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NORTH AMERICA NEWS
tyres for light trucks/SUVs.
Another more basic suggestion was that there was a need to develop a reliable source of good quality casings. This is a real challenge when economic factors are already leading to increased sales and usage of used
passenger tyre retreading, and 29 per cent expect to see minimal growth. Ten percent see a case for a "massive decline," while only 6 per cent call for "massive growth."
The respondents were also asked if they would consider entering the
challenges, taking advantage of low rates for investments in equipment, including Shearography. One participant said of their Shearography purchase: "It's led to a decline in our adjustment rates and has reduced man-hours on each tyre. It was the best investment we've made in the last ten years."
There has been a continued focus on environmental issues and being as green as possible throughout most retreading operations.
The opportunities created by the rationalisation of the industry have allowed those in a position to grow to see continued geographic expansion. There has been time taken to invest in education programmes to
demonstrate to end users the huge cost benefits of retreaded tyres compared to new tyres.
There is still a resistance in some areas to the concept of using retreaded tyres and a number of panellists mentioned improving the end-user perception of retreaded tyres by ensuring the finished product looks as close to a new tyre as possible.
Retreaders have also taken advantage of the recent shortage of new tyres to develop customers that haven't used retreaded tyres before. They have been able to demonstrate the reliability and cost savings associated with retreaded tyres for these end users.
tyres that could have been successful retread candidates.
Explore alternative distribution channels (such as online) so that retreaded tyres are not competing side-by-side with low cost new or used tyres.
The survey of TRIB members around the world shows that 48 per cent expect no change in the state of
passenger tyre retreading arena. Some 16 per cent said they had done that in the past and were not interested in returning, while 35 per cent flat out declined. Active passenger tyre retreaders totalled 26 per cent of the group polled, 13 per cent were exploring their options, and 6 per cent were firmly convinced and would enter the market.
Forest Park, Georgia based retreader and commercial truck tyre dealer Hill Tire Co. has become the latest licensee of Continental Tire the Americas, LLC’s ContiTreads. Continental said today that Hill Tire Co. has begun retreading truck tyres with ContiTread brand flat precure treads at its facilities in Forest Park and Valdosta, Ga. The Forest Park retread facility, near company headquarters, is approximately 45,000 square feet and employs 45 people. The 15,000 square-foot facility in Valdosta has 15 employees. These two locations combined can produce more than 110,000 retreads annually.
Hill Tire serves trucking fleets in the Georgia, Alabama and northern Florida areas from these two locations as well as Cartersville, Ga., Doraville, Ga. and Birmingham, Ala.
Hill Tire made the decision to add ContiTreads after evaluating Continental’s ContiLifeCycle, a cradle-
to-grave solution for commercial tyres, said Allen Hill, vice president of commercial sales. The dealer needed a national brand of retreads to sell to its large commercial tyre customers and Continental offered retreads that matched the new tyres with compounding and tread designs, plus SmartWay verified and fuel efficient products, Hill explained.
Continental also provided personnel dedicated to help with sales of the ContiTreads, as well as plant evaluations and training as part of the process, Hill said.
“We encourage other retreaders to test Continental’s product and see for themselves what the ContiLifeCycle can do. While we are committed to our current tread rubber supplier, Continental gives us an option to explore markets that were not open to us before,” he said.
Continental Adds Retread Licensee
TRIB Members Discuss
Retreading at OTR
Conference
During the Tire Industry Association's OTR Conference, a panel comprised of seven OTR Retread Companies (and TRIB members) discussed some of the challenges they faced in 2012 and opportunities for the rest of 2013.
The panellists included: Mike Berra, Jr. - Community Tire Retreading, Dennis Bull - BR Retreading, Brian Hayes - Purcell Tire Company, Noah Hickman - H&H Industries Inc., James John - Shrader Retreading, Ed Petros - RDH Tire & Retread Company, and Frank Schmidt - McCarthy OTR Retreading, Inc. Some of the key points from the Retread panel are outlined here. There were, and are, a number of challenges to be faced in 2012 and 2013: The foremost of course has been the economy and the economic uncertainty increased at the end of 2012 looks to continue in the near- term, having knock-on effects in OTR retreading.
The end of US stimulus money has had an impact on the Aggregate
Industry and reductions in coal production led to declines in tyres for these segments.
The continued threat of legislation or greater regulation hangs over the OTR industry both in terms of the end user operations and in terms of tyre disposal.
The slow down set against increased production capacity globally has resulted in increased inventory on the new tyre side that can lead to increased price and margin pressure for the retread industry.
There are, however, some opportunities for growth in 2013: There are growth opportunities in the 51-inch and above segment as equipment becomes larger and heavier.
The economic upheaval means that there are potential opportunities to invest in equipment with continued low interest rates and there are some select international growth opportunities
Some industry representatives had already acted to take on the
Tesco of America International
and Italmatic in Co-operation
Agreement
Tesco of America International has signed an exclusive agreement with Italmatic of Milan, Italy for the USA, Central, South America and the Caribbean for service parts, support and sales of the Italmatic line of high quality OTR, truck and passenger tyre retreading equipment.
Italmatic has been manufacturing one of the highest quality truck and OTR lines of equipment in the industry since 1966. It has recently established a 24/7-support team for its equipment and has built an additional 80,000 sq. foot building to facilitate its larger
production needs in Lucca, Italy, as well as another 80,000 sq. foot building at its Milan, Italy facility. A 63" OTR buffer is the newest addition to its line of builders, presses, autoclaves, moulds, mini extruders, buffing blades and carbides.
Tesco is proud to be working with Italmatic in supporting the equipment line with the focus on parts, service and sales.
Tesco of America International is celebrating 25 years in business this year and over 40 years in the industry.
14 Retreading Business