Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/714120
65 www.moderntiredealer.com know everybody that comes here, whether it's 2,000 people, they came here to buy tires. We don't give caps away." e International Trade Administration (ITA), part of the U.S. Department of Commerce, backs up Lima's optimistic outlook for the region. e ITA is working to aract more U.S. businesses to export to Latin America. As part of its "Look South" initiative, the ITA has identified 27 sectors of industry that would be especially aractive to U.S. exporters. For the automotive parts and supplies sector, nine countries are identified as specific market targets: Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico and Panama. Of those nine countries, seven list tires among the best prospects for more business. Costa Rica and Mexico are the only ones to leave tires off their lists. Mexico is home to a growing number of tire manufacturers, the ITA doesn't list any specific targets for Costa Rica. It noted though that Costa Rica's exports, which totaled $160 million in 2015 and are expected to be about $155 million for the next three years, "are mainly due to the local Bridgestone plant that expanded production and exports all over the world." Colombia is a prime market for consumer tires, as well as truck and bus tires, tire retreading equipment and tire recycling operations. Guatemala is in need of wheels and tires, plus service equipment for tire repairs and tire balancing, plus lis. Elgi Rubber Co. LLC is among those baling for a piece of the equipment market. Ron Mohler, commercial development manager for North American markets, was part of a team of employees in Panama. e company's Jet brand of tire retreading and repair systems was on display, and Mohler said he sees room for growth as recycling is an emerging concept in some countries. e goal was to present the company as a comprehensive supplier of the "equipment, tools and consumables that (dealers) use daily in the process." New hope for retreaders Retreading was a big topic at the expo, and not just on the show floor. In a series of forums industry leaders talked with hope about a turnaround. Low truck tire prices have created a crisis for retreaders in Latin America, but industry leaders see signs of a rebound, and believe the worst is behind them. Heriberto Romero, general director of Hules Banda S.A. de C.V., told aendees, "We've already reached rock boom. We do feel there is a slight uptick. e numbers don't lie. We're seeing volume that is trending upward." And though that's welcome relief, Romero also pointed to plenty of opportunity for retreaders to expand their reach in Latin America. Eighty percent of fleets are operated and managed by individual truck drivers, and only 20% are handled by large fleet companies. Large fleet operators already are monitoring their mile- age and tire wear, according to Romero. at is something individual drivers have yet to put into practice, which means there's also a big opportunity for retreaders to be part of a more economical, long-term solution. " We're going through a crisis right now. Crisis also means opportunity. How do I do more with what I already do?" Romero said one option is to look beyond the tires for more sales. In his business, he turned to selling lubricants. Truck service, shocks, baeries and alignments are all additional selling opportunities. "We need to have a bigger portfolio." And a dealer's existing sales staff can handle an expanded portfolio without requiring a salary increase, he said. Jean Alexander Barros, Vipal Rubber Corp.'s coordinator of commercial products in Mexico and Central America, also believes retreading is on its way back in the region. Barros said dealers need to teach this lesson: "Cheap ends up expensive." otential' Maxam Tire Latam LLC was among the 205 exhibitors on the show floor of the seventh Latin American & Caribbean Tyre Expo.