotive repair facility, says Moser. “It’s pretty e ective because we will get people that call in to schedule an appointment and they say they called us because they saw or have a coupon of ours.”
Lee Lamb, store manager for Bill Duckworth Tire, which is based in Brunswick, Ga., says loyal customers bring their cars to his outlet for brake work. “We’ve been here since 1965. We have ve generations of customers that have been coming here for tires or services.” is allows Duckworth Tire to not have to “advertise like everyone else.”
Lamb says spring and summer are Bill Duckworth Tire’s busiest seasons because “everyone is getting ready to travel for summer break or spring break.”
St. Lucie Battery & Tire sees a lot of tourist tra c and notices a spike in its brake work revenue in March and April due to people who have traveled to Florida for their spring breaks or have wintered in the state. “All the northerners and snowbirds are trying to get their maintenance work done so their vehicles are reliable to get back home,” says Deans.
Different ways to market brake service DEALERS, MANAGERS WEIGH IN ON EFFECTIVE STRATEGIES. Maddie GehringBy Dealers and store managers say ads and promotions are effective in getting customers into their stores and vehicles into service bays for brake work. Inspections also are effective.
Andrew Moser, service manager at Rice Tire Co.’s Frederick, Md., location, bene ts from the use of coupons in order to get more customers into his shop.
“We’ve started using a web host service to run ads for us through sites like Facebook,” says Darrin Mallett, the company’s co-owner.
Four tire dealers and/or managers recently discussed best ways to use brake service marketing to win new customers and keep existing clients coming back.
A great way to get new and existing customers into a tire dealership is by advertising and offering dis counts for services — and that includes brake work, say tire dealership owners and managers. However, approaches vary by dealership.
THE HEIGHT OF BRAKE SERVICE
“A lot of those promotions bring on new relationships that we de nitely nurture into long-term relationships,” says Deans.
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KEEPING THE NOISE DOWN
THE EARS HAVE IT
“My goal is to get OSHA into all of my facilities and work with them, because it never hurts to have a fresh set of eyes come into a facility.”
Hickey says the Sumerel family doesn’t want to take on that stress and he doesn’t either.
Users can set alarms to be notified if noise levels exceed OSHA regulations or any level. (OSHA requires companies to measure sound levels if exposures meet or exceed 85 decibels.)
“I thought there was a lot of value in doing those. We’ve got a good baseline we’re building on.”
“We have probably gone a little overboard” requiring tests for all of those technicians.
While Hickey believes in the power of an extra set of eyes, lately Bob Sumerel Tire has been focusing on its employees’ ears.
SHA. Those four letters strike a special kind of fear — or even disdain — in the minds of plenty of tireAfterdealers.nearly 50 years in the transportation industry, including the last 23 at Erlanger, Ky.-based Bob Sumerel Tire Co., Bob Hickey has decided it doesn’t have to be that way. As executive director of operations at Bob Sumerel Tire, for the last two-plus years, Hickey has led safety efforts for all of the company’s service locations and production facilities, including retread plants and wheel refinishing operations — not to mention the dealership’s 110 commercial service trucks on the Thoseroad.facilities are spread across four states and involve hundreds of employees. And yes, they’ve been the sites of inspections by the Occupational Safety and Health Administration (OSHA). But Bob Sumerel Tire doesn’t consider the agency its enemy. Instead, it views OSHA as a consultative partner.
Also in CTD CMA’s Weller discusses how to manage complexities of a red-hot truck tire market 54 AG Tire Talk: The differences between sprayer and tractor tires 57 Commercially Viable ..........................................62
Buffer machines in retread shops are known to be noisy. Bob Sumerel Tire Co. has a Soundtrace monitor assigned to this station to gather constant readings. This monitor, which measures four inches by 2.5 inches, is strapped onto a vertical tube in the background of the photo. Photo: Soundtrace
MTD August 202248
The dealership has instituted a company-wide program that includes annual hearing tests and audiogram reports for employees exposed to higher noise levels. This includes employees in retread plants and those who work in wheel refinishing, plus tire service technicians and mechanical technicians.
Commercial Tire Dealer™
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Joy KopchaBy
Bob Sumerel Tire also is working with a startup company that provides constant noise monitoring via small, non-intrusive dosimeters that are connected to the internet and allow for real-time measuring and reporting.
But Hickey says after studying the decibel ratings of the pneumatic tools and air inflation tools technicians use, conducting annual tests seems like a good cost-value proposition.
BOB SUMEREL TIRE WORKS WITH OSHA TO TAKE THE LEAD IN SOUND SAFETY
“We’ve taken a stand of ‘Let’s call them. Let’s build a relationship.’ As an employer or company, you should have nothing to hide. If you’ve got things to hide, then every day you wake up worrying about not only how to run your business, make money and pay your employees. Now you’re going to worry about ‘What if OSHA walks in the door?’”
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Each region is handling its own program separately and there are differences between them. Some are focusing on certain industries. But generally they have a common goal of reducing occupational noise exposure by providing outreach and education to businesses and facilities in their territories. Inspections and enforcement also are part of the programs.
The 50 states are split up into 10 OSHA regions and eight of the 10 have adopted programs that put a special emphasis on noise levels and noise safety in the workplace. (Regions nine and 10 haven’t adopted a local or regional emphasis program, which means the following states aren’t currently covered by one of these programs: Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon and Washington.)
Soundtrace monitors have shown the noise at a tire builder station in a retread shop is 87 decibels. Noise at inspection stations typically reaches the same level. Noise generated by a buffer machine has ranged from 95 to 100 decibels. Noise levels at skive stations have measured anywhere from 88 to 93 decibels. Wilson was surprised when tire repair stations were noisier than what he expected, exceeding the 90 decibel mark. In some industries, noise and hearing damage used to be considered something that “comes with the job,” he notes. And while noise-induced hearing loss is common, it’s also preventable. He points to the words of an OSHA official.“Earning a living should not come at the expense of hearing loss,” William Donovan, then the acting OSHA regional administrator in Chicago, Ill., said at the start of an initiative to protect manufacturing workers’ hearing.
Noise safety
“We have a lot of samples (where) one day the noise level is 85 (decibels.) Then the next day it’s 88.”
According to the U.S. Bureau of Labor Statistics, 18 million workers were exposed to potentially damaging noise in 2019. And the incident rate in manufacturing was almost four times higher than the all-industry average. In the last three years, OSHA has placed a new focus on hearing safety.
Chart: U.S. Bureau of Labor Statistics
Wilson says higher readings add more danger and risk of permanent injury. NIOSH says as noise levels rise above that 85 decibel mark, every three-decibel increase accounts for a 200%Wilsonincrease.explains that it doesn’t take much to reach those levels, as normal conversations can hit the 75- or 80-decibel range.
The bulk of those were in two broad manufacturing categories, which would include tire manufacturing and retreading.
Photo: Soundtrace
Region five, for example, which includes Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin, had 759 noise violations between the years 2013 and 2019, according to the agency’s Regional Emphasis Program summary.
DECIBEL DAMAGE
TESTING TWO MONITORS
The National Institute for Occupational Safety and Health (NIOSH) — which establishes the federal safety recommendations that OSHA enforces — says workers shouldn’t be exposed to more than 85 decibels for eight hours.
MTD August 202250 Jeff Wilson is the president and founder of Soundtrace, the noise monitoring solutions provider that Bob Sumerel Tire uses. He says monitoring and measuring sound isn’t new. But automating the process is. He compares Soundtrace monitors to a Fitbit exercise tracker and says if someone wears a Fitbit one day a year, it doesn’t really provide a good picture of a person’s overall health. It works the same way with noise monitors that are set up for a few hours on the floor of a manufacturing facility.
Wilson calls Soundtrace “a proactive and intelligent monitoring solution that provides insights and actionable improvements.” Soundtrace monitors are calibrated and tested according to OSHA standards — unlike the decibel reading apps available on your cell phone. All data is retained in the cloud. That can be useful if an OSHA inspector walks into a facility and inquires about a business’ noise levels and related safety protocols, says Wilson.
threshold.predeterminedlevelwhensendbemonitorsSoundtracecansetuptoalertsthenoiseexceedsa
Of the 14,500 hearing loss cases reported in private industry during 2019, 75.9% occurred in manufacturing, according to the U.S. Bureau of Labor Statistics. By contrast, 5,000 fewer cases of hearing loss were reported in 2019 than during 2009.
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• Is my mindset going to be focused on safety?
The OSHA inspector was aware of the noise monitoring the tire dealership had been conducting.
A CULTURE OF SAFETY
• Am I going to stay focused and avoid distractions?
• Am I wearing PPE?
In 2017, the company was cited for a noise violation at its facility in Leetsdale, Pa. Last year, there was another inspection of that same store. Hickey says OSHA found “a couple of small things — nothing major. We worked with them.”
“I might be completely wrong, but I tend to think they saw the work we’re doing (and said). ‘Here’s a little bit of a fine. Keep up the good work, but these are some areas you need to continue to work on.’ We continue to fine-tune those areas.”
Photo: Soundtrace Data from a Soundtrace noise monitor shows how noise levels can vary throughout the day and from one day to another.
Photo: Soundtrace
“At the end of the day, the folks at OSHA have a job to do. They’re trying to help you and help your employees stay safe.”
Hickey says Bob Sumerel Tire is building a culture of safety. He says the company’s OSHA inspections have sharpened thatHickeyfocus. asks team members to think about whether they’re “dressed for success.” From a safety standpoint, he wants employees to run through this checklist:
The inspector suggested Bob Sumerel Tire contact an OSHA consultant to come in and help as they made more adjustments. “We did have those people come in, spend three days and they worked with us as we redid our policies,” says Hickey. “They’ve helped us revamp a lot of our safety policies in the last six to eight months.
