New Toyo CEO sees improvement in supply chain

Michael Graber has hit the ground running, two months into his tenure as president and CEO of Toyo Tire U.S.A. Corp.

In an exclusive interview with Tire Business, the industry veteran said the supply chain is easing somewhat, and he also expressed strong support of the Specialty Equipment Manufacturers Association (SEMA) Show, where Toyo has been among the top tire exhibitors.

Graber was vice president of sales for Toyo Tire U.S.A. since January 2020 and has been with the Cypress, Calif.-based company since 2013.

How have things changed for you?

We have always had a very collaborative leadership philosophy at Toyo, so there haven't been a tremendous number of changes in my day-to-day focus. We are fortunate to have a tenured and talented team that is executing the plan we built together for 2022.

What sets Toyo apart?

We are a small company that does big things. We are authentic in our desire to make tires people love. Part of that is truly listening to our customers — developing tires and programs that make us different than the rest. And our team members, including our field sales staff, are empowered to make decisions that support our customers' needs.

How would you describe business in 2022?

So far, 2022 has been a carry over from the trends of 2021. We came into this year with heavy back orders and have seen the same trends through the first half. We have recently seen an easing of the supply chain bottlenecks, so we have been able to get supply to the market more quickly and efficiently than the last two years.

How has the pandemic changed the way you do business?

We learned how to do business differently through the pandemic, but still believe we are in a people business. As COVID restrictions have eased, our salespeople are out in the market, talking to customers and making personal connections, just as we have in the past.

Has there been any improvement with the supply chain?

Recently, we have seen an improvement in our speed from order to delivery. The overall supply chain seems to be improving, and we hope that trend continues.

Toyo has been a major exhibitor at the SEMA Show. Why is that event so important to the brand?

We are huge supporters of SEMA and will continue to have a significant presence there for years to come, in contrast to many of our competitors choosing to not participate. We believe SEMA is an excellent forum for our products and brand, as SEMA attendees are representative of our core audience of automotive enthusiasts and are highly influential in the marketplace.

SEMA has helped to strengthen our reputation as an authentic enthusiast brand, and our display has become a "must see" destination at SEMA each year for all attendees, including media.

How important is the North American market to growth?

North America is the largest market for Toyo, and therefore is extremely important to the company overall. We have invested in a U.S.-based research and development group to be on the cutting edge of trends in North America. Innovation is the key for us, and we are well-positioned to develop the right tires for the market.

What are you telling dealers who are unable to get certain tires?

We simply ask for patience. We invoke a spirit of partnership and are transparent in what we are doing to supply them more efficiently and predictably.

What kind of trends are you seeing in the marketplace?

We see significant opportunity in EVs and the last-mile segments of the business. We had prepared for the consumer shift towards online shopping which was accelerated by the pandemic, and the Celsius Cargo helps offer a solution for fleets needing an all-weather tire for delivery vans. We have next-generation patterns in development to align with the growing EV and PHEV vehicle parc.

What sector offers the most growth potential?

Again, we expect EV fitments to continue to grow in the coming years. We continue to study this market, and are designing state-of-the-art tires to address the unique characteristics of EV performance.

How has the Celsius UHP sport all-weather been received?

We launched the Celsius UHP in March and it has been extremely well received in the market. Celsius has been a very strong addition to our product portfolio as a solution in the all-weather segment.

How do you explain the recent spate of price increases?

Price increases have been a necessary counteraction to increased costs in raw materials, logistics and labor for Toyo and everyone else in the industry. It is difficult to predict what the future holds, but we are constantly looking for efficiencies in the supply chain to manage the costs of building and distributing tires.

Do you expect any other major investments in the next six months or year?

We are close to opening a new passenger and light truck tire factory in Serbia. We expect to see tires from the new plant for the North American market late in 2022 and into 2023. It is exciting to have the extra capacity and the opportunity to grow our business in the U.S.