Annoying or not, orange barrels are a good sign for the tire industry.
While the off-the-road (OTR) tire industry is not insulated from global logistical issues and volatile pricing, strong headwinds in the agriculture, mining and construction sectors suggest continued growth in 2023.
Demand for commodities, particularly of the farm variety, has skyrocketed through the COVID-19 pandemic, and farmers have money to invest.
The U.S. Department of Agriculture predicted that net farm income, a broad measure of profits, would increase 13.8% in 2022, compared with 2021.
"The timing is good for farmers in the sense that crop prices are high, and farmers are making some money, but with aging equipment and more cash in hand, it's time to spend," said Tony Orlando of Bridgestone Americas Inc.
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Last year, supply chain gridlock hampered the output of original equipment vehicle manufacturers, and the replacement market did very well as more farmers upgraded older equipment.
"Farm economics are always a wild ride," said Blaine Cox of Yokohama Off-Highway Tires America Inc. "... But consumer demand was strong (in 2022), so commodity prices held up, and farmers were able to make some margin."