He’s learned that it takes constant maintenance and oversight and says safety is an ever-evolving part of the business. One piece of that is written policies, which need to be reviewed and“Doupdated.theymeet today’s needs? Do they meet the needs of the employees you now employ? We started going back and rewriting all of our policies. You needed a masters degree to understand the language of those policies. If the lowest common denominator couldn’t read it and understand it, you might as well not have a policy at all.”
In the last year, Bob Sumerel Tire has tested two kinds of noise monitors from the supplier. One is a stationary monitor that is affixed to a workstation and the other is a mobile wearable monitor.
Photo: Soundtrace
Hickey has had that happen since partnering with Soundtrace.
Bob Sumerel Tire is using two kinds of Soundtrace noise monitors in its facilities — a stationary monitor that is attached to a work station and a personal, wearable monitor that can be worn by employees or moved from one spot to another. A forklift driver could wear a monitor throughout the day, for example, and then noise level peaks can be matched with GPS data to identify dangerous locations.
• Am I ready to maintain the equipment I’m working with and on?
• Am I going to do everything I can to be safe? “That’s part of us trying to change our culture.”
Hickey admits he loves reviewing the countless, tiny details that add up to overseeing the company’s operations. “As crazy as it sounds, I really enjoy getting into the nittygritty of it.”
Noise safety
Soundtrace President and Founder Jeff Wilson credits Bob Sumerel Tire with being an “early adopter” of integrating constant noise-monitoring technology into its workplaces. He says the company’s tests have opened the doors to other tire dealerships and tire manufacturers, which are following Sumerel’s lead.
MTD August 202252
Hickey sees the tire industry’s interest and focus on safety and personal protective equipment (PPE) evolving. “In the last 10 years, it seems like safety and personal protective equipment have just started to grab hold.”
“I’ve been doing this for four decades and I’ve never seen demand that strong and I’ve never seen back-to-back demand, so far, this strong,” says Walt Weller, newly retired senior vice president, CMA LLC/Double Coin.
MTD: What are some of the biggest chal lenges facing truck tire manufacturers right Weller:now? In spite of record demand, manu facturing units are actually down around three points versus last year. In order to keep up, (manufacturers) have had to import more from other markets. Domestic importers make up a large percentage of the amount of tires that are coming into the U.S. market right now. But there are additional complexities in the ocean freight issue. It’s not just getting containers into port and on their way. e ocean freight companies have changed a lot of the rules. In order to get vessel space, you have to commit to a certain number of containers every month at much higher prices, and that much higher price — while it used to include delivery from the port to the customer — now that price ends at the port and folks like us have to take on the nancial burden of moving those containers from the port to the customer.
MTD: What do you attribute the momen tum Weller:to? I think there was some pent-up demand going back to 2020, although there was some growth in the replacement market in 2020 — not very much, about 1% — but it did grow. In 2019, OE was forecasted to be down. I think a lot of eets just stopped ordering equipment. But when 2021 hit, a couple of things happened. e domestic manufacturers had cut back production signi cantly in the beginning of the year due to COVID-19 issues. A lot of that had to do with reworking the work ow in plants. And when they nally came back, the demand was just o the charts. And we’re still seeing that today. And that’s been compounded a lot by the issue of overseas freight. Ocean freight — despite that fact (freight rates have) gone up by ve-fold since 2019 — is still coming. Customers are paying that in the form of price increases. So unless the Fed pushes interest rates up to the point where the economy hits the brakes, I think we’re in for another strong year. So far, it’s been very strong.
Photo: CMA/Double Coin.
Weller: e momentum is de nitely con tinuing. So far in 2022, the commercial business is tracking at about an 8% increase over 2021 in the replacement market and about double that in OE. I’ve been doing this for four decades and I’ve never seen demand that strong and I’ve never seen back-to-back demand, so far, this strong. Usually, you get a year like that and then the next year you’re in at or negative territory, but that is not the case at the moment.
All of that’s brand new. Other challenges continue to be visibility of containers. A er containers got put on a ship, we used to get reports on where they were (and) when they were going to be in port. All of that stopped in 2021. So we would get about three days’ notice before the containers were scheduled to hit port and then sometimes — a lot of times, I would say — there were delays and we might have been two weeks waiting for those containers to actually hit, which really extended the lead times. A customer who ordered a container that would arrive in 60 days in 2019 is looking at anywhere from 120 to 150 days right now.
MTD: All of these favors you described must make forecasting incredibly Mike MangesBy ‘YOU HAVE TO KEEP YOUR EYES OPEN’
MTD: Last year, the truck tire market rebounded in a huge way. According to the U.S Tire Manufacturers Association, nearly 23 million units were shipped at the replacement level, a 19.3% increase over 2020 levels. And then on the origi nal equipment side, nearly six million additional units were shipped last year, a 25% leap over prior-year numbers. As we move through the second half of 2022, is that momentum continuing?
MTD: Do you foresee that turning around anytime soon? Weller: It depends on what your de nition of soon is. I think it’s going to last through this year and probably into the rst quarter of 2023. I don’t see it ending before that. Now again, if the Fed does something di erent with interest rates and takes a more aggressive strategy with interest rate hikes, that could change. But right now, I don’t see it.
CMA’S WELLER DISCUSSES HOW TO MANAGE COMPLEXITIES OF A RED-HOT TRUCK TIRE MARKET Truck tires
MTD August 202254
W alt Weller, recently retired senior vice president of CMA LLC/Double Coin, has more than four decades of commercial truck tire experi ence. He says he’s never seen a stronger truck tire market than the current one. But getting tires to the right custom ers — at the right times — has become incredibly complex. Weller breaks down what’s happening — and what commercial tire dealers can do to make it easier on themselves — here.
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Weller: My advice is to continue doing probably what most of them are doing right now. ey need to be diligent. If they’re not getting answers, they need to be asking questions about where containers are and what’s likely to happen. And talking about lead times, I think they need to plan on 120-day to 150-day lead times on containers right now.
And on some other SKUs, because they haven’t received them when they were expecting them, (dealers) are in a negative product ow situation.
Photo: CMA/Double Coin.
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MTD August 202256 di cult — whether you’re a manufacturer or a truck tire dealer.
MTD: What’s your advice to truck tire dealers? What should they prepare for as these factors continue to play out?
Weller: It’s very, very challenging. You have much longer lead times that you have to take into consideration when doing a forecast. You (might) have 20 containers at the port that may all be going to one customer instead of being spaced out. We are now seeing large quantities of containers showing up all at once that are going to the same customers. For the customer, it creates manpower issues. ey have to have people who can receive those shipments, unload them and put them into inventory and sometimes those tires, from a product ow point of view, are putting (customers) in an overinventory situation.
Truck tire dealers and distributors “need to be diligent” in tracking their incoming orders, says Weller. And he recommends that dealers “plan on 120-day to 150-day lead times on containers right now” due to ongoing shipping problems.
MTD: What are some actions your company is taking to help dealers mitigate these factors and maybe forecast more Weller:accurately?We’re doing the best we can. When we receive info, (we are) sharing that with the customers. We’ve also set up a system whereby when we have multiple containers show up … instead of having them ship to the customer all at once, we’re taking them in and doing what I would call a modi ed cross-dock operation. We can then manage how many containers go to the customer and schedule it so maybe they‘re arriving two or three a day for ve days or seven days, depending on how many containers we’re talking about. In addition to all of these things, CMA is adding capacity at our plant in ailand.
THE DIFFERENCES BETWEEN SPRAYER AND TRACTOR TIRES
PAY ATTENTION TO TRACTION, OPERATING SPEEDS AND MORE
AG Tire Talk
Although there are a few high-speed tractors on the market that run from 40 to 45 mph, most of the common farm tractors run about 30 mph. e high weight carrying capacity and speed are not needed in this application. If standard farm tires are used in a sprayer application, they will generally fail in the sidewall at the ply turn-up, a few inches above the bead. Some sprayers are made as pull -behind sprayers. Generally, the tanks on these sprayers are smaller and carry less uid. Tires are not as critical on these as on self-propelled sprayers.
Modern Tire Dealer has partnered with AG Tire Talk to provide answers to insightful questions that farm tire dealers have about farm tire technology. is 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.
“Although tractor tires and sprayer tires are used interchangeably at times, there are major differences concerning the two applications,” says Dave Paulk, manager, eld technical services, BKT USA. “Standard tires for tractors and tires for sprayers can be the same sizes, which can lead to some confusion.”
VFs are better in this application because of the higher load carrying capacity. ere are smaller, self-propelled sprayers on the market that require smaller tires. ese smaller sprayers don’t have the heavy weight and run the high speed of larger sprayers. Again, dealers should be careful to make sure that the tires used can carry the weight of the load and are rated for the speed.
Photo: BKT USA
DAVE PAULK, manager, eld technical services, BKT USA: Although tractor tires and sprayer tires are used interchange ably at times, there are major di erences concerning the two applications. Standard tires for tractors and tires for sprayers can be the same sizes, which can lead to some confusion. An example is 380/90R46, a popular size used on both trac tors and sprayers. e 380/90R46 is made in a standard tire for tractors and increased exion (IF) and very high- exion (VF) versions for sprayers. A standard BKT tractor tire, the RT945 380/90R46 159A8/B, is rated to carry 9,640 pounds at 58 psi at 30 mph. A BKT sprayer tire, the VF 380/90R46 Agrimax Spargo, is rated to carry 13,760 pounds at 61 psi at 40 mph. ere is quite a bit of di erence between the standard and VF in speed and load carrying capacity. Most modern, self-propelled sprayers are heavy and run 40 mph, carrying a lot of liquid weight. ey are driven on the highway to get to the elds. e tires used for this application must be able to handle the speeds, loads and the highway with some stability. ese tires are generally R1s. An R1 (tire) has more lugs — or less void ratio — for highway contact and a shallower tread depth for less squirm from the lugs. Traction is generally not as much of a concern for sprayers as it is for tractors. For this application, tires should be IF-rated (20% more load than a standard tire) or VFrated (40% more load than a standard tire) to carry the excess weight. Since air carries the weight, the IF and VF tire are rated for a higher air capacity than standard tires. e
Question: What is the di erence between a row crop sprayer tire and a tractor tire and why is it important to match the correct tire for each application?
