PANAMA CITY, Panama (Aug. 1, 2016) — The growing prevalence of lower-priced medium truck tires, predominantly from China, is impacting retreaders in many parts of the world, but in Latin America there are signs retreading may be on the upswing again.
Both Heriberto Romero, director general of Mexican tread rubber suppler Hules Banda S.A. de C.V., and Jean Alexander Barros, coordinator of commercial products in Mexico and Central America for Brazilian tread rubber supplier Borrachas Vipal A.S., told attendees of the recent Latin American & Caribbean Tyre Expo in Panama City their companies are seeing signs of rebounding business throughout Latin America.
It's not all wine and roses, however.
“We've reached rock bottom,” Mr. Romero said. “We're seeing a slight uptick in retreading in 2016…. We're seeing volume trending upwards.”
Despite the potential rebound, Mr. Romero cautioned that it's not likely to be business as usual going forward, and he urged independent retreaders and tire dealers to rethink their modus operandi and “turn crisis into opportunity.”
“You have to adjust,” he said, “or someone else will take care of it for you.”
Among his suggestions? Go after business that's previously been ignored. Diversify.