It might seem strange seeing new construction and mining equipment arriving at dealerships with used tires. But consider those machines lucky – some are arriving with no tires at all.
The off-road tire industry is experiencing a severe shortage caused by unprecedented growth in worldwide markets – some 20 percent to 30 percent – during the past two years. This issue has prompted many tire manufacturers to increase production and open new facilities, all of which seems to have had little effect on the current situation.
“It’s simply an exploding demand,” says Manny Cicero, vice president of OTR sales for Bridgestone/Firestone.
Cicero says Bridgestone/Firestone and other tire manufacturers were caught in a “perfect storm” in which equipment sales in the United States grew dramatically at the same time as overseas demand increased unexpectedly.
“The developing world is developing,” he says. “China in growth mode is pretty awesome.”
Todd Ramsey, director of marketing for the Michelin Earthmover tire division, says the shortage results from a broad-based combination of supply and demand issues for the construction and mining industries. “There is no precedent for it in the history of Michelin Earthmover,” he says.
Unfortunately for OTR tire manufacturers, raw materials used in production are also in short supply. Production costs have jumped accordingly, in some instances up to 25 percent.