57www.ModernTireDealer.com
Standard tractor tires can be R1s, but many are R1Ws. e R1Ws have a few less lugs per tire and have a deeper tread depth.
Self-propelled sprayers can be retro tted with di erent tire sizes, according to the region of the country they are in and when they are being used. Wider tires are sometimes used for otation and less compaction before planting. Once crops are planted, narrow tires are used to t between the rows. Regardless of the width and size of tires used, they must be able to handle the speed and the weight to minimize the potential for tire failure.
MTD August 202258
A self-propelled sprayer is quite tall to clear growing crops and it carries herbicide, pesticide and fertilizer solutions at varying speeds. ese solutions are loaded in tanks, which will experience the e ects of inertia as the sprayer drives faster, slows or stops. e sloshing inside the tanks causes the sprayer to rock and transfers this movement to the tires. A taller tread block will cause instability and can create uneven wear. erefore, the shorter block of an R1 tire is better-suited. Some tire manufacturers are addressing tire stability with wider tread blocks that overlap the center line, like Continental’s d.Fine lug technology. is delivers a better contact surface for the machine and decreases the void ratio, providing a more comfortable ride. In the future, the sprayer tire market may be further impacted by hybrid tread patterns that lower the void ratio and amplify stability with on-/o -road tread patterns. Other components of a tire that are important to tractors and self-propelled sprayers are speed/load rating and suggested in ation pressures. Both types of equipment will o en be travel ing on the road between elds, which demands a tire with a high speed/load rating. Most standard row crop tires have a 40 mph suggested speed rating, paired with a max recommended load — at that speed — of 11,400 pounds and sometimes, that still isn’t enough. Especially as the weights of machines increase, the market is slowly moving toward IF/VF technology. ese technologies allow a tire to increase its carrying capacity at lower in ation pressures, a ecting the contact patch and compaction levels. IF/VF tires are also able to travel at higher speeds with lower in ation requirements. at does not mean a dealer should “set it and forget it,” but this certainly provides some forgiveness for a machine with extreme load/speed variables. Additionally, despite the narrow sizes a sprayer would use, the exion of IF/VF tires creates a fuller tread pro le, promoting traction and reduced soil compaction bene ts. Matching a tire with the right application can be challeng ing, with so many variables. Suggestions will vary based on driving surfaces, distance, climate and other environmental considerations.erighttire is one that provides the best of everything for that application — carrying capacity, traction, stability and adequate speed.
Comparing tires used in both mechanical four-wheel drive and four-wheel drive tractors and self-propelled or towed sprayers, the common element inherent to both is the requirement of ‘As machines are getting larger — especially with tractors and harvesters — we are seeing an evolution to D-rated tires.’
IF and VF tires are used for general farming, as well as being used on sprayers. In this application, less air pressure can be used to create a larger footprint and minimize soil compaction. In a sprayer application, the weight carrying capability and higher air pressures are needed.
— Greg Gilland, vice president, global agriculture, Maxam Tire North America ‘Self-propelled sprayers most commonly use row crop tires.’
— Dana Berger, ag business development manager, Continental Commercial Specialty Tires
GREG GILLAND, vice president, global agriculture, Maxam Tire North America: Like all industries, the agricultural market is constantly being driven by the forces of necessity and the need to improve an existing product to meet evolving demands. Speci cally, when we look at the evolution of agricultural tires to the 45-degree lug design, this technology improvement has been one of the tire industry’s most signi cant design pillars adopted by all manufacturers. e 45-degree angle tread approach was started in the European market as a solution addressing the lugto-void spacing of older tread designs, resulting in tire vibration, loss of traction, increased slip and more fuel consumption when roading or moving tractors from eld to eld.
AG Tire Talk ere are a variety of di erent sizes and tread designs used, including R1, R1W, and R3. e sprayer will only travel as fast as the tractor that is pulling it. ere is no torque applied to the tires, as they are free-rolling. e tires must be rated heavy enough to carry the load.
DANA BERGER, ag business development manager, Continental Commercial Specialty Tires: For those who haven’t driven by a self-propelled sprayer on a back-country road, you are missing out! Admittedly, there is a level of fear that develops when you realize you’re playing chicken with a machine like that. Once that subsides, you cannot help but notice the tires. Self-propelled sprayers most commonly use row crop tires — aptly named for their use between rows of crops. ese tires are built considering a speci c set of demands, including high speed, highly variable load and stability. ere are several topics that address these requirements — void ratio, tread depth/design and load/speed. A high void ratio means there is more gap in the tread than rubber contacting the driving surface. is is a bene t for self-cleaning e orts and soil compaction, which are common to tractor tires. A lower void ratio provides good traction, a smoother/more comfortable ride and provides better stability — common to sprayer tires. Sprayer tires are o en running R1 treads, which is considered the standard tread depth for farm applications. R1 treads are better on dry surfaces, as the tread block is roughly 20% shorter than the R1W tread designation, which is commonly used on tractors. e tractive qualities of the R1W t the needs of equip ment driving in wet conditions because the additional height from the lug grabs at the soil and propels equipment forward, reducing slippage and fuel consumption. In the interest of compaction, it sounds harsh to have a tire lug “grab” the soil, but the impact of the lug’s grip is minimal when comparing against the damage that can be avoided from the equipment sliding in the eld. is does not mean the R1W is the best option for all equipment, however.
whereas tractors in North America are commonly B-speed rated (30 mph), high-clearance sprayers o en travel 40 mph, requiring a D speed rating — with some sprayers traveling even faster. Always check to make sure the speed rating of the tire matches the top speed of the customer’s equipment. at being said, higher speeds will cause more movement in the lugs of a tire or tread squirm. More movement creates friction and heat, which are bad for rubber and increase rolling resistance. As a result, the lug design of a sprayer tire will look very di erent versus a tractor tire. Typically, the lugs of a sprayer tire will be wider, shorter and with less void between the lugs. Wider and shorter lugs will offer more stability, while less void between lugs — or more lugs per tire — will give a smoother ride. Couple that with IF/VF technology and you will get more lugs on the ground for improved traction — and in low-torque applications, too. Remember, wider lugs for sprayer applica tions work well both roading and in the field, as this is a self-propelled machine. I also highly recommend sticking with the manufacturer’s intent and using sprayer tires for sprayers and tractor tires for tractors, ensuring safe, trouble-free optimum performance.
If you then compare tractor or harvester-designed tires to sprayer tires, there are speci c items to consider that are uniquely inherent to each farming application.
the width of these tires is not able to grow unless our row spacing widens. This, in turn, has forced the industry to move towards IF/VF tires. These tires can carry an additional 20% to 40% more load, while maintaining the necessary widths to fit down a row without damaging crops on either Additionally,side.
DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: When considering tires for a customer’s high-clearance, self-propelled sprayer, it is vitally important you understand your needs and the limitations of the tires you choose. Your top two considerations should be safety and e Comparedciency.toatractor tire, the stability of a sprayer tire is of utmost importance. Sprayer tires are specifically designed to handle the constant pitch and sway of a machine loaded with liquid, in addition to dynamic loads, with a very high center of gravity. As these machines continue to get larger and carry heavier loads, the tires also must meet or exceed theseUnfortunately,demands.
Self-propelled sprayers will operate both at a slow, ve to 10 mph average in the eld and at an average of 40 mph when roading from eld to eld. Due to heavy tank loads in cyclic spraying operations, tires must be rated for heavy axle loads in terms of load index or load per tire. As sprayers operate when crops are in full bloom and therefore require high crop clearance,the resulting tire sidewall or tire air chamber is smaller, which demands stronger structural casing materials and rubber compound designed for high air pressures equal to the load at hand. In addition, due to the constant roading of sprayers from eld to eld, tires designed for this application will have more lugs per tire to reduce the lug-to-void ratio, increasing the amount of rubber contacting the surface, ensuring improved stability under load and speed. As machines are getting larger — especially with tractors and harvesters — we are seeing an evolution to D- rated tires. At 40 mph sustained road speeds, the shallower R1 tread depth ensures a more uniform distribution of load per lug and reduces irregular tread wear or cupping caused by tire slip when using deep-treaded tires at high road torque or speed, especially on high-clearance, self-propelled sprayers. e advent of VF technology or tires that can carry 40% more load at standard air pressures has given high-clearance, selfpropelled sprayer tires the ability to carry the load at reasonable air pressures that can deliver the performance required without compromising soil compaction. In sum, as a general rule, the following sets a sprayer tire apart from a tractor tire — lower void ratio, higher weight carrying capacity, shallower tread and higher speed rating.
NORBERTO HERBENER, OE applications engineer, Trel leborg Wheel Systems: Let’s start with some basic de nitions. A tractor is a vehicle designed to provide a high tractive e ort — or pulling force — at slow speeds in order to haul a trailer
‘Another major difference between a tractor tire and a sprayer tire is tread depth.’ — Norberto Herbener, OE applications engineer, Trelleborg Wheel Systems
Ag tire manufacturers and suppliers say dealers should give special consideration to equipment operating speeds, traction requirements, performance limitations, in ation pressure levels, climate and other important dynamics when recommending tires for both sprayers and tractors.
Photo: BKT USA
MTD August 202260 AG Tire Talk requirement of roading the equipment from operation to operation. From Maxam’s perspective, the 45-degree lug design inherent in all our AGRIXTRA family of products allows many features and bene ts.
‘Choosing the best sprayer tire takes a little consideration, but it’s time well-spent.’
