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The US Farm Tire Market Report: 2011 Edition
Koncept Analytics, April 2011, Pages: 34
Technological and scientific advancements have continuously added quantum and sophistication to mechanization and transportation machinery which has constituted the backbone of modern day farming in the US followed by other continents as well. Weak economic conditions reflected in poor sales of farm tires in 2009. Increased global demand for farm produce coupled with revival in economy saw an increase in sales in 2010.
A slow but positive growth of the US economy and stability is forecasted for 2011. With reported increase in demand, production and income from farm sources, the US farm tire shipments are expected to increase at a CAGR of approximately 7.8% for the period spanning 2011 to 2013.
The US farm tire market has two segments, replacement and original equipment farm tires, and is further categorized into radial and bias construction types. The replacement segment accounts for the maximum share of total US farm tire market. The increase in demand for agricultural produce coupled with other factors will result in increased purchase of new agricultural machinery thus leading to a consequent rise in demand for original equipment farm tires. The US tractor market which is the largest end application market of farm tires is reporting constant increase in sales.
New technological and design developments in farm vehicular machinery have resulted in further development of farm tires, larger in size and for diversified uses. The country is witnessing regular growth in the net farm income, total crop production and production expenses which will continue to drive the farm tire market in the coming years. In addition, the continuously rising Indian tractor market, provides an opportunity to the US farm tire market in terms of more exports. However, issues such as increasing raw material prices and rising inventory costs pose a challenge for the manufacturers and dealers in the industry's supply chain.
The leading players in the US farm tire market include Bridgestone, Michelin, Titan, CGS tyres, and BKT Industries, among others, competing on the basis of price and quality of products. Companies in the tire manufacturing business in the US are resorting to continuous price increase to compensate the increasing raw material cost. In addition, to meet the needs of new farm technology, the companies are developing technologically advanced products.
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