Earthmover Tires – Big Tires, Big Shortages

The earthmover tire shortage has been a case of bust and boom for the tire industry. Tire producers were unwilling to invest ahead of the mining boom. In their defense, though, the metals sector of the mining industry tends to be cyclic, tire manufacturers are not prescient. Until two years ago, low tire demand depressed prices. The incentive to invest in new, big-tire capacity was almost nonexistent, according to Prashant Prabhu, president of Michelin Earthmover Tire worldwide. “There has been very poor anticipation or a miscaluation of the amplitude of the (tire) demand on the part of just about everybody,” said Prabhu. What a turnaround. The earthmover tire market has grown by 30 percent over the past two years. Now there are not enough earth-mover tires and likely won’t be for the next two years. Goodyear said it was offering customers bias-ply tires when it could not supply enough radial-ply tires. Komatsu said it lost equipment sales because it could not provide the tires that customers requested. Volvo and Caterpillar said they are delivering some vehicles without tires, either promising tires later or leaving the customers – mine operators – to find their own rubber.