AG Tire Talk or machinery used in agriculture or construction. Agriculture sprayers are complete spray systems engineered for generating pressure to drive spray uid from a tank out to the sprayer’s nozzle(s) onto crop or soil. Sprayers are most o en used for the administration of water, insecticides, pesticides, herbicides and fertilizer. Sprayer tires need to pass over soil and crops. Obviously these two de nitions are very di erent. Consequently, these machines will need very di erent tires. However, in today’s farming climate, there are times where a sprayer tire size can be used on a tractor and a tractor tire size can be used on a Let’ssprayer.talk about various di erences between tractor tires and sprayer tires. The need for higher productivity in the agricultural industry drives the professional and extensive use of modern sprayers. New generations of fertilizers and self-propelled, high-powered sprayers require a signi cant upgrade in tire technology to cope with new, high-demand applications through high-load, stability and reduced fuel consumption.
Yokohama O -Highway Tires America Inc. o ers a wide range of tread patterns and constructions for sprayers of all kinds to help farmers and custom applicators match their tires to their business model, soils, crops and even the time of the season.
PN 30267 Designed to quickly clean the lug stud and mating surfaces of truck wheel components, ensuring proper torque and clamping force is achieved. • Attach to any power driven tool • Capable of accepting a ½” square drive. • Maximum Rotation: 4000 rpm PATENT PENDING Kit includes one additional Rust Rhino Cleaning Head (A) and Inner Cleaning Brush Attachment (B). Replacements available. 768 E. North Street • P.O. Box 9320, Akron,
Over the years, applications have become quite sophisticated. End users now will o en use two kinds of sprayer tires. Sprayer tires feature VF technology. This technology enables the tire to carry up to 40% more load at the same air pressure. It also allows the tire to be used at up to 40% less air while carrying the same load, while maintaining the 40 mph speed capability.
44305 • sales@kentool.com www.KENTOOL.com1-888-536-8665 A 30268 B 30269 0401-274 20220722 KT-RustRhino-MTD-QtrPage.indd 1 7/12/22 4:39 PM
BLAINE COX, national product manager — agriculture, golf and turf, Yokohama O -Highway Tires America Inc.: Like so many segments in the tire industry, sprayer tires have become very specialized. It’s really the opposite of a one-size- ts-all market. But there are some common denominators. For instance, applicators need to protect crops, whether it’s by running between rows of standing crops or by minimizing soil compaction, especially if they are running on wet, compaction-prone soils. ey need precise, reliable steering, without the squirrely wobble that many older-style tires can create. Good roadability is an absolute must to cover as many acres as possible in a day. That’s critical to maximizing income or return on investment and also to react with protection whenAndneeded.farmers and growers have come to recognize the value of a smooth ride to help maximize productivity.
Finally, tires need to handle heavy loads, which has driven a lot of enthusiasm for our VF sprayer tires. VF technology permits up to 40% more weight at the same in ation pressure as conventional radials of the same size or allows applicators to reduce in ation pressure by up to 40% to carry the same load as a conventional radial.
Sprayer tires normally have an R1 tread design, whereas a tractor tire normally has an R1W tread design. e main di erence is an R1W lug design is 20% taller than an R1 and assures a higher traction transfer from the tractor to the ground.
61www.ModernTireDealer.com
Current sprayers’ and spreaders’ normal working speed is between 25 and 30 mph. Transport speeds are up to 45 mph. Sprayer-specific tires must at least have a speed symbol of D. This enables the speed to comfortably carry its rated load at 40 mph.Another major di erence between a tractor tire and a sprayer tire is tread depth. A tractor tire needs to pull, whereas a sprayer tire needs to oat on the ground and provide some traction. But otation and stability are its main contributors.
Choosing the best sprayer tire takes a little consideration, but it’s time well-spent. e right tire can help maximize the productivity and impact of an application rig at times when the stakes are high and the crop or a farmer’s bottom line are at stake.
— Blaine Cox, national product manager — agriculture, golf and turf, Yokohama Off-Highway Tires America Inc. Ohio
The new VM310 tread from Vipal Rubber Corp. has been designed for drive and trailer axle positions and urban applications. It features Vipal’s exclusive Eye Control Technology, which displays the level of wear and the suggested time for new retreading. It also offers rotational direction for optimal traction; tread blocks that promote torque distribution; sipes for enhanced grip in the snow; and more. The VM310 is 3-Peak Mountain Snow akecerti ed — the 16th Vipal tread to have earned that distinction.
ZC Rubber expands Arisun line Zhongce Rubber Group Co. Ltd. (ZC Rubber) has added the TF01 and the TF11 (pictured) to its Arisun brand lawn and garden tire line. The Arisun TF01 has a non-directional tread pattern design, while the Arisun TF11 features an “S” pattern to deliver traction when traveling across a wide range of surfaces. The tread promises minimal turf damage and optimal handling for small mowers. Both tires are available in North America.
www.vipal.comCORP. tireindustrialbeefsMaxamupline
ATEQ TPMS TOOLS www.ateq-tpms.comLC
Alliance 590 targets ag, construction applications
The new Alliance 590 from Yokohama Off-Highway Tires America Inc. is a otation tire for ag and construction applications. The product features three layers of steel belts under a cut-resistant tread compound for extra protection; a non-directional tread pattern with heavy, deep blocks and open channels for optimal grip and selfcleaning; and more. Capable of speeds up to 40 mph, the Alliance 590 also can be operated at lower in ation levels to minimize soil compaction. It’s available in the following sizes: 560/60R22.5, 600/55R26.5, 650/55R26.5, 650/60R26.5, 600/60R30.5, 650/65R20.5, 710/50R30.5 and 750/60R30.5.
Bridgestone Americas Inc. has introduced the VSWAS 23.5R25 V-Steel Snow Wedge allseason tire, a size expansion to the Bridgestone OTR line of radial snow tires. The VSWAS 23.5R25 provides “excellent performance in deep snow, with a tread pattern that reduces stone holdings without the need for studs or chains,” say Bridgestone of cials. The VSWAS 23.5R25 also is designed for year-round use. Key innovations to the VSWAS 23.5R25 include a deep siping design for extra capability in snow, gravel and soft sandy conditions; a special tread design; and a cut-resistant compound to reduce cutting, chipping and puncturing of the tire. The 23.5R25 is an enhancement to the current Bridgestone VSWAS line of OTR radial snow tires.
ATEQ commercialupdatesTPMS
ZHONGCE RUBBER GROUP CO. LTD. www.zc-rubber.com
MTD August 202262
Bridgestone adds new sizes to OTR snow tire
Vipal offers new tread for urban applications
VIPAL RUBBER
OFF-HIGHWAY TIRES AMERICA INC.
The new MS600 press-on solid is the industrialadditionlatesttoMaxam’stirelineand features proprietary EcoPoint3 technology. The MS600 sports a ve-degree sidewall taper and a full and unique tread pro le for a larger footprint, giving it one of the widest tread widths in the industry, according to Maxam of cials. The new product line will be manufactured using a fully automated strip winding process, ensuring top quality and performance consistency, as well as the new EcoPoint3 mixing process, which allows for the MS600’s master batches to contain less ller, higher ratios of stress at elongation and minimum degrees of impurities, resulting in a more consistent compound.
MAXAM TIRE NORTH AMERICA www.maxamtire.com
Commercially Viable
tool ATEQ TPMS Tools LC is adding a commercial truck tool, the VT Truck 2.0, to its lineup for the North American and European markets. The tool follows in the footsteps of the VT Truck tool and it arrives as ATEQ says commercial truck TPMS legislation becomes more prevalent in both North America and Europe. The ATEQ VT Truck 2.0 offers functionalities speci cally designed for the maintenance of trucks and buses and includes all-new OBD coverage. The tool features a sturdy and compact design and can read even twin wheels and 22-inch tire sizes. ATEQ says the device is compatible with most truck and bus TPMS sensors and can be updated to include new heavy transport vehicles as soon as they are introduced.
www.yokohama-oht.com
YOKOHAMA
BRIDGESTONE AMERICAS INC. www.bridgestone.com
What if the standard questions of “How do I nd more help?” and “What’s the secret to nding employees these days?” were ipped? Ask instead, “How does more help nd me?” and “What’s the secret to nding the best employers these days?” is ips the script from you nding new team members to employees nding you. Isn’t that really how it goes — or at least how it should? e best are sought out rather than snubbed. And industry veterans — as well as prospective “best-in-class” team members — know where the best employers are and will seek them out. If you’re truly team member-centric, you’re getting o ers, not making them. e good news here is you get to take your recruiter hat o and put your sales hat back on. Now you simply work hard to sell your dealership’s “value proposition” to prospective employees. So what does a valuable employee propo sition look like? Pay and bene ts top the sentiments. e good news is we have very short sales cycles and we should be paying on a production or commission basis. As long as you’re realistic with your annual forecasts and budgets — and you’ve set your individual pay plans to meet those budgets — with the right tools and support, your gross line will grow as your employees strive to meet their personal income goals. e bene t side of that equation is a bit more di cult to solve. at said, there are all sorts of bene t strategies that provide added value. Second to pay and bene ts is a greater work-life balance — or should we say life-work balance? e past couple of years have been taxing on employees, with a large percentage feeling stressed, overwhelmed and burned out. Set burnout aside and you still have a very large increase in exibility via remote work. While most of your teams need to be at the shop, that doesn’t mean that your scheduling can’t be more exible. Consider shorter work weeks for those who work Friday and Saturday. Getting creative with life-work exibility is a must. Right behind life-work balance is the desire of employees to do what they like and are good at. Team members who aren’t given the opportunity to exercise their strengths look elsewhere. Having a well-designed team member advancement and performance review strategy puts all the cards on the table. With such a system, team members will understand how to go from X to Y and more importantly, what it means to them personally. Next, employees look for stability. is is especially true as our industry reshapes itself. Finally, today’s workforce desires diversity and inclusion. is is likely the biggest change in recent years. Creating more equitable, inclusive environments is viewed as societal progress and should be a very high priority in your annual goals. Keep in mind this takes much more than just a commitment. Your team member experience and your brand must re ect yourUltimately,commitment.while pay is likely top of mind with employees, it no longer trumps all else. Is the total employee value proposi tion you’re selling worth buying? ■ Tire and auto industry veteran Randy O’Connor is the executive director TEN (Training and Education Network). He can be reached at roconnor@10missions. com. For more information, see www.mtdten.com.
