Aaron Murphy, senior vice president, CMA/Double Coin, lays out the company’s growth strategy in this MTD exclusive.
MTD: How was the first half of 2024 for CMA/Double Coin? What were some of the company's highlights and accomplishments?
Murphy: The first few months started slow, but picked up in the second quarter. Economic challenges are affecting tire demand, but we’re ahead of last year’s numbers. Highlights included the announcements of several new products in our radial off-the-road segment, including airport ground service equipment. In addition, our dealer portal, announced this year, has steadily grown in use.
MTD: What's your take on the state of replacement TBR tire demand in the U.S.? How about replacement OTR tire demand? What are you seeing in the marketplace and what are you hearing from your customers?
Murphy: Overall, truck tire demand is steady year-over-year in our segment, but it is not ‘lights-out,’ like it was in 2021 or 2022. Small OTR demand is picking up as more construction begins to unfold. However, the real boom in OTR may not happen until the economy picks up and that looks to be a 2025 timeframe. Customers share with us that business is just OK, but inventories are high. This is expensive due to interest rates and creates profitability pressure on dealers.
MTD: CMA/Double Coin continues to build its sales team, having made some notable hires and promotions over the last few years. How is this benefiting your distributors and dealers?
Murphy: We’ve added a couple of key field personnel in 2024, but overall, we are keeping our headcount at the current level. CMA has always looked to our field sales team as a most integral part of our support system for dealers. Our team members have experience and relationships that allow us to meet the customer’s requirements for sales and support. Supporting each channel of sales with individuals familiar with the landscape is extremely important for continued growth.
MTD: Describe CMA/Double Coin's current distribution model in the U.S. How many distribution centers does CMA/Double Coin currently have in the U.S.? Are there plans to build more distribution centers in this country? If so, what region or regions are you eyeing?
Murphy: CMA warehouses product in three distribution centers in the U.S. - California, Tennessee and Texas - and a location in western Canada for support of our Canadian partners. Our business model also includes partnering with wholesalers in markets where they offer customers the best sales/service. At this point, we don’t see any additional D/C locations in 2024.
MTD: 2023 was marked by channel destocking among tire distributors, dealers, manufacturers and importers. Is most of that behind us now? Can you describe CMA/Double Coin's fill-rate at the moment? Is it in a good place?
Murphy: Double Coin’s fill-rate is strong and at a normal level today. With multiple delivery options - factory-direct from our D/Cs or from distributors - customers have access to the products when they need them at the price that they require. While we believe the anomalies of 2022 and 2023 are behind us, it’s important that we always look forward to staying ahead of any actions that impact the supply chain and customer demand.
MTD: In 2022, CMA/Double Coin added Özka brand ag and OTR tires to its North American product portfolio. How has that brand been received by customers? Are there plans to expand its range and/or SKU offerings?
Murphy: The agriculture market was one that we targeted with sustainability and growth. When our partner, Özka, came into our stable of products, it was a natural fit for our customer base. The brand has been received well and with the depth of the lineup, Mediterranean region manufacturing base and strong OEM presence, we are gaining momentum in the U.S. market. We added more North American-centric sizes in 2024 and expect this to be our best year in sales to date.
MTD: Can you tell us more about the dealer portal that CMA/Double Coin recently rolled out?
Murphy: Customers have shared that the features of our new dealer portal are fantastic. In today’s just-in-time delivery environment, having up-to-the-minute access to many data points allows them to manage their business more efficiently. Today’s tire world isn’t just a 9 a.m.-to- 5 p.m. routine. Managers, owners and others need 24 hours-a-day access to pertinent information and our portal does that.
MTD: What can we expect to see from CMA/Double Coin during the rest of 2024 and beyond?
Murphy: Overall, we’ll continue to present our programs in the market as before - great products, services and pricing, all with multiple delivery mechanisms. New and market-focused product development will continue in the TBR and radial OTR segments. Long-term, we may expand or move into new sectors of the tire industry with the same attributes that a dealer would expect from CMA and Double Coin.
