Plenty of Room for Large Retreads

2nd March 2009 | 0 Comments

Just months ago, the earthmover tyre market faced production shortages so severe that manufacturers and vehicle operators alike were glad to fit any tyre they could find. Things are different now. At the end of February Tyres & Accessories met with OTR Tyres (OTR) production manager, Wayne Cornell, and asked how retreads are competing now the earthmover tyre market has switched from shortage to surplus.

The earthmover tyre shortage was great news for low cost tyre importers and retread manufacturers alike and those quick enough to react experienced significant sales increases. Now however, as the world’s media has reminded us all ad nauseam, the global financial crises has brought a recession in its wake that is affecting all areas of business. Construction was the first to feel the effect of the downturn in demand that has ensued, and at the time of going to a certain multinational mining company is negotiating with the Chinese government for investment. This in turn shows just how much the recession has slowed the growth – and therefore tyre needs – of key consumers. With OEMs and major end users requiring fewer tyres than before, tyre supply is much less of a problem. There are still some shortages giant tyres and some loader tyres, according to industry sources, but it’s a world apart from the situation 12 months ago.

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Category: Product News

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