Are you seeing any volatility in the supply chain?
Ocean freight costs stabilized until recently. The product seems to be available, but transportation costs are volatile. Global macroeconomic and political woes are the impetus for this volatility.
How important is the North American market?
Globally, it's the largest export market for our parent company, so its importance is paramount. Expanding market share continues to be a process, and many non-traditional or new distribution channels are being pursued.
How are dealers reacting to your new portal?
Customers have shared that the features of our new dealer portal are fantastic. In today's jist-in-time delivery environment, having up-to-the-minute access to many data points allows them to manage their business more efficiently. Today's tire world isn't just a 9 a.m. to 5 p.m. routine. Managers, owners, and others need 24 hours a day access to pertinent information, and our portal does that.
What is your reaction to the preliminary ITC ruling on antidumping duties on TBR products from Thailand?
We were pleased with the outcome. Manufacturers know the costs to produce in Thailand are higher than in many other Pacific Rim countries, including China. We had a preview of the potential of low rates when the PLT review recast antidumping rates to low single digits earlier in the year. Overall, we felt that the petition didn't have merit as the increase in imports was due to demand in the market, logistical issues, and post-pandemic pipeline fill, not the dumping of products below costs.
How have bolstered your North American presence recently?
We've added a couple of key field personnel in 2024, but overall, are keeping our headcount at the current level.
What kind of trends are you seeing?
Consolidation in the industry continues, seemingly from non-traditional investors like private investment and equity groups. It seems that these investment groups have targeted the tire industry recently. With our relationships with some of the largest commercial tire dealers and distributors in the market, we embrace the trend. We understand that once new owners review our programs, especially the profitability, they will continue to embrace them.
Do you expect to roll out any additional products in 2024?
We've added our airport Ground Service Equipment (GSE) in 2024 and our all-weather OTR tire size expansion. We are working on several new products to replace older generation items and hope to have more information in the future on these projects.
Has artificial intelligence (AI) begun to impact business?
It hasn't directly impacted us yet, but we are beginning to understand its capabilities to drive sales. We have used AI in our brands' marketing and branding activities to create programs with the best exposure and impact.
How do you get your customers to embrace sustainability?
We produce products that ultimately last longer and retread more consistently, reducing carbon footprints in these and several other ways. We try to educate customers that the tires will perform in this manner, and our modern manufacturing facilities use much less energy than older plants. In addition, tire material research is an ongoing process to create more opportunities to enhance sustainability.
What are some of the challenges of the industry?
Vehicle changes always create challenges for tire manufacturers. Also, in this space, regulations require specific products to perform in certain ways. In our opinion, some of these regulations make sense, and some do not.
What do you want tire dealers to know about the company that they may not know?
We are excited about Double Coin's future in the North American market. Our goal has always been to be an easy company to do business with, and we will continue to act in customer-centric ways as we move forward.
