May 03, 2011
A case for casings
If they can get them, our Top 100 retreaders will retread and sell them
By: Bob Ulrich
“Demand for retreading remains very strong,” says Richard Brahler II, president of Brahler’s Truckers Supply Inc., the 48th largest retreader in the U.S. Equipment upgrades at Brahler’s truck tire retread plant in Jacksonville, Ill., will be completed by June. (Pictured at the plant’s final pressure inspection station is Clint Monroe.)
Truck and OTR tire casings are in short supply, particularly out of Japan. That was the case even before an earthquake and tsunami devastated the country in March. Now, it’s just worse.
“Truck casings will continue to be in short supply,” says Mike Berra, president of Community Tire Co. in St. Louis, Mo. In particular, size 11R22.5 casings are “next to impossible to get in any quantity.”
One retreader in the Midwest estimates 11R22.5 casing prices rose more than 18% the first three months of this year. Size 295/75R22.5 casing prices were up more than 21% over that same span.
Both new OTR tires and used OTR casings also are in demand, and not just the large or giant sizes, says Berra. “I’m talking 29.5’s, sizes that are mainstream.”
And it’s a global problem. “Domestically, what we make is what we get.”
Despite the lack of casings, Community Tire is adding small OTR tire retreading capacity and new tread patterns for existing sizes. It ranks 30th on the “MTD Top 100 Retreaders in the U.S.” list (information on the list is based on production in 2010).
Community Tire is not the only Top 100 retreader to invest in plant production in 2011.
Wingfoot Commercial Tire Systems LLC, a subsidiary of Goodyear Tire & Rubber Co., is number one on our list. Its 37 plants retread 6,180 truck tires a day, or 167 a day per plant.
Wingfoot plans to increase each plant’s units-per-day efficiency while maintaining a low manufacturing cost.
“This includes investing in the plants to add productive equipment, improving plant through-put by streamlining the steps in the production process, and expanding select plants to better serve our customers,” says Mark Totten, Wingfoot’s vice president of marketing.
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