Outdoor interests boost Carlstar brands

FRANKLIN, Tenn.—If there's a silver lining in the COVID-19 pandemic, it's that many people have embraced outdoor activities for the first time.

For specialty tire and wheel maker Carlstar Group L.L.C., this is reason to be optimistic for the future.

The company is a global supplier of specialty tires and wheels serving the agricultural, industrial, lawn and garden, and power sports markets. Most of Carlstar's products carry the Carlisle flagship brand, but the Franklin-based company also goes to market with the ITP and Marastar brands, covering ATV/UTV tires and wheels, and small specialty tires, respectively.

Carlstar is considered the 48th largest tire company in the world, according to Rubber & Plastics News' 2020 Global Tire Report rankings, with estimated tire-related sales of $495 million in 2019.

The company's balance between original equipment and aftermarket customers has kept it competitive during the pandemic, said Laren Harmon, Carlstar executive vice president of sales and marketing.

"The strength we have experienced in 2020 in our aftermarket business has offset the OE weakness caused by the pandemic," he said. "In fact, certain segments in which we operate are having a record year for demand as our products are incorporated into many different social-distancing activities. These activities include such things as ATV trail riding, boating and RV, lawn and garden activities."

Harmon also noted ag tire sales—compact tractor, implement and semi-pneumatic tires—have done well this year. The construction segment has been sluggish, though, he said, as local and federal projects may have been put on hold during the pandemic, or funding was diverted because of it.

"We are the industry leaders in many of these product segments like lawn and garden, ST trailer and power sports, and, as a result, we have seen strong growth," Harmon said.

The firm has been busy in 2020, despite a two-week manufacturing shutdown in March.

"Carlstar has a flexible global manufacturing footprint; it is one of our strengths," Harmon said. "The fact that we produce most of our power sports, agriculture and construction products domestically has given us the ability to quickly respond to changing market demand and ensure our loyal customers have inventory."

As the pandemic spread in late winter, Harmon said the company's first priority was to ensure the safety of its employees—a task that continues to be very important, he said.

"Manufacturing locations were closed temporarily out of an abundance of caution for the pandemic and to ensure we had the proper safety protocols implemented in the facilities," Harmon said.

"Our factories remained closed for approximately two weeks as we further assessed the falling demand from our OEM customers in particular, who also shuttered their factories in the wake of the pandemic."

Power sports booms

Carlstar—one of the few remaining U.S.-owned producers of pneumatic tires—manufactures tires at plants in Clinton and Jackson, Tenn., and Meizhou, China. It has more than 3,400 employees at facilities in the U.S., Canada, China and Europe. It also produces custom wheels under the Cragar, Black Rock and Unique brands.

"In terms of the pandemic's effect on the market, power sports is seeing an increase in popularity due to it becoming a social-distancing recreational activity," Harmon said. "We believe that popularity will continue even after the pandemic as many more people have been introduced and enjoy this form of recreation."

The company released a number of new products into the market this year, including:

• The Carlisle Versa Turf, a radial R3 tire designed for reduced turf impact in lawn and garden applications;
• The Carlisle PaveMaster, a tire designed for UTVs and side-by-side (SxS) vehicles, running often on hard-packed surfaces and paved roads;
• The ITP Terra Claw, an 8-ply high-performance, multi-terrain tire line for ATV/UTVs and SxS vehicles; and
• The 10-ply ITP Tenacity XSR Xtreme Steel Radial and Tenacity XNR Xtreme Nylon Radial tires for Super Sport SxS enthusiasts.
• The Marastar brand of specialty tires and casters is having a "wonderful 2020 as well," Harmon said. He noted its popularity among farm and home-improvement retailers as more people have been doing home projects during the pandemic.

"Our Marastar brand is doing very well. They'll have a record year in 2020," he said.

While he said the OEM and construction tire markets may be down in 2021, the company believes ag, lawn and garden, and power sports sales will be up.

"Our challenge is to stay in front of the demand and make sure our loyal customers have the inventory to take advantage of this market," Harmon said. "We are leveraging our global footprint to ensure we are prioritizing production to meet the changing demand for our customers."

New products
The company plans to roll out several products in 2021, Harmon said, including:

• A broadline power sports radial tire to expand the size coverage for Carlisle's UTV tires;
• Expanding the Carlisle agricultural and construction product portfolio with new Carlisle Radial Tractor treads and sizes as well as steel-belted skid steer and implement tires; and
• Eight tire and two wheels projects coming to the ITP brand portfolio.

The company also hinted at "a very special product launch" from its Jackson plant that is the result of a strategic partnership with an end-user to provide a unique "Made in the USA" product.

The project—which he said required a significant investment in the plant — will be announced in the fourth quarter.

Carlstar also is developing new sales channels with the recently launched national account and government sales department.

"We are targeting markets that are currently underserved for our product segments," Harmon said. "One example is the rental equipment channel, where our products offer the best fit for these customer's very diverse portfolios. As for the government, many agencies, municipalities and state governments favor a 'Made in the USA' product. We feel we are in a unique position to deliver that request for the specialty tire business."

The growth in the aftermarket has Carlstar optimistic about the future.

"At the end of the day, 2020 is going to be tough for a lot of tire manufacturers, and we're going to have a pretty nice year," Harmon said. "We should stand tall going forward, and we're pretty excited about all of that here."