Fill-rate problems

From pent-up demand to the outhouse

By: Bob Ulrich

The recession last year helped curtail demand. As a result, tire manufacturers reduced their inventories to historically low levels.

The imposition of Chinese consumer tire tariffs on Sept. 26 led to drastically reduced imports. Importers had brought in extra shipments in advance, but the stockpiles have disappeared.

You can guess what is happening now. Tire supply is not able to keep up with pent-up tire demand. And fill rates are terrible.

Even vehicle manufacturers are demanding more tires, which will make it even more difficult for tire companies to fill your orders for replacement tires.

How bad is it? The majority of respondents to our recent Web poll on www.moderntiredealer.com indicated their fill rates on consumer tires were at 70% or below. That is not acceptable by either dealers or tire manufacturers.

Two recent comments on Modern Tire Dealer’s Facebook page succinctly illustrate the problem.

Vicki Moyer Williams, co-owner of Williams Norwalk Tire & Alignment in Norwalk, Ohio, says lack of supply is quite evident.

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Related Topics: Bob Ulrich, Editorial

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