Construction Equipment Tires: Trends in the Global Market

The construction equipment tire market has been problematic for quite a few years now. Currently, the shortage of tires is having an enormous effect on the supply chain. It might be in part due to the increased prices of rubber. Furthermore, the increasing demand in almost every construction industry sector has influenced the equipment supply chain, and therefore, heavy equipment tires are in high demand as well. The overall valuation of the equipment tire market was recorded at $18,230 million in 2018 and is only expected to increase by 4.44% from 2019 to 2024 due to the increasing demand for construction.

As an alternative, companies are looking for other suppliers of tires, and the focus is mainly on China and Russia. Some big equipment manufacturers have direct agreements with the major tire companies (Bridgestone, Goodyear, and Michelin). The tire companies benefit by reserving and providing the tires to the manufacturers on a priority basis for their larger heavy equipment. The alternative suppliers of tires are focusing on trying to improve the lifespan and cost of tires, and the clients are stuck to the quality of the product because the quality of tires ensures the productivity of work.

Bridgestone, a leading tire company, has been experiencing a slight rise in supply due to the increasing demand for tires since late 2017. Currently, the company has seen a deficit of 6000 tires per year. However, new production plants are set to be built by Bridgestone, and they are investing almost $300 million in them. The shortage of tire supply is not going to last for a long time, and the issue is expected to be fixed soon. Most tire manufacturing companies are planning to expand their production plants and upsurge the supply.

In North America, 60% of the compact machines sold are compact track loaders rather than skid steers. A rapid shift from tires to tracks has also been seen in Europe, the Middle East, and Africa. Another transformation seen in the tire market is that solid tires are getting priority in compact machines over pneumatic ones.

Summary

The global market of heavy equipment tires is facing a slight challenge due to the increased demand and decreased supply. If you just bought a 966H Cat wheel loader or any other construction equipment, you should try to extend the life of its tires with a proper maintenance schedule. The supply chain has been affected negatively by the pandemic, but fortunately, it is now anticipated that it will see a 4% increase by 2024. This shortage in the tire market might be due to the increased rubber prices. However, equipment manufacturing companies are moving towards alternative solutions in order to overcome the problem.