When discussing investments and economic security, most experts recommend the same strategy: diversification. That way, when one segment of the market falls, all your eggs aren’t in the same proverbial basket.
In a way, the same principle can be applied to the skid-steer loader tire market. 
Because of the machine’s capacity for special attachments and its overall versatility, although one segment of the skid-steer tire market may take a nose dive, tire dealers can remain confident that overall demand will still remain fairly steady because of the vast array of customers who rely on the equipment.
So when construction flattened during the recession, the skid-steer tire market took only a “slight dip,” according to Scott Sloan, product engineering manager for Titan Tire Corp. “The skid-steer tire market remains extremely strong,” he says. “Although there was a slight dip in demand, the market for tires remained steady and is now on the rise again.”
Sloan adds that the largest decline was in equipment sales – and therefore OE tires – but for the most part, aftermarket demand remained strong. Moving out of the recession, Titan expects this segment to remain strong in the next few years, he says.
Skid-steer loaders can be found in worksites across the continent and are used by both average Joes and pros for construction, farming, excavating, recycling, landscaping, mining and snow removal, among other tasks. The machines have become more specialized and more rugged in recent years, requiring the same adaptations of the tires on which they ride.
Trend Tracking
According to James Tuschner, marketing director for Alliance Tire USA, several trends combine to change the face of the skid-steer marketplace, the first being an increase in demand for severe-duty service tires – extra heavy-duty, deep tread and relatively low-void offerings.
“Severe-duty service skid-steer tires have gained a stronger presence relative to standard skid-steer tires – whose high-void treads can be scrubbed off quickly on concrete – for hard surface applications,” Tuschner explains.
While rim guards were a “pretty exclusive feature” years ago, he adds that, “Now, even lower-end tires feature some sort of rim guard – though, of course, not all tires or features are created equal.”
Tire dealers should exercise caution when making recommendations to their skid-steer customers, as an increase in the number of small manufacturers entering the skid-steer tire segment has brought an increase in quality problems from many of these newcomers’ tires – round tread face, premature wear, inconsistent overall diameters, etc., according to Alliance’s Tuschner.
Another trend dealers would do well to keep up on is the growing number of track loaders. The machines – basically a skid-steer machine with tracks instead of pneumatic tires – still make up a relatively small portion of the market, but OE sales of track loaders are continuing to trend upward. Tuschner notes track loaders are “gaining ground for soft soil applications.”
Sloan says that the segment has also seen an “evolution to the stepped lug design,” a change in which he says Titan led the way for the move toward more application-specific designs. “Our most recent has been the Ultimate Skid-Steer tire, which has a conventional skid-steer tread design but with a deep 44/32nds tread depth compared to the 27/32nds found on our HD2000II,” he says. “We are also in the process of developing a true ‘turf’ design for the landscaping and golf course markets.”
Sloan adds that Titan’s “proven performance record” is evident when comparing sections of the company’s skid-steer tires to the competition. “You can see the difference – a stronger casing, deeper lug and heavier inner liner gauges. Our tires are designed to last longer and are the preferred tire among OEMs.”
Tuschner says Alliance offers the “original, hands-down best skid-steer tire in the marketplace, the Galaxy Hulk.” He explains the Hulk is a skid-steer and backhoe tire designed for extreme severe-duty service, providing traction and long wear on both hard and soft surfaces. The tire features a 44/32nds ultra-deep tread, cut- and chip-resistant compound and a directional, self-cleaning tread, he says.
Meeting Customer Demands
Although the versatility of skid-steer loaders ensures a wide customer base, it also means tire dealers must stay informed when it comes to matching products with specific applications.
“Dealers need to understand their customers and the market they plan to service,” Titan’s Sloan says. “It’s also important to understand the differences between tire manufacturers’ products. They will receive questions from customers who make a living using their machine to the guy that pushes snow once or twice a year to the small acreage owner.”
“Users are more apt to embrace a tire that is purpose-built and application-specific in order to improve the performance of their machinery and reduce cost per hour,” Alliance’s Tuschner adds. “Equipment owners – whether they’re construction companies or rental fleets – see the value in long tread life, puncture resistance and reliability, which all add up to reduced downtime and greater productivity from the machine.”
For landscape applications, he says customers are more apt to buy on price, as skid-steer tires are used mainly in mild service applications, while for rental yards and construction companies, the primary consideration is durability.
“These customers are looking for two features: long wear to ultimately reduce cost per hour, and puncture resistance to reduce downtime caused by flat tires,” Tuschner says. “For farming, the uses vary greatly. Dairy farmers require long wear because their skid-steers operate primarily on concrete, while chicken farmers need superior traction because of wet, slippery conditions.”
Whatever the application, dealers can score points – and gain loyalty – with customers by providing long-term, money-saving solutions. Tuschner recommends suggesting and providing a tire that offers better hours of service and less downtime for an overall, significant cost per hour savings.
“New dealers to the skid-steer tire market will need to deliver more than just great tires and great prices – they need to deliver great service, too,” he adds.
One positive aspect of competing in the skid-steer tire market is a comparatively low number of SKUs dealers need to stock.
“The array of sizes is small – you can serve 70% of the market by simply stocking 10-16.5 and 12-16.5 sizes,” Tuschner says. “Further, you can serve the bulk of the pneumatic skid-steer tire market by stocking two types of tires: standard, directional extra heavy-duty sidewall; and deep tread severe-duty service.”
Though this market doesn’t come without its challenges, dealers who take the time to educate their staffs on the nuances of each application could stack up some hefty profits – and get a leg up on the competition – in the hard-working skid-steer segment.
