December 21, 2009
Long-term forecast
The farm tire market remains strong, but what will 2010 bring?
By: Mike Manges
“Farmers still have good balance sheets,” says Jeff Vasichek, Titan International’s vice president of sales and marketing.
Twelve months ago, the North American farm tire market was buoyed by robust export demand, high commodity prices and other forces. Those factors are still in play, though perhaps not as strongly, as 2009 winds down.
In this exclusive Commercial Tire Dealer “virtual roundtable,” farm tire executives discuss the present state of the North American farm tire market, how their companies have adjusted to the effects of the ongoing recession, and what 2010 will bring.
Participants include Ken Allen, president, agricultural tire, U.S. and Canada, Commercial Tire Sales, Bridgestone Americas Tire Operations LLC; Bill Dashiell, vice president of product marketing, TBC Wholesale; Bill Haney, sales director, Balkrishna Industries Ltd.; Jeff Jankowski, director of sales, North America, Trelleborg Wheel Systems; Eric Sweigart, vice president of marketing and sales, Michelin North America Inc.; James Tuschner, marketing director, Alliance Tire USA; and Jeff Vasichek, vice president of sales and marketing, Titan International Inc. Here’s what they had to say:
1. The farm tire market in 2008 was extremely robust. What have conditions been like this year?
Allen: Business in 2009 has been what we would call “boom and doom,” all in one business. The sector of ag whose primary income is related to the production of grain is still quite robust. It is at or near 2008 levels. However, the sectors related to milk production and non-primary farm applications such as landscaping and large acreage owners are victims of the general poor conditions of the economy. And other agricultural sectors related to housing, such as timber harvesting, have been under equal duress.Dashiell: Frankly, we struggled a little in the later part of last year and the beginning of 2009 as we completed the resourcing of some of our farm tire products. For the year, farm tire unit sales have been good as a result of these new product lines.
Haney: The farm economy overall has been what I would describe as typical — some good, some bad. The farming goes on, fortunately. Farmers are much more careful with their spending this year.
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