Tire Shortage?

[Steve Frazier]

The hot topic in the trade magazines lately is a shortage of tires for larger equipment like wheel loaders and haul trucks. They claim the industrial boom in third world countries is putting a demand for tires that exceeds production capabilities. New machines are being sold with used tires and some contractors have had to park their machines due to tire damage.

Has anyone here experienced any problem in purchasing tires?

 

[CT18fireman]

Not firsthand but I have heard the same issues. A contractor I know had to wait and pay a lot more for tires, this year, then for the same set (different machine) last year.

Kind of like the same issues with steel I guess.

The manufacturers can sell more and at a higher price to foreign countries, but don't want to risk increasing production speed to satisfy the demand.

 

[Jakegypsum]

My tire guy stated that a lot of the larger rubber is going over to Iraq. The equipement that we have over there is going through tires like they were made out of kitchen sponge rubber.
I really havn't been effected as much as some of the other guy's but I have been told that if I need anything to give myself plenty of time for the order to come in.

Jake

 

[Steve Frazier]

The trade mags are recommending tire conservation and have listed methods of achieving this. They also recommend that minor damage be repaired immediately to keep the tire in a workable condition.

 

[glsahl]

I saw an article in "Construction Equipment", haven't found time to finish it.Our prices have almost doubled for loader tires,20.5x25 bias were $700.00 - $900.00,I put a pair of Yoko E3s on our Kawasaki 65 last month,cost $1600.00,each. Backhoe tires seem to be holding steady,12x16.5 at around $150.00. I'm being told it is the steel in the tires,the rubber is only a minor factor. At $2200.00 a piece for 20.5X25, radials are giving us better service,depending on the operator. I've had 3 machines give us close to 4000 hours on Yokos,and Bridgestones. Had a bad experience with Generals,seem to have a softer compound,rock cutting more severe,in same conditions,than the others.

 

[Cat420]

The combination of oil prices, steel prices, and tires going to Iraq makes for a nasty situation. Oil prices affect the manufacture as well as transport of tires. Steel prices also directly affect the price and the manufacturers have no choice but to pass these costs along.

 

[glsahl]

Iraq?!

You will have to excuse my cynisim,if I don't buy the "IRAQ" excuse.It's no secret that China has been buying up the raw materials,steel,rubber,petroleum,and portland,and limiting the exportation of "finished" goods,like tires,tubing,bagged ready mixed concrete,etc.
Buying "enmasse",and selling at a premium,is akin to the mob running a casino.They have projects,consuming mass quantities of raw materials,that they do NOT produce. They recieve shipments of raw materials,slated for products,meant to be exported,for foreign contracts.Why would they ship these products for the profit of "foreign" companies,when they would serve a purpose at "home".
A "reasonable" student of history,could find this lesson being taught to Europe,by America,in the early 20th century.
WE,America,have taught the world how to get ahead,and forgetting this,is like cutting our own throats.
Sorry for the "soap box",I'll shut up now.

 

[D10R]

You know, I dont buy the iraq thing either. it doesnt make any sense to me, none of this does besides the prices of steel and oil drivng the cost up, and slowing production. rubber is made with oil, and lots of it, shipping these tires requires diesel, and LOTs of that too, as well as oil for the engines of the trucks hauling the tires, so its just gonna get worse as the oil prices go up.

 

[digger242j]

I thought I'd posted a reply here, but I guess I didn't. :dizzy

I wondered if littledenny had any thoughts on how much of a demand the Iraq effort might be putting on the tire supply. It just seems to me that the civilian market would far outweigh the military one, even under the current circumstances.

Besides that, it seems that most of the larger rubber I've seen on military hardware differs from what is found on civilian vehicles, with the possible exception of actual construction type equipment. I don't think military "construction" equipment would comprise the greatest proportion of the rubber tired equipment on the ground over there.

Does anybody have any idea of the size of the construction equipment "fleet" in commercial/industrial use here in the US, as opposed to how much the military is using?

 

[glsahl]

I got a call this afternoon that the price we pay for carbide tipped trencher teeth was going up,again.So far this year tooth prices have gone from $8.25 per tooth,in January,to a current price of $10.34 each.As of 7/20/05,they will be $13.40 per tooth.I purchase these items in groups of 100-200.We currently have 2 T955 Vermeer trenchers,with 12' booms,there are 62 base plates per chain,with most plates having 2 teeth per plate,average life of a given tooth is roughly 16-24 hours,depending on soil conditions.
How many trenchers has anyone seen in Iraq?
Around here you can't drive 5 minutes,in any given direction, without seeing 3 machines,using this type of cutting tool.From paving profilers,to tunnel boring machines,this type of tooth is one of the most widely used tools in the heavy construction industry.
I don't think Iraq qualifies as a major user.Last winter I was told that steel prices were driving up tooth costs,now it's carbide.
If you have an opportunity,buy Kennametal,or Sandvick Tool stock.Trencher teeth are building the Las Vegas valley,with homes selling for over $180.00 per square foot,here,we'll need alot of teeth!