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Team members who aren’t given the opportunity to exercise their strengths look elsewhere.
TEN Insights
Randy O’ConnorBy
rguably the most discussed topic of the past couple of years has been the job market. We’ve all felt job market pressures in one form or another — some less than others. e question usually comes to me in the form of “How do I nd more help?” or “What’s the secret to nding employees these days?”esequestions have been a part of almost every conversation I’ve had with tire dealers for quite some time. If you’re fortunate enough to be a member of a professional, peer-to-peer group like MTD TEN (Training and Education Network), you likely have met a few dealers who might be outperforming some others. Why is that? Why do some dealers have extremely low attrition, while others struggle to simply avoid turning awayIt’sbusiness?nosecret that our industry runs a few years behind advancements in other industries. Whether it’s marketing tools like trigger-and-drip campaigns or customer experience tools like text-to-pay, we have been behind other industries for as long as I can Whileremember.wecancertainly succeed without having the latest and greatest tools to help improve the customer experience, we certainly cannot succeed without having a scholarly, tuned-in perspective on the job market. We all agree that our team members are the most important part of our businesses, yet we o en fall short of keeping up with advancements in the job market. Like it or not, our industry has never provided the most team member-centric environment. Add a snowballing lack of participation in the trades, a pandemic, some government nancial support that has incentivized people to sit out of the job market and a large push by employees for a heightened work-life balance and you have a recipe for disaster.
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Is the proposition you’re selling worth buying?
TO ATTRACT TOP TALENT, LOOK BEYOND THE BASICS
Things to consider when divesting ARE YOU REALLY GOOD AT EVERYTHING?
Fast forward to this past June, when Monro sold its wholesale tire operations to American Tire Distributors Inc. (ATD) for $105 million and entered into a long-term agreement that will see ATD supply tires to the stores in Monro’s retail network. It was smart of Michael Broderick, Monro’s CEO, to make this deal early in his tenure. He must have looked at the various segments Monro was in and concluded that the wholesale tire division was not core to the company’s business. Making this decision early allows him to free up resources, focus his team on Monro’s core retail business and with the ATD deal, improve tire deliveries, reduce costs and drive long-term value. He’s clearly putting his stamp on the business and preparing it for more store conversions from auto service to tires.
Michael McGregorBy
Analyzing return on assets employed is one way of determining the relative return one is getting. It’s calculated by taking the net income of a business segment — be sure to fully allocate a fair share of corporate overhead — and dividing that by the assets employed in the business segment. Other metrics to consider are: a. the cash generated by each segment and whether it’s worth the e ort; b. projected pro tability, and; c. expected revenue growth. If it is determined the business segment is no longer a t, consider whether divesting it as a going concern or selling o those assets makes sense. One of the bene ts that may come from divestment is freeing up capital to invest in higher-growth businesses. Or maybe you can use the cash to invest in technol ogy to improve the customer experience? Perhaps your company can enter into new geographies? Certainly many companies end up nancially stronger, reenergized and more focused a er divestment. Most companies wait too long to divest non-core divisions. Inertia must be one reason. Or perhaps there is disagreement among owners and senior management in a family-owned business? is is where hiring outside advisers or strategy consultants may make some sense. In every case, it’s always better to sell when your business is healthy and before it really slides. Depending on the size and pro tability of a carve-out, private equity rms may be interested, but certainly stra tegics are good buyer candidates. A divestment can be disruptive to an organization and cause anxiety among employees. And you certainly don’t want competitors nding out. I always advise keeping the decision to divest extremely con dential until a deal is done. A er it’s announced, communicate regularly with customers. Keep key employ ees motivated and incentivized through the period of uncertainty. And make sure that the going forward vision is clearly communicated o en. ■
Mergers and Acquisitions
Publicly traded companies face chal lenges that many privately owned companies don’t have in that there are all sorts of “activist” shareholders who invest in public companies to force change, like Ides Capital, an investor that’s pushing Monro for a strategicActivistreview.shareholders look for ine cient balance sheets, stalled growth, unclear strategy and questionable investment deci sions. Publicly traded company CEOs need to keep one eye out for these shareholders and sometimes make pre-emptive divest ments to keep the business on the best path. Privately held companies don’t face the same outside pressure as publicly traded companies, but they also can bene t from a periodic review of their portfolio of businesses. ere are tire dealerships of all sizes that have a nice chain of retail stores, but pro tability could be dragged down by a wholesale division that loses money. When one adds in the cost of carrying tire inventory and today’s higher fuel costs, the pro t picture sometimes looks even worse for them. And we’ve all seen great retail tire companies with unpro table commercial divisions or large commercial tire dealerships with a sprinkling of break-even retail stores. It’s pretty clear that each segment — retail, wholesale and commercial — requires di erent core competencies to be successful. Retail is a people-andprocess business. With wholesale, you better be great at logistics. And to survive and grow long-term in commercial tires, you better be good at making yourself indispensable to your tire supplier of choice — and to your customers. e tire industry is changing faster than ever, so every company needs to analyze its strategy and determine how its business ts with that strategy. Consider how segments t with your company’s overall vision and mis sion, how they stack up against competitors and how your dealership’s competencies and nancial strength match up to the challenges ahead. Next, look at underlying business trends and long-term growth outlook.
Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-andservice). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com. One of the bene ts that may come from divestment is freeing up capital to invest in highergrowth businesses.
MTD August 202264 Afriend at Monro Inc. asked me last year if I could name one company that was in retail, com mercial and wholesale tires and excelled at all three.
Business Insight Dennis
MTD August 202266
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.
Not all great salespeople make great managers and not all great managers started as the best salesperson. McCarron
Now let’s look at the competencies of a successful store manager. Sure, personal selling goals are still on the table. But overall store performance is more important. Who cares if the store manager is number one in sales, but the store is down 10% from last year? Other competencies also carry forward, like a focus on customer service.Butdoes a salesperson really care about the mix of sales or making sure controllable expenses are kept in line?
A focus on results. Managers must monitor the process by which results are achieved and provide a path for employees to get there and not just set goals. Store managers must convey this path in simple terms so that everyone can be on the same page. For example, “Team, we need to improve our alignment sales, so need to sell more alignments this month” is not a strategy.
T he Peter Principle states that every employee in an organization tends to rise to his or her level of incom petence. In other words, if you are good at your job, you will get promoted until you reach a position that you are not good at. This happens regularly at tire dealerships and other auto motive facilities. A general service or auto repair technician is promoted to doing alignments before getting any sound training or the best salesperson gets to be the new store manager.
How do you know which employees have those skills? If an employee reaches his sales goals regularly, have a conversation and see if he is interested in taking on more responsibility. Not everyone wants to get promoted. But if the answer is yes, start assigning simple tasks a few times and observe the employee’s performance doing something out of his comfort zone. Ask him to conduct part of a store meeting or ask him to look at some expenses and see if he can come up with a plan to reduce those costs.. Ask him to plan a tire sales event. You could also sit down with him once a month and review your dealership’s P&L, one-on-one. Explain how it works and what the metrics are.
■
The store manager scenario is the best example of the Peter Principle that I can provide. A very good salesperson is motivated through personal goals, such as having the most sales, selling the most tires or whatever metric the company’s owner is focused on. And often, the best salesperson is driven by personal glory — and the accolades awarded for doing the best job by yourself.
The qualities that make up a store manager are very different from those of someone who is applying personal goals to themselves. If you have an employee with growth potential, start challeng ing that person in small ways to begin the transformation.
Let’s take a look at some core competencies necessary for a good or great store manager: Leadership (“look at me versus follow me”) . A good store manager doesn’t just do well in sales and then tells others, “You need to do this, too.” A good store manager builds a team and supplies knowledge and tools so that everyone has a chance at success. A good store manager figures out what motivates each employee and aligns that motivation with company goals and results. Successful managers inspire others to do things their way — not just any way. Operational discipline. Effective managers understand what the company is good at and what it is not and guides employees to make sound, reasonable decisions that make the customer happy, the employee happy and the company happy.
If he asks intelligent questions or participates enthusiastically, there’s a good chance there is room for growth. Not all great salespeople make great managers and not all great managers started as the best salesperson.
How to break the Peter Principle CHALLENGE YOUR EMPLOYEES WHO SHOW GROWTH POTENTIAL
By
The trick is in balancing all three and not sacrificing one for the other. Operational discipline also covers a fundamental understanding of business and how profits are made. Managers must understand concepts like every dollar in expense is a dollar taken from profit, yet only 10% to 15% of all sales dollars reach the bottom line. They don’t have to have an MBA, but they need to be able to read a P&L and understand how it works.
