Modern Tire Dealer

JUN 2019

Magazine for the professional tire industry

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M T D J u n e 2 0 1 9 48 F ewer truck tires will be shipped in the domestic replacement and original equipment markets in 2019 vs. 2018. at is the prediction of the U.S. Tire Manufacturers Association (USTMA), which specifically estimates an overall decrease of 6% — 6.8% in the replacement market. Government truck tire import numbers to date back up the forecast: rough March, truck tire imports are down 6%, with radial and bias truck tire imports from China down a whopping 28% because of the tariffs implemented earlier this year. e new countervailing and anti-dumping tariffs on Chinese truck and bus tires are in addition to a 10% tariff on all Chinese products levied by the Trump administration in September 2018. Tim Phillips, vice president of marketing and operations for the China Manufacturers Alliance LLC, says the initial impact of the latest tariffs on the U.S. market has caused large stockpiles of inventory. CMA is a subsidiary of Shanghai Huayi Group Corp. Ltd., formerly Double Coin Holdings Ltd. It not only markets Double Coin radial truck and OTR tires, but also brands from several other manufacturers. "As shipments begin to plummet from most Chi- nese companies, the future will be revealed," he says. "Some distributors have not yet realized the impact, while others are wishing it to go away like it is simply a bad dream. "Although pricing currently remains very com- petitive, and on everyone's mind, once all the excess inventory is depleted, it won't be about pricing any longer. It will be about supply. It is just a matter of time before availability will be the distributor's number one concern." He adds that many distributors "placed more than their normal amount of orders before tariffs impacted the U.S. market. As a result, this seems to have temporarily created an illusion of ample supply and ongoing competitive pricing as some companies discount product to keep their businesses operating." In 1990, tire dealers surveyed by Modern Tire Dealer rated low prices as the clear number one demand of their commercial fleet customers. Twenty-five years later, respondents to the MTD/ Heavy Duty Trucking joint survey ranked delivery time number one, followed by low prices. In contrast, fleet operators rated low prices as the top service required from their primary tire supplier, followed by "Particular brand of tire." Delivery time was seventh. e early forecast for Class 8 truck production is positive. It is expected to continue its growth trend from Inventory management DECREASE IN TRUCK TIRE SHIPMENTS MAY NOT LAST BEYOND 2019 Bob Ulrich By P a s t , P r e s e n t , F u t u r e : T r u c k T i r e s COURTESY OF FIRESTONE ARCHIVES PNEUMATIC TRUCK CORDS PROVE ECONOMY IN TESTS Permit Carrying of Heavier Pay Loads on Lighter Vehicles—Smaller at the pneumatic cord tire is working radial changes in the construc- tion of motor trucks by permiing a much heavier pay-load to be carried on lighter weight trucks has been recently demonstrated beyond doubt. In experiments recently conducted by e Goodyear Tire & Rubber Co., Akron, O., which operates a fleet of 50 trucks in the transportation of freight and passengers, complete truck weight has been cut by 8,000 pounds, permit- ting a record pay-load of 7,000 pounds. e truck in question is composed of a two-ton chassis, a three-ton motor and 38x7 and 42x9 tires. is remarkable development of truck transportation has already proven to the company that it can haul its own products from the factory to the branch offices at a saving in freight rates. Incidentally, it would mean a sweeping reduction in the hauling expense of many large transportation companies that have not changed over from solids to pneumatics. Heretofore it was supposed that pneumatics would not make any material difference in truck construction, nor was it supposed that any heavy type of truck could be equipped with less than 44x10 tires on the rear wheels. But the company kept close check on the performance of trucks and tires even to the extent of sending several of its express trucks on coast to coast trips. A truck weighing 15,800 pounds, carrying a pay-load of only 3,850 pounds, was stripped to 11,800 pounds and developed a pay-load of 5,800. It was still considered too heavy in proportion to the load carried. A further reduction resulted in a 10,000 truck with a pay-load of 6,800 lbs. is was followed with the 8,000 pound truck now carrying a load of 7,000 pounds. It is the belief of company experts that the end is not yet in sight and that on heavier type of truck, pneumatic tires will sustain a pay-load equivalent to the weight of the truck. It is not altogether impossible that eventually the pay-load will out-weight the truck. is is a testimonial to the wonderful performance of the pneumatic cord tires, which already has achieved a record of delivering 50,000 miles. Firestone Tire & Rubber Co. was part of the ship-by-truck movement in 1919. From solid to pneumatic The change took root in 1919 Fleets started to take pneu- matic tires seriously after World War I. What follows is a story from the Decem- ber 1919 issue of Tires, the first incarnation of Modern Tire Dealer, that profiles the paradigm shift in the transportation of goods and services, including tires, that was taking place.

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