Commercial Tire Dealer
February 19, 2010
OTR tire forecast: gloomy
Mining industry woes will impede progress, says expert
By: Mike Manges
CTD: Back to the U.S., has any of the stimulus money that was released last year trickled down to the mining industry?
Bullock: Certainly any construction projects have helped the mining industry, but it’s been very limited.
CTD: Serving on the board of Purcell Tire & Rubber Co., you have a unique perspective. How do problems in the mining business impact OTR tire dealers?
Bullock: I think the problems have certainly hurt them.
CTD: Do you see any growth areas in OTR tires?
Bullock: Most of the growth is going to be overseas. That’s where most of the big tire growth is going to be. People who are positioned to do tire business in those countries are in better shape than we are in this country.
CTD: What’s your advice to American tire dealers who may be sitting on tons of OTR tire inventory?
Bullock: All we can expect is slow (mining industry) growth — maybe 3% a year. I’m skeptical that we’re going to see much of a turnaround.
It will be at least until 2012 before we get back to where we were (in 2006 and 2007) in tons of production.
However, there are some bright spots, according to Bullock. “The gold industry is going like gangbusters. Most of the gold in our country comes from underground mines, as does platinum. Silver is at an all-time high, and there are silver mines that are doing well.”
The Alberta oil sands are still producing at high levels, as well. “They’re doing fine. Their production is up.” ■
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