Why do so many of our political leaders seem to be vision impaired? Why is their sight set only on the next election rather than doing what they are elected to do as a representative of our societies and that is lead!

The rise of climate change as a topic has struck the world’s economies with large impact but if I may be bold this is only symptomatic of the dead end path that the apparent lack of vision by our leaders has taken us down.

The rise of the “electric economy” has been coming at us for some time being driven primarily by the rapid advance of electronics. One only has to consider the changes in phones, a tool that is now an extension of our personality, which many of us could now not live without.

The leadership of so many (and this is not exempting industry from the mix) is wanting I suggest. Whilst some voices project vision many others hide from the light of reality. The ability to plan for the future, to engage with the present to promote growth is a rare attribute. Many will expound they have the answers but very few have the vision.

Even down to the manner in which business is conducted is wasteful. A large company wanting to purchase an item provides pages of terms and conditions and then requires the supplier to engage in a credit account. Hold on, you are buying, you don’t set the terms and conditions nor do you set the price. What a waste of resources! The lack of vision of such companies in not determining that a successful business relationship is based upon sustainability is stunning.

If the supplier is not “there tomorrow” then the whole process must be repeated, at what cost? If the supplier folds at a critical point because they have been screwed to breaking point what is the outcome for the purchaser? An empty shelf at the supermarket, queues for petrol, no water from the tap are all outcomes of a lack of vision.

When a corporate entity engages with a client or supplier they should be viewing the potential for a mutually beneficial outcome where both parties make enough “profit” to be sustainable, both parties get what they want.

Everyone walks away happy and looking forward to the future. Tyre vision So, when we consider the tyres on our vehicles with what vision do we make our considerations on maintaining the humble tyre. That’s right, usually there is only ASSuMption, there is no vision until the tyre catastrophically fails and life flashes before us. Only then is there vision but alas it could be too late. By starting from the ground up when considering vehicle maintenance vision is required to plan for the required actions.

The first premise of maintenance for a rubber tyred vehicle is to ensure that there is the appropriate pressure in the tyres before operations commence. If there is, then we understand that functions like steering, drive traction and braking will be to the expected standard. It is not rocket science to maintain tyres appropriately, just due diligence and a little vision.

Now when considering the business environment, sustainability is paramount. There is little reward for making a huge profit today and a huge loss tomorrow, lots of effort for lots of pain. With sound and sustainable relationships that extend throughout the business model, from employees to suppliers to client’s, successes can be generated and sustained.

If any link of the supply chain is weakened guess what happens to the chain? For a vehicle to be profit generating it has to be moving, as we say at TyreSafe Australia “if your tyres aren’t turning they’re not earning©”.

The vehicle can be metaphorical as say a government could be considered as a vehicle of the people or in reality our mode of road transport. If the foundation for the vehicle is not appropriate then the outcomes are inevitable, failure is only a matter of when not if.

Why then does business ignore the foundations? Is the thinking that the edifice of industry is strong enough to support itself? Why do so many governments ignore the realities of change in our global societies? Could it be there is a lack of vision? What do you see that others about you do not? When John Powath established the publishing house he empowered his people, his teams. His vision was long range. Now Powering Ideas and Networking, we know as PIN 365, has evolved and John’s vision is being purposed on the foundations he set in place. John saw in the future what could be achieved and now Antony and his teams are building on the foundations John set in place. Consideration of others in our environment (and environment is not just limited to the geographic surroundings, think virtual environment for instance) is a basic requirement for a successful society yet I fear the trend towards “what’s in it for me?“Well, if we look at the performance of a tyre without the basic vision to be able to determine that pressure maintenance is required on a regular basis then I feel the future is bleak. The tyre’s performance will not be to expectations and costs will be in excess of what we think is fair or reasonable.

The lack of maintenance for the humble tyre is symptomatic of the lack of vision employed by many but can I suggest primarily “the leadership”. We look to our leaders (in all walks of life) for such vision but when they can’t see any light how are “we” able to be sustainable and profitable? Such leadership has to start from the ground up. Next time you go to “a vehicle” consider the foundation it rests upon. Is that foundation actually capable of providing sustainable service or is it just masquerading? All “we” ask for is sustenance so our children and their children have somewhere to live and be successfully sustained. All the humble tyre asks for is the appropriate inflation pressure for the work you require of it. Do you have the vision to start at the foundation?

I welcome PIN365 and look forward to making contributions to further enhance tyre safety on a global basis. Congratulations Antony and your team!

•Adam Gosling and the team at TyreSafe Australia provide guidance and direction for all tyre users. Safety is paramount, so is efficiency and sustainability. Tyres are a globally universal product, the requirement for tyre safety is also a global standard.

Bridgestone Americas announced the launch of Firestone Direct mobile vehicle service for car owners and fleet operators. Firestone Direct brings Bridgestone’s automotive services directly to vehicle owners’ homes or workplaces to offer maximum convenience with safe, contact-free service.

