Global Off-Road Shortage

(Australia/Tyre Review) There is no immediate end in sight to the global off-road tyre shortage, according to a recent report from Australia, and most tyremakers in Australia say things will remain tight for at least another year – perhaps longer.

According to the news report, the causes of the shortfall include the Chinese economy, which is taking large numbers of OTR tyres directly, heavy Chinese demand for raw materials which has increased demand for rubber-tyred mining equipment, worldwide rubber shortages, and a lack of investment in expanding tyre production.

OTR tyre dealers, though, can take some measures to improve their positions with customers. In Australia, for example, Bridgestone Earthmover Tyres’ Bruce Connor said tyre manufacturers there are requesting clear, accurate forecasts of tyre requirements from dealers and end-users – and the further out the better.

“In normal circumstances our tyre production cycle is typically 90 days from order to delivery, but at present we are talking 150 days and longer,” Mr Connor said in the report. “If we can get an indication of a customer’s requirements 12 months out, then we can work towards that.”

Mr Connor said dealers and end-users need to utilise tyre management programmes to extend tyre life. “The first step here must be improving operating conditions so that tyre wear and damage are minimised,” he said.

“Putting it brutally, the priority customers for tyre suppliers under the current situation will be major customers and those with supply contracts,” he said, “All manufacturers will be doing everything possible to ensure contracted customers have their requirements met. Unfortunately, others will just have to accept what is available, when it is available.”