Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
    • Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
      New Porsche 911 GT3 to feature Michelin fitment
    • Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Yokohama sets ambitious goals through 2023
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
    • TravelCenters plans 6 TA Express sites in California in 2021
      Carlisle TyrFil broadens recycling technology options
      U.K. retreader Vaculug to promote tread rubber supplier Vipal
      TMC moves spring conference online, sets trade show for September
    • Oshkosh unit gets contract for new USPS local delivery vehicle
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
      Cooper expands recall of Cooper, Mastercraft grand-touring tires
      DOT issues 13 tire plant ID codes in 2020
    • Yokohama sets ambitious goals through 2023
      OK Tire secures exclusivity for Blackhawk tire brand
      U.K. retreader Vaculug to promote tread rubber supplier Vipal
      Execs: Goodyear acquisition of Cooper will benefit dealers
    • Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
      Goodyear extends partnership with Nürburgring race circuit
      BFG to support ATV/UTV racers in WORCS series
    • Michelin launching ‘eco-responsible' performance tire for sporty EVs
      Martins Industries launches products in 3 categories
      Carlisle TyrFil broadens recycling technology options
      New McLaren supercar incorporates Pirelli's Cyber Tyre system
    • Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Cooper recalling 430,000+ whitewall LT tires in multiple brands
      OK Tire secures exclusivity for Blackhawk tire brand
      NPW hires Switzer as national sales manager
    • Automotive Lift Institute introduces Check360 inspection, label
      Martins Industries launches products in 3 categories
      Marinucci: Effective road test may eliminate issues
      Our View: Shops must alter ways to attract, retain talent
    • SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
    • Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
    • Michelin launching ‘eco-responsible' performance tire for sporty EVs
      Goodyear, Cooper deal creates tire production synergies
      Goodyear promotes Helsel to senior VP, global operations role
      Tire dealers see possibilities in Goodyear, Cooper deal
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Safety tips for wheel balancing
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
    • Video: Demounting
      Tire changer types, tips and trends
      How to clear rim rust and corrosion
      An introduction to demounting, mounting and inflation
    • Video: Safety
      Customers
      Considerations for shop safety policies
      Introduction: Creating a culture of safety
    • Video: Tire Repair
      Essential tools, materials and equipment for tire repair
      An introduction to tire repair
      How to properly patch a puncture
    • Video: TMPS Service
      The life-saving work of TPMS
      An introduction to TPMS service
      The importance of proper relearn procedures
    • Video: Training
      Internship ideas to attract tech talent
      Choosing the right auto service tech school
      Intro: Finding and training technicians
    • Video:Vehicle Lifting
      The gravity of proper lift points
      Safety essentials when using jack stands
      An introduction to lifts and lift safety
    • Video: Wheel Torque
      The importance of torque specifications
      Introduction to proper wheel installation
      Torque check and recheck recommendations
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
July 28, 2000 02:00 AM

Industrial and specialty tire business booming

Larry Wingert, Tire Business staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    AKRON (July 28, 2000) — This is a fairly good time to be in the industrial and specialty tire business: A generally strong economy has resulted in strong demand, and most suppliers are running flat out to meet it.

    But nothing is perfect. Like most of the tire business, several segments of the industrial and specialty tire market are extemely price competitive, making it difficult for suppliers and dealers alike to fully pass on increased costs to their customers.

    In a survey of industrial and specialty tire manufacturers and suppliers, conducted for this issue of Tire Business, a majority of respondents said their costs had risen over the past 12 months, some by as much as 15 percent, but few were able to recoup more than half their higher costs though price increases.

    Strong demand at the original equipment level, while good for tire manufacturers, has resulted in backorders and shipment delays for dealers/distributors serving the replacement market—especially for lawn and garden and ATV (all-terrain vehicle) tires.

    Andy Ondo, in sales at North Gateway Tire Co. Inc. in Medina, Ohio, called the supply situation for ATV and lawn and garden tires "horrible." The major domestic manufacturers are "heavily back-ordered" in their replacement business, he said, as the lion´s share of their production goes to meet OE demand.

    Peter Parik, general manager of Pilote Rubber Products in Etobicoke, Ontario, concurred, saying that two- to three-week delays are the norm with orders of these tires.

    And for these highly seasonal products, a delay in availability can mean a disproportionate loss of sales opportunities.

    "It doesn´t help, if you are in the specialty tire business, to be out of stock, because then you´ve missed the season," said Victor Li, director of marketing at Nankang USA Inc. in Compton, Calif.

