KAHUKU, Hawaii (Feb. 27, 2017) — Much like “less is more” is an architectural concept, “smaller can be bigger” is a business concept Alliance Tire Americas' (ATA) Bruce Besancon hopes tire dealers will consider in building their commercial operations.
Dealers who aren't tapping into local municipalities, hobby farms and other small commercial accounts are missing out on millions in potential business, Mr. Besancon told those attending the 2017 Tire Industry Association OTR Tire Conference at Turtle Bay Resort near Kahuku.
Mr. Besancon, vice president marketing for ATA, said an increasing focus on infrastructure improvements will drive demand for tires for skid steers, telehandlers, backhoes, small loaders, etc. — tires with rim diameters of 25 inches and smaller.
“The big boom of mining just hasn't been there in the past few years,” he said. “But there are other opportunities out there — growing opportunities — in small OTR, for rim sizes 25 inches and under. Dealers need to stay aware of those opportunities and set themselves up to cater to those customers.”
One critical element of this market opportunity, Mr. Besancon said, is that the dealer “has 99-percent sway in what the customer buys….”
Skid steers are an especially bright spot, he said, because they have been adopted for so many uses and in many cases involve both tires and wheels.