OTR Tire Demand Will Build in 2022
Despite supply issues, the North American OTR tire market has made significant changes in 2021.
Infrastructure projects, high raw material prices and other factors will help ensure that OTR tire demand remains strong throughout the year.
new, according to tire manufacturers.
Here’s a look at how and why the OTR tire market has turned around.
Suppliers share their forecasts for 2022 and discuss trends OTR tire sellers need to watch out for as business continues to grow.
MTD: Can you explain the demand for OTR tires in 2021?
Chris Rhoades, Assistant Vice President, OTR, BKT USA:
Demand for OTR tires in 2021 has surpassed pre-COVID-19 levels, despite supply and logistics issues.
The demand for collections and constructions continued to grow at a reasonable rate.
Tony Cresta, Commercial Product Manager, China Manufacturers Alliance LLC (CMA):
In 2021, we see demand for OTR tires from a flat 2020 total.
Shawn Rasey, Global Business Development Manager, Earthmover Tires, Continental Tire the Americas LLC:
Demand has been slightly lower than expected in 2020, affected by last pendamic.
This recovery was well supported during the year as retailers and end users returned to work.
Like many companies and businesses, we have seen some limits to growth, which is causing both labor shortages and tire supply.
Loic Ravasio, General Manager, World and Americas OTR, Goodyear Tire & Rubber Co Demand for OTR tires continued to recover in 2021.
Although demand for mining tires is lower than other OTR segments, we expect it to return to pre-pandemic levels in 2023.
Jimmy McDonnell: vice president of sales and marketing, Maxam Tire North America:
Overall demand for specialty tires has been strong.
A number of construction projects involving infrastructure improvements have shown to pick up demand after pandemic.
Critical equipment operators have seen a huge demand for new machines, with growth due to supplier issues.
The hardware is still very low and undeveloped.
Jaye Young, Mining Business Line Marketing Manager, Michelin Group:
Demand for tires is strong in the fracking and mining sector, where infrastructure is focused on recovery.
increasing energy consumption and demand for resources such as metals.
copper, iron ore and nickel.
is necessary to support the transition to sustainable energy sources such as batteries, wind turbines and solar panels.
Stephen Reynolds, OTR Manager, Triangle Tire USA:
Demand for tires and truck tires is strong in 2021, which appears to be split between the mining, construction and quarry sectors.
Typically, you think late November and most of December are the slowest times of the year.
However, the Triangle saw record sales in November and December.
Bruce Besancon, vice president, marketing and strategy, Yokohama Off-Highway Tires America Inc:
The OTR 2021 tire market is like a gold rush and those tires are gold.
After losing 20-30% of their sales in 2020, retailers and OEMs came back strong in 2021
regaining what they lost and continuing to strengthen by the end of the year in 2022.
While consumers are clamoring for tires, manufacturers are busy.
to increase capacity, meet needs and strengthen relationships with their distribution partners.
MTD: What is your forecast for 2022?
Rhoades (BKT): We do not expect a slowdown in demand for 2022 and expect another year of record growth for BKT.
We continue to increase capacity for key sizes to round out our offering.
Shipping costs continue to be at record highs, but we are seeing improvements in shipping times, as well as port delays.
So far, we have seen indications that 2022 will continue to be a rising trend for OTR tires.
Warehouse storage orders and direct orders from our customers from Q4 2020 to Q4 2021.
The North American market for OTR tires is the largest in the world and with significant investment in infrastructure and the expansion of the entertainment industry
- the construction of hotels, stadiums and casinos is on the rise.
- the market is poised to continue growing.
We expect a strong start to 2022 with demand, perhaps going down a bit towards the end of the year.
It is always difficult to raise demand ahead and this is the case this year, with the ongoing uncertainty related to pandemic spikes.
potential long-term unemployment, manufactures tires that receive the difference in the installation in the region.
In general, it seems that demand in 2022 should be equal to or slightly higher than in 2021, if the supply is there to support it.
Ravasio (Goodyear): Our forecast for 2022 includes continued recovery in all areas.
We expect strong growth for 2022.
In North America, the economy is emerging from the global pandemic.
The US government has passed an infrastructure bill that will drive strong growth for the specialty tire
building momentum through 2022 and 2023 when new jobs are expected to continue.
We will see continue to grow in 2022.
In fact, 2022 will return to the level required before pandemic .
All indications are that demand will increase in 2022, especially in the construction and mining sectors.
With the passage of infrastructure costs, industry staples – such as compact manufacturing and road
will suffer, putting pressure on supply chains that are struggling to keep up.
The cause of concern is that no one can predict when shipping may begin to return to normal
some of the trends we have seen predict no real relief until the end of the year.
I think 2022 will be a continuation of 2021.
OEMs are working as hard as they can to meet the demand for new machines and the demand will continue to grow and the increase continues to improve the infrastructure.
Nowadays, machines are distributed in all countries.
The parking lot is busy, the mines are busy, planting trees and construction is building up from the big market for new homes, and the couriers are moving 24/7 through at the port.
Every part we serve is fast.
What trends should OTR Tire Demand dealers watch out for in the new year?
OTR tire sellers are facing price increases, as well as freight charges, which must be communicated to the end user.
Although we are not in a shortage cycle, it is still important for dealers to anticipate the needs of their customers and communicate with manufacturers to ensure that they are getting the tires they need going.
With global supply chains shrinking but still stretching through 2022, it will be more important than ever to manage your demand and order from your OTR tire suppliers .
In 2021, delivery times from order to your door have been extended and we’ve all felt the pressure.
It is improving with hard work from both sides and will be important in 2022.
Delivery plans for customer needs – especially regarding time – (and) the development of smart tire technology and advanced solutions.
Continental focused on helping users manage safety, productivity and asset management.
Tire dealers will play an important role in this area and find new ways to incorporate these technologies into their daily work portfolio.
Two of the top trends OTR tire sellers will see in 2022 are tire performance and durability.
Beyond Tire Services includes reliable services and tire management solutions that reduce the total cost of ownership for fleet operators.
Sustainability efforts will continue to be a priority and we will continue to see new achievements and innovations in this space.
making sure they have the products their customers want.
I think the shipping problem will continue in 2022 and the main focus for retailers will be to pay more attention than ever to their products and act quickly application(s) of forecasting.
Retailers and manufacturers will need to forecast earlier and more accurately than in the past to compensate for long shipping times and inconsistencies caused by existing inventory.
The need for forecasting is often an important part of the puzzle for retailers trying to control their inventory costs.
In 2022, this may be the most difficult part for the retailer, because instead of predicting their needs and placing short-term orders
they will be forced to account for the supply chain management system incomparable.
Those who can plan ahead and have the courage to order early can be successful in navigating what can be a difficult year.
I think we will see the market continue to grow.
Manufacturers are putting machines in the garden, but not just to replace old machines.
They increase the number of machines – the number of wheel positions – and these growing parts.
This is good for the tire industry, both in the original equipment and the back end of the business.
I also think that we are going to see a move towards greater data understanding to create and work better with customers to help them understand our business process and help them learn strategies more effectively.
We will see more transparency in the supply chain for OTR Tire Demand.