It’s hard to know which manufacturer to believe in the OTR markets today:
Should we go with Titan and Colorado, who say that can end it by 2009, or should we go with Michelin? Their internal projections are saying that we will not see supply meet demand until 2012.
While I don’t consider myself an expert on the future, I generally go with the worst-case scenario until proven wrong. Then again, it may just be wishful thinking on their part. If I was making 35% margins on each product I was producing, I’d want the shortage to stay around as long as possible.
Just a thought: Once the shortage ends and supply is normalized, procurement at the mines can stop begging for tires, and start beating them up on the price of those tires.
Regardless of what happens, we’ll be right here bringing the news to you.
Stay tuned…
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