Newsletter #208 (View other news stories)
Manufacturers face steel and tyre supply difficulties
Thursday, 12 May 2005
Forkliftaction.com News emailed forklift manufacturers to ask how current steel and tyre supply difficulties were impacting their businesses. We asked two questions:
- We have learnt about a delay in the supply of industrial tyres. Your comment?
- How is the current steel supply and tyre supply affecting your business?
Here is an edited selection of their comments:
"It’s not only tyres but everything, even … glass. We have placed orders with our suppliers a year in advance for tyres and power trains.
"Steel is affecting everyone, so that’s the good news. We have tried to absorb some of the cost and pass on the difference. However our machines are still selling strongly so we have no choice but to go into full production - it also helps the cost by running at full capacity since the machines are all sold in advance."
Greg Pannia, Omega Lift Manufacturing Inc operating manager
"We can't promise customers a specific brand, if required, at all times.
"Higher cost of production, some steel qualities up to 100%!!!"
Bjorn Fritzell, SMV Konecranes sales director
"Procurement of steel has been difficult recently but, being a good customer to steel mills for STS and RTGs, it does not affect the "big lifts" production at all. Tyres are another matter, most well-known brands (ie Bridgestone, Simex, Yokohama) have their year’s production full. We have been working closely with Simex and have our year 2005 and 2006 production covered."
Jimmy Lozada, Fantuzzi product manager
"Everyone in the industry experienced the effects of this lack of supply. Hyster Company has been able to move forward and our production is currently on track.
"With reverberating effects touching numerous industries, the steel price increase is visible in our every-day life. Hyster Company continues to manage its business as cost effectively as possible to minimise the effects experienced by our customers."
Geoff Beale, Hyster Company sales director
"Don’t get me started because you’re damn right. This has decreased production time by two to six months and increased the price by 45 per cent. For one set of tyres, I was quoted by one company a two-year waiting list.
"It affects me in two major ways - increase in price, thus passed to the customer, and increased delay in getting the product to the customer (which increases my overhead waiting for tyes/steel). Unfortunately most of this gets passed on to the customer. However, since this is the case across the board, we all have to take the hit."
Michael Salter, Rigger Xtreme president
"It’s purely a European issue and has had no effect on Japan, the home of our TCM products.
"The universal challenges facing the steel industry have had an effect locally, in so much as delivery times have gone out from about 12 weeks to closer to 14 weeks. TCM has worked tirelessly to soften the impact on our business and deserves full credit."
Paul Robinson, TCM spokesman
"This is and will continue to be the largest issue for OEMs and our customers this year.
"The supply is getting better, however we have not seen any movement in alloy pricing yet. We have actually seen more increases in that part of the steel supply. The tyre business has made Taylor not capable of offering the vast array of tyre brand choices our customers normally enjoy."
Robert Taylor, vice-president of operations for Taylor Machine Works
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