    The specialty tire business comes in waves, said Bryan Austin, sales and marketing manager for Duro Tire & Wheel in Springboro, Ohio. For tire makers, "the need is to prepare to meet these waves and supply demand."

    For ATV tires, there is an increase in business in February and March, Mr. Austin said, as people prepare for spring, with the big push coming August to October for the hunting season.

    For lawn and garden tires, he said, the push is in February and March, in advance of the spring/summer growing season.

    All this seasonality makes forecasting crucial, Mr. Austin said.

    "It´s vital that we receive forecasts from our customers so we can plan production in the factory and so we can supply the tires and wheels when we need them," he said.

    Good forecasting and product availability are critical, Mr. Li agreed.

    "Retailers and wholesalers look to the suppliers for assistance in maintaining the right product, at the right price and at the right time of year," he said.

    As the business has become increasingly competitive, cost-conscious dealers and distributors have begun monitoring their inventory more carefully, Mr. Li said. As a result, they have reduced their inventories and shifted responsibility to their suppliers for maintaining adequate product stocks.

    "Distributors don´t want to sit for a period of time on a particular product or product line that may not be entering its peak season," he said.

    Some products are in such heavy demand, however, that getting stuck with excess inventory would almost seem to be a luxury.

    As already mentioned, both lawn and garden tires and ATV tires are hot sellers, as are high-speed, ST-designated trailer tires.

    There are a growing number of applications for these types of tires, Mr. Ondo said, and more people are getting involved with the vehicles and equipment that use them.

    Pointing out that ATVs and trailers (as well as the vehicles and equipment they carry) often are discretionary purchases, Mr. Parik put it succinctly: "People have money to spend on toys—and they´re spending it."

    ATV applications are changing almost quarterly, Mr. Ondo said, with the tires getting bigger and beefier. ATV owners are concerned with a tire´s looks and its durability, he said.

    They´re also interested in differentiating their vehicles, he added, which led North Gateway´s parent company, Dunlap & Kyle Co. Inc., to introduce a rugged ATV tire—the Outlaw—with an orange-and-yellow logo on the sidewall. It has proven to be a popular feature, he said, and he predicted the use of color will grow.

    ATV tires are becoming more diverse, more application-specific, such as for mud or for sport, echoed Scott Griffin, sales manager-specialty tires for Maxxis International in Suwanee, Ga.

    "More specialization of the lines continues to be the trend," Mr. Griffin said.

    One need only look at some of the ATV lines from Greenball Corp. in Long Beach, Calif., to get a sense of this specialization. The company´s lines include names such as: Dune Hopper, Dune Slider, Dune Tracker, Ground Buster, Mud Shark, Shredder, Pro Trak, Mud Buster, Dirt Devil, Gator, Sand Devil and Sand Shark.

    Applications for high-speed trailer tires also have grown, including use on fifth wheels, cargo trailers and boat trailers, including higher-end trailers, such as those for bass boats, said Nankang´s Mr. Li.

    In this last category, especially, customers again are seeking a different look, Mr. Ondo said. In response, tire makers are adding raised lettering—black or outline white—to premium trailer tires, and dealers are offering styled wheels.

    Jenny Tsai, vice president of Greenball Corp., agreed that owners of high-end trailers want something new and different when it comes to tires.

    In response, Greenball is developing a performance-type radial trailer tire with a directional tread design, which should be available early next year. Ms. Tsai said she believes this tire will be the first of its kind.

    Radials are rapidly taking over the high-speed trailer tire segment, but are making slow to no inroads into other segments of the industrial and specialty tire market.

    Depending on the size, radials already account for 40 to 50 percent of the trailer tire market, and their share is growing, said Duro´s Mr. Austin.

    The reasons are much the same as for radial dominance of the passenger, light truck and medium truck segments: At highways speeds, radials run cooler with less rolling resistance and therefore wear considerably longer than bias-ply tires.

    Traditionally, bias trailer tires have cost less than radials, but the gap is narrowing, Mr. Ondo said. As it does, radials increasingly become the better value.

    Bias-ply construction, with its thicker sidewalls, also causes bias trailer tires to track better than their radial counterparts, Mr. Austin said. However, Mr. Ondo said, radial manufacturers are putting heavier plies into their trailer tires to counter that bias-ply advantage.

