(Akron/Tire Review) Motor & Equipment Manufacturers Association (MEMA) has undertaken what it calls “a landmark study” to document the economic influence of automotive and heavy-duty suppliers.
The study, which is scheduled to be completed in November, will analyze the economic contribution of suppliers to the nation’s economy and will provide data on both a national level and state-by-state breakdown, MEMA said.
January 2006 saw total tyre production in India rise 9 per cent to 5,623,048 tyres compared with January 2005. The figures calculated by the Indian Tyre Manufacturer’s association (ATMA) show that motorcycle tyre sales were up 15 per cent totalling 1,801,839 units. This particularly rapid growth is largely explained by the reclassification of moped tyres under the motorcycle heading, but also signifies production growth in the segment.
Passenger car tyre production increased to 1,230,869 units up 16 per cent from the same time last year. Truck and bus and light truck production increased to 946,730 (up 8 per cent) and 352,967 (up 14 per cent) respectively. Perhaps unsurprisingly in light of the current global shortage, OTR tyre production increased 37 per cent to 10,811 units in January.
The Society of Motor Manufacturers and Traders has published its annual ‘Motor Industry of Great Britain’ for 2005. As usual, the 220-page report contains a wealth of information and statistics concerning the world automotive industry. If you want to know how many cars per 1,000 population there are in Bolivia, for example, then this is the publication for you. (The answer, by the way, is ‘three’.)
Commercial vehicle registrations are “on track,” according to SMMT statistics that have recorded 394,738 registrations for the rolling year to September. Last month’s figures were slightly down at 0.6 per cent, but the year to date is up by 1.6 per cent.
Tyre safety could assume even greater importance soon when the Corporate Manslaughter Bill becomes law in the UK, warns Cheshire-based fleettyreline. The Bill is expected to become law within the next 18 months and will create a new offence of Corporate Manslaughter to cover all deaths at work and target corporate rather than individual liability. For example, a company could find itself liable in the instance of a death arising from an unroadworthy vehicle.
Said fleettyreline chairman John Church: “This Bill has far-reaching implications for any company operating a fleet, whether it is half a dozen vehicles or many hundreds. If a vehicle is defective in any area, most notably in a safety-critical area such as tyres, the liability issue is clear-cut. Our understanding is that, if an employee uses his or her vehicle on company business, the liability will also fall on the company.”
10 years after the “dot-com” boom and bust, e-commerce technology is increasingly moving into the mainstream. Government statistics compiled at the end of 2004 show that 69 per cent of UK firms are now using broadband and that 30 per cent of micro businesses are trading online.
Furthermore when these numbers were calculated, the proportion of smaller businesses with websites went up 16 per cent compared with the previous year, bringing the total to 73 per cent. In the same period the number of businesses that saw the benefits of e-technology rose from 8 per cent to 53 per cent.
With this in mind Tyres & Accessories would like ask its readers what they think. How much of your business is handled using e-commerce technology? Click here to state your views.
The UK’s All Terrain Vehicle market sprung from almost nowhere at the beginning of the 1990s creating a lot of interest for those tyre manufacturers involved. There had always been a consistent utility ATV market but this sudden swell in popularity was due to the increase in ATV sports in America. This surge was, of course, welcome but it was also short lived when the Brits realised the costs involved in the specialist recreation – there was a recession in the mid 90s after all!
In the years since then the sector has quietly developed into a profitable niche for those involved. This happened for two main reasons; farmers found more uses for ATVs and the machinery manufacturers designed a range of new quad bikes opening up the recreational arena to a sea of ATV enthusiasts. The ATV market has been split into these two categories – utility and recreation – since that time, but now there are two new classifications emerging, street legal and racing ATV tyres.
The Agricultural Engineers Association (AEA) estimates that there were some 5,000 utility ATVs on the UK market 10 years ago. According to the AEA’s assistant economist Graham Stannard, 8,955 units were recorded in 2004, a 0.1 per cent increase on the previous year. But these statistics only refer to those machines sold into the agriculture sector. Other ATV specialists estimate that there are currently around 1,000 new ATV bikes sold per month in the UK, that’s 12,000 utility and recreational models combined per year.
Utility ATVs clearly account for the volume of sales in the segment. But Martin Sanders, general manager of Honda UK Power Equipment, suggests that this may change: “The true ATV market (off road vehicles) has been stable over the past few years with all manufacturers and importers working on introducing new CE marked models.” Many industry experts agree, and a shift in volume sales from utility to race is expected in the coming years.
The sporting scene
There are currently three British championships in the ATV arena; ACU Quad Motocross, Speedway and Enduro. ATV enthusiast and championship organiser, Tony Nash, has been involved in quad racing since the early 90s when the sport first took off. It is a relatively cheap sport to engage in at club level explains Mr Nash adding that the increase in more affordable Chinese machinery has been yet another reason why ATV racing has become so popular. As well as an increase in competitors the sport has also seen a sharp rise in spectators. Public awareness has been helped further by Sky Sport transmitting the British Motocross championship to some 30,000 viewers.
