Are you seeing any volatility in the supply chain?
In early January, the effects of the Red Sea engagement resulted in sharp increases in shipping costs for containers bound for Europe and across the Atlantic to the Americas. At the same time there was a slowdown of commerce from Asia to the U.S. that resulted in more favorable rates for those routes in the supply chain. Over the last few months, the market has returned to a more stable equilibrium for most routes. As for raw materials, ongoing trade disputes between some of the world's leading economies provide for an unknown measure of possible future instability and disruption.
How important is the North American market?
The North American market is our key market for worldwide distribution and growth. Unlike most new entrants into the North American market who concentrate on their domestic sales first and then adapt their existing products to the U.S. market, Ralson and Accelus TBR tires were designed and built to the requirements specific to NA requirements: high quality full width casings, as well as raw materials and building equipment that rival the most well-known companies in the world tire market. I would say that we have spared no cost for innovation and production to impress the dealers and fleets of the United States and Canada.
What are the challenges you face in growing your brand, especially as a newcomer?
Two of our bigger roadblocks at this time are: (1) having enough high-quality team members to physically meet with dealers and fleets and (2) the inflationary issues that have taken a significant amount of time for those decision makers who purchase, sell, and use truck tires. We are addressing issue number 1 by aggressively recruiting seasoned tire and fleet professionals across the country to grow our representation above and beyond that of many of our larger competitors. Issue number two is being addressed by providing multiple supply and purchase solutions to take advantage of both long-term planning and cost control through our factory direct supply programs in addition to investing in USA warehouses closer to local markets that will support short term and just-in-time requirements for today's demanding supply chain needs.
What are some of the pleasant surprises in the industry?
The commercial tire and off-road segment of the tire industry is heavily skewed towards family generational ownership. It is exciting and comforting to know that second, third and fourth generations are assuming important senior positions in their family businesses. As a fourth generation member of my family business—along with my sister—a business started by my great-grandfather, I know the issues and concerns that our partners face as we have mutually "grown up in the business" together. I look forward to meeting more peers to discuss and share experiences. We have all invested our lives into the tire industry.
What kind of trends are you seeing in the marketplace?
Consolidation of business due to both economics and lack of available succession have been front and center in both the tire dealer and fleet industry over the last five years. Ralson Tire is not encumbered by the "way things have always been done" thought process. We have designed and built our tires with the best compounders and engineers in the world to have innovative and quality products from Day one. We are also hiring experienced independent thinkers for our sales and marketing teams to ensure we know and understand the pulse of the business. Fresh thinking and deep listening will be the keys to working closer with our customers.
Do you expect to roll out any additional products in 2024?
Within eight months Ralson was able to complete Phase one of our roll out plan. This included rationalizing our SKU quantity by eliminating lower ply ratings of core sizes and models. Ralson has focused on the needs of the regional and construction industries by producing 19.5- to 24.5-inch diameter: steer, drive, trailer and all position tires needed daily by companies who are locally important to our dealers, driving cash flow and improved margins, for which many manufacturers have strayed in their focus. In 2024, we will be rolling out 17.5-inch, 385 and 425 flotation, and line haul specific steer and drive fleet tires. We will also be adding severe service tires for construction and on/off road trucking needs.
How do you get your customers to embrace sustainability?
The Ralson Tire manufacturing facility based in Indore, India, was designed and built with sustainability initiatives and processes—from contained effluent recycling processes to nitrogen curing, to being a world tire leader by having a low carbon footprint and an ecologically minimal impact in our community, for today and tomorrow.
Do you expect any other major investments in the next six months or year?
Ralson Tire is currently amidst an expansion to increase capacity to 1.2 million units by March 2025 and are in process of expanding even further to 2.2 million units by mid-2026. We are also ramping up our field sales team to meet the needs of our growing partnership network. We expect to have 12 to 15 representatives in the field by the end of 2024. Also look out for new U.S. warehouse locations in the near future.
What are some of the challenges of the industry going forward?
Ralson Tire is committed to providing high quality tires at reasonable prices to our markets. We have invested in innovative processes that allow for production on a scale that will keep our partners supplied in a reliable manner. Supply chain issues as they relate to raw materials and shipments due to volatile political and economic conditions are becoming a larger and larger concern—as we have all experienced over the last four years.
What do you want tire dealers to know about the company that they may not know?
Who we are, and what we are, is deeply rooted in family values of trust, integrity and an unwavering passion for excellence—principles passed down through generations. These ideals continue to guide us as we adapt and innovate to meet contemporary demands. When you purchase a Ralson product or partner with us, you receive more than just a tire. You receive a product that has withstood the test of time, embodying the heritage and dedication of my family. The Ralson name, my family's name, which is proudly inscribed on our sidewall—has been synonymous with quality for over 50 years.
Customer loyalty is the heart of our success. We exist for our customers and are successful because of their unwavering support. Customer trust inspires us to push boundaries and set new standards. As we enter this new market, we pledge to uphold our high standards, build lasting relationships and exceed expectations.
We thank all of our partners for being such integral parts of our journey. Together, we will continue to create, innovate and set benchmarks for excellence.