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CONSISTENCY IS THE KEY Lionel Peres, longtime ITDG member and co-owner of Tulare (Calif.) Firestone, a dealership with 13 retail locations and three wholesale distribution centers, says he paid “a fairly high premium” for workers compensation insurance before ITDG established its original captive insurance program in 2005. “I was skeptical (of the program) in the beginning. But I realized these guys knew what they were doing.” He likes the new Cell ITDG Cap tive Insurance program even more. “ e same management people are in place. And the main factor is the balance goes into two di erent funds. One is a claim fund, which is basically in our name, and the other is a shared fund. We write our own check out of the claim fund. Once those claims are closed, money will be distributed back to us. I get a substantial amount of the premium.
he Independent Tire Dealers Group LLC (ITDG) is offering its 1,000-plus members a new captive workers compensation insurance plan, which replaces the group’s original captive insurance plan that was introduced more than 15 years ago. Workers compensation insurance plans “seem to be more of a value-add to our members than ever before,” says ITDG President and CEO Dave Marks, who adds that ITDG members requested an updated program. “People are trying to take better control of their workers compensation insurance and have a vested interest” in a plan that can help minimize their costs. e new program, Cell ITDG Captive Insurance, provides segregated accounts for each member. Claims are deducted from a pooled fund. If claims exceed the fund’s balance, the “extra” becomes a shared claim. And any surplus belongs to individual members, who also have full discretion when it comes to the distribution of funds and can enjoy returns for good performance. (Buy-in is a one-time payment of $1,000 — less than the previous captive’s buy-in amount.)
MORE CONTROL e Cell ITDG Captive Insurance program also gives policyholders more control over the management of claims and losses. “And more importantly, instead of receiving a dividend against the total bucket, they now get a percentage of their reserved funds, which they control,” says Marks. “If they’re a good steward of their money and business and have a safe workplace, they are now guaranteed a portion of those funds back over a period of time.” In the previous plan, “all money went into the pool. Now only part of that money goes into the pool and part remains in their own account. If they have a claim, that money is spent. If they don’t have a claim, that money stays in their reserve. “Long-term, it gives members better control and better visibility. And if there’s a member who’s not a good steward, they’re going to get pressure from their fellow dealers. You also get some good shared ideas and best practices” as a member of the captive.
“The fact we’ve maintained the same loss prevention individu als” after moving to the new program “is the most critical part,” says“IPeres.have seen them close claims that were litigated very rapidly. at’s the key — getting in claims and responding to the injured employee as quickly as possible.
Focus
“We’re trying to build stability and sell ITDG,” says Dave Marks, CEO of the Independent Tire Dealers Group LLC (far right), with, teammates, from left to right, Chris Barry, senior sales director; Sherry Bily, director of programs and pricing; Mike Burns, sales director, eastern U.S. region; and Cheryl Bluman, of ce and administrative manager.
Mike MangesBy on Dealers
Photo: ITDG
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“And if we’re communicating with the employee and our insurance group is communicating with the same employee,” you can reduce the possibility of litiga tion, he “Insuranceadds. companies are out to make a profit. We’re out to take care of the employee and control our expenses as much as Otherpossible.”CellITDG Captive participants “love” the program, says Marks. “ e insurance industry is pretty di cult. It’s very, very competitive. It’s not unusual for some insurance companies to completely underbid somebody to take a plan. “How sustainable is that? Usually over time, it’s not really sustainable. We’re trying to build stability and sell ITDG,” while providing enhanced bene ts, he adds.
ITDG rolls out new workers comp insurance program PLAN GIVES PARTICIPANTS ‘MORE CONTROL,’ BIGGER RETURNS
MTD August 202268
Big O Tires franchisees set back-to-back sales and pro tability records in 2020 and 2021 and for the rst time, turned the franchise program into a billion-dollar business. New leaders at Big O’s helm say it’s just the beginning and that Big O Tires is “poised for monumental growth.” Laurent Bourrut, the CEO of TBC Corp. since July 2021, spoke to Big O Tires franchisees during the group’s annual convention. Bourrut said TBC is “especially committed to growing Big O. Big O is a fantastic brand and this is really, really a major growth engine for our company — for TBC. We are fully convinced that Big O is a fantastic platform poised for monumental growth in the coming years.”
e conference was Big O Tires’ rst gathering of its 200-plus franchisees since April 2019. Bourrut was joined by other TBC executives, including Brian Maciak, who took over as the head of Big O Tires on July 1, following the retirement of Jim Bull. Bull noted that in 2021, same-store sales increased 16%. e group’s whole sale and retail tire units increased and collective auto service sales grew by more than 20%.
LEADERS PLAN FOR NATIONAL PRESENCE Joy KopchaBy Focus on Dealers
Twelve new Big O Tires stores opened last year and every store that was up for franchise renewal remained in the Big O TiresDespitenetwork.themassive upheaval in business caused by the COVID-19 pandemic and all the other disruptions that followed, Bull said, “We came out ahead. Big O Tires has very ambitious, long-term goals. We want to become a national chain, without losing the essence of who we are.” One of the lessons that leaders of Big O Tires learned is that their franchisees have a collective wisdom that can help the whole group move forward. Maciak told MTD that during the early stages of the COVID-19 pandemic, store owners were asking for advice on a critical question: “How do we keep our people safe and healthy?” “I wouldn’t want to go through that again, (but) we realized pretty quickly if we don’t have the answers at corporate, some of our franchisees have very good ideas,” said Maciak. “We (also) revamped our governance structure. We now have committees of corporate (representatives) and franchisees, not just for COVID19, but broad topics — IT, training, operations.”
Photo: MTD
Kent Coleman is a Big O Tires franchisee and owner of the franchise program’s top store in the country. The Salt Lake City, Utah, store recorded sales of nearly $10.5 million in 2021 and is the rst Big O store to cross the $10 million annual sales threshold.
The idea of those committees wasn’t completely new, but Maciak said Big O Tires “blew it up even more. We can get to a better answer quicker when we do it with our franchisees. ey love having a voice (and) playing a role in the decision making.” e conference highlighted the work of some of those com mittees and how they’re focusing on four strategic areas for the Big O Tires program: Competitive advantages, using technology and innovation; Sta ng, since the ability to train has become more vital as already-trained employees are hard to nd; Store growth and the importance of growing, given the activity of private equity in market consolidation, and; Fleets, including embracing eet work as a critical part of business. As just one example, Big O Tires franchisee Joe Happel said the group’s operations and training committee is building a framework to nd mentor dealers to guide new franchisees. e committee also is pushing to expand its corporate training team and its resources, while also nding ways to revamp Big O Tires Academy to make it more usable and information more digestible.Abigfocus of the conference was celebrating the people within the orga nization, as well as the success of the group’s stores. Standing O Awards were presented to Clark Brown, Rick Zirges and Mike Ledbetter. ree Big O Tires dealers also were welcomed into the Hall of Fame — the late Bill Skidmore, who died in 2013; Mitch Beranek; and Greg Kimberlin. At the store level, Big O Tires recognizes a location the rst time it crosses the threshold of $2 million in sales. e next recognition comes at the $3 million level, then the $4 million level and so on. e group also highlights its top 10 stores nationally. In 2021, those stores recorded more than $70 million in total sales. Each of the stores in the top 10 had more than $5 million in sales. And for the rst time, a Big O Tires store broke the $10 million annual sales barrier. at store, a longtime leader in the Big O Tires system, is owned by Kent Coleman and is located in Salt Lake City, Utah. Total 2021 sales there were nearly $10.5 million.
Big O Tires dealers hit $1 billion in sales
CHANGE IS CONSTANT Kevin and Trisha’s OK Tire location provides a wide range of tires and tire-related services for passenger cars and light trucks. It also o ers a variety of mechanical services and does “pretty much anything but exhaust (work) and transmissions,” says Kevin. e partners say they have seen a lot of changes during their time as the store’s owners. Utilizing tools like the internet and OK Tire’s website, customers have become more knowledgeable about what they want when they come into the shop, according to Trisha. ere also are a lot more product options than in the past. Kevin remembers that at the beginning of his career, there were fewer tire brands and sizes. One constant for the couple’s OK Tire location has been its customer base. Kevin says that being a part of the same community for decades has bene tted the store. And he believes excellent service and personal relationships with clients have helped with customer retention.
Kevin and Trisha say future goals for their business include improving various systems and procedures to increase e ciency, while preparing the store to be handed over to the next generation of owners within seven to eight years.ecouple’s two daughters have other plans for their futures, so they are mentoring young employees who already have “experi ence and connection with the customers” and have been with the company for a long time.
Partners in business and at home IT’S A FAMILY AFFAIR FOR KEVIN GROSE, TRISHA ANDREWS AND THEIR OK TIRE STORE Maddie GehringBy
BALANCING WORK AND LIFE Trisha says that doing business with a spouse provides some advantages that other arrange ments may not o er. “You are able to bounce ideas o of each other’s strengths and not have that power or control dynamic that some partners may have, because they don’t live with each other and don’t know what it’s like when you can nish each other’s sentences.” e relationship between Trisha and Kevin allows them to be more open as business partners. Both feel more free and comfortable to share thoughts and ideas because they know where the other person is coming from. Even though there are unique upsides to being a business partner with a spouse, both acknowledge there are unique struggles, as well.“Sometimes it’d be nice to come together at the end of the day and be like, ‘Oh, guess what happened today?’” says Kevin. “But we don’t have that because we are both” at theNotstore.talking about work outside of business hours can be a challenge. The couple follows a set of rules and established boundaries to not talk about work when away from the store. ey even make a point to take vacations individually, so they can “appreciate some time apart.”
K Tire has 325 branded, fran chise stores from the west to east coasts of Canada. All of the stores are independently owned and operated. An OK Tire location in Prince George, British Columbia, hap pens to be owned and operated by business partners who are married. Kevin Grose and Trisha Andrews have owned their OK Tire location since 2017 and have been married since 1991. e couple has successfully navigated this professional/ personal dynamic to build a successful business that continues to grow.
Focus
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Kevin Grose (second from far right) and Trisha Andrews (far right) have owned their OK Tire location since 2017. Em ployees include, from left to right, Justin Flieger, Rob Nootebos, Dennis Menning, Ian Mergen and Tristen Popowich.