    Because radial trailer tires have a greater tendency to swerve or sway in use, James Pearl, executive vice president, marketing and sales for Denman Tire Corp., a small tire maker in Leavittsburg, Ohio, said he believes the benefits of radials have been oversold and that, given all the facts, more customers will choose bias trailer tires.

    Denman makes both types of trailer tires and has them equally available in the same sizes, Mr. Pearl said. Last year the company sold 15,000 more bias units than radial.

    As for other types of industrial and specialty tires, which generally travel at low speeds over relatively short distances, the consensus among those interviewed for this story was that radials generally don´t offer significant enough advantages to overcome their higher price.

    Special circumstances could yield some exceptions, however. In the skid-steer category, a radial can offer a little better load capacity in some instances, Mr. Austin said, which could be a determining factor if a much larger load-carrying capacity is needed.

    Similarly, in the forklift/material handling segment, the use of radials is growing slowly due to their lower rolling resistance, greater puncture-resistance and longer life, said Charles Cohen, president of Industrial Tire Brokers Inc. (ITB), a small Chicago dealership that specializes in industrial tires.

    However, radials face strong competition from resilient solid tires, whose market share is growing at a much faster rate, Mr. Cohen said.

    "If there were a need for a (radial) forklift tire, we´d be leading it," said Al Harker, president of Solideal Group´s distribution company in Lebanon, Ind. "Our customers dictate to us what they need, and we haven´t seen it yet, though I suppose that could change."

    While radials haven´t had much effect on the industrial tire business, the increasing popularity of vehicle leasing programs has had a major—and detrimental—impact, Mr. Cohen said.

    Many forklift suppliers offer leasing programs that include planned or guaranteed maintenance, which tends to send the lessee to the vehicle dealership for service and parts, including tires, Mr. Cohen said.

    If an industrial tire account—a warehouse operation with a number of forklifts, for example—decides to switch from owning its vehicles to leasing them, the tire dealership´s business with that account usually is substantially reduced, or cut entirely, Mr. Cohen said. The impact can be especially severe on a smaller dealership, he said.

    Lessees often take the course of least resistance, and do most or all of their maintenance and repair business with the vehicle dealerships—even if it´s not always the best value, Mr. Cohen said. Trying to persuade them otherwise can be a struggle.

    "ITB can save lessees money on their tires, but it´s a constant reselling job," he said.

    One bright spot, Mr. Cohen said, is that large equipment rental companies are starting to offer lift trucks, and dealers can compete for their replacement tire business.

    Solid tires still dominate the industrial tire business, Mr. Cohen said, with cushion press-ons holding sway for indoor use and resilient tires for outdoor applications. Resilients are pneumatic-shaped solid tires designed to replace foam-filled pneumatic tires.

    The growth of so-called "big box" buildings with sealed floors has spurred a couple of developments in the industrial tire segment, Mr. Cohen said.

    Most such facilities use electric battery-powered forklifts to meet indoor air quality standards. These vehicles require energy efficient tires with low rolling resistance and tire makers have developed black rubber cushion press-ons to meet this need, Mr. Cohen said, as well as non-marking "white" tires (they´re usually more gray) that substitute silica for carbon black in their compounding.

    These non-marking tires, which also are cushion press-ons, recently have been improved to be more resistant to wear and provide longer life.

    Looking ahead, Mr. Cohen said the trend in pneumatic and resilient solid industrial tires is for lower-profile, wider sizes that offer greater stability. For cushion press-ons, the trend is toward greater use of polyurethane (PU) tires, he said.

    Polyurethane tires are harder than rubber tires, but a smaller tire can carry a greater load, Mr. Cohen said. PU tires are finding increasing use on large electric pallet carriers and stacker loaders, he said.

    Tire makers are successfully addressing heat build-up, which had been a problem with PU tires, Mr. Cohen said—in part through the use of advanced compounds, such as Vulkollan from Germany´s Bayer A.G.

    Other new products developed in response to new equipment or new applications of existing equipment include the Denman Omni-Trax for large four-wheel-drive scissor lifts (a.k.a. aerial lift platforms), whose sharp turns put unusual stress on tire lugs, and a new golf cart/utility cart tire from Nankang with a tread compound and design for increased on-road service, such as occurs in planned communities.

    Duro is considering developing larger tires for the mobile home industry, to meet a need for increased load-carrying capacity, Mr. Austin said.

    Editor Dave Zielasko and Senior Reporter Sigmund Mikolajczyk contributed to this report.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award