Thursday, December 15, 2005

The view from over the pond

I recently received the following letter from down under:

"My name is Tom Klinge. I head up a group of Companies in Australia, Indonesia, New Zealand and USA, we provide products and services to assist people gain longer life out of tyres and have been in business for over 30 years, we don’t sell tyres or get involved in the supply at all. The reason I comment on the article is in the current Off the Road (OTR) radial tyre shortage.

I am seeing and hearing of situations which are in my knowledge unheard of in history of rubber tyred earthmoving activity ie.:

1. Multi million dollar trucks being delivered to sit idle due to no tyres,
2. Second hand tyres of dubious quality being sold for more than double that of a new tyre ie USD$50,000.000.00,
3. OTR tyre repairers and retreaders being pressured by some equipment owners to perform repairs and or retread tyres which should be scrapped and discarded,
4. Equipment Operators using trucks with 4 tyres fitted which was designed to have 6 tyres,
5. Mining Companies spending millions (not budgeted) to acquire additional clean up equipment to clean up where their trucks are working to reduce tyre injury
6. Mining Companies deferring start up of New Mines until tyre supply can be guaranteed .

The OTR radial tyre shortage will, despite resent announcements by 2 of the big 3 manufacturers ie Firestone Bridgestone and Michelin to increase output, will be much worse in 2006 than it has been in 2005, all indications are that the shortage will be well and truly adversely affecting Quarrying, Construction and Mining companies until 2008 and beyond.

The squeeze on tyre owners to keep their machines working is in fact generating a demand for these tyres is sucking in crooks who think they can make a quick buck, the problem goes even further than stealing and dealing in stolen property as many of the tyres being offered are likely to endanger the well being and or the life of the tyre technician who installs it. Mechanics and operators of the trucks are also put in danger using these tyres. "

hmmmmmmm. There's some food for thought.