Owww.ModernTireDealer.com
Photo: OK Tire on Dealers
IN IT TOGETHER Kevin Grose started working at the store under his father, George Grose, when he was only 12 years old. His father opened the location in 1955. “He wanted an opportunity to have a business that services multiple people,” says Kevin.eyounger Grose thought taking over the business seemed like a “no-brainer” since he had worked there for so many years. Now, at age 49, he says he is “fully invested” in the store and has put in 37 total years there, with 33 of those being full-time.Trisha, also 49, took a slightly di erent on-ramp into selling tires. In 2002, she was pregnant with the couple’s second daughter and wanted a job that would give her exible hours so she could maintain a good work-life balance. She began working part-time at Kevin’s father’s store and fell in love with her job. She decided to stay full-time. Kevin acknowledges that being an inde pendent, second-generation owner is a big accomplishment. But he says that owning the store with Trisha is the thing he is the most proud of.
MTD August 202270 When directed to train any TPMS sensors, use only the sensor training procedure outlined in this article. Do not use the TPMS reset procedure outlined in the owner’s literature as this procedure does not program new sensors to the module. e TPMS uses four valve stem mounted sensors to monitor tire pressure. ese sensors wirelessly transmit tire pressure data to the RTM. e RTM is a radio signal receiver which collects the tire pressure data and sends the information to the BCM along a LIN. All TPMS functions are controlled by the BCM. e BCM compares the tire pressure data sent by the RTM with a programmed tire pressure. If the actual tire pressure is less than the programmed tire pressure, the BCM sends a low tire pressure message to the GWM along the HS-CAN1. e GWM then sends this message to the IPC along the HS-CAN3. e IPC responds by illuminating the TPMS warning indicator and displaying a low tire pressure message in the message center. e TPMS sensors are trained (calibrated) to the BCM which records the unique identi er for each sensor and records the location of each sensor based on the calibration order. e diagnostic scan tool is useful in diagnosing TPMS concerns and may be used to verify the accuracy of the data transmitted by the TPMS sensors. is is accomplished by comparing the BCM tire pressure PID data to the actual tire pressure using a digital tire pressure gauge. It is not necessary to train the sensors a er a tire rotation on vehicles with the same front and rear tire pressures; however, the BCM cannot recognize the sensor identi ers have been moved to di erent positions and retains the original position information for each sensor.
COMPONENT DESCRIPTION
TRAINING IN A DIFFERENT ORDER
BCM: e BCM is a module that monitors all sensor inputs and all CAN messages that relate to the TPMS. e BCM records and retains the unique sensor identi er of each TPMS sensor, and retains the previous sensor location information following a tire rotation. To learn the new sensor location, the sensors must be calibrated to the BCM. All four sensors must be trained when a new BCM is installed. When the data is cleared, the tire pressure DID’s reset to the factory default of 149.96 psi and the IPC displays dashes for the tire pressures. e sensors must be activated to transmit the latest tire pressure information.
Rotate the wheels and road test the vehicle. is can be done in an attempt to replicate the concern and help determine if the concern followed the sensor or remained in the original sensor location. If the vehicle has been stationary for more than 30 minutes, the sensors go into a “sleep mode” to conserve battery power and need to be “woken up” so they transmit the latest information to the RTM.
RTM: e RTM is a radio receiver used to collect the pressure data from the sensors.
If the rst sensor fails the TPMS training procedure, the BCM aborts the entire procedure. Starting the training procedure at a di erent wheel is a technique that can be used to determine if the remaining sensors can train to the module. is can help save time determining if one sensor is damaged, other sensors are having concerns or the BCM is experiencing training di culties with a certain TPMS sensor location.
e TPMS warning indicator illumi nates when the IPC has not received any signals from the BCM for more than ve seconds, or when the TPMS is malfunc tioning. e message center displays TIRE PRESSURE MONITOR FAULT.
TPMS WARNING INDICATOR e TPMS warning indicator is used to indicate both a low tire pressure event and a possible system fault condition. Occasionally, the warning indicator and message center indicate faults that cannot be resolved by the customer. Treat these as TPMS faults that must be serviced. e TPMS warning indicator remains on continuously and the message center displays LOW TIRE PRESSURE when any of the tire pressures fall below the low pressure limit. When this condition exists, adjust the tire pressure to the recommended cold tire pressure indicated on the VC label. e TPMS warning indicator ashes for 70 seconds and then remains on when the ignition is set to ON and the TPMS is malfunctioning. e TPMS status PID can be used to determine why the TPMS warning indicator is ashing.
Fig 1: For a paddle-type tire machine, position the valve stem at the 12 o’clock or 6 o’clock position and the paddle at the 3 o’clock position.
WHEEL ROTATION AND SENSOR TRAINING TECHNIQUES
Training known good sensors from another vehicle can help determine whether the concern is with a sensor or the RTM. is technique cannot help determine whether the concern is due to RFI as some RFI source could be preventing the RTM from receiving the tire pressure status from the known good sensors as well as the original sensors. If the RTM in the suspect vehicle cannot train any of the original sensors and, likewise, cannot train known good sensors from another vehicle, then the concern is with the module or RFI and not with the original sensors. e original sensors should not be replaced. If a sensor in a certain location has caused several events, yet the sensor trains and seems to operate normally, moving that particular wheel to a di erent location on the vehicle is a good way to isolate the concern to a certain sensor/wheel location.
TPMS Lincoln Corsair — 2020-2021
Photo: Mitchell 1
ORIGINAL EQUIPMENT FIT FORM & FUNCTION UPDATES POWERED BY DIAGNOSTICS COMPLETE SOLUTION OE QUALITY SENSORS POWERFUL SCAN TOOLS COMBINES 314.9, 315 & 433MHZ APPLICATIONS INTO ONEBATTERYSUPERIORSTRENGTHMAXINVENTORY1-SKUUNIVERSALPROGRAMMABLESENSORTPMSSENSORSIGNALLIFE 315MHZ + 433MHZCOMBINE BOTH FREQUENCIES ALUMINUM > RUBBER > 99 COVERAGEVEHICLE% PRESS RELEASE INTERCHANGEABLEVALVESTEMS TPMS SERVICE TOOL • 4 MX-Sensor Programming Methods • Exclusive TPMSStatus Screen TS508 DIAGNOSTICS & SERVICE • 5.5” Touchscreen Tablet with Android 9.0 OS • Optical Scanner Identifies VIN / MMY ITS600 ® SUPPORT: 1.855.288.3587 FOLLOW US @AUTELTOOLS VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM ORIGINAL EQUIPMENT FIT FORM & FUNCTION UPDATES POWERED BY DIAGNOSTICS COMPLETE SOLUTION OE QUALITY SENSORS POWERFUL SCAN TOOLS COMBINES 314.9, 315 & 433MHZ APPLICATIONS INTO ONEBATTERYSUPERIORSTRENGTHMAXINVENTORY1-SKUUNIVERSALPROGRAMMABLESENSORTPMSSENSORSIGNALLIFE 315MHZ + 433MHZCOMBINE BOTH FREQUENCIES ALUMINUM > RUBBER > 99 COVERAGEVEHICLE% PRESS RELEASE INTERCHANGEABLEVALVESTEMS TPMS SERVICE TOOL • 4 MX-Sensor Programming Methods • Exclusive TPMSStatus Screen TS508 DIAGNOSTICS & SERVICE • 5.5” Touchscreen Tablet with Android 9.0 OS • Optical Scanner Identifies VIN / MMY ITS600 ® SUPPORT: 1.855.288.3587 FOLLOW US @AUTELTOOLS VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM ORIGINAL EQUIPMENT FIT FORM & FUNCTION UPDATES POWERED BY DIAGNOSTICS COMPLETE SOLUTION OE QUALITY SENSORS POWERFUL SCAN TOOLS COMBINES 314.9, 315 & 433MHZ APPLICATIONS INTO ONEBATTERYSUPERIORSTRENGTHMAXINVENTORY1-SKUUNIVERSALPROGRAMMABLESENSORTPMSSENSORSIGNALLIFE 315MHZ + 433MHZCOMBINE BOTH FREQUENCIES ALUMINUM > RUBBER > 99 COVERAGEVEHICLE% PRESS RELEASE INTERCHANGEABLEVALVESTEMS TPMS SERVICE TOOL • 4 MX-Sensor Programming Methods • Exclusive TPMSStatus Screen TS508 DIAGNOSTICS & SERVICE • 5.5” Touchscreen Tablet with Android 9.0 OS • Optical Scanner Identifies VIN / MMY ITS600 ® SUPPORT: 1.855.288.3587 FOLLOW US @AUTELTOOLS VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM
NOTE: e tire pressure data in the BCM can be cleared when the module performs a reset. When this occurs the air pressure DIDs will be reset to the factory default of 149.96 psi and the cluster will display dashes.
5. Using the start/stop switch, position the ignition from OFF to RUN three times, ending in the RUN position.
TPMS sensor training procedure
3. For a paddle-type tire machine, position the valve stem at the 12 o’clock or 6 o’clock position and the paddle at the 3 o’clock position. (See Fig. 1 on page 70.)
CALIBRATION PROCEDURES
1. Place the special tool on the Le Front tire sidewall at the valve stem. Press and release the test button on the tool. e horn will sound brie y to indicate that the tire pressure sensor has been recognized by the BCM. Use Special Service Tool: 204-D081A (204-D081).
REMOVAL AND INSTALLATION Disassembly e TPMS sensor is mounted to the valve stem. Removal of the valve stem requires demounting the tire from the wheel and removal of the TPMS sensor.
5. If the sensors are being trained due to the installation of a new BCM, clear any DTC and carry out the BCM On-Demand Self Test.
2. Using the start/stop switch, position the ignition from OFF to RUN three times, ending in the RUN position.
NOTE: is step is required to clear DTC B1182:55, to cause the BCM to exit manufacturing mode and to make sure there are no other concerns with a newly programmed BCM.
