The Politics of Being a Tire Dealer

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As a business leader and manager, you’re tasked with many of the same duties as professional politicians – building consensus, communicating a shared vision, dealing with the public and staying visible within your community.

And as a tire dealer, you have far more political expertise and influence than you may realize. Your voice, experience and wisdom are highly valuable to your community and your industry. From serving on boards and councils locally to speaking on industry issues before the House and Senate – even running for office – tire dealers have a reputation for getting involved.

Read the source article at Tire Review

DOT issues 22 new tire factory codes in 2016

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WASHINGTON (Feb. 15, 2017) — The U.S. Department of Transportation issued 22 new DOT plant identification codes in the past year for tire factories worldwide, including 14 for plants in China.

Tire manufacturers wishing to sell tires intended for use on U.S. roadways must have a DOT code for each plant, and that code must be molded into the sidewalls of each such tire.

Of the new codes issued, only one—for Yokohama Tire Corp.’s truck tire plant in West Point, Miss.—is in North America.

Read the source article at Tire Business

Hankook’s Growth Strategy Based on the New Factory

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SAN JOSE DEL CABO, Mexico (Feb. 13, 2017) — Hankook Tire America Corp. plans to step up its North American marketing efforts in 2017 as part of a strategy to grow in a marketplace that looks to remain relatively flat.

One important reason for the 40-percent increase to the marketing budget is the opening in 2017 of the company’s first U.S. tire plant, but also from a global perspective the U.S. market is becoming more and more important to Hankook, according to Hankook Tire America President and Chief Operating Officer Hee Se Ahn.

“So we made a decision to increase our overall funding for the U.S.A. market,” he told Tire Business Feb. 11 during an interview at the company’s 2017 U.S./Canada Partner’s Day in San Jose del Cabo.

Hankook has aspirations to grow 15 percent globally in 2017, Mr. Ahn said, and the U.S. subsidiary is looking to achieve that same goal.

Read the source article at Tire Business

Canadian CEOs brace for NAFTA changes as Trump and Trudeau meet

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Canada and the U.S. have knitted together one of the world’s most integrated economies since signing free trade agreements 30 years ago, trading everything from fertilizer to oil, auto parts to drugs. As Prime Minister Justin Trudeau heads to Washington to meet President Donald Trump today, Canadian companies are hoping it doesn’t all unravel in a trade war.

Trump’s pledge to renegotiate the North American Free Trade Agreement and his support for a “major border tax” threatens to disrupt $541 billion in trade between the two countries, potentially driving up costs and crimping profits for some of Canada’s biggest companies including Suncor Energy Inc. and auto parts supplier Magna International Inc.

“Any impediment to seamless trade across the border between Canada and the U.S. would have a negative impact on the price of vehicles to the buying public and be negative to everybody,” Don Walker, CEO of Aurora, Ontario-based Magna, said in an interview at Bloomberg’s Toronto office last week. Magna is the biggest parts supplier to General Motors, Ford Motor Co. and Fiat Chrysler Automobiles.

Read the source article at Front Page

Goodyear Reports Record Q4 Profits for Americas

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Goodyear Tire and Rubber Co. today reported record-breaking earnings in the Americas and strong earnings globally, despite a year-over-year decrease in consumer and commercial tire sales numbers globally. Goodyear earnings include a net income of $1.3 billion globally for 2016 and record high Q4 income of $295 million for the Americas.  Growth, despite a 4.6% decline in units sold and a 10.9% decrease in net sales within the Americas (in part due to the deconsolidation of Venezuela), the tiremaker reported a 1.1% YoY increase in consumer tire units sold and a 4.2% YoY decrease in commercial units sold worldwide.

The company’s strategy to focus on the more profitable large-rim-diameter tire sizes (17-inch and larger) and increasing the value of the Goodyear brand seems to be paying off. According to Richard Kramer, chairman and chief executive officer, the income increase was driven by strong performance is the company’s Asia Pacific and Americas consumer tire businesses.  Kramer said robust growth in the large-rim-diameter tire sizes (17-inch and larger) in 2016 was 9% in the US and 10% in EMEA.

“With the increasing demand for these premium tires, we expect supply to remain tight,” Kramer said. “The segment is growing in multiples [as compared to] the total industry.”

He added that the trend is driven by the auto manufacturers so the company will continue to target OE fitment opportunities that have high consumer loyalty, resulting in eventual pull-through to the replacement market.

Read the source article at Tire Review

Camso Offers New Underground Mining Tire

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Camso is offering a new underground mining tire for load haul dump equipment, the MST 776.

The MST 776 provides superior hard surface durability for machines working in the toughest underground mining applications, Camso said.

“Knowing how uptime is crucial in underground mining, the new Camso MST 776 was engineered to maximize tread life while protecting it from puncture,” said Mike Dembe, Camso’s product management director for North America and Latin America.

Read the source article at Tire Review

Global Radial OTR Tires Market Analysis & Forecast to2017-2021

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The report aims to provide an overview of Global Radial OTR Tires Market along with detailed segmentation of market by component, application, deployment type, industry vertical and five major geographical regions. Global Radial OTR Tires Forecast by Regions (2017-2021), Global Radial OTR Tires Forecast by Type (2017-2021), Global Radial OTR Tires Forecast by Application (2017-2021)

Read the source article at openPR.com

Demand for Tires in China Is Making Your Rubber Gloves Pricier

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Demand for Tires in China Is Making Your Rubber Gloves Pricier by China’s tire demand has helped a rubber ingredient surge 117% Rubber glove makers’ raw material costs jumped 45% since Sept. Consumers across the globe donning gloves to do the dishes may soon feel the heat from rubber being burned on China’s roads. Surging car sales in China in the last few months have more than doubled the price of a little-known chemical called butadiene.

Read the source article at Bloomberg.com

Could supplier jobs move back to America?

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Suppliers are waiting to see whether President Donald Trump will challenge the fundamental assumption that some auto parts can’t be profitably produced in the U.S., even with a 35 percent tariff.

Products with high labor content, such as wire harnesses, small motors, cut-and-sew seat components and electronics, typically are produced in low-wage countries such as Mexico.

That’s also standard procedure for automakers in Japan and Germany, which get their labor-intensive components from markets such as Poland, China and Vietnam, said Kristin Dziczek, director of the Industry, Labor & Economics Group at the Center for Automotive Research.

“Every major auto production region has a Mexico,” Dziczek said. Suppliers choose low-wage countries to produce “commodities that aren’t very complex to manufacture. That stuff is almost all gone” from U.S. factories.

Read the source article at Front Page

Summary Companies that regularly increase dividends: January 23-27, 2017

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Summary Companies that regularly increase dividends show confidence in the potential growth of future earnings. Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. This week, 31 companies on my watch list decided to increase their dividends, including 3 of my DivGro holdings. Part 2 of this article reports on 19 companies in sectors other than the Financials sector.

Applied Industrial Technologies, Inc. (NYSE:AIT)

Founded in 1923, AIT is an industrial distributor in North America, Australia and New Zealand, supplying customers in a range of industries with products, including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, and general maintenance and mill supply products.

AIT is headquartered in Cleveland, Ohio. AIT will pay a quarterly dividend of 29¢ per share, an increase of 3.57% over the previous quarterly dividend. The ex-dividend date is February 13 and the dividend will be paid on February 28 to shareholders of record on February 14.

Read the source article at Stock Market Insights