How are you managing the truck tire glut?

Mike Manges
Posted on November 13, 2008

When all of the numbers are tallied, 2008 will turn out to be a rough year for tire shipments, particularly in the medium truck tire category.

Overall tire shipments are expected to be down 4% this year versus 2007, according to the Rubber Manufacturers Association. While worrisome, that percentage pales in comparison to the 12% drop that's anticipated in the original equipment medium/wide-base/heavy on-highway commercial truck tire segment. And on the replacement side, shipments in this category are expected to decrease by nearly 600,000 units versus 2007 levels.

At commercial tire dealerships and warehouses, we're seeing major supply-demand imbalances. Fleets and owner-operators are trying to squeeze more out of their tires. Commercial tire dealers are sitting on loads of excess inventory.

Tire manufacturers have taken action to restore some degree of balance. Last month, Goodyear Tire & Rubber Co. revealed that truck tire production at its Danville, Va., and Topeka, Kan., plants will be temporarily idled. (The Danville plant can make 11,200 truck tires per day at full capacity, while Topeka can produce 5,500 units per day at capacity.)

In September, Bridgestone Firestone North American Tire LLC (BFNT) said it was cutting production levels at its U.S.-based passenger, light truck and truck/bus tire plants. No specifics were mentioned, but the company said curtailments will remain in place through the end of 2008. (For the record, BFNT's three medium truck tire plants in the U.S. have the capacity to produce a total of 15,200 units per day.)

If tire racks continue to groan under excess inventory, it's a safe bet that more reductions will take place in 2009. The key issue, however, is how you're dealing with it. What are you doing to manage your inventory levels? What methods are working for you? Or are you looking around your warehouse, asking "What am I going to do with all of this stuff?" Let me know! And maybe by sharing, you'll give a fellow dealer in another market something to chew on.

Mike Manges Editor
Comments ( 0 )
More Stories
Fountain Tire was well-represented during the OTR Tire Conference. From left to right: Nelson Tonn, vice president of sales and mine service; Ben Miller, director of mining operations; Darren Chalifoux, director of OTR safety and equipment; Fountain Tire CEO Brent Hesje; and Gary Foley, director of store OTR operations, in front of a Stellar Industries service truck.

Notes from the 65th TIA OTR Tire Conference

The 65th edition of the Tire Industry Association Off-the-Road Tire Conference is in the books. Here are some notes from the three-day event, which attracted attendees from all over the globe.

The Cooper Work Series All-Steel Drive (ASD) tire is an open shoulder steel-belted drive tire.

Cooper to Unveil 2 New Truck Tires at TMC Show

Cooper Tire & Rubber Co. has expanded its Work Series line of tires with the introduction of two new tires in 19.5-inch sizes (225/70R and 245/70R) for Class 4 through Class 6 trucks and vans.


Bridgestone's Sales Fall 3% in 2019

Net sales for Bridgestone Corp. in fiscal 2019 were 3,525.6 billion yen, down 3% versus the previous year. Operating profit was 326 billion yen, a decrease of 19% compared to 2018.

The new Conti HSR+ is also available with a matching retread, the ContiTread HSR 16/32-inch all-position retread.

Continental Is Showcasing Latest Regional Drive Tires at TMC

The newest 19.5-inch tires for Class 4 trucks are among the products Continental is highlighting at the TMC Annual 2020 scheduled for Feb. 25-27 in Atlanta, Ga. the American Trucking Association’s 2020 Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition.


Goodyear Recalls 3,721 Fortera HL Tires

Goodyear Tire & Rubber Co. is recalling certain Fortera HL all-season light truck tires, size P255/65R18. The potential number of units affected is 3,721.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!

We respect your data and privacy.
By clicking the submit button below, you are agreeing with Bobit Business Media’s Privacy Policy and this outlined level of consent.