TPMS TPMS sensor: Each of the four TPMS sensors contains a battery, a tire pressure sensor and a radio transmitter. Transmis sions are sent about once every 60 seconds when vehicle speed exceeds 20 mph.
Programming e TPMS can be placed into learn mode using a diagnostic scan tool, or manually when a scan tool is not available. The horn will sound once and the TPMS indicator will ash if the training mode has been entered successfully. If equipped, the message center will display TRAIN Le Front TIRE.
SENSOR LOCATION CALIBRATION
1. With the ignition OFF, press and release the brake pedal.
2. Within two minutes of the horn sound ing, place the tool on the Right Front tire sidewall at the valve stem and press and release the test button to train the tire pressure sensor.
4. Position the ignition to OFF position.
1. Turn the ignition switch to the ON position. 2. Position the special tool against the le front tire sidewall at the tire valve stem. Use Special Service Tool: 204-D081A NOTE:(204-D081).etool should provide feed back in the form of a ashing green light and a beep sound for each successful response from a tire pressure sensor. is feedback may not always be present, do not rely on it as a con rmation that the module heard a particular sensor.
Photo: Mitchell 1
1. Enter Training Mode With IDS Scan Tool Select Chassis; select TPMS; select Train ing Mode. Use the General Equipment: Ford Diagnostic Equipment.
4. Using the scan tool, locate the updated TPMS sensor identi ers trained to the BCM and document them on the appli cable warranty claim.
MTD August 202272
Fig 2: Place the wheel and tire assembly on the turntable of the tire machine with the valve stem at the 11:30 position and the machine arm at the 12 o’clock posi tion to demount both the outer bead and inner bead from the wheel.
It may take up to six seconds to activate a tire pressure sensor. During this time, the tool must remain in place at the valve stem.
1. Remove the wheel and tire.
3. Press and release the brake pedal.
For a roller-type tire machine, align the valve stem with the roller at any position. If bead separation is di cult using the nylon roller bead separators due to high anchoring force between the tire and the wheel; the paddle-type bead separator may be more e ective. Do not allow the tire beads to move
TPMS sensor activation NOTE: The tire pressure sensors will go into a “sleep mode” when a vehicle is stationary to conserve battery power. e sensors do not transmit information while in sleep mode. It will be necessary to wake them up to transmit the latest info.
NOTE: If a sensor does not respond to the tool, move the vehicle to rotate the wheels at least one-fourth of a turn and attempt to activate the same sensor again. If the sensor still does not respond, attempt to activate the same sensor again using the customer activation tool (if available). If the sensor still fails to train, attempt with the vehicle doors open. 3. Press the test button on the tool to acti vate the sensor. Activate the sensor at least two times. 4. Repeat steps two and three for the remaining tires.
2. Enter Training Mode With FDRS Scan SelectTool Toolbox; select BCM; select BCM TPMS Initialization. Use the General Equipment: Ford Diagnostic Equipment. How to enter training mode without scan tool. e horn will sound once and the TPMS indicator will ash if the training mode has been entered successfully. If equipped, the message center will display TRAIN Le Front (LF) TIRE.
2. Remove the valve stem core and fully de ate all air from the tire. NOTE: e valve stem is connected to the TPMS sensor. Do not pull the valve stem from the wheel or damage will occur.
3. Repeat step one for the Right Rear and Le Rear tires. e procedure is com pleted a er the last tire is trained. When the training procedure is complete, the message center (if equipped) will display TIRE TRAINING COMPLETE. For vehicles not equipped with a message center, successful completion will be veri ed by positioning the ignition to OFF without the horn sounding. If the horn sounds twice when the ignition is positioned to OFF, the training procedure was not successful.
73www.ModernTireDealer.com
NOTE: Index-mark the valve stem and wheel weight positions on the tire.
2. Position the wheel on the turntable of the tire machine, then lubricate and position the bottom bead of the tire on the wheel. Lubricate the tire beads using a suitable fast-drying, corrosion-inhibiting tire bead
4. In ate the tire using the remote valve and tire gauge until the beads have seated or until the pressure gauge is 20 psi more than maximum in ation pressure on tire sidewall. If beads have not seated, de ate the tire and proceed to the next step.
7. Discard the speci ed component. Follow local disposal regulations. NOTE: When installing a new wheel, always install a new valve stem and sensor screw. Reuse the TPMS sensor from the previous wheel if possible. e TPMS will not have to be trained if reusing the sensor. Assembly Damage to the TPMS sensor may result if mounting instructions aren’t followed.
WARNING: If there is a need to exceed the maximum pressure indicated on the sidewall of the tire to seat the beads, follow all steps listed below. Failure to do so may result in serious personal injury. ese steps should only be carried out if the tire beads cannot be seated by in ating the tire to the maximum in ation pressure listed on the tire sidewall.
1. Position the new valve stem onto the TPMS sensor and install the new screw. Torque: 13 lb.in (1.5 Nm) NOTE: To prevent TPMS sensor and valve stem damage, the valve stem must be installed onto the sensor and then installed into the wheel as an assembly. NOTE: When installing a new wheel, always install a new valve stem and sensor screw. Reuse the TPMS sensor from the previous wheel if possible. e sensor will not have to be trained if reused. NOTE: Pull the valve stem and TPMS sensor assembly through the wheel hole in a direction parallel to the valve stem hole axis. If the assembly is pulled through at an angle, damage to the valve stem and sensor assembly may occur.
2. Install a remote valve and pressure gauge.
6. Remove and discard the TPMS sensorto-valve stem screw. Separate the TPMS sensor from the valve stem. NOTE: A new valve stem must be installed whenever a new tire or wheel is installed.
NOTE:lubricant.Donotmount the tire at this time.
NOTE: Lubricate the valve stem with soapy water and install it and the TPMS assembly into the wheel using a block of wood and a suitable valve stem installer.
5. Reset the wheel and tire assembly on the turntable of the tire machine with the valve stem at the 11:30 position and the machine arm at the 12 o’clock position and demount the inner bead from the wheel.
4. Place the wheel and tire assembly on the turntable of the tire machine with the valve stem at the 11:30 position and the machine arm at the 12 o’clock position and demount the outer bead from the wheel. (See Fig. 2 on page 72.)
1. Relubricate the tire bead and wheel bead seat area.
5. Place the wheel and tire assembly in an OSHA-approved tire safety cage.
6. In ate the tire using the remote valve and pressure gauge until the beads have seated or until the pressure gauge is 40 psi more than maximum in ation pressure on the tire sidewall.
5. In ate the tire to the pressure speci ed on the VC label on the driver door or pillar.
TPMS beyond the wheel midplane when separating the beads from the wheels; damage to the TPMS sensor may occur. Tire and valve stem position is critical to prevent damage to the sensor when using a paddle-type separator.
TBE200 INTELLIGENT MEASUREMENTSLASER TIRE TREAD 0.1MMMEASUREMENTBRAKEMEASUREMENTDEPTHDISCWEARLASERACCURACYTOUCHSCREENDISPLAY INDEPTH SERVICETIRETBE200 SUPPORT: 1.855.288.3587 FOLLOW US @AUTELTOOLS VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM
NOTE: Use a digital tire pressure gauge any time tire pressures are measured. NOTE: Proceed to the next step if the tire beads do not seat at the speci ed in ation pressure.
6. Do not exceed 40 psi above the maximum pressure on the sidewall. Install a new tire if the beads do not seat at this pressure.
3. Wear eye and ear protection and stand at least 12 feet away from the wheel and tire assembly.
3. Position the wheel to align the valve stem with the machine arm, at the 6 o’clock position, and mount the bottom bead of the tire.
4. Reposition the wheel to align the valve stem with the machine arm at the 6 o’clock position, and mount the top bead.
7. Install the wheel and tire. ■ Information for this column comes from the tire pressure monitoring systems data in ProDemandR, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com
MTD August 202274 ADVERTISER PAGE WEBSITE 1-800EveryRim OEM Wheels 44 www.everyrim.com/MTD Aftermarket Auto Parts Alliance Inc. 45 www.myplace4parts.com Atturo Tires 9 www.atturo.com/ats Autel 47, 71, 73www.autel.com BKT USA Inc. 11 www.bkt-tires.com Bridgestone Tire 33 www.bridgestonetire.com Cool Boss, a division of BendPak Inc. 43 www.coolboss.com Deestone 5 www.deestone.com EasyPay Finance 25 enrollment.easypay nance.com/tiredealers Falken Tires 23 www.falkenspiff.com Firestone Tire 37 www. restonetire.com General Tire 35 www.generaltire.com GT Radial 27 www.gtradial.com Hunter Engineering Company 49 www.hunter.com/hd K & M Tire Inc. 65 www.kmtire.com/mrtire Ken-Tool 61 www.kentool.com Kenda Tires USA IBC www.kendatractionrewards.com Linglong Americas Inc. 7 www.linglongtire.com Maxxis Tires 59 www.maxxis.com Mr. Tire/Big 3 Tire 51 www.mrtirebig3tirectd.com Nitto Tire U.S.A. Inc. OBC www.nittotire.com Nokian Tyres Inc. 21 www.nokiantires.com/daytonfactory Pre-Q Galgo Corporation 56 www.pre-q.com Raybestos 15 www.raybestos.com SEMA Show 55 www.semashow.com Sentury Tire USA 19 www.groundspeedtires.com Sunbit 39 auto.sunbit.com/learnmore Tireco Inc. 13 www.milestartires.com Transamerica Tire Company Ltd. IFC www.predatortires.com Yokohama Off-Highway Tires America Inc. 17 www.yokohamaotr.com Yokohama Tire 29 www.yokohamatire.com ZC Rubber America Inc. 53 www.arisuntires.com Ad Index WHEN YOU CONTACT ONE OF OUR ADVERTISERS PLEASE BE SURE TO MENTION YOU SAW THEIR AD IN MODERN TIRE DEALER
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