Tire shortage

From Altamont Press:

Never mind rail transport problems; Tire shortage causes problems for coal mines

Coal mining companies in the Powder River Basin in northeast Wyoming are maneuvering to get around a worldwide shortage of tires for heavy equipment.

The shortage is widely attributed to increasing demand from U.S. and international mining operations for tires, industry officials said.

Military operations in Iraq and Afghanistan have added to the strain on the tire market, said Jim Davis, Goodyear Tire & Rubber Co. spokesman. “The shortage is affecting everybody throughout the (tire) industry,” he said.

Drivers and mechanics at Wyoming mines are getting instructions intended to extend the life of off-the-road tires used on the giant dump trucks used to haul overburden and coal. Companies are also scrambling to make up the shortage through deals with suppliers, which are so tightly strapped that at least one mine has had to idle some of its trucks in recent weeks.

But the shortage has also affected the tire dealers.

Local tire dealer Cobre Tires has seen sales drop $2.5 million to $3 million from last year, manager Brian Jorgenson said. Cobre usually carries about 40 tires in inventory but since the beginning of the year has only had about 10, he said.

“I know there are some mines that are down to one or two tires at times, and there’ll be times when you’ll go without any spares,” Jorgenson said last week.

Kennecott is working with drivers, managers and executives to come up with ways to increase the life of the tires, which cost about $20,000 a piece new and can fetch upward of $40,000 in a highly competitive used tire market, spokesman Dallas Scholes said.

The goal is to increase tire life from about 5,000 hours to 9,000 hours, he said.

The company has emphasized that drivers take precautions like watching for sharp rocks, reducing speed and keeping tires properl

I smell good flatbed contracts for some of these tires to be delivered.

No problem–I don’t have to worry about retiring until after that.
[;)]

Dumb question…

Are these heavy haul tire recapable?

Another dumb question…

If there is enough demand…why not increase capacity to keep up with it?

Currently at capacity for recycling old tires towards manufacturing new ones.

These aint you normal radials from your local tire shop.

Adrianspeeder

…What is the process of recycling these monster tires to help in the building of new ones…?

Why increase capacity, when the tight supply will force up the prices now paid? It’s always about supply and demand.[}:)]

Why not go to all rubber,no air tires, they would never pop or get deflated.

Because if there isn’t enough trucks rolling moving the coal, the process slows to zip and everyone loses.

Adrianspeeder

coborn35, if the tires were solid the weight of the tire would be astounding, not that they are light to begin with. They would act like big flywheels going down the hill into the mine, the brakes couldn’t handle that.

BaltACD, recaps would never hold up in that aplication, the tread would probably peel right off going up the grade out of the mine.As for demand and capacity Goodyear is going to anounce plant closings soon and is going to make alot of tires overseas.

Oh, that makes sense eddystone.

I didn’t say it was right, I’m just suggesting that sometimes that happens. [V]

Down by me the Normal IL plant for Brigestone ythat makes the very large tires for the dump trucks is running full bore 7 days a week to try to keep up with demand. There is even talk of reopening the Decautor plant to get more production.

If I’m company ABC and DEF also makes tires and there’s a shortage that drives up prices, I’d definitely try to boost my production to the max to get my share of the $$, hoping DEF isn’t as quick or smart. If it looks like a long term opportunity, then I’ll expand my plant and gain some real cost advantages over DEF.

If I talk to DEF and we agree to hold the line on production to keep margins high, then, eventually GHI or KJL will go into the business - after all it’s a very attractive one to be in with those high margins - and DEF and ABC execs will go into the “picking up roadside trash in orange suits” business.