North American Tire amp Retread Expo New Orleans Louisiana April 16 2015 Agenda OHT Market Size and Breakdown Some observations on main relevant sectors Thoughts on whats coming down the pike ID: 389699
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Slide1
Off Highway Tires
North American Tire & Retread Expo
New Orleans, LouisianaApril 16, 2015Slide2
Agenda
OHT Market Size and BreakdownSome observations on main relevant sectors
Thoughts on what’s coming down the pike….Slide3
A Little Bit About Me…Slide4
Some OFF HIGHWAY TIRE observations…Slide5
Great People
Cool Products, cool machines
End users appreciate value!
It’s a relationship business.Slide6
OHT Business Good Size
Big enough to grow in and to make money
.
Small
enough to be involved and make an impact.Slide7
OTR vs. OHT??Slide8
Forestry
Mining / Earthmover
Construction
8
Segments
of OHT Market
AgricultureSlide9
Above OHT market size excludes solid tire, racing tires and aircraft tire.
Source: Annual reports; Global Tire Report from Rubbernews.com
Global
OHT Tire
Market ~$
14B
!
OHT Market
Other MarketsSlide10
Above OHT market size excludes solid tire, racing tires and aircraft tire.
Source: Annual reports; Global Tire Report from Rubbernews.com
Global OHT Market
OHT Market
OEM
Aftermarket / ReplacementSlide11
Above OHT market size excludes solid tire, racing tires and aircraft tire.
Source: Annual reports; Global Tire Report from Rubbernews.com
Global OHT Market
OHT Market
Europe
ROW
North AmericaSlide12
Global Market BreakdownSlide13
North
American OHT MarketSlide14
MiningSlide15
Mining….
“It was the best of times….it was the worst of times”
Charles Dickens, A Tale of Two CitiesSlide16
Mining….
Highly specialized
Very regionalized
Cost of failure very high
High cost to serveSlide17Slide18
Mining Pockets of Opportunity
Underground
mining
Sand
and GravelSlide19
Agriculture
THEIKPSOIUPRTESlide20
AG vs. MiningSlide21
Agriculture
Also specialized and
regional
But not as much as
mining
Farms in every state….opportunities unless you are an urban dealerSlide22
Farmers Very Tech Savvy
Farmers research EVERYTHING online before buying
Make sure your website is easy to find and easy to use.Slide23
GPS Guided Farming!Slide24
Heavy Users of Social MediaSlide25
Productivity Driven….Slide26
Not Just Tractors….Slide27
Segment break-up of OHT market
Key
OHT Segments
Agriculture
Forestry
Mining
Construction
ConstructionSlide28
Construction is Booming
2014 machinery sales up 8.7%
2015 forecasted to be even higher 8.9%
2016-2019 looking strong with CAGR of 4.5% or higherSlide29
Growth is Across the Board
2015
Single Family Housing
Forecasted to
be up 15% over 2014
Commercial Building
also forecasted in the 15% range
Construction is
EVERYWHERE
….not just in Southeast or West.
Not just suburbs as in past.
INFILL in cities, led by millennials, driving urban construction Slide30
Construction EquipmentSlide31
70% Of All OTR Tires 24”-25”
13.00-24
14.00-24
15.5-25
17.5-25
20.5-25
23.5-25
25.5-25
29.5-25Slide32
OTR Segment Offers Greatest Short Term Opportunity
You don’t have to be an OTR dealer to participate
.
Any
commercial dealer, with a lift gate truck, can handle majority of tire sizes used on construction and industrial machinesSlide33
Go Where the Numbers Are….
800,000+ Skid Steers in the USA alone
600,000 on tires
2.4 MILLION SS Tires in the field right now
Severe use. High scrub rate. Wear out fast
Limited sizes to
inventory
10-16.5
12-16.5Slide34
Rental Companies Are Hot…Slide35
Rentals Are Hot!
Over 50% of 2014 new equipment purchased by rental
companies
Trend
forecasted to be even higher
2015-2019
Driven by continuing
uncertainty
Users increasingly deploying specialized equipment for specialized jobs. More economical to rent than
own
Uncertainty over long term Federal Highway BillSlide36
So What?
Do not ignore the rental fleets
They are growing fast
Get to know local people at rental company branch locations
United Rentals
Sunbelt
Cat Equipment
Etc.
They are everywhere. In all markets.Slide37
Where to Look….Slide38
ForestrySlide39
OHT…It’s a Dealer’s World.
OTR Users Need Dealer Service and Value their servicing dealer
You offer what manufacturers do not:
24 Hour emergency service
Inventory close at hand.
Trained technicians/OSHA certified
Data driven recommendations to help lower production costs/reduce downtimeSlide40
It’s All About Productivity & Cost
No one cares about tires except for those of us in this room
!
Customers
only care about lowering their production costs and improving
productivity
If this could occur through some new, disruptive technology, we’d be out of businessSlide41
Good News…You are the Critical Link!
Right service partner is still the critical link in making everything work
Right tire recommendation
Right service offerings
You are in the driver’s seat. Customer appreciates what you can do for him more than the brand of the tire.
You can recommend the right bundle of products and services that you feel will help your customer best.Slide42
Majors De-Focused
Pirelli spins off AG tire business to
Trelleborg
Goodyear spins off AG business to
Titan
Continental spins off OTR business in U.S. to
Titan
Conti spins off AG business in Europe to
MitasSlide43
It will be a buyer’s marketSlide44
You Will Have Even More Choices in the Future….
Emerging Players starting to challenge the global
giants
Emerging players more sophisticated
Choose Wisely….Slide45