As director of Purcell Tire & Rubber Co.’s global mining division, Mason Hess has a ringside seat to the ups and downs of the OTR tire market.
Hess recently told MTD that the large mining tire segment is in a “pretty consistent” place as 2024 draws to a close, with “no supply concerns with big tires.
“In mining, a lot of supply - almost all of it – is contracted” in advance, he said.
“It’s well-forecasted as an industry. You have a commitment of supply and some test tires here and there that you’ll bring in and out, but a lot of it is mine operators saying, ‘We’re going to move this much dirt and this much rock and we’re going to need this many tires.’”
Hess also told MTD “there’s been kind of a dynamic shift in price points” in the mining tire segment due to rising costs on the supply side.
“We’ve heard from our vendors and our suppliers that their costs are going up. Fuel costs and logistics are more expensive,” which has forced mining companies to look at less-expensive OTR tire options, he explained.
“In the last year or so, we’ve seen the door crack open for other manufacturers,” who, from Hess’ vantage point, “are taking some market share.”
A more long-term shift - and one that will impact future mining tire consumption - is the transition to alternate energy sources, he said.
“There’s a big move toward new energy sources and it’s going to take a lot of minerals and mining to get there. It could slow down or it could speed up, but overall, I think we will move toward those opportunities,” which he said could generate “a pretty big spike in growth.”
As a mining tire supplier, “you may have contracts in place, but if the world takes off, so to speak, you better make sure the ink is dry on your contracts because the big mining corporations will gobble up” production capability and tire supply.
Hess noted that attracting and recruiting new and younger OTR tire service technicians will be another long-term challenge.
“Not to cry ‘the sky is falling’ too badly, but I see the supply of people – let's call them young, willing, able, competent youth – is minimizing for these labor-intensive positions. Young people come in, but they don’t always stick. Working on tires is hard.”
The shortage of new recruits is one reason why Purcell Tire has “put a lot of energy and effort into” OTR tire service technician retention, Hess told MTD.
“One thing we’ve started to do is celebrate our tire techs. This year, we’re going to crown a Mining Tire Technician of the Year,” which will become an annual award.
“We’ve reached out to our vendors and they’re excited to support us.”
Purcell Tire also contracts with Today’s Class, an online training vendor, to provide continuous education for its techs.
“As they go through the program, they get ranked and then they get to go to advanced Tire Industry Association (Earthmover Tire Service technician) classes. And we spoil them. We put them up in the best hotels and feed them the best food. It becomes a bit of an event.”