This service uses specially equipped vans operated by certified technicians to perform a wide range of maintenance services, including fluid and filter changes, tire repair and replacement, battery check and replacement, and more. 

Through 2021, Firestone Direct will continue to grow into additional markets across the southeastern U.S., with plans to expand nationwide by 2023. The new service launched first in Nashville and Atlanta and expanded into Orlando and Tampa in March.

Angie Oleson, director of Firestone Direct, said, “Customers are increasingly turning to online shopping and at-home services for convenience and safety, and Firestone Direct is at the forefront of this movement for at-home car care. By bringing trusted vehicle care featuring the latest automotive technologies directly to the customer, Firestone Direct can leverage the expertise of our trained technicians with the ease of online booking and at-home service for maximum convenience.” (TT)

The global electric vehicle (EV) market has taken a tremendous leap forward, with new registrations reaching record market shares in nearly all countries. For the tyre development landscape, the accelerating growth of the EV market means a pervasive transformation.

Boosting circular economy

At Black Donuts, the impact of the EV trend can be seen everywhere, from the tyre designers’ desks to the new practices of tyre testing. Beyond meeting new demands of the EV sector, the procedures and practices are tuned to serve the company’s strategic goal: to spearhead the industry’s shift towards a circular economy.

Black Donuts launched the first EV tyre development projects with its tyre manufacturer customers in 2018. The internal research on EV tyres was initiated even before, at the time of the first EVs entering the market. “The first research project addressed the primary technological challenges: rolling resistance and noise,” says lkka Lehtoranta, Head of Tire and Material Development at Black Donuts.

In tyre design, it is essential to focus on specific aspects to ensure optimal performance for electric cars. Compared to combustion cars, tyres for Evs must carry a heavier load withstand high instant torque – and be efficient and quiet. 

Lately, the focus on tyre technology has shifted towards more comprehensive sustainability. Bio-based materials and compounds are opening new possibilities, and the rapid growth of the EV market accelerates the pace of development. ”The EV trend has highlighted the sustainability of tyres. The demand for bio-based materials and tyre recyclability has significantly increased,” says Jarkko Mällinen, Technology Development Manager of Black Donuts.

In cooperation with its partners, Black Donuts is investigating new possibilities to replace fossil-fuel-based raw materials with bio-based or renewable materials in all products, including studded tyres. The company is currently testing the use of bio-based plastics in stud bodies.

Also, end-of-life tyres are a hot topic in the industry, and Black Donuts is researching how the waste tyres can be recirculated and recycled back into the process. Even the tyre development process is undergoing a renaissance. New design tools for faster tyre development are being introduced, emphasising the key features of sustainable, future proof tyres.

Comments (0)

ADD COMMENT

European PCLT (passenger car and light truck) tyre manufacturing capacity has risen over the past decade to meet increased demand, but there has been a major shift from plants in Western Europe, towards Central Europe and Russia. The move eastwards reflects substantial differences in operating costs between the two regions, specifically in terms of labour costs. Hourly labour rates in Central and Eastern Europe can typically be half to one quarter of those in the highest cost Western European countries. In particular this significant differential has resulted in the transfer of production of lower priced non-premium tyres to larger plants in Central and Eastern Europe. Numerous PCLT plant closures and downsizings in Western Europe have either been announced or enacted during the past 18 months.

In 2019 Cooper Tires ended PCLT tyre production at its small plant in the UK, and Michelin recently closed the PCLT tyre plant in Dundee that manufactured tier-1 brand tyres in lower rim-diameters (≤16”), a shrinking segment of the European market. These closures leave just the two PCLT tyre facilities operating in the country: the Pirelli plants that focus on low volume but high-margin premium tyres.

In Germany, Michelin has announced plans to close its Bamburg plant that also focused on lower-rim -diameter tyres, whilst Goodyear is restructuring operations at its PCLT tyre facilities located in Fulda and Hanau. Total capacity there will fall, but there will be an increase in production of premium tyres.

Pirelli has recently ceased production of car tyres at its Bollate plant in Italy, its only facility in Western or Central Europe that was manufacturing non-premium car tyres. Apollo Tyres plans to downsize PCLT capacity at its plant in the high-cost Netherlands, focusing the facility on high value tyres with short production runs. Management had stated that the company lost money on 70% of the PCLT tyres that it sold from the facility.

Despite these closures in Western Europe, expansion to the east is expected to result in the net addition of 30 million units of PCLT tyre capacity across Europe* by 2026. New plants that have been recently opened, or are currently under construction, are located in either central and eastern Europe or Russia. In 2017, Apollo Tyres opened a greenfield plant in Hungary, with first-phase capacity increasing to 5.5 million PCLT tyres and almost 0.7 million TBR tyres. Supply from the facility has substituted imports from India and now permits the planned downsizing and specialisation of production in the Netherlands.

