Ralson Tire North America Inc. (RTNA) is investing in products, production and distribution, says Brian Sheehey, the company’s senior vice president.
MTD: What was the first half of 2024 like for RTNA?
Sheehey: The first half of 2024 achieved positive growth for Ralson Tire North America. We were able to accomplish several of our goals in our first year of operation in the U.S. We are on target for our capacity goals during phase one of our factory ramp-up plan. The factory is manufacturing 44 SKUs for our TBR brands, Ralson and Accelus, and will have another 10 to 15 SKUs available by the end of the year.
Secondly, we have established our first warehouse supply program in the U.S., in addition to our factory direct container program.
Third, RTNA currently has six field sales representatives helping our dealer partners in their markets. We will be adding another eight more sales professionals in the second half of the year
MTD: What's your take on the state of the U.S. commercial truck tire market? Do you expect those market conditions to continue? If so, why?
Sheehey: The TBR (tire) market appears to be sitting on the fence right now, not knowing if the market will be better or worse than the pre-pandemic market. Many fleets are putting maintenance of trucks as a higher priority than committing to OEM purchases, with inflation and cost of borrowing being a significant topic of discussion for both dealers and fleets. Normally, this would have a positive effect on tire sales. However, the mileage put on trucks appears to be lower than average, off-setting the need for more tires.
We do see signs of a positive overall market for late-Q3 and into Q4 as stock tire inventories appear to be normalized versus last year’s overstock situation.
MTD: How have your Ralson and Accelus brand products been received by commercial tire dealers and end users? Are there any new products in the works?
Sheehey: Thankfully, the North American TBR market is full of intelligent dealers and fleets who are willing to discuss options and alternatives to more established brands. We are able to promote the differences between our brands and other, more well-known brands. Having a product that is specifically designed, engineered and built for U.S. fleets is a significant cost-effective advantage. By rationalizing SKUs and providing four-belt, 16-ply-application tires, we are simplifying the product screen for dealers as they look for quality and value.
Our current lineup will expand in to include line-haul steer and energy-efficient drive tires; 17.5-inch low-boy trailer tires, as well as 385 and 425/65R22.5 flotation tires; (and) severe-service tires for construction, in addition to our current construction models.
MTD: Can you provide more details on capacity or equipment investments made at Ralson's plant in India? How will those investments help RTNA customers?
Sheehey: Ralson is currently executing on our phase one plan of one million TBR units to reach 1.2 million units by March 2025. We are in the process of executing phase two expansion to achieve 2.2 million units by March 2026. Investments are also being made to increase SKU-specific mold capacity. Our plans are aggressive to scale up production as soon as possible.
Our domestic plans are to increase our U.S.-based warehouses from one to three in the near future to better serve our dealers and fleets by providing a much more stable supply chain system and increased inventory levels for them. Stay tuned for announcements about their locations!
MTD: What can we expect to see from RTNA for the rest of the year and beyond?
Sheehey: Expansion and partnership. It is in our DNA to provide excellent growth opportunities for our partners. We will prove to them that we are an investment - not a commodity. We are focused on growing in scale to keep costs down and providing a stable supply chain.
