Titan CEO Taylor offers his take on OTR
The OTR tire business has been "a mixed bag" as of late, according to Morry Taylor, chairman and CEO of Titan International Inc. "The great shortage of recent years is over and there is an excessive supply of all large radial tires."
The average selling price of a 63-inch radial OTR tire "has dropped from $55,000 per tire to approximately $42,000, and I expect it to drop to $35,000 before the end of the year," he says.
The giant OTR tire category isn't the only segment in which the pendulum has swung around. "There is excess volume in all tires smaller than 63 inches and currently plenty of capacity for 63-inch tires at today's volume.. with added capacity, the industry will go from shortage to over-capacity in the next 12 months."
Taylor adds that he recently spoke with a number of Titan's original equipment customers. Most of them, he says, believe the OTR industry will remain flat for at least the next six months.