In 2018, Hankook announced plans to add production of TBR tyres at its plant in Hungary, however this expansion was put on hold in late 2019. In phases, the company has already expanded PCLT tyre capacity until it is now one of the largest such facilities in the world. Meanwhile, Nexen has begun the ramp-up of capacity at its new plant in the Czech Republic; this will have added substantially to the country’s capacity by 2023.

In addition to further investments across Central and Eastern Europe by Continental Tire, Bridgestone and Pirelli, an expansion of premium tyre capacity in Slovenia has also been announced by Goodyear.

In mid-2019 Toyo Tire announced its intention to build a new tyre plant in Serbia, consolidating the country’s position as the leading location for new PCLT tyre manufacturing capacity in Europe. This follows Linglong’s decision to build its new European plant in the country and Cooper Tire’s plan to double the size of its facility. Based on analysis by Astutus Research of all announced capacity actions (plant opening and expansion net of closures and downsizing), Serbia will account for over 40% of planned capacity additions between 2019 and 2026.

Toyo expects to invest €390 million in its new facility that will have a capacity of 5 million units. It intends to start production in early 2022 and reach full capacity the following summer. Linglong’s facility will have a capacity of 12 million PCLT tyres, alongside truck and radial agricultural tyres, built in three phases and representing a total investment of over €800 million.

Serbia as new hub

Although there is demand for both replacement and original equipment PCLT tyres in Serbia, the domestic market is amongst the smallest in Europe and production will be export focused. The country has already emerged as a key source of budget tyres to the European Union and to Russia, predominantly from Tigar Tyre, Michelin’s low-cost tyre subsidiary, that has significantly increased capacity and production in the past decade.

Geographically, Serbia is well located to supply the major markets of the EU and Russia, and benefits from free trade agreements with both. Labour costs in the country are significantly lower than in the Czech Republic or Hungary, and labour availability is good, with a higher rate of unemployment.

At present Toyo imports tyres to Europe from its facilities in Japan and Malaysia; Linglong utilises its PCLT tyre plants in China and Thailand. Both companies aim to develop their presence in Europe, and local production should help them in this quest, particularly in the original equipment segment where the significantly shorter lead times will improve the competitiveness of their offer. Similarly, the opportunity to increase their share of the OE business was one of the motivations for Nexen and Apollo to replace imports to open a plant in the region.

Whilst the influence of the Covid-19 virus may slow the pace of some planned investment in central and eastern Europe, it has already accelerated the pace of closures in the west. Furthermore, we expect that it will result in further plant closures there, as the decline in European tyre demand dramatically reduces plant utilisation rates.

*Europe refers to Western, Central and Eastern Europe, including Russia and CIS, but excludes Turkey which we include in the Middle East & Africa region.

For capacity data: ‘Western Europe’ includes plants in Germany, France, Spain, Italy, the UK, Portugal, the Netherlands, Finland and Luxembourg. ‘Central Europe’ refers to Poland, Romania, Hungary, Czech Republic, Serbia, Slovakia and Slovenia. ‘Russia and CIS’ refers to Russia, Ukraine, Belarus and Uzbekistan.

• Simon Hodson is Research Director at Astutus Research shodson@astutusresearch.com

The WHO has said that the outbreak is now officially a Pandemic. People/ companies/ organisations are still coming to grips on how to address the situation. Government heads of various countries are trying to curb the situation by restricting entries of people who are affected by countries that are affected the most. Thus, airlines would have only diplomats and other certain levels of people allowed to fly.  Many airlines have suspended a good number of their flights.  Many companies will be looking to take a hair cut on what they take back with them, just to see that business can be sustained during the trying situations. 

The virus has led various markets to crash, courier services have been curtailed in certain countries. All types of cancellations, be it sport, expositions or business, have affected the business world over. The transaction value in the losses may be difficult to gauge currently, however, it could be in the millions. Contracts would have to be reworked, and companies may have to come with new strategies. 

However, in every situation, there would be also a business opportunity, if you work your strategy right. The sale of masks, gloves, hand sanitisers, medical devices would be able to generate good business. Though it is seen that the outbreak is from China, you also got to give to them as to how they are trying to contain the situation by building hospital/s within 10 days. In other countries, this would easily have taken a much longer time period. 

It is a given that the business scenario is not going to be the best for most of the companies; Therefore, companies may have to think and reevaluate the way they are currently running their company. Companies will look to get leaner in every possible way. Cut down on unwanted expenses. Many companies have started asking their employees to work from home. Some may look to have lesser number of people and look to automate some of the work, especially in the factories.  Commercial properties being an expensive asset to maintain, some companies may look to perhaps go on rented co working spaces. Use less of one time use items like plastic and use more renewable/ reusable substitutes. Use of more environment friendly methods going forward will be the mantra. 

This hit on our social system in a way will make us pause, think and have better suggestions as to how to look after ourselves and our environment at large.