With more high profile ATV championships due to be established and new European categories shortly due to begin the sport looks like it will move from strength to strength, which is good news for the tyre manufacturers involved. Maxxis has been involved in the UK Motocross scene for the last four years and became an official sponsor for the first time this year. “It’s becoming a real spectators sport,” commented Derek McMartin, Maxxis UK, adding that the British Championships are just one part of the story. “There are competitions for men and women and it is also becoming more popular for children. There are so many regional races we can put the Maxxis name out to many parts of the country and this has a good effect on brand awareness. Those involved are much more aware of their tyre choices too, as it is a sport where the tyres really come into play and success is not just down to the power of the vehicle. Most spectators have their own bikes at home, so there’s a direct spin off in terms of tyre sales,” explains Mr McMartin. Maxxis’ list of OE fitments (almost 100% for Yamaha) also commands further loyalty in the replacement market.
According to ATV enthusiast Tony Nash Maxxis is now recognised as the manufacturer in ATV tyres, and claims the manufacturer’s tyres can be seen on the bikes of many competitors across each championship. The reason behind this he says is due to the investment the company has put into world brand awareness. At the Quad Motocross Campionship alone the manufacturer has 400m of Maxxis banners and the start tape, even though it doesn’t have sole sponsorship rights. Maxxis seems to have made the right choices when it comes to investing its money and sponsors twice British champion Justin Reid. The competitor is known and respected as an engineer as well as an ATV racing expert and spectators follow his choice of tyre. Mr Nash also explains that most ATV enthusiasts in the UK subscribe to US quad magazines which are littered with Maxxis advertising and editorial, and what’s good for the Americans…need I say more.
Natural rubber prices will continue to rise next year even though output from the world’s leading producing countries is expected to increase, according to an expert from the London-based International Rubber Study Group (IRSG).
Goodyear has teamed up with a number of motoring organisations to launch its ‘Drive Home Safely’ initiative. Together the group has arranged a dedicated website and road show to reduce motorists’ fears of coping with difficult driving situations.
Situations such as being followed, breaking down on the motorway alone at night, or having items stolen from their car are those being addressed by the campaign. In London during the first six months of 2005, there were almost 1,000 reported incidents of theft from, or damage to, vehicles according to the Metropolitan Police Service crime statistics.
The manufacturer intends the official website, www.drivehomesafely.co.uk, to act as a one-stop source of information for anyone affected by road security issues.
Sales of SUVs and 4x4s are booming across Europe. This is reflected in a vast increase in sales of tyres fitted to these vehicles, with tyres for on-road use dominating the statistics. Tyres & Accessories will review this particular market, giving an insight into its future development and its profit making potential.
Provisional output data released yesterday by the Office for National Statistics shows that UK car production rose 10.6 per cent, or 13,689 units, in April.
This puts the year-to-date total above the 2004 level for first time this year.
Both output for home and export volumes rose by over 10 per cent last month.
“Despite problems at Longbridge, today’s figures show that the UK still has a strong vehicle manufacturing base”, said SMMT chief executive Christopher Macgowan.
Research and Markets Ltd (Dublin) has published a new report on the subject of tyre recycling. The report provides an overview of the tyre recycling business summarising current practices and the factors that have contributed to its growth. There are around 1 billion tyres produced each year across the globe. It is estimated that for every tyre sold another joins the waste stream. There are some simple options such as retreading or shipping to countries with less stringent tread requirements, but this does not solve the problem.
The new report focuses on the EU but cites US based research. The report’s author, Dr Schulman has incorporated statistics from the EU markets, which illustrate changes in the industry since the inception of the European Tyre Recycling Association a decade ago. The report can be ordered online at www.researchandmarkets.com/reports/c16740 for 136 euros.
A new study from industry analysts Plimsoll Publishing asks how important are the leaders of a company to its financial performance? It suggests that we will soon find out, as one in four of UK Tyre manufacturers and distributors company directors will be aged over 60 by the end of this year and, as they near the end of their careers, who will take over?
A survey conducted by the CBI has reported that UK manufacturing firms fear that up to 26,000 jobs could be lost over the next three months. The CBI and Experian poll showed that confidence in the manufacturing industry has fallen in eight of the UK’s 11 regions over the past quarter with the north west hit hard. Despite the sharpest fall in confidence occurring with firms in the West Midlands, London and the South East are expected to bear the largest decline in manufacturing employment. The CBI states that whilst 26,000 jobs is a large figure, it is still short of the losses seen during the steep manufacturing recession of 2001 to 2003. However, the latest data from the Office for National Statistics shows a 0.6 per cent between November and December, its fastest pace in seven months.
In 2004 the value of China’s automotive exports, principally of components, reached $8.156 billion (£4.4 billion). The total equates to an increase of 73 per cent over 2003. China’s automotive components imports rose 13 per cent in a year that saw vehicle production decline in the last months, according to the latest data from the Mechanical and Electrical Department of China’s Ministry of Commerce. China’s trade deficit in automotive products was reduced from the $9.737 billion of 2003 to $8.177 billion last year. Customs statistics showed that in 2004 automotive imports reached $16.333 billion, the Xinhua China Daily reported.
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