Wheels of Fortune

Last month, we talked with Takao Oishi, president and CEO of Yokohama Tire Corp., about the economics of the construction tire market. “2011 will be slightly stronger than 2010,” mused Oishi. “But all tire manufacturers will face the same problem on supply, as well as the rising costs of raw materials.” Despite tough times, smart OEMs are prospering with good products. Another such company with a promising future in the vulcanized construction industry is the newly formed Camoplast Solideal alliance. In our continuing tires and tracks series, Wheels of Fortune, we sat down with Stephen Cook, director of strategic marketing at Camoplast Solideal, to discuss this new juggernaut.

CE: In September of last year, Camoplast Inc. announced the acquisition of the Solideal Group. It’s definitely the pooling of two great tires and tracks companies, but what in particular attracted Camoplast to Solideal?

Cook: Camoplast was a market-leading company in rubber tracks and undercarriage design with a very strong presence at major OEMs. Solideal was a market-leading company in solid tires, wheels and material handling tires with a very strong presence in aftermarket distribution. Together, the combined companies are able to offer a complete package for off-road vehicles. With very little overlap and great synergies, the acquisition made great sense.

CE: For customers, how are the product lines changing?

Cook: The integration of the two companies is a very complex undertaking. Our aim is to preserve the relative strengths of both brands and product lines where it makes the most sense to the overall business. The goal is not only to maintain existing volumes, but to continue to grow market share in all segments.

CE: What big new offerings does the company have planned in 2011 and beyond? The combined R&D of Solideal and Camoplast should be quite significant.

Cook: At the recent CONEXPO-CON/AGG show in Las Vegas, we announced exciting changes to our construction track product line. We will begin shipping our new SD and XHD tracks for mini excavators and compact track loaders in a few weeks. Customers will now have a choice of standard duty and extra heavy-duty tracks to suit their application. With over 175 dedicated R&D experts at four sites around the globe and a world-class distribution network, Camoplast Solideal is well positioned to serve the needs of the off-road vehicle market and many new products are already under development.CE: What are the biggest challenges facing the tires and tracks industries right now?

Cook: Raw material cost increases have certainly been an issue the last 12 months and it is likely there will continue to be pressure to raise prices. This is complicated by the very slow recovery in our core construction markets, but all manufacturers are facing the same challenge. Hopefully these inflationary pressures will ease as the economy begins to improve later this year and into 2012.

CE: In today’s market, does quality still beat price?

Cook: Price will always be a component of the purchasing decision — especially in difficult times, but we feel there is a significant portion of the market that expects and demands high quality at a fair price.

CE: How should hard working contractors using construction and landscape equipment [from skid steers to excavators] choose a quality tire or track for their fleets?

Cook: Availability, price and quality are all factors that should be taken into account when choosing replacement tracks and tires. But downtime cost and cost per hour over the life of a machine are probably the most important things for a contractor to consider. At Camoplast Solideal Inc. we feel we have the product offerings that provide customers the best overall value.